Houthi raids cripple traffic and profits at Israel's Eilat seaport

Eilat Port, owned by the Nakash brothers through Eilat Port Company Ltd. and run by Papo Shipping, earned about 240 million shekels a year before the Houthis started targeting Red Sea routes in December 2023. The port’s vehicle traffic, which previously accounted for most of its activity, has dropped roughly 75%, and cargo arrivals have dwindled to an average of one ship per month, delivering about 4,700 consumer vehicles.

This level of traffic cannot cover operating costs, prompting the operator to cut fees by up to 90% in an effort to lure business. Meanwhile, Haifa and Ashdod ports have absorbed the diverted shipments, though shipping from eastern Asia to Eilat remains cheaper, potentially raising consumer prices. Papo Shipping is seeking an extension of its concession, which expires in 2028, hoping to recover losses once security improves. The situation follows recent Houthi gains, including the capture of Perim island and the port city of Mocha, which have contributed to rising oil prices above $100 a barrel.