Supply Chain Alert: Middle East Conflict

As the conflict involving Iran and the broader Middle East enters its third week, significant operational disruptions continue to impact global transport networks across air and ocean freight. Capacity constraints, routing adjustments, elevated insurance requirements, and rising operational costs are now influencing multiple trade lanes connecting Asia, Europe, and the Middle East.

Rinchem teams are closely monitoring developments and working in real time with ocean carriers, airlines, and logistics partners worldwide to mitigate disruptions and maintain continuity for our customers.

Summary

Overall Situation

• Air and ocean freight networks tied to Israel and surrounding trade corridors continue to face disruption.
• Capacity reductions, routing changes, and security-related operating restrictions are creating instability across multiple lanes.
• What began as a regional issue is now putting pressure on broader global transportation networks.

What Customers Should Expect Next

• Potential for additional carrier cancellations or rerouting as conditions shift
• Continued port-level congestion and variable vessel schedules
• Greater scrutiny on DG bookings and advance documentation
• Fluctuating insurance requirements as war risk markets evolve
• Possible delays at the container level due to increased safety protocols at Israeli ports & airports

Rinchem Response

• Alternative routings and port diversification
• Dynamic capacity reallocation with partner carriers
• Real‑time monitoring of port and airspace conditions
• Close coordination with in-country partners to support cargo flow

Global Freight Market Impact

Ocean Freight

• Continued rate volatility is expected for shipments moving into or out of Israel.
• Carriers may impose additional General Rate Increases (GRIs) on short notice.
• War Risk Surcharges remain likely and may shift as insurance markets respond.
• Israel’s national war-risk cargo insurance program has been reactivated.
• Private-market premiums continue to rise sharply.

Air Freight

• Reduced capacity is contributing to increasing spot rates.
• Fuel, insurance, and routing surcharges may apply with minimal notice.
• Rate pressure may extend beyond Israel as surrounding air networks absorb disruption and rebalance capacity.

Regulatory Considerations

All shipments entering Israel must comply with current emergency regulations issued by the Home Front Command.

These requirements may affect:

• Delivery schedules
• Driver availability
• Inbound receiving windows
• Warehouse access
• Safety protocols

As a result, local execution challenges may also affect planning timelines and service consistency for international shipments moving into the country.

Israel Snapshot

Israel remains the focal point of the most severe operational disruption, particularly across air freight, port activity, and inland coordination. Conditions on the ground are also influencing carrier decisions, insurance requirements, and routing strategies with broader regional and global effects.

Air Freight

• Airspace surrounding Israel remains highly restricted.
• Cargo flight availability is severely reduced.
• Ben Gurion International Airport is experiencing major disruption.
• Most international carriers have suspended scheduled service.
• Dedicated cargo flights are operating only within limited “safe windows,” creating constrained uplift and unpredictable schedules.

Port Status

• Haifa & Bay Port (North): Infrastructure remains operational, but productivity is reduced due to emergency protocols, frequent stoppages, and cargo diversion.
• Ashdod Port (Central/South): Fully operational and serving as Israel’s primary cargo gateway, though congestion and extended dwell times are increasing as diverted volume accumulates.

Rinchem Business Continuity Measures

Rinchem is actively implementing contingency plans to protect customer flows and mitigate operational impacts, including:

• Leveraging alternative routings and ports where possible
• Flexibly re‑allocating capacity across our global carrier network
• Prioritizing DG and time‑sensitive cargo in alignment with our safety and regulatory commitments
• Increasing coordination with local partners in Israel to manage inland transport and final‑mile delivery
• Continuous monitoring from our global control tower to respond rapidly to new restrictions or capacity changes

Rinchem Commitment

We will continue monitoring all operational updates through our global network and will provide additional alerts as the situation evolves. Customers with active shipments into or out of Israel or moving through the broader Middle East region—should remain in close communication with their Rinchem representative for tailored planning support.