The first Emirati ship loaded with cargo docked this morning in the Israeli port of Haifa, reported the Jerusalem Post.
Coming from the Jebel Ali port, the ship carried iron, firefighting, cleaning and electronic equipment. It will bring cargo from the Emirates on a weekly basis.
It comes after the countries signed a US-brokered deal last month to normalise relations.
Cargo has already started being transported via air between the countries, with Israeli national airline El Al launching a cargo flight from Tel Aviv to Dubai last month.
El Al, said at the time, the new route will be an "import and export" link to Dubai and further east.
The ship, MCS Paris, covers a route between India, Israel and other Mediterranean ports.
"This is very exciting," said Eshel Armony, chairman of the board at Haifa Port. "This is a new era in the Middle East, and I'm sure this will bring more and more trade," he said, according to Haaretz.
"We're going to see this line once a week by MSC and, who knows, later on maybe we'll have even more. I hope that will happen quickly."
Israeli Prime Minister Benjamin Netanyahu said the ship "made history".
עושים היסטוריה: לראשונה נכנסה כעת לנמל חיפה אוניית משא מאיחוד האמירויות. נפתח ציר סחר חדש בין איחוד האמירויות לישראל!
הסכם השלום בינינו מביא לשיתופי פעולה שיכניסו מיליארדים לאזרחי ישראל. זה חשוב במיוחד בתקופת הקורונה כדי שנוכל לסייע לכולם ולחזק את הכלכלה.
שלום תמורת שלום 🇮🇱🇦🇪 pic.twitter.com/aF24xpfzfp
— Benjamin Netanyahu (@netanyahu) October 12, 2020
"A new trade route was opened between the UAE and Israel," the prime minister tweeted. "The peace agreement between us leads to collaborations that will bring billions to the citizens of Israel. This is especially important during the coronavirus period, so we can help everyone and strengthen the economy."