Photo: Shaula Haitner Pikiwiki Israel, CC BY 2.5, via Wikimedia Commons

War in Israel and Palestinian territories to impact logistics of narrow set of product groups, says FourKites’ Glenn Koepke

Aside from the horrific loss of life, the ongoing conflict in Israel and the Palestinian territories has impacted logistics movements in the region - most notably air freight services.

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Last week, the likes of FedEx and UPS suspended flights to Israel. In recent days there have also been reports of a growing backlog of ships at Israeli ports.

However, on Monday, logistics giant Maersk stated that its transport services across ocean, rail, road and limited air were all operational, with bookings to and from Israel being accepted and facilitated.

Updates provided today by a DB Schenker agent based in Israel also show that Ben Gurion Airport is continually open, though rates “have increased further and will need to be quoted on a case-by-case basis”.

Looking further ahead, according to Glenn Koepke, GM of Network Collaboration for supply chain visibility provider FourKites, there will be at least some interference to supply chains should the war continue.

Koepke says that the war will impact a narrow set of product groups that are key exports from Israel, such as chips, medical devices, gems and pharmaceuticals.

“Israel is a key R&D hub for many companies — although this won’t disrupt supply chains right now, it will impact product innovation for companies over the near term as many local and international corporations focus on employee safety and well-being.”

Koepke also believes there is a chance of wartime surcharges being implemented, which will not only influence costs, but cause minor delays too:

“Logistically speaking, Israel and Palestine are not significant for the movement of goods. In nearby Egypt, you have the Suez Canal, which is a main artery for trade between Asia and EMEA. However, we don’t foresee any bottlenecks in the Suez Canal at this point in time. For marine cargo traveling through the Mediterranean Sea, vessel operators will look to charge a wartime surcharge and route cargo away from military vessels that are en route or on active operations. This will cause a very minimal delay in the overall flow of goods, but it is something that we will be monitoring.”

The geopolitical situation can’t be ignored either. As Koepke points out, the war has many political implications given the allies of both Israel and Palestine. “This will put a strain on global trade if the war persists, says,” adds FourKites’ GM of Network Collaboration.


Photo: Shaula Haitner Pikiwiki Israel, CC BY 2.5, via Wikimedia Commons