Shipping Rates to Israel Increase by 300% Amid Escalating Yemeni Attacks

Over the past two months, maritime shipping rates to Israel have surged threefold, driven by continued operations from the Yemeni armed forces in support of the besieged Palestinian people in Gaza. This rise in costs has led to the bankruptcy announcement of the Port of Umm Rashrash, also known as Eilat, according to a recent report by the Israeli economic site “ice.”

Last week alone, maritime shipping rates increased by 0.6%. Since May, shipping costs have consistently climbed, tripling the stock of ZIM Integrated Shipping Services, which was expected to benefit from the price hikes but has faced recent setbacks.

The disruptions caused by Yemen in the Red Sea have necessitated longer shipping routes that bypass the Suez Canal, further driving up transportation costs. Increased global consumption has also contributed to the price surge. Market strategist Mody Schafrir from Bank Hapoalim noted that conversations with importers indicate a 300% increase in shipping costs from East Asia to Israel since early May, though the impact on consumer prices has been delayed by several months.

Companies, including those in the fashion industry, are now placing orders for goods a year in advance to account for shipping delays. Summer 2025 collections, for instance, are already being ordered for store availability in March.

The Israeli shipping company ZIM has been experiencing a downturn, with its stock fluctuating significantly, beginning at a low of $11 and previously reaching highs of $80 per share.

Port of Eilat Declares Bankruptcy

The global shipping news outlet “WorldCargo” recently reported that the Port of Eilat declared bankruptcy due to a complete halt in commercial activity. This cessation is a direct result of attacks by the Yemeni armed forces on Israeli ships and those linked to Israel in the Arabian seas. Gideon Gilbert, posing as the port’s CEO, informed the Knesset’s Economic Affairs Committee last Sunday that the port had seen no activity or revenue for eight months.

The port has been significantly impacted by the Yemeni army’s attacks, which have severely disrupted trade within Israel. Yemeni operations in the Red Sea have led to an 85% reduction in shipping activity, prompting the port to seek financial aid from the Israeli government.

In solidarity with the oppressed Palestinian people, who have faced an Israeli genocide campaign for nine months, the Yemeni armed forces have imposed a blockade on Israeli-linked maritime traffic in the Red Sea. This blockade has expanded to include the Gulf of Aden, the Arabian Sea, the Indian Ocean, and the Mediterranean Sea. The Yemeni army continues to target the Umm Rashrash area in southern occupied Palestine with ballistic missiles, cruise missiles, and drone swarms.

The Yemeni armed forces have declared their intention to persist in their operations until the Israeli aggression and genocide cease and the blockade on Gaza is lifted.