The conflict between Israel and Palestine could “lead to a shift in the transportation of goods,” wrote Hossein Norouz Fashkhami, a senior marketing expert from the Middle East, in a recent blog post.
“In light of recent developments in the Middle East, including the outbreak of war in Israel and its vulnerability to missile attacks and the incursion of opposing militias, the security of transporting goods through the port of Haifa has become uncertain,” Fashkhami wrote. “The transit of containers, especially hazardous materials, and the arrival of commercial vessels greatly emphasize the importance of security on this route. Such insecurity or potential terrorist attacks could lead to a shift in the transportation of goods.”
A recent analysis of the war published by Container xChange October 12, entitled “Israel-Palestine conflict set to create challenges in maritime industry while trade continues with caution,” showed that the conflict could disrupt trade flows between China and Israel. Additionally, trade could be interrupted between Israel and other major markets, such as the U.S., Germany and India, over the next few weeks.
The clash between Israel and Palestine is also creating a growing concern about the costs of Indian exports rising due to higher shipping expenses and increased insurance premiums. However, Container xChange predicts the conflict will have a “limited” impact on trade volumes unless the war “escalates significantly.”
Individual ports have also been hurt by the war, like the Port of Ashdod, which was forced to enact restrictions on ships carrying hazardous materials. The Port of Ashkelon has been unable to perform normal operations due to missile threats.
Meanwhile, other ports, such as the Port of Hadera and the Port of Eliat, have been able to carry out their operations as normal.
“In the case of the conflict in Israel, any expansion of the hostilities beyond the country’s borders could introduce risks to two vital shipping choke points,” said Christian Roeloffs, the co-founder and CEO of Container xChange. “The Suez Canal, a critical waterway for various commercial vessels, including container ships, may face disruptions. Similarly, the Strait of Hormuz, a backbone for oil and gas shipping, could be affected. However, the extent of these effects will largely depend on the conflict’s expansion and duration.”
Israeli Prime Minister Benjamin Netanyahu declared war on Hamas — an Islamist militant movement and one of the Palestinian territories’ two major political parties — on October 8 following a surprise assault by militants one day after the 50th anniversary of the start of the 1973 Yom Kippur War.
