Why in news?
Shipping companies began avoiding the Red Sea route in 2025 after Yemen’s Houthi group targeted commercial vessels. As a result, Israel’s southern port of Eilat, which is located on the Gulf of Aqaba near the Red Sea, saw a sharp drop in container traffic. News reports examined how the crisis has affected regional trade.
Background of Eilat port
The port of Eilat was constructed in the 1950s to give Israel access to the Red Sea and the Indian Ocean, especially when Egypt blocked Israeli ships from using the Suez Canal. It lies at the southern tip of Israel, adjacent to Jordan’s Aqaba and close to Egypt’s Sinai Peninsula. The port handles general cargo, vehicles and phosphate exports from the Negev desert. Eilat is connected by a highway to the rest of Israel and operates as a free‑trade zone.
Effects of the Red Sea crisis
- Reduced traffic: Fear of attacks caused many shipping lines to reroute via the Cape of Good Hope, bypassing the Red Sea and Suez Canal. This reduced the number of ships docking at Eilat.
- Economic impact: Lower cargo volumes hurt port revenues and affected linked industries such as trucking and tourism. Eilat was already less competitive than larger Mediterranean ports.
- Regional security concerns: The attacks underscored the vulnerability of maritime trade to geopolitical tensions. They have pushed Israel and its allies to enhance naval security and consider alternative overland routes.
Outlook
Eilat’s experience shows how global trade can be disrupted by regional conflicts. While the situation may improve if hostilities subside, it also highlights the need for diversification of shipping routes and investment in port efficiency. Cooperation among Red Sea littoral states and major trading powers is essential to safeguard this vital corridor.