10% of Ashdod Port staff recruited by Israeli army, war risk surcharges announced

Ashdod Port in Israel (Photo: AIVP)

Israel's Ashdod port, one of the country's largest ports and a vital asset to the country's economy, continues to operate normally despite the ongoing conflict between Israel and Hamas, according to Shaul Schneider, executive chairman of the Board of Directors of Ashdod Port Company.

Speaking with Container News, he pointed out that the Ashdod Port Company's employees continue to keep the Israeli economy running and work even faster, understanding the importance of of maintaining the normal operations of the port.

Ashdod Port, the only state-owned port in Israel, operates 24/7 with employees working longer shifts mainly for two reasons. The first reason is their own safety. According to Schneider, it is safer for port employees to stay in the port area than to have to return home. In addition, the Israeli army has recruited 10% of the Ashdod Port Company's personnel, so the remaining personnel must work to fill the gap in personnel shortages.

Regarding special measures and instructions that Israeli ports may have received from the government, Shau Schneider said there are no special regulations for Ashdod Port. “We are trying to maintain our normal operations under such circumstances,” he noted.

Schneider also told Container News that the port is in contact with shipping companies, which continue to move goods through the port without any significant disruptions.

The possibility of expanding conflicts - Potential risks
 

At this time, we do not see the conflict between Israel and Hamas causing difficulties for global trade. However, the conflict could expand and could create challenges on key shipping routes.

Christian Roeloffs, co-founder and CEO of Container xChange, an online platform for container logistics, explains: “In the case of the conflict in Israel, any expansion of the hostilities beyond the country's borders could introduce risks to two vital shipping choke points. The Suez Canal, a critical waterway for various commercial vessels, including container ships, may face disruptions. Similarly, the Strait of Hormuz, a backbone for oil and gas shipping, could be affected. However, the extent of these effects will largely depend on the conflict's expansion and duration.”

On the other hand, Israel represents a relatively small market for container shipping, with the main ports of Ashdod and Haifa accounting for just 0.4% of global throughput, and thus the threat of disruption to container trade flows across The Mediterranean region remains limited, according to Container xChange analysis.

War risk surcharge announced
 

However, it remains important to see the impact of the conflict on container rates entering and exiting Israeli ports. Container News asked Schneider for his information and estimates on possible trends in container rates at the port of Ashdod. He believes shipping lines will not increase rates at Ashdod and he said so far he has not seen any price increases, surcharges or additional fees. However, he expressed concern about the possibility of insurance costs increasing.

Currently, South Korean shipping company HMM has announced a war risk surcharge (WRS) for Israeli goods in a customer notice on October 18.

“As costs increase by deterioration situation from/to Israel, we would have to inform our customers that we implement the WRS with immediate effect on all equipment types to maintain our service from/to Israel.”

WRS of HMM shipping line is as follows:

*WRS is effective immediately and until further notice

Israeli container carrier ZIM has also announced an additional fee. The company said in its latest announcement: “In light of the war situation, insurers have imposed an additional war risk insurance premium on all vessels calling Israeli ports, which we are now obligated to pay in order to maintain service to and from Israel.”

ZIM has decided to implement the following new War Risk Premium (WRP) for cargo to/from Israel with effect from the Gate-In date October 12.

Route/Service War risk insurance premium Additional surcharge

Read more:

• Forwarders warned of delays and disruptions to air freight services to and from Israel

Source: Phaata.com (According to ContainerNews)

Phaata - Vietnam's First International Logistics Marketplace

► Connect Shippers & Logistics Companies faster!