A massive Israeli shipping company has seen a surprising benefit as a result of the Houthi attacks on ships in the Red Sea. ZIM Integrated Shipping Services has seen a surge in profits, the timing of which has coincided with the Houthi attacks.
As reported by the Algemeiner, ZIM Integrated Shipping Services, achieved a 48% year-over-year revenue increase in the second quarter of this year. Its net income increased to $373 million and its carry volume has risen 11%.
This has all taken place after the October 7 Hamas terror massacre.
ZIM’s increased revenue and profit appeared to have come because of the Houthi attacks, not despite them.
The reason is that they are taking alternative, longer routes, to avoid the Red Sea. The alternative routes require additional fuel, and the added costs are passed onto consumers, resulting in greater revenue.
According to the Algemeiner, the costs passed onto consumers are usually greater than the additional costs being paid by the company. As a result, they are earning extra profit as well.
In addition to ZIM, Middle East Eye reported that “shares of Maersk, the Danish shipping giant operating more than 700 vessels, are up about 20 percent in the last month, while German company Hapag-Lloy — the world’s fifth-largest container shipping group — is up 17 percent.”
Some say that these higher prices to consumers may be justified because shipping has become increasingly risky.
Yemen’s Iran-backed Houthi terror group began disrupting global trade by attacking shipping in the Red Sea corridor following the October 7 attacks.
The Houthis have threatened to target all ships heading to Israeli ports, even if they do not pass through the Red Sea, and took responsibility for attempted drone and missile attacks targeting Israel. Houthi terrorist have launched ballistic missiles toward Eilat, and several weeks ago, they hit the center of Tel Aviv with a long-range Iranian drone.