A Hong-Kong based shipping company has suspended its activity to and from Israel.
That's after vessels in the Red Sea came under attack from Houthi fighters in Yemen.
The Houthis say they’ll continue their attacks if Israel doesn’t stop its war on Gaza.
And their activities are starting to have far-reaching consequences, not just for Israel, but globally.
Al Jazeera’s Sara Khairat reports from the Israeli port city of Haifa.
Maritime expert Victoria Mitchell says while recent attacks on ships in the Red Sea have not led to a complete shutdown of the trading route, there are implications for individual ship operators.
“What is important to highlight is the concern for the seafarers themselves, who are transporting goods and sailing the vessels along this route,” Mitchell, an analyst at Control Risks, told Al Jazeera.
“That has been a concern highlighted by several of the operators who have elected to pause shipments in the current circumstances.”
Earlier this week, the Danish company Maersk said it will pause all journeys through the Red Sea after a series of attacks on shipping by the Yemen’s Houthi rebels. The Iran-aligned group says they are targeting shipping to pressure Israel during its offensive on Gaza.Moreover, Mitchell says there were also major concerns around insurance premiums.“More risk premiums will increase costs for operators and we’ll also see increased costs and delays when vessels re-route,” she said.
“So rather than taking the Red Sea Suez Canal transit route … the alternative is to sail around the coast of Africa. That will add days to any transit and will require additional port calls and fuel. All of this will add to the cost of any shipment.”
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