Israel’s shipping company Zim has announced a hike in the cost of transporting containers from the Far East to Israel starting May 25. The increase will be $450 for a 20-foot container and $900 for a 40-foot container due to an update of the peak season levy (PIS). The base price for shipping a 20-foot container from the Far East is approximately $3,100, but various surcharges are added to it, including charges for China Port Service, special equipment transportation, extra fuel for a longer route, war levy, security ports, and port of destination services.
In total, the cost amounts to about $4,260 for a 20-foot container, with levies making up around 27.3% of the new price on the Far East-Israel line. Importers are concerned because the levies are non-negotiable and only the base price can be discussed during negotiations. This means that any discounts offered by Zim will only apply to the base price and not the final cost.
Recent events such as Houthi attacks in the Red Sea have caused tension in the international transportation market. For example, Chinese shipping giant Cuzco complied with demands by Iran’s envoys in Yemen to avoid docking in Israel. This decision has affected Gulf Port in Haifa, operated by another Chinese government company SIPG. It is important to maintain a respectful discourse when discussing issues related to international shipping and transportation and any expressions of violence or racism will not be tolerated. Engaging in discussions with respect and adhering to ethical guidelines is crucial.
