After the Closure of Eilat Port… Israel’s Largest Shipping Company on the Brink of Bankruptcy Amid Warnings of a “Strategic Threat”
A Hebrew newspaper reveals details of an acquisition deal involving ZIM amid official fears of losing “maritime independence.”
NYN | Reports and Analyses
The Hebrew economic newspaper Calcalist revealed what it described as a new economic blow facing the Israeli entity, in light of the official closure of the Port of Eilat after two years of Yemeni operations in support of Gaza, which reportedly led to a near-total paralysis of maritime traffic through the Red Sea.
The newspaper stated that the major Israeli shipping company ZIM Integrated Shipping Services is now facing the risk of financial collapse, amid declining liquidity and the possibility of rapid deterioration leading to bankruptcy. This comes as moves are underway for a potential acquisition by the German company Hapag-Lloyd and the investment fund FIMI Opportunity Funds.
Official Warnings: Loss of “Maritime Independence”
In the first official response to the acquisition deal, the Israeli Shipping and Ports Authority warned that the move represents a “strategic threat” to Israel.
The newspaper quoted the Authority’s director, Tzadok Radeker, as saying that implementing the deal would mean that “Israel would lose its maritime independence,” stressing that the collapse of ZIM would have far-reaching and potentially decisive repercussions for the Israeli shipping sector.
Global Downturn Threatens ZIM with Collapse
Radeker pointed out that the expected downturn in the global shipping sector in the coming period poses an existential threat to the company, noting that it could face accelerated liquidity loss and financial deterioration leading to payment freezes and possibly bankruptcy within a relatively short time.
Impact of Yemeni Strikes Extends to Airports and Aviation
According to the Hebrew report, Yemeni operations over the past two years have not been limited to the closure of Eilat Port, but have also caused significant losses affecting Ben Gurion Airport and Israeli airlines, estimated at hundreds of millions of dollars.
