Iranian Blockade Shifts Goods Transit to Jordan Border, Raising Costs in Israel

The Iranian blockade in the Persian Gulf and threats from the Houthi rebels have forced companies importing goods from Gulf countries to reroute shipments from sea to land via Jordan to Israel. This shift has caused significant 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.

The Israel Airports Authority, responsible for border crossings, recently ordered further reductions in operating hours at the Jordan River cargo terminal, coordinating with Israeli police and Jordanian terminal management. From August 26-27, only open flatbed trucks carrying pallets or containers will be allowed entry, and Road 71 leading to the terminal will be closed to trucks until noon. Additionally, starting August 28, the Jordanian terminal management will halt sending trucks from their side due to expected congestion, worsening delays.

These operational challenges have led to heavy traffic jams and prolonged cargo handling times, increasing costs that may ultimately be passed on to Israeli consumers. Major Israeli companies such as Sugat and ICL have warned that these delays could lead to higher prices on store shelves.

The rerouting of goods overland through Jordan was initially seen as part of regional initiatives like IMEC and "Peace Routes" to establish Israel as a key trade hub connecting the Middle East to Europe. However, bureaucratic and security realities, including heightened security measures following two deadly terrorist attacks at the nearby Allenby crossing, have hampered these plans.

The Israel Airports Authority attributes the congestion to the current security situation and increased inspections. Despite efforts to expand operations and reduce backlogs, the number of trucks crossing this year is expected to rise by only 10% compared to previous years. The situation remains a significant logistical and economic challenge amid ongoing regional tensions.