Dubai Port reports 60% drop in profits amid Red Sea operations: WashPo

By Al Mayadeen English
Source: The Washington Post
15 Aug 2024 22:54
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The company reported profits of $265 million for the first half of 2024, a sharp decline from the $651 million it earned during the same period in 2023.

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Container ships dock at the Dubai Port in the Jebel Ali Free Zone about 40 kilometers (25 miles) south of Dubai, United Arab Emirates January 3, 2010. (AP)

Dubai-based port operator DP World announced on Thursday a significant drop in its half-year profits, with earnings falling by nearly 60% compared to the previous year, according to a financial statement released by the company.

The company reported profits of $265 million for the first half of 2024, a sharp decline from the $651 million it earned during the same period in 2023. The downturn has been partly attributed to the ongoing altercations occurring in the Red Sea, where the Yemeni Resistance is confronting a US-UK naval coalition that is attempting to reopen the trade route to Israeli and Israeli-linked ships.

In a statement accompanying the financial results, the Chairman and CEO of DP World Sultan Ahmed bin Sulayem said that "the year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis. While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half positions us well to deliver stable full-year adjusted profits."

Prior to the formation of the US-UK naval coalition, the Yemeni Resistance had already been actively obstructing the entry of Israeli, Israeli-linked vessels and Vessels belonging to companies operating with Israelis into the Red Sea. Despite these targeted actions, ships unrelated to the regime were allowed to pass through freely.

However, the situation deteriorated with the formation of the coalition, which escalated tensions by targeting Yemeni resistance forces. This escalation led to broader disruptions, impacting vessels that had previously been unaffected by the conflict.

As a result, many shippers have been forced to reroute vessels around the Cape of Good Hope, significantly disrupting operations at Dubai’s Jebel Ali Port, home to DP World and the world’s largest manmade harbor.

'Israel' gets a taste of its own medicine

Earlier today, Israeli news outlet Walla reported that the regime is suffering from a de facto naval blockade imposed by Iran and Hezbollah.

This blockade, which has come into effect "before any missile strikes", has already caused severe operational paralysis in key Israeli ports, and experts warn that the situation could deteriorate further if the ongoing war escalates.

The port of Eilat has already been non-operational since November due to Yemeni operations in the Red Sea. As a result, shipments destined for Eilat have been redirected to the ports of Haifa and Ashdod.

However, even there the situation is dire, with shipowners increasingly hesitant to send their vessels into what they see as a dangerous environment.