The international delivery expert ParcelHero says the conflict in Israel is disrupting deliveries and exports to the country and could have a significant longer-term impact on global trade.

This weekend’s shock attack on Israel by the Palestinian militant group Hamas is having a significant impact on UK-Israel trade. The repercussions of the conflict are now likely to extend globally, warns the international delivery expert ParcelHero.

Flights to Tel Aviv International Airport have been suspended by the majority of airlines and this is disrupting express airfreight and parcel services, ParcelHero warns. The conflict is also driving up oil prices, which is likely to impact global supply chains that are already struggling.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘The sudden attack on Israel and its retaliation has taken the world by surprise. In the short term, it is having a significant impact on exports and deliveries to Israel and affecting other countries in the Middle East.

‘Israel is an increasingly important market for the UK following a post-Brexit trade partnership agreement. UK-Israel trade increased by 42% in 2022 over 2021. The UK’s total trade with Israel is now worth over £7bn, of which £3.8bn are exports and £3.6bn are imports. It’s likely this market will be severely disrupted.

‘The UK’s key exports to Israel are:

  • Mechanical generators
  • Medicinal and pharmaceutical products
  • Minerals
  • Commercial vehicles
  • Beverages

‘United Airlines, American Airlines and Delta Air Lines have all temporarily suspended flights to and from Tel Aviv International Airport. Wizz Air and Virgin Atlantic have also cancelled flights and British Airways has changed its schedule. Air France, Lufthansa, Emirates, Ryanair and Aegean Airlines have also scrubbed services. These cancellations have had a significant impact on express parcels and airfreight. Not only are cargo flights disrupted, but so are the hundreds of freight shipments to and from Israel that make use of the belly hold of passenger aircraft.

‘There is some positive news, however, as some flights to Eilat Ramon, Israel’s second international airport on the Red Sea, continue to operate. 

‘As of Monday afternoon, many of ParcelHero’s major courier partners have suspended all delivery services to Israel until 10 October at least. Our international listings will reflect all changes as they are confirmed with us.

‘Other Middle East destinations are also likely to see delays in deliveries as couriers and airlines adopt a cautious approach to flight plans to ensure their crews’ safety. Many services are likely to be re-routed.

‘Away from UK-centred trade and deliveries, the crisis is already having a wider impact on global trade. On Monday morning, Brent crude jumped 6% to $89 (£73) a barrel. The shares of Israel-exposed companies have also been hit. Energean (ENOG), the gas producer operating offshore from Israel, saw a 16% fall in early trading. Broadly speaking, energy prices have climbed while airline share prices have fallen.

‘The major fear is that the conflict could lead to a similar situation to that of 50 years ago, when the Yom Kippur War sparked an unprecedented global oil crisis that lasted for months.

By Alison