Operations at Israeli carrier ZIM Integrated Shipping Services have ground to a halt after hundreds of unionised workers walked out in protest over job security concerns linked to its planned $4.2 billion takeover by Hapag-Lloyd.
Around 800 of the company’s 1,000 employees have joined the strike, which escalated on Tuesday into a full stoppage across all activities. The dispute began at ZIM’s Haifa headquarters on Sunday before spreading to the country’s main ports, where workers have blocked vessels at both Haifa and Ashdod and refused to unload ships already alongside.
Union leaders say the action will continue until management addresses fears that the acquisition will trigger mass redundancies. Ziva Lainer Schkolnik, a prominent labour representative, warned that ships would remain immobilised until the company engaged meaningfully with employees and considered their concerns. With vessels already idle and cargo operations frozen, pressure is mounting on both sides as disruption spreads through supply chains.
At the heart of the dispute lies a planned restructuring tied to the takeover. Tel Aviv-based FIMI Opportunity Fund is set to acquire a carved-out business from ZIM comprising 16 vessels that will form a new domestic container carrier, New ZIM. According to union estimates, the new entity would employ only about 120 workers, leaving nearly 900 current staff at risk of losing their jobs, including many with long-standing tenure guarantees.
ZIM has declined public comment on the dispute. Hapag-Lloyd, however, has sought to reassure employees, stating that all ZIM management and headquarters staff will receive job security once the transaction closes, with details to be negotiated in good faith with labour representatives.
The German group has also pledged to maintain Israel as a significant operational hub within the combined organisation and says it remains open to dialogue with unions on all issues.
Labour representatives remain sceptical, questioning the long-term viability of a downsized New ZIM.
They argue that the Israeli shipping market is heavily concentrated, with the vast majority of imports flowing through Mediterranean routes, and warn that a small national line may struggle to compete.
Hapag-Lloyd counters that similarly scaled carriers operate profitably elsewhere in the industry and insists the model is commercially sound.
The stoppage intensified after an initial 48-hour warning strike, expanding into a company-wide shutdown that now affects all cargo handling, including specialised agricultural shipments. Union chairman Oren Caspi has warned that the workforce is prepared to paralyse the company entirely if necessary, as economic losses mount and vessels remain stranded.
Under the proposed transaction, Hapag-Lloyd will acquire ZIM while Israeli operations are transferred to FIMI to establish the new national shipping company. FIMI chief executive Ishay Davidi has framed the move as an opportunity to build a modern, efficient fleet with broad logistics capabilities, describing Hapag-Lloyd as a strategic partner and pledging to create a financially resilient Israeli carrier.
The deal has also drawn political scrutiny. Israel’s transport minister, Miri Regev, is attempting to block the sale and has called for an urgent inter-ministerial review to consider steps to halt the transaction.
She has stressed that the state’s golden share in ZIM must safeguard national maritime supply security, adding a further layer of uncertainty to an already fraught takeover battle that has now spilled onto the docks.