The Customs Agents and International Freight Forwarders organization has sent an urgent letter to the Finance Ministry's Accountant General, Michal Abadi-Boyangu, asking her to reconsider ending the government's cargo insurance against war and terror risks and to extend it by three months.

The deadline

A joint notice issued by the Finance Ministry and the Tax Authority in late August said the program, run through the Tax Authority's compensation fund, would remain in force only until October 31, 2026, and would end then unless a new decision is made.

Why the industry wants more time

Organization chairman Amir Shani noted that over the past two months Maersk, MSC and Hapag-Lloyd have started a cautious return to the Bab el-Mandeb and Suez route after long diversions around the Cape of Good Hope. However, Israeli shippers report that private insurers are still not willing to cover war and terror risks on cargo passing through the Red Sea. Shani called the situation a partial recovery under constant risk, adding that the Houthis have recently strengthened their grip on parts of Yemen's coast and Perim Island. Without the state safety net, he warned, essential shipments could stop and trade could be disrupted.

The Finance Ministry had not yet responded.

What it means for importers

If the program is not extended, cargo arriving after October 31, especially via the Red Sea, may have no war-risk cover. Check your insurance now and talk to your customs broker before booking shipments due after that date.