Port Of Eilat Lays Off 50% Of Its Employees Amidst Houthi Attacks On Ships In Red Sea

The Houthi strikes in the Red Sea are posing serious issues for Eilat Port, an essential hub for Israel’s commercial traffic. Port management has announced intentions to lay off half its employees, leading to union protests.

The attacks have significantly impacted container trade, raising concerns about the port’s viability amid ongoing security threats.

Eilat Port, on the northern edge of the Red Sea, has been forced to take severe measures in reaction to the increasing frequency of Houthi attacks on Red Sea commerce. Since the attacks began, the port, which handles potash exports and automobile imports, has seen an 85% decline in activity, leading to financial strain.

The Histadrut Labor Federation, which represents employees in the public sector, revealed that port management plans to lay off 60 out of 120 workers. Workers have expressed outrage over this decision, claiming they are being unfairly picked out during the crisis.

Gideon Golber, the CEO of Eilat Port, raised concerns about the port’s financial stability and said layoffs are bound to happen if government funding for salaries isn’t provided. Golber highlighted how critical it is to address maritime security concerns quickly to protect port operations.

In addition, the recent incidents with Houthi missiles hitting locations close to Eilat demonstrate how vulnerable the port is to direct strikes due to its strategic location. The port’s vulnerability remains a problem, even with the Israeli Defense Forces’ best attempts to intercept these attacks.

Global commerce lines have been interrupted by the continuous conflict between commercial vessels and the Houthis in the Red Sea, leading firms to look for alternate routes. As a result, ships operating in the area now face more significant security concerns, longer shipment delays, and higher prices.

Given these issues, the future of Eilat Port remains uncertain. The port’s significance as a gateway for Israeli trade with the East is at stake, prompting broader concerns about regional stability and economic resilience amid rising violence.

Reference: Times of Israel, The Print

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