Attention anyone with Middle Eastern clients
On 9 December local time, the Yemeni Houthis issued a statement saying that if food and medicine could not enter the Gaza Strip, any ship bound for Israel would become a "legitimate target" for the organization's armed forces (regardless of nationality or whether the ship's ownership was linked to Israel.
The organization warned that all ships and companies should avoid dealing with Israeli ports, considering the safety of maritime navigation. As early as last Friday, the Houthis had already heavily damaged a merchant ship, causing all trade with Israel to now be on edge.
The warning was ostensibly a restriction on ports, but the move has left Israel with a de facto loss of navigational rights in the Red Sea, which is a considerable impediment to its own import and export trade.
Although European and American merchant ships can reach Israel via the Mediterranean Sea, nearly half of trade with Israel will still be cut from the Red Sea end, and a conservative estimate is that nearly 40 percent of exports to Israel will be affected.
As the second largest importer of Israel, this move has brought no small challenge to our exports to Israel. From the first eight months of this year, Israel's export share of the table is not difficult to see, in terms of export volume, our country is second only to the European Union, the first eight months of exports to Israel has reached 10.95 billion U.S. dollars. But so, China's import and export trade volume to Israel will certainly be reduced.
At the same time, as a link between Asia, Africa and Europe, the three continents of the nearest channel, once the Red Sea sea turmoil, is bound to affect the entire Asia, Africa and Europe maritime transportation. If the Red Sea continues to turbulence, after the Middle East shipping will have to bypass the whole of Africa in order to go to the point of departure of the Red Sea, and the ensuing rise in shipping costs, shipping period increase in the time limit, etc. will become the focus of attention after the Central Europe, Central Africa shipping.
Previously, the world's fifth largest shipping company Hapag-Lloyd announced that it will be January 1, 2024 onwards, the cargo to and from Israel to impose a war risk surcharge (WRS), WRS will apply to all containers and cargo types.
The war risk surcharge will be $40/TEU for cargoes on routes between the Nordic or Mediterranean countries and Israel, and $80/TEU for cargoes to and from Israel from other regions, Hapag-Lloyd said.
It is understood that previously Star Line ZIM had also announced the imposition of a war fee (war fee).
ZIM stated that in light of the war situation, the insurance company has imposed an additional war risk premium on all vessels calling at Israeli ports, which we are now obliged to pay in order to maintain service to and from Israel. This fee is ultimately passed on to customers.
At present, the Palestinian-Israeli conflict has entered the third month, but the situation is still uncertain, we are advised to suspend shipments to Israel, if you have to send out should also sign the trade terms and be careful to take the risk of ship arrest/attack.
We have also export to Israeli. The main products we export are kitchen organizer series (Bathroom Laundry Storage Baskets, Modern Napkin Holder, Kitchen Organizers With Storage Drawer, Trolley Service Shelving Cart)； tabletop series,；home organizer series and bathroom series products.
In order to cope with the ever-changing foreign trade situation, our company constantly develops new customers and new products. With a positive and innovative attitude, we lead the industry in innovation.