Israel's Eilat Port faces 85% drop in activity amid escalating Houthi attacks in Red Sea

Israel's Eilat Port is grappling with an 85 per cent reduction in activity as a result of intensified attacks by Iran-backed Houthi militants in Yemen on shipping in the Red Sea, according to the port's CEO. The Houthis, escalating their involvement in the Middle East conflict, have targeted Israel with drones and missiles, citing support for Palestinians in the Gaza war, where Hamas is also backed by Iran.

Eilat, mainly handling car imports and potash exports from the Dead Sea, is smaller than Israel's Mediterranean ports in Haifa and Ashdod, which manage the majority of the country's trade. However, Eilat, located near Jordan's sole coastal access point at Aqaba, serves as a gateway to the East without traversing the Suez Canal.

"The port was amongst the first to be impacted as shipping firms rerouted vessels to avoid the Red Sea due to Houthi disruptions in the Bab al-Mandab Strait, a key trade route. Without access to Bab al-Mandab, Eilat Port experienced an 85 per cent decline in overall activity," said CEO Gideon Golber.

In response to the threat, the United States has introduced a multinational security initiative to safeguard this crucial shipping lane. Golber expressed concerns about the potential decline in potash exports and emphasised the alternative route around the southern tip of Africa, which would extend voyages to the Mediterranean by two to three weeks, resulting in additional costs.

Golber acknowledged ongoing discussions with relevant parties to ensure operational continuity at Eilat, though financial considerations would be necessary. If a solution is not found, there is a possibility of worker furloughs, with a small number required to service any ships that do arrive. Golber remains optimistic about finding a resolution but highlights the importance of addressing the Houthi threat to prevent further disruptions.

(With Reuters Inputs)