Iranian Blockade Shifts Israeli Imports to Jordan Border Causing Delays and Price Risks

The Iranian blockade in the Persian Gulf and threats from the Houthi rebels have forced companies importing goods from Gulf countries to reroute shipments overland through Jordan to Israel. This shift has led to significant congestion and delays at the Jordan-Israel border crossings, particularly at the Jordan River crossing near Beit She'an.

Due to staffing shortages and reduced operating hours at the Jordan River crossing, cargo handling has slowed considerably. The Israel Airports Authority, responsible for border crossings, recently ordered further reductions in operating hours at the cargo terminal, coordinating with Israeli police and Jordanian border management. This includes restrictions on truck access and partial road closures, worsening the backlog. Starting Sunday, the Jordanian side will halt sending trucks altogether due to anticipated congestion, exacerbating delays.

These logistical challenges are impacting major Israeli importers such as Sugat and ICL, which warn that the delays could lead to higher consumer prices. The rerouting involves trucks traveling hundreds of kilometers through Saudi Arabia, Iraq, and Syria before reaching the border. Although Israel was expected to become a regional trade hub through initiatives like IMEC and "Peace Routes," bureaucratic and security realities have hindered this vision.

The increased cargo flow and reduced border capacity stem partly from heightened security measures following two deadly terror attacks at the nearby Allenby crossing, which resulted in the deaths of two IDF soldiers and three terminal workers. These attacks prompted stricter inspections and a diversion of truck traffic to the Jordan River crossing. The Israel Airports Authority acknowledges the congestion is a direct result of the current security situation and is working to expand operations, projecting a 10% increase in truck crossings this year compared to previous years.

The situation highlights the complex interplay between regional geopolitical tensions, security concerns, and economic impacts on Israeli consumers, as supply chain disruptions at the Jordan border risk driving up living costs in Israel.