The ongoing war between Israel and Palestine, which started on October 8, 2023, has not only caused human suffering and political instability, but also disrupted the logistics industry in the region and beyond. The conflict has affected various modes of transportation, such as air, sea, and land, as well as the supply chains of several sectors, such as electronics, defense, healthcare, and agriculture.

Air Freight

One of the most immediate impacts of the war was the suspension of flights to and from Israel by major carriers, such as FedEx, UPS, DHL, and Lufthansa. These companies cited security concerns and operational challenges as the reasons for their decision1. The Tel Aviv airport, which is the main gateway for air cargo in Israel, has been subjected to rocket attacks and air strikes by both sides2. According to the International Air Transport Association (IATA), Israel’s air cargo market is worth about $900 million annually3. The suspension of flights has affected the delivery of essential goods, such as medical supplies, vaccines, and perishable products4.

Sea Freight

Another mode of transportation that has been affected by the war is sea freight. Israel’s ports, especially the Port of Ashdod and the Port of Haifa, have been targeted by rockets and missiles from Gaza and Lebanon5. This has caused delays and congestion in the maritime operations, as well as increased security measures and costs. According to S&P Global Market Intelligence, Israel’s ports handled about 3.6 million twenty-foot equivalent units (TEUs) of containerized cargo in 2022. The disruption of sea freight has impacted the import and export of various commodities, such as oil, gas, chemicals, metals, machinery, and textiles.

Land Freight

The war has also affected land freight in several ways. First, the border crossings between Israel and its neighboring countries, such as Egypt, Jordan, Lebanon, and Syria, have been closed or restricted due to security reasons. This has hampered the movement of trucks and trailers across the region. Second, the internal road network in Israel and Palestine has been damaged by bombings and blockades. This has increased the travel time and risk for drivers and vehicles. Third, the fuel supply in both countries has been disrupted by attacks on pipelines and refineries. This has raised the fuel prices and reduced the availability of diesel and gasoline.  

Supply Chains

The disruption of transportation modes has also affected the supply chains of several sectors that rely on Israel’s production or consumption. One of these sectors is electronics. Israel is a major supplier of computer processors, aerospace equipment, and telecom equipment to the EU and other markets. The war has disrupted the production and delivery of these products, which could affect the global demand and supply balance. Another sector is defense. Israel is a leading exporter of military equipment and technology to countries such as India, Azerbaijan, Singapore, and Colombia. The war has increased the demand for these products from Israel’s allies but also reduced its capacity to fulfill them. A third sector is healthcare. Israel is a significant producer and consumer of pharmaceuticals and medical devices. The war has affected the availability and quality of these products in both domestic and foreign markets.

Conclusion

The war between Israel and Palestine has had a negative impact on the logistics industry in various ways. It has disrupted the transportation modes of air, sea, and land freight; it has affected the supply chains of several sectors such as electronics, defense, and healthcare; it has increased the costs and risks for logistics providers and customers. The extent of these impacts will depend on how long the war lasts and how much it escalates. The logistics industry will need to adapt to these challenges by finding alternative routes, sources, and markets; by enhancing security measures; by collaborating with stakeholders; and by supporting humanitarian efforts.   

Source: openai