By: Orel Hershkovitch, CEO, ISLINE Import & Export Services LTD in Israel
As geopolitical volatility spreads across the region, Israel global trade and logistics is being reshaped in real time. Conflicts with Hamas, ongoing tensions with Iran, and broader instability are forcing freight forwarders to rethink trade routes, risk models, and technology adoption.
Israel’s geographic position at the crossroads of Europe, Asia, and Africa gives it strategic importance-but also exposes it to disruption. Logistics companies operating in this environment must combine agility with foresight.
Hamas Conflict: A Test of Operational Resilience
Since October 2023, the conflict with Hamas has had a tangible impact on Israeli logistics. Air freight was hit hardest-major carriers suspended cargo operations into Ben Gurion Airport, which typically processes over $900 million in goods annually.
Sea freight faced separate challenges. Ashdod and Haifa, which together handled 3.6 million TEUs in 2022, experienced surges in congestion and delays. Land links to Egypt and Jordan were disrupted, further isolating cross-border flows.
Freight forwarders adapted fast: rerouting shipments, absorbing higher costs, and deploying AI tools to track delays in real time. This period emphasized a core reality-resilience isn’t a buzzword, it’s a business model.
Logistics Under Fire: Continuing Operations in the Shadow of War
In the midst of Israel’s ongoing military operation against Iran, ISLINE – like every Israeli freight forwarder – is operating under conditions that no logistics manual ever envisioned.
The skies are nearly closed. Most air cargo carriers have suspended operations, leaving only a handful of strategic flights active. As a result, we are operating with just 10-20% of the country’s normal air freight capacity. Every urgent shipment now requires a workaround: multi-leg routing, partner coordination, and often rerouting through intermediary hubs in Europe or Cyprus.
At the same time, sea freight operations continue, remarkably, under daily missile attacks. Ports in Haifa and Ashdod remain active, with teams unloading containers and moving goods even while sirens sound and defense systems intercept ballistic threats overhead.
Our terminal staff, drivers, and logistics teams work under direct threat – and often from bomb shelters.
In this environment, planning, coordination, and human resilience are our most valuable assets. Clients don’t see the Iron Dome protecting their supply chains – but they see their shipments arrive. And that, in times of crisis, is the true meaning of logistics.
Infrastructure Growth Amid Instability for Israel Global Trade
Israel is not only addressing disruptions but also pursuing expansion. In March 2025, new ports received approval to manage 750,000 tons of cargo annually, alleviating strain on Haifa, which handles over 35% of Israel’s imports and exports. Haifa’s 6.5 square kilometers position it as a vital center for oil and raw materials. Increasing capacity at Haifa and other locations ensures the continuous flow of goods.
These initiatives demonstrate Israel logistics geopolitical shifts in practice. New infrastructure reduces congestion and fortifies supply chains. For freight forwarders, this translates to fewer delays and greater options. The government is also promoting digital advancements, such as 5G, to enable real-time logistics tracking.
Expansion comes with challenges. Construction schedules may experience delays due to security concerns. Nevertheless, the commitment to development reflects confidence. Logistics professionals view this as an opportunity to enhance strategic planning.
Financial Performance Holds Steady
Despite turbulent conditions, Israel’s logistics companies remain profitable. Logistics companies and shipping firms have reported millions in profit in Q1 2025 despite these challenges. This achievement stems not from chance but from deliberate strategy. Firms are prioritizing high-value cargo and broadening their routing options. They are also integrating technology to lower costs and enhance service quality.
This consistency is meaningful for directors and owners in the network global logistics field. It demonstrates that adaptation produces tangible outcomes. Companies that respond promptly and leverage data effectively secure a competitive edge. The financial figures confirm that Israel’s logistics sector can withstand geopolitical pressures.
For logistics professionals, the takeaway is evident: prioritize adaptability. Whether through innovative tools or expanded networks, maintaining flexibility sustains competitiveness. The financial results reinforce this approach.
Israel Global Trade Geopolitical Shifts: The Network Advantage
Global networks are indispensable in this climate. ISLINE I, where I serve as COO, is a member of the Bloc Logistics Network. This affiliation provides access to routes and resources beyond Israel’s borders. It’s not solely a business benefit-it’s about operational versatility. When local disruptions arise, the network global logistics framework enables us to adapt.
Freight forwarders gain from shared expertise and resources. A network delivers real-time updates and alternative suppliers. In a region susceptible to abrupt changes, this adaptability offers a practical advantage. Logistics experts recognize the importance of global connectivity.
Bloc Logistics Network isn’t a complete answer, but it’s a critical asset. It allows companies like ours to keep goods moving, through global partnerships with Bloc members, regardless of the obstacles. That’s the current reality of logistics.
Technology as a Backbone
Technology supports much of this adaptation. AI anticipates disruptions and refines routing. Robotics enhance efficiency at ports and warehouses. Digital platforms link shippers and carriers seamlessly. Israel’s logistics sector is fully embracing these tools to maintain a leading position.
At ISLINE, we’ve implemented tools like Wisor.AI, which have significantly advanced our quoting capabilities-streamlining and accelerating how we deliver rate proposals to agents and customers. Solutions like this don’t just improve internal workflows; they elevate the entire client experience and allow us to operate on a more competitive, global level.
Startups are propelling this transformation, with some specializing in maritime tracking and others in delivery systems. The government bolsters this progress with investments in digital infrastructure. For logistics professionals, this translates into faster decisions, greater agility, and enhanced service reliability. The global logistics ecosystem thrives on this innovation.
Technology is no longer discretionary-it’s fundamental to navigating geopolitical shifts. Companies that adopt it early secure a strategic edge. This is a reality we witness daily.
Israel Global Trade: Looking Forward
Geopolitical instability isn’t going away. But Israel’s logistics sector isn’t just enduring-it’s adapting. With smarter tools, better infrastructure, and stronger networks, we’re setting a new standard for how to operate under uncertainty.
For freight professionals, one truth stands out: flexibility isn’t a tactic-it’s the strategy.
Article by Orel Hershkovitch
CEO,
ISLINE Import & Export Services LTD, a member of Bloc Logistics Network
ISLINE Import & Export Services LTD has been a leading Israeli freight forwarder, offering customizable logistics solutions, including ocean and air freight, customs clearance, and specialized services, supported by certifications like ISO 9001 and AEO accreditation. Known for its expertise and commitment to client satisfaction, IS-LINE also serves as an authorized supplier to the Ministry of Defense and ensures excellence in every operation.
Bloc Logistics Network is a global platform that connects logistics professionals to share opportunities and collaborate without barriers. Bloc aims to level the playing field by creating an accessible, supportive environment where professionalism and collaboration drive real results. It serves as an ecosystem designed for mutual advancement, ensuring growth, efficiency, and success across the logistics industry.
