Shipping Costs Increased in 2024 ?

The extended shipping durations and increased costs on imported goods are a result of the ongoing threat posed by the Houthi group.

Ships transporting various goods to Israel, including items like shoes, clothing, furniture, or electronics, traditionally followed a route through the Red Sea, transiting the Suez Canal, and eventually docking at the ports of Ashdod and Haifa. Presently, owing to attacks by the Houthis, vessels are unable to use the Red Sea route and are compelled to navigate around Africa to reach Israel via the Gibraltar Straits in southern Spain. This circumnavigation adds an extra 18-20 days to their journey. Shipping firms have indicated that this alternative route raises the cost of each container by an average of $500-1,000, accounting for the extended voyage and increased fuel expenses. Additionally, amid the war, many shipping companies have elevated insurance prices due to the heightened threat of missiles targeting Israel.