Economy03:20 · 1h ago

Israel Faces Critical Gaps in Air Cargo Emergency Plans Amid Regional Conflict

Calcalist
Translated & summarized from Calcalist by baba
The story · English

During the recent conflicts with Iran, Israel's airspace closure revealed significant vulnerabilities in the country's air cargo capacity. Monthly air freight volumes dropped sharply from an average of 30,000 tons to 18,700 tons during Operation "With the Lion" in June 2025, and further to 16,000 tons at the start of Operation "Roar of the Lion" in March 2026. With foreign carriers withdrawing, private company Challenge Airlines and El Al's single cargo plane became the main commercial operators, supported by the Israeli Air Force conducting dedicated flights to deliver critical supplies such as medicines, chips, and spare parts for defense industries.

This crisis exposed a deeper strategic issue: Israel lacks a formal emergency plan to maintain civilian air cargo continuity. The Air Force, while crucial, cannot replace a regular commercial supply chain. In future conflicts, Israel risks having no governmental safety net for trade, relying solely on private sector initiatives. Challenge Airlines is expanding its fleet and routes in response to unprecedented demand since October 7, 2023, adding a large 120-ton cargo plane and upgrading routes to Mumbai and Shanghai, nearly doubling capacity on key lines.

Foreign carriers like Azerbaijan's Silk Way West Airlines are also increasing flights to Israel despite a dramatic drop in cargo volume from 20,000 tons annually pre-conflict to about 1,000 tons monthly now. The importance of air freight lies in its economic value: while sea ports handle 99% of cargo volume, air freight accounts for about 30% of cargo value, transporting high-value or time-sensitive goods critical to Israel's high-tech and agricultural sectors.

Costs have surged due to global supply chain disruptions, fuel price hikes, and soaring insurance premiums, with "war surcharges" imposed during hostilities. Challenge Airlines faced insurance premiums of $70,000 to $150,000 per landing during the Iran conflict, costs passed on to importers. Although increased aircraft and flight frequencies may stabilize prices, significant reductions are unlikely until foreign carriers fully return.

For Israeli consumers, increased cargo flights will not shorten delivery times from popular Chinese online retailers like AliExpress or Temu. The main bottleneck is operational challenges at Ben Gurion Airport, where American refueling planes occupy cargo parking areas, causing delays and prioritizing refueling and passenger flights over cargo. This creates cascading delays that extend package arrival times, unlike dedicated cargo facilities abroad. Consequently, Israeli consumers continue to face long waits for their shipments despite expanded air cargo capacity.

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