Sharp Decline in Ashdod Port Profits Due to War Impact and Yemeni Ban on Ships Heading to “Israel
NYN | Reports and analyses
The Israeli economic newspaper Calcalist reported in a recent article that Ashdod Port’s profits experienced a significant decline of 63% during the second quarter of 2024 compared to the same period last year.
The report attributed this decline to the ongoing war in Gaza, particularly the blockade imposed by the Yemeni government forces on ships heading to “Israel” via the Red Sea. As a result, the report highlighted a noticeable decrease in vehicle transport activity at the ports of Ashdod and Eilat.
Specifically, the report stated that the total profits of Ashdod Port in the second quarter of this year fell to 17.5 million shekels, compared to 47 million shekels during the same period last year, reflecting a significant loss of 20 million shekels. The report also noted an increase in losses compared to the first quarter of this year, when the loss amounted to 7 million shekels.
Regarding annual performance, the report revealed that Ashdod Port recorded a total loss of 29 million shekels during the first half of 2024, while the port had achieved a profit of 71 million shekels in the corresponding half of 2023. The report explained that operational losses in the second quarter of 2024 amounted to approximately 13 million shekels.
As for shipping operations, the report mentioned that the volume of containers loaded and unloaded at the port witnessed a 9% decrease, equivalent to a drop of 31,000 containers during the first half of this year compared to the same period last year. The report attributed this decline to “shipping route diversions,” referencing the Yemeni government’s prohibition of ships from reaching “Israel” via the Red Sea.
Regarding the automotive sector, the report noted that car unloading operations sharply declined by almost 50% in the first half of 2024, with approximately 39,000 vehicles being unloaded, compared to 79,000 vehicles during the same period last year. The report attributed this decline to the impact of the war and the disruption of shipping routes due to the Yemeni blockade on ships heading to “Israel” through the Suez Canal.
Regarding the effects of the blockade, the report pointed out that some ships never reached “Israel,” while others were rerouted to unload at ports in the Gulf and the south. Due to the Houthi threat, the port of Eilat was closed, leading to a shift in activity to Mediterranean ports. However, the report mentioned that this shift did not necessarily contribute to increased activity at Ashdod Port.
The report also noted that the Italian Ministry of Transport issued instructions for ships heading to “Israel” not to unload their cargo south of Tel Aviv, fearing the war, resulting in these ships halting visits to Ashdod Port for several months.
Lastly, the report highlighted that the bulk goods sector saw a slight decrease of 1%, while the volume of general goods dropped by 20% during the first half of 2024. This decline was attributed to the reduced imports of metals and wood, two primary components of this sector.
