Sixty eight ships are currently waiting offshore from Israel's ports, waiting to enter in order to unload their cargoes. This is a persistent problem rather than a one-off situation, which has a substantial influence on the cost-of-living.
Waiting at sea costs ship owners an estimated $20,000 per day for which they are compensated by the importers who ordered the goods. For example, a ship carrying 34 tons of wheat, which entered Israel's waters last August, waited 39 days before being allowed to enter Haifa port. The importers were required to pay the ship owners a fine of more than $300,000, representing 10% of the cost of the entire consignment, which ultimately would have been passed onto the consumer.
Manufacturers Association of Israel president Dr. Ron Tomer said there is a simple solution to immediately relieve the current congestion at the country's ports. "There are today five empty quays that the Ministry of Transport insists on not operating because the Histadrut is stopping it."
To implement the necessary solution requires agreements but despite much public debate about the cost of living, the Ministry of Transport is doing everything to avoid a confrontation, even at the price of the public interest.
Bearing in mind that 99% of Israel's industrial trade is dependent on shipping the Ministry of Finance chief economist recently wrote, "Exports and imports are being harmed. Industries dependent on imported inputs are suffering delays and the influence might reach the individual consumer and even trickle down to employment."
Published by Globes, Israel business news - en.globes.co.il - on March 17, 2022.
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