Israeli Ports operate through disruptions to trade
ISRAELI trade routes, both in terms of air cargo and marine transport, are experiencing strain as the country’s war with Hamas continues, reports Bloomberg.
While ocean shipping rates for goods originating from Asia and Western Europe to Israel decreased last week, along with global rates, this situation may change due to rising insurance costs and carriers passing on war risk premiums.
Haifa-based container line Zim Integrated Shipping Services has recently announced such premiums.
Freightos research head Judah Levine stated that if insurance risk premiums are added to freight rates, there may be a modest increase in rates, although there hasn’t been a significant spike
“I would imagine that if the insurance risk premium gets included in the freight rate, then you’d start to see rates increase somewhat, but they don’t seem to be spiking,” said Mr Levine.
Israeli ports are grappling with additional security checks and labour shortages.
While cargo bookings are still being accepted, some signs of congestion exist.
Mediterranean Shipping Company (MSC), the world’s largest container line, reported increased waiting times at terminals in Ashdod and new restrictions on hazardous freight.
On the other hand, Maersk confirmed the continued operation of its ocean, rail, road, and limited air services.
A recent research report from S&P Global Market Intelligence indicates that the risk levels at five Israeli ports range from very high to severe.
Ashdod and Ashkelon are “very likely” to experience unscheduled closures due to security concerns.