Cosco has announced plans to stop calling at Israeli ports, Israeli financial newspaper Globes reported on Sunday. Reasons for stopping the service have not been clearly specified by the Chinese shipping giant.
The company made the decision even though the Houthis are unlikely to attack its ships in the Red Sea because of economic and political ties between China and Iran, which supports the Yemeni rebel group, the report read.
Cosco’s decision will significantly affect trade between Israel and the Far East, the newspaper reported, adding that the Israeli shipping company ZIM, which works closely with COSCO, may face higher transportation costs as it will have to increase the number of ships operating on the Far East routes.
After the armed conflict between Israel and Palestinian movement Hamas broke out in October last year, the Houthis have intensified their attacks on cargo ships they believe to be linked to Israel in the Red Sea and the Arabian Sea, vowing to continue the attacks until Israel ends its military actions in the Gaza Strip.
The disruption to maritime trade routes led to the formation of a US-led maritime coalition to provide security for ships navigating through the region.
