Found it useful? Share
Share on Facebook
Share on X
Share on LinkedIn
Share via Email
Share on WhatsApp
Print Article
The dramatic reduction in foreign airline activity in Israel has created a "severe market failure" in air freight volume, leading to a sharp spike in shipping rates. In an urgent letter sent by Amir Shani, Chairman of the Israeli Federation of Forwarders and Customs Clearing Agents, to Shmuel Zakai, Director of the Civil Aviation Authority of Israel (CAAI), with a copy to Minister of Transport Miri Regev, Shani warns that the capacity shortage has already caused a 40% increase in rates from the Far East and a surge of hundreds of percent on European and U.S. routes.
The Logistics Paradox: Aircraft in the air, bellies empty
According to the association’s appeal, while Israeli carriers are operating reinforcement and rescue flights to transport passengers, a significant portion of these flights is not utilized at all for transporting commercial cargo in the aircraft's belly (Belly Cargo). The letter reveals that this prevention often stems from regulatory restrictions or the lack of specific authorizations for the type of activity defined for these flights. This creates an absurd situation where a valuable aviation resource enters and leaves Israel empty of cargo, while importers and exporters struggle for every kilogram of capacity.
Proposal for a Flexible Regulatory Framework
To maximize limited resources, the Customs Agents Association proposes the urgent formulation of a framework that would allow a blanket operational permit for Israeli airlines to carry import and export cargo on rescue flights. Additionally, Shani calls for the creation of a "green track" and inter-ministerial coordination to ensure capacity optimization and prevent unnecessary congestion at cargo terminals.
According to Shani, increasing the supply of capacity on existing flights is the most immediate and effective regulatory tool to moderate price increases in the market. "At this time, regulation must show extra flexibility to ensure the functional continuity of the economy," Shani concluded in his letter, emphasizing that the move is essential to curb the rising cost of living resulting from surging logistics costs.
