Yemeni Blockade Deals Major Financial Blow to Israeli Chemical Giant ICL

The Hebrew business newspaper *The Marker* reported that Israeli chemical giant ICL has suffered significant financial losses attributed to the “Houthi naval blockade” on Israel. The blockade has disrupted ICL’s potash exports, which are primarily shipped through the Eilat port. With the blockade preventing vessels from reaching Eilat, the company has faced a rise in shipping costs and logistical challenges.

ICL’s operating profits for the third quarter reportedly dropped, with shipping expenses increasing by $13 million over the previous year due to the need to reroute shipments around Africa to reach East Asia. This rerouting has substantially raised costs and reduced revenue.

The report revealed a revenue decline of $96 million in the third quarter, exacerbated by the company’s need to redirect exports to the port of Ashdod. Limited capacity at Ashdod has further forced ICL to delay 120,000 tons of potash exports to markets in Brazil and the United States, impacting an additional $70 million in sales. Consequently, ICL’s potash division saw a 53% decrease in operating profit and a 26% drop in revenue during this period.