Israeli-linked shipping vessels are taking alternative routes to the Suez Canal just days after the Houthi movement attacked three commercial ships with ballistic missiles in the Red Sea.

According to Judah Levine, the head of research for Freightos, some Israeli-linked ships have begun diverting from passage through the Suez Canal, instead electing to sail around the west coast of Africa and the Cape of Good Hope. So far, two container vessels operated by Maersk, two car carriers and at least one container ship owned by ZIM have chosen to divert their shipments away from the Suez Canal.

Ships sailing from Israel to Asia via Africa and the Cape of Good Hope will now have to travel 7,000 more nautical miles than they would if they were moving through the Suez Canal, which equates to 10-14 more days of travel. Though the vessels will avoid Suez Canal fees, which are set to increase by 15% in January 2024, some of those gains will be offset by higher fuel costs linked to greater travel times and increased distances.

Some China-originating ships headed for Israel have recently seen the average cost per container increase between 16% and 36% from October to November, suggesting that the Israel-Hamas conflict is creating higher costs for carriers and greater prices for customers, Levine said.

According to the Associated Press, three Israeli-linked commercial ships in the Red Sea were struck with ballistic missiles December 3. The Houthi movement, a Shia Islamist political and military organization based in Yemen, claimed responsibility for two of the attacks.