Schaefer: Government should stop abandonment by leading shipping companies

His letter to the Israeli PM followed an announcement by A.P. Moller-Maersk Group that it plans to suspend its direct shipping service to the US from Haifa Port in October


00:00 ,06.08.2007 From: PORT2PORT

His letter to the Israeli PM followed an announcement by A.P. Moller-Maersk Group that it plans to suspend its direct shipping service to the US from Haifa Port in October
 
Mr. Gad Schaefer, the Israel Shippers' Council chairman, said last week in a letter to Prime Minister Ulmert that the abandonment of Israel’s ports by leading international shipping companies was worrying and necessitated improvement in the service at the ports and investment in the construction of more piers.
 
The letter followed an announcement by A.P. Moller-Maersk Group that it plans to suspend its direct shipping service to the US from Haifa Port in October. Maersk Line is the world’s largest shipping company.
 
Maersk will replace its direct Haifa-US service with a new service from Port Said in Egypt, which currently serves as the company’s Middle Eastern hub. Maersk will operate a feeder line between Haifa Port and Ashdod Port and Port Said.
 
China Shipping Container Liners Co. recently announced that it was halting its direct service from Israel to the Far East.
 
Schaefer noted that quality of service will be harmed due to lack of companies.
 
Maersk’s announcement of its departure from Israel will leave Zim Integrated Shipping Services Ltd. as the only leading carrier offering direct service between Israel and the US ports. Sources in the shipping industry say that Maersk’s departure could result in a 5-10% increase (about $150 - $170 per container) in freight rates to the US.