Sale of major shipping line in U.S. trade on the rocks: Report

The agreement includes a carve‑out for national security purposes that would spin off an Israeli-controlled company, New Zim, backed by FIMI.

Zim’s U.S.-linked trans-Pacific volume is roughly 1.6 million container units annually and represents just over half of Zim’s container freight revenue. 

Jerusalem owns a “special state share,” meaning the government effectively has a veto over any change of control.

Zim in a July update said it is still operating under the merger agreement, cooperating with regulators, and has not withdrawn or amended the deal. Closing is still nominally targeted for late 2026, subject to regulatory and Israeli state approvals.

But Israeli financial media report that a majority of the eight government agencies that must review the deal are expected to oppose it, led by the Shipping and Ports Authority, which has already filed a second opinion reiterating its opposition.

Authorities argue that even with the New Zim carve‑out, Israeli maritime interests would be too dependent on a foreign carrier for tonnage and network access, posing national security and economic‑sovereignty risks.

An inter‑agency meeting scheduled for this week was pushed to Sept. 9, suggesting more delay. After that, Hapag-Lloyd and FIMI get a final hearing at the Government Companies Authority before a decision.

Hapag-Lloyd and FIMI have reportedly sweetened the package to try to address Israeli concerns. Those incentives include debt‑free New Zim operating 16 Israeli‑flag ships; job guarantees and a new Israeli regional division of roughly a few hundred staff; and a technology center in Israel with 250–300 employees.

Despite that, reports say the Shipping and Ports Authority and several ministries, including Defense, Economy, Agriculture, and Transportation, remain opposed. The Finance Ministry’s Accountant General is also reportedly against the transaction.

Outside Israel, Australia’s competition regulator has already cleared the deal, and the transaction has been filed with Brazil’s regulator.

Read more articles by Stuart Chirls here.

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