Chinese state-owned shipping giant Cosco (China Ocean Shipping Company) has announced the suspension of shipments to Israeli ports, joining other companies that have suspended their shipments to Israel since the imposition of the Houthi blockade on the Red Sea.
Cosco is the fourth largest shipping company in the world and holds an 11 percent market share in commerce.
Last year, it launched a new shipping route to deliver Chinese-made vehicles to Israel through the port of Eilat, becoming one of the main competitors to Israeli shipping company ZIM, which previously dominated the business.
ZIM also diverted its ships away from the Red Sea two months ago and raised shipping rates due to Houthi operations.
In the past few years, while China’s auto industry has been booming, Chinese companies have seen the Israeli market as an entry point for Europe.
During the first two months of 2023, Israel became the third largest destination for Chinese car exports.
As of the end of last year, Chinese-made vehicles accounted for 17.47 percent of all deliveries in the Israeli market, a significant jump from 4.8 percent in 2022.
In addition, Chinese vehicle brands, including China-made Teslas, dominated the electric vehicle sector in Israel, holding a 70% market share, Klix.ba writes.
