Impact of the Palestinian-Israeli conflict: increased war risk for shipping, sharp increase in demand for air charter flights
Impact of the Palestinian-Israeli conflict: increased war risk for shipping, sharp increase in demand for air charter flights
A new round of military conflict broke out between Israel and Palestine on the 7th local time. The Palestinian Islamic Resistance Movement (Hamas) launched military operations against Israel that day. The impact of the outbreak of war on the shipping and logistics industry has now appeared! It is reported that: Hamas The attack on Israel led insurance companies to impose so-called war insurance premiums on all ships calling at Israeli ports, which led shipping company ZIM to introduce a war fee, the company wrote in a brief update.
"In view of the war situation, insurance companies have imposed an additional war risk insurance premium on all ships calling at Israeli ports, which we are now obliged to pay in order to maintain services to and from Israel," Zim wrote, with the cost ultimately being passed on Gave it to the customer.
Additionally, container lines report that routes to and from Israel continue to operate without major disruption so far.
Currently, all local ports in Ashdod, Haifa and Eilat are operating as normal despite the war situation in Israel. Due to security guidelines imposed by the Israeli authorities, service may be interrupted for a short period of time and we will provide further updates at that time. "
Demand for air charter flights surges
In addition to shipping being affected by the war, the air freight market has also been affected! Since the 7th, many foreign airlines have successively announced the cancellation of flights to Israel this week. On the 8th, United Airlines, Delta Air Lines and American Airlines announced The statement said direct flights to Tel Aviv were suspended.
United Airlines said in a statement that although there were still two flights from Israel to the United States on the evening of the 7th and early on the 8th, this route has now been suspended until conditions permit the resumption of flights.
Delta said it is monitoring the situation closely to adjust flight schedules as needed, but all flights this week have been cancelled.
Air France, Lufthansa, Emirates, Irish Ryanair, Wizz Air, etc. have also temporarily canceled flights to Tel Aviv.
Charter brokers are understood to have reported a series of requests that are becoming increasingly difficult to meet as scheduled airlines suspend services to Tel Aviv. British Airways said it would cancel services for three weeks, while Turkish Airlines confirmed it had no flights to Israel.
A freight forwarder pointed out that the air cargo market tends to be affected by any form of disruption. "This is horrific and it will impact air freight. It's not just airlines suspending flights. A serious war in the Middle East is always going to create demand for air cargo. If things escalate, it could be something we haven't seen in decades." situation.