Working with Fridenson Group’s International Shipping Division in Times of Uncertainty
Dear friends, we understand exactly what you’re facing. If you’re importers or exporters operating in Israel, you’re undoubtedly dealing with a variety of challenges in these turbulent times. You’re navigating significant uncertainties – when will the goods arrive? How can you ensure timely shipping? And the costs? Let’s not even go there. We’re here to bring clarity, explain what’s really happening in the world of shipping today, and show you how Fridenson Group’s “Air & Ocean” Division can help you weather this period smoothly.
Key Points to Know
To better understand the challenges we’re tackling in the shipping world today, here are some noteworthy facts:
The Houthis: Who They Are
The Houthis are a Shiite militia of Yemeni origin, supported by Iran. Since the start of the conflict in Yemen in 2015, they’ve been targeting civilian and military vessels in the Red Sea and the Bab al-Mandeb Strait. This route is critical, linking Asia, Europe, and the Middle East, with over 10% of global trade passing through this area.
Current Risks in Maritime
Transport Missile and drone attacks on commercial ships have caused significant disruption in supply chains. Since the attacks began, marine insurance costs in these high-risk areas have surged by 20%-30%.
Route Changes Many vessels
Now, they opt to bypass the Red Sea region to avoid attacks, extending transit times by 7-10 days. This increase in delivery times has also driven up transport costs.
Insurance Cost Changes
Insurance companies are raising rates for vessels traversing dangerous regions, with a 15% annual increase in premiums in conflict zones. This can amount to hundreds of thousands of dollars for each shipment.
Air Shipping Under Threat
In addition to maritime issues, frequent flight cancellations are impacting Israel’s air shipping capabilities. Limitations on flight numbers have caused delays to double, sometimes even triple, which in turn drives up costs dramatically.
The Turkish Embargo
Turkey’s embargo has had significant repercussions for exports, imports, and international shipping. The deteriorating relations amidst the war have made it difficult for Israeli companies to move goods to and from Turkey, resulting in higher shipping costs and the need to find alternative routes to meet both domestic and international market demands.
Maritime Shipping – How Can You Plan With Red Sea Attacks?
If you’re importing or exporting goods by sea, you’ve likely heard about the Houthi attacks in the Red Sea and the Bab al-Mandeb Strait. As noted, these are vital routes connecting Asia, Europe, and the Middle East, and these attacks are causing major disruptions. Delivery schedules have become uncertain, costs are skyrocketing, and the insurance issues are only adding to the challenge. High-risk regions require enhanced insurance coverage.
You may be asking, “What’s the solution?” “How can we keep operating efficiently?” That’s where our “Air & Ocean” solutions come in. Fridenson Group, with its experience and extensive connections, offers alternative routes so that your goods don’t face excessive delays. Additionally, we assist with accurate sea freight cost calculations and tailor solutions to the current situation, even if it means rerouting around dangerous areas.
But What About Air Shipping?
Challenges Here, Too When maritime shipping gets complicated, air is often seen as the alternative. It’s a good choice in today’s climate, but, unfortunately, there are also hurdles in this arena. With Israel’s security situation, many airlines have ceased or reduced flights to Israel. This means that air shipping is also facing tough challenges: fewer flights, rising prices, and increased insurance rates—all impacting the bottom line.
So what’s the plan? Here’s where our “Air & Ocean” division comes into play. We can help you evaluate the available options, find the best sea and air shipping solutions for your needs, and make the right choice between them—even if it requires some creativity.
Why a Shipping Company is Vital Now
You might think it’s possible to manage shipping independently in normal times, but in times of crisis, working with an experienced shipping company can be the difference between risky delays and quick, efficient solutions. We understand how valuable your goods are to you—not just their price but also your time, your customers, and your reputation.
With container storage in Ashdod, customs brokerage services at Ben Gurion Airport, and a range of other facilities and services, we’re here not just for the shipping itself but also for storing your goods and handling the complex paperwork involved. In this industry, the ability to respond quickly, think creatively, and adapt to change is critical—and that’s where our “Air & Ocean” division can ease the process for you, drawing on Fridenson Group’s extensive experience.
Need an Example? Here You Go: When Turkey announced it was halting exports to Israel, we found alternative import solutions through third parties. Now, with Turkey tightening restrictions further, we had to get creative and think outside the box—and yes, we found solutions for that too, which our account managers would be glad to share with you.
We’re Here for You
Yes, we know it’s not easy. But with our shipping division, you don’t have to face it alone. We have the tools, connections, and knowledge to help you navigate all the complexities of shipping in today’s climate and ensure that your business keeps running smoothly, no matter what.