Maersk Suspends Operations At Israel’s Busiest Port As Tensions In the Middle East Heighten

Maersk has temporarily stopped vessel calls and suspended cargo acceptance at Israel’s Port of Haifa as the Israel-Iran conflict continues to escalate.

This decision was made on Thursday after an analysis of the risk reports, especially for vessels calling at the Israeli ports and the safety of crew members.

Haifa is one of the biggest cities by population and also hosts the Israeli Defense Force’s Naval Base.

Maersk will still call at the Port of Ashdod and said that it will arrange alternative transportation options for its customers.

The carrier stated that it was in contact with clients impacted by its decision and was working to offer alternative transportation solutions. It added that the company continues to monitor the situation closely and is ready to reassess the decision when it deems safe to do so.

The Port of Haifa has not been hit by Iranian missiles, though a nearby oil refinery shut down after a power station was damaged.

Haifa is one of the most important seaports for Israel, according to David Gonzalez, an analyst.

He added that if other ports are strained and are not accessible, then it would add a lot of pressure to the infrastructure, as companies would scramble to secure capacity and services to the other entry and exit points across the region.

Other shipping companies are still serving the port, though Maersk’s decision could lead them to reconsider.

Peter Sand, chief analyst at Xeneta, said that the conflict in the Middle East has seen heightened risks and associated operational costs for container shipping companies whose vessels cross the Arabian Gulf, including security risks, higher bunker fuel prices, due to burning more fuel for sailing faster through high-risk areas. If the situation worsens, supply chains could face disruption, and freight rates could witness a further spike.

Ships linked to Israel passing through the Red Sea are at risk, along with those from the US, UK and other countries which may participate in military actions against the Houthis in Iran, per Ambrey.

References: Yahoo, Reuters

Source: Maritime Shipping News