Israeli Shipping Companies Fear Domino Effect From Cosco Pullout, Divided On Its Cause

Sources in Israeli shipping do not think the decision by Cosco, the Chinese shipping giant that ranks among the top shipping companies, will significantly affect Israeli trade or prices, unless it triggers a domino effect among other companies, according to reporting by Calcalist.

The sources are divided as to whether the Cosco decision was political or purely business-related. Cosco itself made no announcement and has answered no questions about why it decided to cease visiting Haifa Port, which is presently operated by a Chinese company.

Some believe that the decision comes due to Chinese support for Iran, as can be seen by the fact that Chinese ships have not been attacked during the Houthi blockade of shipping in the Red Sea. Others think this a purely business decision, driven by skyrocketing insurance rates driven by hostilities in the region.

The ultimate beneficiary from shipping issues has been the Israeli company ZIM, which is now working to expand capacity to pick up the slack left by companies such as Cosco.