Israel-Hamas and the global supply chain

Glenn Keopke, general manager of Network Collaboration, said:

“The war will impact a narrow set of product groups that are key exports from Israel, such as chips, medical devices, gems and pharmaceuticals.

“Israel is a key R&D hub for many companies — although this won’t disrupt supply chains right now, it will impact product innovation for companies over the near term as many local and international corporations focus on employee safety and well-being.

“Logistically speaking, Israel and Palestine are not significant for the movement of goods. In nearby Egypt, you have the Suez Canal, which is a main artery for trade between Asia and EMEA. However, we don’t foresee any bottlenecks in the Suez Canal at this point in time.

“For marine cargo traveling through the Mediterranean Sea, vessel operators will look to charge a wartime surcharge and route cargo away from military vessels that are en route or on active operations. This will cause a very minimal delay in the overall flow of goods, but it is something that we will be monitoring.

“The war has many political implications given the allies of both Israel and Palestine. This will put a strain on global trade if the war persists.”