Israel ports continue operations despite heightened regional tensions

As geopolitical tensions escalate in the Middle East, particularly between Israel and Iran, global supply chain stakeholders are closely monitoring the situation. Amid the uncertainty, Israel ports remain operational, with no official closures or significant service disruptions recorded. Yet, the rising cost of risk mitigation, especially through insurance premiums, suggests that businesses must stay alert and proactive in response to shifting regional dynamics.

Haifa, the busiest container port in Israel, handles approximately 30% of the country’s import volume and is operated by India’s Adani Group. The port serves as a crucial hub not only for national imports but also for regional logistics connecting Israel with Mediterranean and Asian markets.

Shipping line ZIM, headquartered in Haifa, reassured customers in an official advisory that its vessels are calling Israeli ports according to schedule, and bookings both inbound and outbound remain open. Similarly, a logistics update from Kuehne + Nagel stated that operations at both Haifa and Ashdod were “normal,” with average vessel waiting times of just over one day in the past week.

Elevated Risk Levels: Not Just Military Threats

Although port operations remain stable, the overall maritime risk level in the region is classified as “significant”. This designation comes from the Joint Maritime Information Center (JMIC), a multinational information-sharing body formed in 2024 in response to Houthi attacks on merchant vessels.

JMIC reported that the regional threat level remains high not only due to military action but also due to increased instances of electronic interference, including:

• AIS (Automatic Identification System) spoofing
• GPS signal jamming
• Navigation system disruptions, especially near the Strait of Hormuz and Bandar Abbas

These non-kinetic threats complicate navigation and increase the operational complexity for shipping companies operating in the region.

Surge in War Risk Insurance Premiums for Israel Ports

One of the most immediate consequences of the increased tension is the sharp rise in war risk insurance premiums for vessels heading to or calling at Israel ports.

According to market data compiled over the past week, war risk surcharges have surged from 0.2% to between 0.7% and 1.0% of a vessel’s insured value. This means that for a vessel worth USD 100 million, insurance costs can now reach up to USD 1 million per voyage — a threefold increase within just seven days.

Metric	Previous Rate	Current Rate
War Risk Insurance Premium	0.2%	0.7–1.0%
Cost on USD 100M vessel	USD 200,000	USD 700,000–1,000,000

This additional cost is absorbed differently depending on the shipping contract (e.g., FOB vs. CIF) but ultimately impacts the broader logistics chain. Many shipping lines have yet to issue official advisories or rerouting instructions, but a growing number of vessels are choosing to anchor offshore and monitor the situation. In Haifa, nearly 30 vessels were recorded anchored just outside port limits this past week.

Strategic Importance of Israel Ports in Regional Trade

The location of Israel ports gives them outsized influence in regional shipping flows, particularly in the Eastern Mediterranean. Haifa, situated along key east–west trade corridors, serves as a transshipment point for containers moving between Europe and Asia.

Additionally, Ashdod plays a critical role in supporting domestic consumption and the Israeli manufacturing sector, while Eilat connects to the Red Sea and acts as an alternative route for Asian shipments.

Disruptions at these ports — even minor — could ripple through connected supply chains, affecting not only Israeli importers and exporters but also freight operators in surrounding economies.

Hormuz Closure Still Hypothetical, But Monitored

Beyond Israel, eyes are also on the Strait of Hormuz, a strategic waterway through which over 20% of the world’s oil and gas supply flows. Although Iran’s parliament has raised discussions about closing the strait — a move that has not occurred since 1984 — the possibility remains theoretical for now.

Still, the threat has prompted insurers and vessel operators to consider alternative routings and calculate potential cost escalations. According to Prof. Jean-Paul Rodrigue of Texas A&M University, more than 30 million TEUs of container traffic pass through or near this zone annually, a large share of which involves transshipment.

Key nodes in this network include:

• Jebel Ali Port (Dubai) – currently operating normally
• Salalah Port (Oman) – facing delays due to monsoon winds, not conflict
• Bandar Abbas (Iran) – subject to navigational interference and regional tension

This broader regional picture adds context to why shippers, freight forwarders, and ocean carriers are treating Israel ports not as isolated nodes, but as part of a complex and interdependent web of global logistics.

What Businesses Should Do Now

In light of current conditions, businesses engaged in trade through Israel ports should take the following steps:

1. Review war risk coverage with insurance providers
2. Stay updated on daily port conditions and vessel movements
3. Coordinate proactively with freight forwarders and carriers
4. Evaluate alternative routings, especially for time-sensitive cargo
5. Model cost impacts to shipping budgets for Q3 and Q4 2025

The good news is that no major shipping line has suspended operations to Israel, and logistics chains remain intact. Still, the volatility of the security environment means that conditions can change quickly.

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Conclusion

While the regional situation remains tense, Israel ports continue to operate efficiently, showing resilience despite missile attacks and geopolitical strain. The recent spike in insurance premiums reflects legitimate concerns, but not yet a breakdown in port logistics.

For businesses, this is a critical moment to strengthen supply chain visibility, enhance risk forecasting, and engage in transparent dialogue with service providers. As long as Israel ports remain open, trade can continue — but with higher costs and the need for greater agility.

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