The Israeli shipping company ZIM announced that starting today (Thursday), the price of a container from the east will increase by another $500-1000,<>. This is due to the demand and scarcity of containers during this period, which stems from the constraint that requires some companies to encompass the entire African continent.
Houthi documentation of the ship's takeover in the Red Sea // Arab networks
The letter written to the company's clients stated: "Following our previous consultation, dated December 18, 2023, addressing current security concerns in the Red Sea and Gulf of Aden, and in light of the growing demand, ZIM is implementing a peak season levy from Far Eastern ports to Israel. The above fee is in addition to applicable basic freight rates and security-related charges provided in ZIM's fare calculator as well as other charges for additional services, local charges and more."
The price has tripled - cars will become very expensive
Elad Barshan, customs broker and co-founder of SlickChain, an international vehicle shipping platform, told Israel Hayom: "The increase announced today by ZIM, on the increase of the "peak season levy" to $1000,40 per <>-inch grocery store from the Far East, joins a series of increases already published following the siege on the Red Sea, including an increase in the base price of transportation and an increase in additional levies such as the "fuel surcharge."
"These price increases complement a more than threefold jump in the cost of shipping a container from the Far East, and it is not inconceivable that further increases will be announced later as the crisis in the Red Sea continues."
Imported vehicles at the port of Eilat. , will the price soar?
Bershan explains, "This means that all the goods that will arrive from the Far East in about two months will already embody, at the price that will be displayed on the shelf, these price increases. However, it should be noted that the vast majority of goods on the shelves today still embody shipping prices before the big increase. It should be remembered that the significant inflationary pressures in the economy during the COVID-19 period, from which the economy suffers to this day, began due to the increase in the costs of sea transportation from the East."
Regarding the products that will be affected, he said: "The automotive sector will be greatly affected. Eilat Port is shut down and the tax benefit on plug-in hybrids and trams has been canceled. According to the Central Bureau of Statistics, the State of Israel purchased $37.4 billion worth of goods from the Far East, most of which pass through the Red Sea. The price will mainly affect high-volume, low-value products."
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