10.11.23: Laufer Client Advisory – Israel Service Disruptions

The full-scale conflict between Palestinian militant group Hamas and the state of Israel is beginning to disrupt commercial operations in both the air cargo and maritime sectors. 

Air Cargo 

Civil aviation authorities in the U.S., European Union and Israel all urged airlines to use caution in the region’s airspace but have not restricted flights. Israel’s aviation regulator advised carriers to review security and threat information and to carry more fuel, and they changed some flight paths to the capital. 

However, many airlines worldwide have cancelled, suspended, or delayed flights in response to the situation, and cargo carriers have warned of potential disruption to shipments. These include FedEx, UPS, Air France KLM Martinair Cargo, Lufthansa, Cathay Pacific, American Airlines, Air Canada, Emirates and Virgin Atlantic. Most have implemented embargoes to/from Israel. With respect to the shipments affected by this situation, many carriers have indicated that this is a case of force majeure due to acts of war in the region. 

Ocean Cargo 

Port status 

Israel's port operations have experienced a decline in activity after the recent attacks on nearby towns close to Gaza that occurred on Saturday.  

Ashkelon, a smaller southern port, has suspended entry for ships due to its location and missile range vulnerability. 

In the north Ashdod and Haifa are still operating but are being assessed by maritime companies. These ports are outside the ranges of previous missile strikes, but a coastline threat has not been ruled out. 

Carrier Action 

We have not been formally informed of any carrier cancellations, service suspensions, or embargoes. While certain carriers may be evaluating actions for specific destinations in the region on a case-by-case basis, they have not made any official announcements regarding the discontinuation of services or ports. 

ZIM lines, operating from its North American headquarters, has declared that it is conducting business as usual. 

Should you need further information or have any concerns or queries, please contact your local Laufer customer service or sales representative. 

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