Israel Hayom: Yemen’s threats will cause severe damages exceeding $20 billion
According to Hebrew media sources, the naval blockade imposed by the Ansar Allah group (Houthis) on Israel will result in severe damage to the base of the economy, exceeding 80 billion shekels ($20 billion).
Follow up – Al-Khabar Al-Yemeni:
“Israel Today” newspaper said that the fear of widespread damage to the Israeli economy was part of the damage to delivery times, product availability, and price hikes due to supply chain shortages.
It clarified that, as a result of yesterday’s ship damage incident and the fire of an anti-ship cruise missile from Yemen towards the commercial tanker traveling to the port of Ashdod, the economic losses are expanding.
According to Chen Hertsog, Chief Economist at the consulting firm BDO, Israel will incur higher maritime transit expenses as a result of the escalation in the Red Sea. This means rerouting ships on a lengthy route that bypasses Africa rather than passing through the Suez Canal and Bab Al-Mandeb Strait, adding approximately 30 days.
Additionally, he mentioned that the variations in product availability and delivery times, coupled with the price hike brought on by supply chain scarcity, will negatively impact shipping lines. Worldwide, the majority of ship movements follow standard routes and stop at multiple ports in route. He voiced worries that some businesses would decide to give up on the terminal in Israeli ports due to the significant risks involved.
Hertsog pointed out the damages suffered by imports to the port of Eilat, to the point of its closure, stressing that “the port of Eilat is effectively under naval blockade, which may prevent ships from accessing it.”
Although the overall traffic in the port of Eilat is relatively small, it is of great importance for vehicle imports and the export of potash from the Dead Sea. Approximately 50% of vehicle imports to Israel are handled through the port of Eilat.
In addition to the damages incurred by Israeli exports to the markets of the East, which total about 15 billion shekels annually, Hertsog estimated that the losses resulting from the naval blockade on imports to the Israeli occupation entity amount to 80 billion shekels annually, which is over $20 billion, in addition to the risk of a complete closure of the port of Eilat.