Eilat Still Shipless, Houthis Strangle Port City
Eilat’s port has been closed since November due to Houthi attacks in the Red Sea, creating financial stress for the city. Nevertheless, goods are being rerouted to Israel’s Mediterranean ports, ensuring the flow of international trade.
The Houthis of Yemen have attacked Israel at least 53 times since the beginning of the war in Gaza on October 7, 2023, according to the US Congressional Research Service. The Iran-backed Ansar Allah/Houthi movement targets not only Israeli territory but also commercial and naval vessels near Bab el Mandeb Strait as they try to access the Red Sea and the Israeli port of Eilat.
The city of Eilat and its port on the northern tip of the Red Sea are protected by anti-missile systems, but Eilat’s economy is bleeding, and its port operations have dropped to zero.
As Gideon Golber, the CEO of the Port of Eilat, described the situation to The Media Line, “The Houthis are trying to suffocate Eilat and its economy. The remaining Israeli ports are absorbing shipments delivered through the Red Sea, but Eilat has unused logistics equipment and personnel. If the conflict in the north, between Israel and Hezbollah, further escalates, impacting the ports in the Mediterranean Sea, this could become a national threat.”
Gideon observed that, in addition, “Many ships moving between Israel and Asia need to reroute around Africa to avoid the Houthi attacks off Yemen’s coast. This adds time and costs to the shipments, which also increases the risk of attacks from other places, like the coast of South Africa or the Strait of Gibraltar.”
On January 10, the United Nations Security Council adopted Resolution 2722, which condemned the Houthi attacks and affirmed the rights of member states to defend their vessels. This international move highlights the ongoing global concern over maritime security and the economic implications of the Houthi actions in the region. Still, more needs to be done for the port of Eilat, its economy, and its people.
“The US needs to get more involved in fighting off the Houthis now,” asserted Gideon, “not later when the situation becomes much worse. If the US is seen as weak in the region and the Houthis are allowed to continue, the problem will also grow. As they target ships, they steal assets and funds. Meanwhile, Iran also funds them. This enables them to escalate their attacks and increase their range. We need a complete solution to break this cycle that keeps fueling the Houthis attacks.”
For now, however, the other ports of Israel are managing the shipping issues. Eli Bar Yossef, CEO of the Ashdod port, spoke to The Media Line about the Israeli port system:
“The port of Eilat is strategic, but it is relatively small compared to the main ports in Israel, with around 5% of the country’s traded volume. At Ashdod’s port, we had the capacity to receive the shipments that would otherwise go to Eilat. We have been gradually recovering since the COVID-19 economic downturn, and the ships that rerouted from Eilat have been added to this equation. This is definitely a problem for Eilat, but not so much for us.”
“At Ashdod’s port,” Bar Yossef continued, “we are preparing for scenarios of escalation from the north with Hezbollah, but other possible scenarios as well. Especially since the beginning of the war, we’ve been preparing for any situation. We have our ‘Emergency Routine,’ and everybody working in the port knows what to do if something happens.”
Bar Yossef explained that the reroutings caused by the Houthi attacks are a problem for Egypt, Jordan, and even Saudi Arabia. For Israel, too, goods travel takes up to three weeks longer, creating inconvenience for some importers. Some shipping costs are higher, too. On the whole, however, prices of imported goods are stable.
In fact, according to Bar Yossef, ports in Israel, like those at Haifa and Ashdod, are competing healthily with each other to receive incoming ships from Asia. “Considering the current available capacity of the ports in Israel and a GDP growth of around 4% a year, the current port infrastructure can continue serving the country for the next 20 to 30 years,” he concluded.
The Media Line reached out to Sarit Fishbane, the director of international relations and business development at the Federation of Israeli Chambers of Commerce, to explain how the ongoing conflict in Gaza impacted Israel’s international trade relations. She states, “Shipping prices have increased due to logistic challenges, and the conflict has emphasized the significance of trade diversification. The shipping lines from the Far East are forced to make a detour around Africa due to the Houthis’ attacks in the Red Sea. In Israel, the construction sector has been affected severely, and we have also seen a rise in demand for emergency equipment and long-shelf-life food products, but the risk of interruption of international trade in the region is a global issue and does not concern only Israeli destinations.”
Regarding the potential escalation in the north with Hezbollah impacting Israel’s international trade relations, Fishbane wrote that “for the time being, there is no impact, though if we experience an escalation, we may begin to see that factories located in the north may not be able to function continuously. The Israeli ports in Haifa and Ashdod are fully operating with no disturbance. Land transportation is completely functioning as well. Israel may be in war but is not a war zone.”
“The Israeli business community is extremely familiar with crisis situations and is agile and flexible. Importers and exporters know how to accommodate fast and find creative solutions. Israel has always emerged from a similar situation with more innovation and vast entrepreneurship. However, as the voice of the business sector in Israel, we created a dedicated channel for our members to raise their struggles and needs. We began mapping the needs of the Israeli importers and retailers community and assisting them with shipment questions,” she said.
Richard Hussey, an experienced marine security consultant and the managing director of Wavetrain, an international shipping consultancy, told The Media Line that Hezbollah and Hamas have not attacked commercial ships, focusing instead on land targets.
Richard Hussey. (Courtesy Wavetrain)
“However, they possess capabilities that could potentially threaten maritime operations, such as anti-ship missiles and small-boat tactics,” Hussey said. “Hezbollah has reportedly received advanced weaponry, including anti-ship missiles, from its allies and could theoretically pose a threat to commercial shipping in the Mediterranean Sea. Hamas has focused its activities on rocket attacks and tunnel operations, and although they could expand their tactics to include maritime threats, it is considered unlikely.”
While they haven’t attacked commercial ships yet, the threat remains in escalating conflicts. Hamas has threatened shipping in the Eastern Mediterranean but likely lacks the accuracy to hit moving ships without third-party help.
“Disruptions in maritime trade around Israel could have significant global implications,” Hussey noted. The Eastern Mediterranean is crucial for transporting goods between Europe, Asia, and Africa. Prolonged disruptions could increase shipping times and costs, impacting supply chains and economic stability, particularly in manufacturing and retail.
Regarding the threat posed by the Houthis, Hussey said they have often targeted ships in the southern Red Sea, especially near Bab el Mandeb Strait, and recently extended to the Gulf of Aden. Their capacity to expand depends on advanced weaponry and Iranian support.
“Even so, their success rate in hitting targets is less than impressive, even when not engaged by naval assets,” Hussey said. “They could theoretically extend their reach, threatening broader shipping routes, but as nearly all shipping bound to and from the Suez Canal has to transit through the current missile/drone engagement zone near Bab el Mandeb Strait anyway, I suspect there will be little incentive to do so.”
International naval forces in the Mediterranean and Red Sea deter attacks from militants and pirates. Warships have some success against piracy, but terrorist groups, especially the Houthis, remain resilient. The coalition will likely continue protecting ships and focus on targeting Houthi bases and logistics.
Regarding the vulnerability of ports such as Haifa and Ashdod, Hussey said, Ports like Haifa and Ashdod are within Hezbollah’s rocket range. Significant conflict escalation could lead to attacks, disrupting trade and rerouting cargo.
Past conflicts have had limited success in targeting Israeli ports, and the Iron Dome reduces this likelihood further. Recent drone attacks were countered effectively. Current disruptions are more due to political and commercial decisions, with some carriers avoiding Israeli ports.
Hussey shared how shipping lines are weighing the choice between potential attacks while crossing into the Red Sea or an additional three weeks going around Africa into the Mediterranean Sea.
The safest route for ships is around the Cape of Good Hope, reducing Bab el Mandeb traffic by 60% compared to last year. Those who risk the straits often carry perishable goods or accept the risk due to low hit chances. Despite high costs for insurance and security, benefits include higher charter rates and lower fuel costs. Some ships stay close to Chinese vessels, believing they won’t be targeted by Houthis.
