Subject: Houthi attacks have led to the realignment of Israeli shipping lines, affecting cargo times and freight rates. Rephrased: Houthi attacks forced Israeli shipping companies to change course and bypass the Red Sea to the Horn of Africa. According to Judah Levine, head of research at Freightos, this has not only led to longer shipping times, but has also sent freight rates soaring. An Israeli oil tanker was attacked near Yemen, as mentioned in a report on Sunday by Ambrey, a global maritime risk management firm. The attack was carried out by an Iranian-produced Shahed-136 suicide drone and targeted a Maltese-flagged steamer "CMAC GMSYMI". The ship is owned by the Eastern Pacific Shipping Company, which is controlled by a wealthy Israeli billionaire. In addition, the Houthis hijacked a Japanese ship bound for India from Turkey. Although these attacks targeted ships owned by Israelis, the main threat was not to Israeli shipping, but to the viability of partnerships between Jews and non-Israeli shipping lines.
It is noteworthy that all three incidents involved the transportation of goods between foreign companies and non-Israeli crew members between foreign countries. On the other hand, Judah Levine pointed out that since the outbreak of the Israeli-Palestinian conflict, there has been a constant flow of freight between Israeli ports and China. This has an impact on all cargo from China to Israel and via the port of Ashdod. Over the past few weeks, freight rates for these cargoes have begun**, contrary to the general trend between Asia and the Mediterranean**. According to Freightos, container freight rates from China to the port of Ashdod increased by 9-14% in the last two weeks of October, 5% higher than pre-conflict levels. At the same time, between Asia and the rest of the Mediterranean countries, it has increased by 7% in the same period and by 8% since October 7. Levine noted that although there has been no significant change in sea traffic at Israeli ports, operations at the ports have become more difficult than usual due to manpower shortages and delays caused by rocket attacks. For example, MSC said there was congestion at the port of Ashdod and EVA Shipping diverted ships to Haifa. In general, the ** between Israel and Asia has taken a hit.
After attacks on Israeli ships in the Red Sea and the Arabian Sea, the ships of the Rayshipping shipping company in Ungar had to bypass the Bab el-Mandeb Strait between the Arabian Peninsula and Africa. In addition, since the attack, at least two Israeli-linked ships have been forced to change their course. Even so, many ships still bypass the Cape of Good Hope on their way to North America, although this may result in longer voyages. Not only that, but Israel or some Israeli ships have also strengthened their security teams to deal with security threats. As a result, the freight rate of containers bound for Israeli ports on international routes has been **, and ZIM has even announced that the freight rate will be increased by more than $100 per container. Insurance premiums have also soared by more than 200%. In this context, ZIM announced on the 27th that it is implementing temporary proactive measures to ensure the safety of its crew, ships and customers' cargo by changing the route of some ships. Although longer transit times are expected for Israeli shipping lines' related services, efforts are being made to minimize disruptions.
ZIM said it will continue to serve ports in the Eastern Mediterranean and Israel, but operations in and out of these ports will strictly adhere to safety protocols, which are essential to safeguard the interests of all stakeholders. In addition, Israel Shipping also reiterated that it is working hard to provide the best service to its customers. However, since longer routes can add 18 days to the voyage, vehicles destined for Israel from China, Japan, and South Korea may need to be diverted, doubling the voyage time. It is expected that there will be 8,000 to 120,000 vehicles, most of them electric, arrived in Israel from East Asia. According to sources, the cars were transported mainly by ZIM and NYK. A vessel chartered from an Israeli shipowner by the Japanese shipping company Nippon Yusen (NYK) has been hijacked off the coast of Yemen, causing the company to send it back to its original route. The container ship ZIM Europe, which was originally scheduled to sail east via the Suez Canal, has been rerouted around the Cape of Good Hope in South Africa, a move that adds thousands of kilometers of range, according to International Shipping**. According to shipping industry sources, this diversion will significantly increase the cost of shipping, while the "war premiums" charged by insurance companies will also rise significantly.
All of these factors will result in hundreds of dollars in cars imported from East Asia in the first quarter of 2024. Israel has recognized the risk that ships deviating from its dangerous coastline pose to its ** chain and has said it will compensate any vessel damaged in its waters as a result of the ongoing conflict with Hamas.