Eilat Port Suffers Losses Amid Red Sea Houthi Attacks

The operator of the Port of Eilat has reported significant financial losses due to ongoing attacks by Yemen's Houthi rebels in the Red Sea, which have made the facility unprofitable. According to a September 16, 2026 report by Calcalist, the import of passenger cars through Israel's southernmost port has plummeted by 75%, leaving the port barely able to cover its operational expenses. Prior to December 2023, the Port of Eilat generated an annual revenue of approximately 240 million shekels.

The primary cargo and vehicle shipments have been rerouted to the ports of Haifa and Ashdod, as shipping companies deem the Red Sea route too perilous. In an effort to attract vessels back, the port's management has waived up to 90% of certain fees. A port representative highlighted that shipping goods from East Asia via Eilat is typically more cost-effective than using Mediterranean ports, and the diversion of traffic could lead to increased consumer prices.

Currently, the port receives an average of one cargo ship per month, carrying around 4,700 vehicles. This is a stark contrast to the last quarter of 2022, when over 70,000 vehicles were unloaded there. The port employs about 100 staff members, with an additional 20 personnel dedicated to security and maintenance. Papo Shipping, the company operating the port, is seeking an extension of its concession, which expires in 2028, with the expectation of offsetting current losses in the future.