Israel shipping costs rise as lines withdraw and Red Sea attacks worsen By Reuters

By Jonathan Saul

LONDON (Reuters) – The cost of shipping goods to Israel by sea has risen in recent days as some container lines pull out while others impose new surcharges, adding to pressures on the country's supply chain. country in the midst of its war in Gaza, shipping sources said.

Israel, whose economy depends on maritime trade, said in October it would provide compensation for ships damaged due to the war with the Islamist group Hamas, although it has not detailed whether it will cover additional shipping costs.

Iran-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea to show support for Hamas following the start of Israel's military offensive in Gaza.

Some shipping companies have responded by diverting their voyages around the Cape of Good Hope or suspending transits through the Red Sea. The attacks have also put more pressure on companies that still provide shipping to Israel.

“The Houthis have expanded their target profile of what constitutes 'affiliate' from flag, ownership, operation and management, to include the fate of Israel,” British maritime security company Ambrey said in a note on Monday. “They and their Iranian sponsors have mistakenly attacked ships that were no longer associated with Israel.”

Sea freight rates to Israel from several Chinese ports rose to more than $2,300 for a 40-foot container on Dec. 12, from around $1,975 in late November, according to an analysis by global shipping platform Freightos.

“For ships heading to Israel from Asia, the route around Africa is significantly longer (around 7,000 nautical miles and between 10 and 14 days) than through the Suez Canal. This route also involves higher fuel costs “said Freightos CEO Zvi Schreiber.

“Since the start of the war, sea rates from China to Israel's ports have increased by 46% to 58%,” Schreiber said.

Taiwanese container shipping group Evergreen Line said on Monday it had decided to “temporarily stop accepting” Israeli cargo with immediate effect.

On Saturday, Hong Kong-based container group OOCL said that “due to operational issues” it would stop accepting cargo to and from Israel until further notice.

Others, such as Denmark's AP Moller-Maersk, said on Monday they would apply an “emergency risk surcharge” to all cargo unloaded at Israeli terminals.

Israeli container line Zim said it had “witnessed an increase in the threat level”, leading to higher surcharges on its ships, which included fees to Israeli ports from Asia.

The new rates “are necessary to maintain our current level of services and reflect the measures we take to ensure the safety of our crews, vessels and our customers' cargo,” Zim said in a Dec. 14 notice.

Ships still willing to call at Israel's biggest ports, Ashdod in the south and Haifa in the north, have been turning off their tracking transponders to avoid detection, shipping sources said.

“Operators of ships that have called, or plan to do so, () at Israeli ports should limit access to information,” a notice issued by major global shipping associations stated on Friday. “The information published could be used by the Houthis.”