Israel Manufacturers Warn of Supply Chain Crisis as Jordan Border Shipping Costs Surge 300%
The Manufacturers Association of Israel demands an urgent plan from the Airports Authority to resolve severe cargo delays at the Jordan River border crossing, where shipping costs have surged by 300%.
Crisis at the Jordan Border
The Manufacturers Association of Israel is demanding that the Israel Airports Authority (IAA) present an immediate plan to increase capacity at the Jordan River border crossing cargo terminal. The demand follows a prolonged operational crisis characterized by shortened operating hours, extended security checks, and hundreds of trucks stranded on the Jordanian side. Importers and manufacturers warn of severe supply chain disruptions, production halts, and skyrocketing shipping costs.
Ruby Ginel, Director General of the Manufacturers Association, sent an official letter to IAA Director General Sharon Kedmi, warning that the operational failures at the terminal are causing heavy financial damage to Israeli factories. Industrialists reported severe economic losses, production standstills, and a 300% surge in land transport costs.
Businesses at Risk of Closure
Ofer Winter, owner of the Metzerplas irrigation systems company, described the severity of the situation:
"Some businesses are on the verge of closing because the IAA cannot recruit security guards to keep the crossing open for a few more hours. Since the Bab-el-Mandeb Strait was closed to shipping to Israel, the Jordan bridge has become our only route to import goods from Saudi Arabia and the UAE. The problem is that they tightened inspections but did not increase manpower."
According to Winter, his company nearly halted production last month, choosing to supply goods only to the Ministry of Defense and farmers to prevent crop loss. Business owners even offered to personally fund the salaries of additional security guards to mitigate their mounting daily losses.
Drop in Cargo Capacity
According to the Association, until September 2024, the Jordan River cargo terminal near Beit She'an handled 230 to 250 trucks per day. Today, that number has dropped to just 100 to 150 trucks. By the end of July, over 600 trucks were waiting on the Jordanian side.
During meetings, the IAA explained that the decline in output stems from a 40% increase in security standards, longer inspection times, and a shortage of guards due to burnout and IDF reserve duty. Ginel demanded that the IAA present a binding plan within 14 days, warning that the Association would otherwise consider legal action, including a petition to the Supreme Court.
Rising Logistics Costs
The congestion at the Jordan River crossing is also linked to the situation at the Allenby crossing. Following two deadly terror attacks at Allenby, security protocols were tightened, and cargo traffic was partially diverted to the Jordan River terminal.
Delays are costly: each day of waiting adds $100 per truck in driver fees. When delays become excessive, trucks are diverted to the Yitzhak Rabin crossing in the Arava. As a result, shipping costs jump from 1,500 NIS to 6,000 NIS per truck. With importers managing fleets of 10 to 30 trucks, cumulative losses reach tens of thousands of shekels.
The IAA responded that the congestion is a direct result of heightened security directives issued by the police following the Allenby attacks. The authority is working with the police to expand operations and reduce bottlenecks at the Jordan River, Allenby, and Yitzhak Rabin crossings.
