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Home Feature Reports

Eilat Port to Lay Off Half its Employees Due to Financial Catastrophe

Houthi attacks cause shipping firms to reroute their vessels, port business dropping by 85%

Maya Kaye by Maya Kaye
Mar 22, 2024 @ 2:10 AM
in Feature Reports
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Eilat Port to Lay Off Half its Employees Due to Financial Catastrophe

New imported cars at Eilat Port; photo taken on January 3, 2024

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Half of the workers at the Eilat Port are at risk of losing their jobs due to Houthi attacks on Red Sea shipping lanes. Shipping firms have rerouted their vessels to avoid attacks from the Iran-backed terror group in Yemen. This has caused great financial losses for Israel. The Histadrut Labor Federation, which is the umbrella organization for thousands of public sector employees, says it intends to fire 60 of the 120 Eilat Port workers. 

The dock workers plan to hold a protest Wednesday, the 27th of March. The Eilat port, although smaller than ports in Haifa and Ashdod, is the only port that allows Israel passage to the east without needing to navigate the Suez Canal. It is mostly used for car imports and potash exports from the Dead Sea. In December, the Eilat Port chief executive reported an 85% drop in business since the Houthis began their attacks on ships in the Red Sea. Reuters recently reported that Houthi rebels have promised Russia and China they would not target their vessels if passing through. 

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