Middle East: A new Hebrew report reveals that the Israeli Chemicals Company (ICL) has incurred significant losses due to the maritime blockade imposed by Yemeni Armed Forces on the Zionist entity, which has disrupted the company’s potash sales, previously exported primarily through the now-closed Eilat (Umm al-Rashrash) port due to the Yemeni blockade.

According to an economic report by The Marker on Tuesday, the so-called "Houthi blockade" cost ICL $13 million in the third quarter of this year compared to the same period last year, largely due to "increased shipping expenses."

The report further notes that "the blockade forces the company to reroute its potash shipments to East Asia via a longer route around Africa, effectively doubling costs."

It also states that potash sector revenues dropped by 26% in the last quarter due to a "decline in sales volume," with sales to Brazil and China particularly impacted. Sales of 120,000 tons were delayed, as the company had to export through Ashdod port, leading to a $70 million loss in potential revenue.

Eilat had served as the main export hub for ICL’s potash shipments. In November of last year, after the seizure of the Galaxy Leader vessel, The Marker reported that "approximately one-third of Israel's potash exports go to East Asia, especially to China and India, via ships departing from Eilat." 

The report pointed to Yemen's ability to restrict access to the Red Sea through control over the Bab al-Mandeb Strait, threatening ICL's use of the most direct route to India, in addition to increased insurance costs on cargo. Alternatively, ICL could reroute its exports through Ashdod port, accepting the considerable costs of rerouting around Africa, which extends shipping times by two weeks—a reality now confirmed by the recent report.

In January, the same outlet reported a significant decline in ICL's stock value, its lowest in years, due to the impact of Yemeni operations in the Red Sea. Analysts have anticipated further declines in potash sales this year due to the Yemeni blockade, an outcome that has indeed materialized.

These developments underscore the ongoing economic losses inflicted by the Yemeni maritime blockade on the Zionist entity, especially with the closure of Eilat port. Israel and its Western allies have been unable to find any solutions to mitigate the effects of the blockade, which continues to drain Israel’s economy, despite efforts to downplay the ongoing losses.

In related news, Walla reported Tuesday that disruptions from the closure of Eilat port continue to affect car imports, previously handled primarily through this port but now redirected to Haifa and Ashdod ports. However, this shift has not resolved the issue. The report noted that due to Ministry of Transportation restrictions on vehicle storage space at Haifa and Ashdod ports, importers had to transport vehicles by land to storage in the closed Eilat port, a "large and costly logistical operation" that significantly increased the cost per vehicle.

Walla also noted that because Haifa and Ashdod ports are not equipped for large-scale vehicle storage, restrictions require importers to clear vehicles within 48 hours of unloading, adding further complications and costs to the import process.