Last updated: 10/23/2023

Navigating the Israel-Hamas Conflict and Its Impact on Global Supply Chains

Navigating the Israel-Hamas Conflict and Its Impact on Global Supply Chains 

The current Israel-Hamas conflict has cast a shadow of uncertainty over global supply chains, making it essential to understand the potential implications and the best steps to take if you're reliant on international freight.

Global Supply Chains at Risk: 

This conflict has the potential to disrupt not only Israel but also the broader region, affecting two critical shipping choke points: the Suez Canal and the Strait of Hormuz. The ramifications are felt worldwide as these routes are lifelines for global commerce.

The Suez Canal: 

An "open choke point" for ships, the Suez Canal's closure due to regional conflicts can lead to longer detours around Africa. This, in turn, could decrease vessel capacity and result in increased freight rates.

The Strait of Hormuz: 

Vital for oil and gas shipping, any disturbances here can ripple through the entire energy supply chain, with global repercussions.


One of the world's major ocean carriers, headquartered in Haifa, Israel, anticipates disruptions to its services and has introduced a war risk premium. The conflict may also require some of its employees to be called for military duty.

What to Do If Your Freight Relies on Global Supply Chains:

1. Stay Informed: 

Keep a close eye on developments related to the Israel-Hamas conflict and its potential impact on supply chains. Be prepared to adapt as the situation evolves.

2. Diversify Shipping Routes: 

If possible, consider diversifying your shipping routes to reduce reliance on vulnerable choke points. This can help mitigate the impact of regional conflicts.

3. Engage with Your Freight Forwarder: 

Maintain open communication with your freight forwarder to get real-time updates on potential disruptions and alternative routes. In times of geopolitical uncertainty, consulting with logistics and supply chain experts can provide valuable insights and guidance.

4. Assess Risk: 

Evaluate the importance of your cargo, and assess the risks associated with each part of your supply chain. Plan for contingencies to minimize disruptions.

The Israel-Hamas conflict reminds us of the intricate nature of global supply chains. Staying agile, informed, and proactive can make all the difference in safeguarding your international freight operations. 

Our thoughts are with those affected by the conflict, and we hope for a swift return to peace and stability in the region. 

As always, we are here to help. Reach out to us HERE to see how your freight may be impacted.

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