Eilat Port Faces Layoffs Amid Red Sea Shipping Crisis and Houthi Attacks

By Aryeh Weiss

Amidst the crisis gripping Red Sea shipping lanes and heightened attacks by the Houthis in Yemen, Eilat Port is bracing for significant layoffs, with Israel’s primary labor federation indicating that nearly half of the port’s workforce is at risk of losing their jobs.

Situated on the northern tip of the Red Sea, Eilat Port was among the first to feel the impact as shipping companies diverted vessels away from the area to evade Houthi attacks. The Histadrut labor federation, representing a vast number of public sector employees, reports that port management has announced intentions to terminate employment for approximately half of its 120 workers. Dock workers are slated to stage a protest later today in response to this decision.

While Eilat Port primarily handles imports of cars and exports of potash from the Dead Sea, it holds a strategic position adjacent to Jordan’s sole coastal access point at Aqaba. Despite its smaller scale compared to Israel’s Mediterranean ports in Haifa and Ashdod, which manage the majority of the country’s trade, Eilat serves as a vital gateway to the East, offering an alternative route that bypasses the Suez Canal.

Eilat Port’s chief executive revealed in December to Reuters that activity had plummeted by 85% since the onset of attacks by Iran-backed Houthis on ships traversing the Red Sea.