By Vincent Wen    Photo：Pixabay

Eilat Port, a crucial hub for importing cars and exporting potash to the Asia-Pacific region, has seen nearly half of Israel's annual car imports passing through its facilities in recent years. However, terrorist attacks have inflicted substantial losses on Israel's port trade. According to local media estimates, direct economic losses have reached up to $3 billion.

The disruption in freight caused by the escalating situation in the Red Sea has inflicted substantial economic losses on Eilat Port. Apart from a decrease in revenue, the direct losses incurred just to maintain basic port operations amount to $3 million per month. Gideon, the CEO of Eilat Port in Israel, stated that given the current state of the port, they can only sustain operations until February of this year. If the Israeli government cannot resolve the challenges thereafter, they will have to consider layoffs and partial business closures.

In reality, at least 30% of the imported goods through Israel's two largest ports, Haifa Port and Ashdod Port, require passage through the Red Sea and the Suez Canal to reach Israel. According to data from the Israel Ports Authority, in the fourth quarter of 2023, due to the conflict in the Gaza Strip and the situation in the Red Sea, Ashdod Port witnessed a 94% reduction in imported car quantities, and the overall transshipment volume for all Israeli seaports decreased significantly by 70%.

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