Gideon Golber, the General Manager of Eilat Port, has confirmed that Yemeni threats to prevent ships from heading to Israel have disrupted 80% to 85% of the port’s profits. According to Israeli Army Radio, Golber stated that the Yemeni threat to the Red Sea maritime routes has resulted in the loss of about 14,000 cars for the port since mid-last month.
Golber added that Israel fears the closure of the Bab-el-Mandeb Strait to commercial shipping headed to Israel via the Red Sea to Eilat Port, or passing through the Suez Canal. This closure could extend the travel time for cargo ships coming from the East to Israel by about five weeks. He explained that cargo ships would have to circumnavigate the African continent via Cape of Good Hope and pass through the Strait of Gibraltar to reach the Mediterranean Sea.
In this context, Israel’s Channel 13 reported that the value of imports from the East to Israel is estimated at about 350 billion shekels, equivalent to 95 billion dollars annually. The channel added that changing the maritime navigation route would raise the prices of imported products by an estimated 3%, adding a financial burden of about 10.5 billion shekels, or around 3 billion dollars, on Israelis.
This comes after Sana’a announced that it would prevent ships headed to Israeli ports, regardless of their nationality, from passing through the Arabian Sea and the Red Sea, unless the Gaza Strip receives its needs of food and medicine.
Earlier on Sunday, the Ministry of Defense in Sana’a announced that it had appropriately dealt with a ship that did not comply with the prohibition and was forced to retreat.
In this regard, Eliyahu Marom, the commander of the Israeli Navy, pointed out that Sana’a’s announcement, which did not specify “what it would do and how”, would automatically lead most ships to decide not to reach Israeli ports. He explained in a talk with Channel 12 that these are commercial ships seeking profit, and that delays in the arrival of goods will affect the price and increase insurance premiums.
An Endless Problem
Mayan Berti, the economic affairs commentator on the channel, noted that Israel’s maritime trade volume is 400 billion shekels per year, with 99% of imports coming by sea, 30% of which comes through the Red Sea. She added that many sectors are expected to be affected, particularly the production of electrical parts, automobiles, and raw materials for local production.
Many factories in Israel are facing import problems because raw materials are not arriving on time, leading to expected price hikes, increased insurance costs, and disruptions in the supply chain.
Furthermore, the economic affairs commentator on Channel 12 emphasized that the occupation “cannot produce everything it needs and imports large quantities.” She explained that this situation, in short, creates an endless problem for the market, and if not resolved, everyone will soon pay the price.
