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Eilat still without ships, Houthis strangle port city

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According to the US Congressional Research Service, the Yemeni Houthis have attacked Israel at least 53 times since the war in Gaza began on October 7, 2023. The Iran-backed Ansar Allah/Houthi movement is not only attacking Israeli territory, but also commercial and naval vessels near the Bab el-Mandeb Strait trying to reach the Red Sea and the Israeli port of Eilat.

The city of Eilat and its port at the northern tip of the Red Sea are protected by missile defense systems, but Eilat’s economy is suffering and port operations have dwindled to zero.

How Gideon Golber, CEO of the Port of Eilat, described the situation The media line“The Houthis are trying to suffocate Eilat and its economy. The remaining Israeli ports are receiving supplies delivered via the Red Sea, but Eilat has unused logistics equipment and personnel. If the conflict in the north between Israel and Hezbollah continues to escalate and affects ports in the Mediterranean, it could become a national threat.”

Golber also noted: “Many ships traveling between Israel and Asia have to change their route around Africa to avoid Houthi attacks off the coast of Yemen. This increases transportation time and costs. And it also increases the risk of attacks from other locations, such as the coast of South Africa or the Strait of Gibraltar.”

On January 10, the United Nations Security Council passed Resolution 2722, condemning the Houthi attacks and reaffirming the right of member states to defend their vessels. This international move underscores ongoing global concerns about maritime security and the economic impact of Houthi actions in the region. Yet more needs to be done for the Port of Eilat, its economy and its people.

“The US must become more involved in the fight against the Houthis now,” Golber said, “not later when the situation will be much worse. If the US is seen as weak in the region and the Houthis are allowed to continue, the problem will also become greater. By attacking ships, they steal assets and money. At the same time, they are also funded by Iran. This allows them to escalate their attacks and increase their reach. We need a comprehensive solution to break this cycle that continues to fuel the Houthis’ attacks.”

Prepared for challenges

A child holds a gun as protesters, mostly Houthi supporters, express their support for Palestinians in the Gaza Strip, February 16, 2024 (Source: KHALED ABDULLAH/REUTERS)

However, Israel’s other ports are currently coping with the transport problems. Eli Bar Yossef, CEO of the Port of Ashdod, spoke to The media line about the Israeli port system:

“The port of Eilat is strategic, but compared to Israel’s main ports, it is relatively small. It accounts for about 5% of the country’s trade volume. At the port of Ashdod, we could receive the shipments that would otherwise go to Eilat. We have been gradually recovering since the economic downturn caused by COVID-19, and the ships that were diverted from Eilat have been added to that equation. This is a problem for Eilat, but not so much for us.”

“In the port of Ashdod,” Bar Yossef continued, “we are preparing for escalation scenarios from the north with Hezbollah, but also for other possible scenarios. Especially since the beginning of the war, we have prepared for every situation. We have our ’emergency routine’ and everyone who works in the port knows what to do if something happens.”

Bar Yossef explained that the diversions caused by the Houthi attacks are a problem for Egypt, Jordan and even Saudi Arabia. For Israel, too, the transport of goods takes up to three weeks longer, causing inconvenience for some importers. Some shipping costs are also higher. Overall, however, prices for imported goods are stable.

According to Bar Yossef, Israeli ports such as Haifa and Ashdod are actually competing with each other to receive ships from Asia. “Given the current available capacity of Israeli ports and a GDP growth of about 4% per year, the current port infrastructure can continue to serve the country for the next 20-30 years,” he concluded.

The media line Sarit Fishbane, Director of International Relations and Business Development at the Federation of Israel Chambers of Commerce, got in touch to explain how the ongoing conflict in Gaza is affecting Israel’s international trade relations. She explains: “Transportation prices have increased due to logistical challenges and the conflict has highlighted the importance of trade diversification.”

Shipping lines from the Far East are forced to detour around Africa due to the Houthis’ attacks in the Red Sea. In Israel, the construction sector has been severely affected and we have also seen an increase in demand for emergency equipment and non-perishable food, but the risk of disruption to international trade in the region is a global problem and does not only affect Israeli destinations.”

Regarding the possible escalation in the north, in which Hezbollah could affect Israel’s international trade relations, Fishbane wrote: “There is currently no impact. However, if there is an escalation, factories in the north may not be able to operate continuously. The Israeli ports in Haifa and Ashdod are fully operational and without disruption. Land transport is also working perfectly. Israel may be at war, but it is not a war zone.”

“The Israeli business community is well-versed in crisis situations and is agile and flexible. Importers and exporters know how to adapt quickly and find creative solutions. Israel has always emerged from similar situations with more innovation and great entrepreneurship. However, as the voice of the Israeli business community, we have created a dedicated channel for our members to address their problems and needs. We have started to map the needs of Israeli importers and retailers and help them with shipping issues,” she said.

Richard Hussey, an experienced maritime security consultant and Managing Director of Wavetrain, an international shipping consultancy, said: The media line that Hezbollah and Hamas had not attacked merchant ships but had instead focused on targets on land.

“However, they have capabilities that could potentially threaten maritime operations, such as anti-ship missiles and small boat tactics,” Hussey said. “Hezbollah has reportedly received advanced weapons from its allies, including anti-ship missiles, and could theoretically pose a threat to commercial shipping in the Mediterranean. Hamas has focused its activities on rocket attacks and tunnel operations, and while it could expand its tactics to maritime threats, this is considered unlikely.”

While they have not yet attacked merchant vessels, the threat remains as conflicts escalate. Hamas has threatened shipping in the Eastern Mediterranean, but it likely lacks the precision to hit moving vessels without third-party assistance.

“Disruptions to maritime trade around Israel could have significant global implications,” Hussey noted. The Eastern Mediterranean is critical for the movement of goods between Europe, Asia and Africa. Prolonged disruptions could increase transport times and costs and affect supply chains and economic stability, particularly in manufacturing and retail.

Regarding the threat posed by the Houthis, Hussey said they have often attacked ships in the southern Red Sea, particularly near the Bab el Mandeb Strait, and that their attacks have recently expanded into the Gulf of Aden. Their ability to spread depends on modern weapons and Iranian support.

“That said, their success rate in hitting targets is not exactly impressive, even when not being attacked by naval forces,” Hussey said. “In theory, they could extend their reach and threaten wider shipping lanes, but since almost all ships traveling to and from the Suez Canal have to transit the current missile/drone strike zone near the Bab el Mandeb Strait anyway, I suspect there will be little incentive to do so.”

International naval forces in the Mediterranean and Red Seas deter attacks by militants and pirates. Warships have had some success against piracy, but terrorist groups, particularly the Houthis, remain resilient. The coalition will likely continue to protect ships and focus on attacks on Houthis’ bases and logistics.

Commenting on the vulnerability of ports such as Haifa and Ashdod, Hussey said: “Ports such as Haifa and Ashdod are within range of Hezbollah’s rockets. A significant escalation of the conflict could lead to attacks, disruption of trade and diversion of cargo.”

In previous conflicts, success in attacks on Israeli ports has been limited, and the Iron Dome reduces that likelihood even further. Recent drone attacks have been effectively repelled. The current disruptions are more likely to be due to political and commercial decisions, with some airlines avoiding Israeli ports.

Hussey reported that shipping companies are currently weighing up the risk of possible attacks during the crossing into the Red Sea and another three-week circumnavigation of Africa to the Mediterranean.

The safest route for ships is around the Cape of Good Hope. Traffic in Bab el Mandeb has decreased by 60% compared to last year. Those who venture into the strait often carry perishable goods or accept the risk due to the low probability of being hit. Despite the high cost of insurance and security, the benefits are higher charter rates and lower fuel costs. Some ships stay close to Chinese vessels, believing they will not be attacked by the Houthis.



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