The Houthi attacks on vessels in the Red Sea, which began in November 2023, have created a fundamental change in the map of international shipping lanes.
The short shipping route that passes through the Red Sea and the Suez Canal, connecting Asia and Oceania to the Mediterranean Sea and Europe, has been diverted to a long route around the Cape of Good Hope in Africa. This change has led to an increase in sea freight prices and a temporary decline in the value of world trade.
However, the findings of a study conducted by Hagai Etkes of the Bank of Israel and Nitzan Feldman of the University of Haifa show that Israel has been almost unaffected by the change.
Although the maritime distance between China and Israel has increased by about 114%, imports to Israel from Asia and Oceania have remained stable, and import prices have not increased significantly. Globally, the Houthi attacks have led to a temporary decline of about 10% in the value of trade passing through the Red Sea and an increase in the price of sea freight from China to Europe and the Mediterranean.
The OECD countries on the Mediterranean coast, such as Greece, Turkey, Italy, France, and Spain, experienced a significant decline in imports from Asia and Oceania during December 2023, with a partial recovery recorded only in the spring of 2024.
* Channel 14 contributed to this article.
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