Persian Gulf blockade impacts Israeli cost of living via Jordanian border congestion
The Iranian blockade and Houthi threats have shifted cargo transport from sea routes to land routes through Jordan. Staffing shortages and reduced operating hours at the Jordan River Crossing are causing significant delays. Imports for companies like Sugat and ICL are being stalled, threatening consumer prices. The Israel Airports Authority attributes the congestion to current security requirements.
The Iranian blockade in the Strait of Hormuz and the Houthi threat in the Bab el-Mandeb Strait have forced companies importing goods from the Gulf states to bypass blocked maritime routes. Cargo is now being transported by land through Saudi Arabia, Iraq, and Syria to reach the border crossings between Jordan and Israel.
The primary crossing, the Jordan River Crossing near Beit She'an, is facing severe operational and staffing challenges, leading to heavy congestion and significant processing delays that threaten to impact the average Israeli consumer's pocketbook.
This week, the Israel Airports Authority ordered a further reduction in operating hours at the Jordan River cargo terminal. According to an official letter from terminal manager Shay Sadeh, entry for Wednesday and Thursday is restricted to open flatbed trucks carrying only pallets or containers. Additionally, Highway 71 leading to the terminal is closed to trucks until 12:00 PM.
Further tightening is expected this coming Sunday, as the Jordanian terminal management has decided to halt the dispatch of Jordanian trucks entirely due to anticipated congestion on the eastern side of the border.
Internal correspondence reveals that these reductions are already causing practical issues: many carriers refuse to provide services during the limited operating hours, leaving goods stranded at the terminal with no one to transport them further.
Clogging the 'Peace Routes'
The resulting delays in goods transport are driving up costs, which are eventually passed on to the Israeli consumer. Israel was intended to serve as a central hub for regional initiatives like IMEC or the 'Peace Routes,' but bureaucratic realities are currently hindering this vision.
"The Jordan River Crossing is a strategic trade artery, but it is being operated like a marginal crossing," says Elad Barshan, Business Development Manager at Moran Cargo. With the terminal open only five days a week and closed on weekends, trucks have nowhere to go when congestion peaks, leading to mounting costs for importers.
Major Israeli companies, including food giant Sugat and ICL, report that these bottlenecks are harming their ability to import goods, which could eventually be reflected in retail prices.
Security and Logistics
The workload at the crossing has been exacerbated since October 7, partly due to security personnel being called up for reserve duty. The situation worsened following two terrorist attacks at the nearby Allenby Bridge crossing, which claimed the lives of two IDF soldiers and three terminal employees. These events led to stricter security protocols and the diversion of significant truck traffic to the Jordan River Crossing.
The Israel Airports Authority stated: "The congestion at the Jordan River Crossing is a direct result of the security reality following two severe terrorist attacks at the Allenby Bridge crossing. Police have tightened security guidelines for inspecting trucks and goods." The Authority added that it is working to increase activity levels, projecting that the number of trucks passing through the crossing this year will be 10% higher than the average of previous years.
