by Middle East Monitor News Staff at Middle East Monitor
Revenue from Israel’s southern port of Eilat has fallen by 80 per cent within a month due to Houthi attacks against shipping in the Red Sea, Calcalist economic magazine reported on Monday.
According to the report, giant transport companies have suspended sailing in the Red Sea and the Suez Canal due to the threat from the Houthis. The alternative route round Africa via the Cape of Good Hope increases transportation costs and the cost of living in Europe and other destinations significantly.
China’s shipping giant OOCL announced yesterday that it is going to stop sending its ships through the Red Sea, joining other shipping companies like Maersk, and Germany’s Hapag-Lloyd. On Saturday, the Mediterranean Shipping Company and CMA CGM suspended passage through the Red Sea due to the Yemeni attacks.
Calcalist noted a recent report by Politico which revealed that the Biden administration in Washington is considering attacking the Houthis after the increase in attacks and damage to global trade. This is expected to make matters worse.Continue Reading