COSCO Shipping Stops Shipping Services To Israel

Chinese shipping giant COSCO has decided to halt its shipping services to Israel. The company used to operate a weekly container transportation service to the port of Haifa. It is currently regarded as the fourth-largest shipping company in the world. The reasons for the decision are yet unknown, which has led to speculation in the maritime sector.

COSCO’s action coincides with disruptions in Red Sea shipping lanes brought on by Houthi attacks in Yemen, which Iran backs. Significantly, the Houthis have yet to target Chinese ships. The industry is unsure if China’s cordial ties with Iran had any impact on the decision or if it had anything to do with the threat the Houthis pose.

Carmel Shipping Services, COSCO’s Israeli representative, has yet to inform industry sources of the decision formally. Insiders in the shipping business predict that Zim, an Israeli shipping company that runs a joint line with COSCO, and Haifa Bayport will be the first to experience the consequences.

There are assumptions that COSCO might reroute its ships along a path that avoids Africa and gains entry into the Mediterranean Sea via the Gibraltar Straits. Other businesses would transport goods for Israel once the voyage ended at COSCO’s Port of Piraeus in Greece.

Ship operators who choose to provide Israel with an “inferior service” by discharging cargo at European seaports to evade Houthi threats are a cause of concern. This might lead to higher prices and longer sailing times, affecting trade and Israeli exporters’ ability to compete internationally.

COSCO’s move is in line with other large shipping firms, such as Danish Maersk, which have announced that they will no longer be sailing in the Red Sea and instead take an alternate route that passes through the Cape of Good Hope. Remarkably, China has sided with the Palestinians during the Gaza crisis three months ago, refusing to condemn Hamas at UN Security Council discussions.

Reference: Reuters

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Source: Maritime Shipping News