Impact of the Israeli-Palestinian Conflict on the Foreign Trade of vape
In the early morning of October 7th, 2023, local time, a new round of military conflict erupted between Israel and Palestine, with an unprecedented scale and intensity, which has had a wide-ranging and profound impact on the foreign trade of electronic cigarettes.
The electronic cigarette industry is facing challenges such as partial supply chain disruptions, logistics delays, and declining market demand due to transportation restrictions and regional tension. The uncertainty in export markets has also affected international trade, placing significant uncertainty and adjustment pressure on the electronic cigarette industry during the Israeli-Palestinian conflict.
Due to the war being a force majeure factor, the closure of ports is inevitable, which will result in a large number of electronic cigarettes being stranded in ports. In the near future, it is not ruled out that more countries will impose restrictions on flights and ships bound for Israel, which may lead to a temporary suspension of overall logistics.
Israel is located on the southeast coast of the Mediterranean Sea, at the junction of Asia, Africa, and Europe. From the perspective of the international division of labor, Israel’s high-tech and biotechnology industries have been developing rapidly, but its light industry is weak and relies mainly on imports from China.
An international logistics company stated that after the outbreak of the Israeli-Palestinian conflict, many customers are still seeking logistics channels to Israel. However, normal shipments to other parts of the Middle East are still ongoing. Currently, the leading electronic cigarette companies are shipping to the Middle East through this company.
Typically, electronic cigarettes bound for the Middle East are first shipped to Dubai, United Arab Emirates, and then transported to surrounding countries. Therefore, the impact of the Israeli-Palestinian conflict on logistics and customs clearance is not significant.
However, it does have some influence on market sales, as the consumer market in conflict-affected countries will temporarily decrease. Currently, mainland China’s UPS express service can reach Israel, and air transportation to airports is also available, but the recipient needs to go through customs clearance and pay taxes.
The conflict between Israel and Palestine also has a significant impact on logistics in neighboring countries such as Egypt, Turkey, and Jordan. Currently, the main situation of electronic cigarette logistics in the Middle East is relying on Dubai, United Arab Emirates, as a transit hub to other countries (regions), with land transportation accounting for 80-90% of the transit routes, using trucks for transportation.
The damage to roads and the instability of security caused by the conflict and armed forces will have a direct impact on logistics, slowing down timeliness and increasing safety concerns.
While the demand in the region has decreased due to the Israeli-Palestinian conflict, electronic cigarette companies will continue to ship their products. However, based on the logistics situation in the Russia-Ukraine conflict, it can be expected that the delivery of electronic cigarettes to conflict-affected areas will be delayed by two weeks to a month compared to before the conflict.
In summary, the Israeli-Palestinian conflict has significantly impacted the international trade of electronic cigarettes. Supply chain disruptions, logistics delays, and decreased market demand have been observed due to transportation restrictions and regional tensions. International trade has been affected, with slower logistics and heightened security concerns.
While some electronic cigarette companies continue shipments, the industry faces considerable uncertainty and the need for adjustments. The conflict has notably affected the electronic cigarette market in the Middle East and neighboring countries, and the challenges in logistics and market sales are expected to intensify as the conflict persists.
