Date: Friday, October 27, 2023
Source: Splash 247
Aware of the risks to its supply chains from ships diverting from its risky coastline, Israel has said it will compensate any ships that are damaged in its waters due to the ongoing war with Hamas.
Vessels calling at Israel already face the highest war risk surcharges anywhere in the world with the exception of Yemen and the Black Sea and some shipping lines have revised their shipping schedules in the opening 20 days of the war.
Taiwanese liner Evergreen became the first carrier to divert a feeder ship away from Israel nine days ago, issuing a force majeure.
Israel’s tax authority said in a statement yesterday that compensation would be awarded for “war damage” caused to any Israeli or foreign vessel located within Israel’s economic waters.
“So far, no merchant vessels have been damaged by missile/rocket fire. The Israeli Iron Dome system is designed to protect civilian and critical national infrastructure, which makes this less likely. However, vessels have been disrupted, and there is a considerably greater risk of damage in the event of a regional conflict given the number of missiles and rockets available to Israel’s opponents,” security consultancy Ambrey stated in a recent update.