Weekly Newsletter

20 October 2023

Weekly Newsletter

20 October 2023

Israeli freight activities remain normal despite conflict

The country has maintained its ports and airports to continue freight activities, despite some airlines and shipping carriers suspending or surcharging services.

Noah Bovenizer October 19 2023

Israeli freight activities have continued to be fully operational despite the ongoing conflict in the area according to logistics price tracker Freightos. 

While most passenger and some cargo airlines have cancelled flights to and from the country, Freightos said that data showed that Israeli air cargo export rates to Europe and the US have actually increased by 20% since last week. 

Meanwhile, import container rates to the country are still in line with the rest of the region, despite some carriers reporting a backlog of ships at Ashdod Port. 

However, while freight activity may be steady at normal levels, the contents of freight shipments have changed with the Port of Haifa and Ashdod both restricting the movement of dangerous goods at their ports and reviewing the possibility of discharging those already on the water at alternative locations. 

Additionally, some carriers have begun introducing surcharges for shipments to Israeli ports to reflect the insurance premiums being levied on vessels calling at the country. 

For example, Israeli company ZIM has introduced a “war risk premium surcharge” of between $50 and $100 across its services, though the exact price is subject to change every 24 hours. 

The update on the country’s freight activities came after the Israel Airports Authority clarified that the Ben Gurion Airport in Tel Aviv would remain open after the surprise attack by Palestinian fundamentalist group Hamas in the Middle Eastern country. 

This was despite many foreign airlines suspending their flights to the airport amid concerns over how long it could continue to safely operate. 

While some cargo airlines have continued to operate to the airport, such as DHL, others including UPS have maintained a freeze on flights into the country while others like FedEx have tendered shipments to other airlines flying to Israel.

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