All shipping companies serving Israeli ports have agreed to cut their heightened war risk surcharge on Israel-bound containers by 37.5 percent effective September 1, the Manufacturers Association of Israel said Thursday.

"They came to the realization that in the current situation, both [Mediterranean] ports are fully active and the risk of harm to their ships is in fact non-existent. We are therefore demanding that the surcharge be canceled altogether," said MAI shipping committee chairman Zvi Plada.

Even once the reduction comes into effect - bringing the surcharge to $50 per container down from $80 - the surcharge will cost Israel's business sector $100,000 daily, of which $65,000 will be paid by Israeli industry, Plada said.

To date, Israeli industry, commerce and agriculture have had to pay about $15 million because of the decision by international insurance companies to hike the surcharge to hundreds of dollars per container in the third week of July, Plada estimated. Private customers - including new immigrants - have also been subject to the surcharge on containers brought into the country.

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