The ongoing Red Sea crisis continues to have significant impacts on the Port of Eilat, one of Israel’s most important commercial ports. Repeated long-range missile attacks by the Yemeni Houthi armed forces have led to direct economic losses of around $3 billion for the port.
Houthi attacks have primarily targeted Israel-linked vessels in the Red Sea. As a result, key imports and exports from the port were largely disrupted. “All cargoes arriving in Eilat through the Bab el-Mandeb Strait from the Far East, i.e. China, Japan, South Korea and India, are no longer transported because ships are afraid to pass through the Bab el-Mandeb Strait. We have no more ships since December 1,” explains Gideon Golber, CEO of the Eilat port company.
As things stand, port operations can barely be sustained until February, Golber warns. If there is no solution found by the Israeli government, it may be necessary to cut jobs. The port of Eilat mainly specializes in the import of cars and the export of potassium fertilizers to the Asia-Pacific region.
In recent years, almost half of Israel’s annual car imports have passed through the port of Eilat. Car imports also accounted for more than 75% of the port’s total profits. Before the Houthi attacks, around 50,000 new cars were stored at the port.
This crisis also threatens Israel’s two other international ports. Indeed, nearly 30% of goods imported through the ports of Haifa and Ashdod must pass through the Red Sea and the Suez Canal to reach Israel.
In the fourth quarter of 2023, due to the Israeli-Palestinian conflict and tensions in the Red Sea, the number of cars imported through the port of Ashdod fell by 94%. The scope of transshipments in all Israeli seaports has been reduced significantly, by around 70%.
This crisis highlights the importance of finding a rapid solution to resolve security issues in the Red Sea and allow the resumption of commercial activities vital to the port of Eilat and the Israeli economy as a whole.