Israel-Palestine Conflict Halts Some E-cigarette Shipments; Logistics May Be Delayed by Two Weeks to

Recently, the conflict between Israel and Palestine has escalated, with Israel officially declaring war on Hamas. As a result, China has halted shipments of certain e-cigarette freight to Israel, with logistics expected to be delayed by two weeks to a month.

【Two Supremes Original】Recently, conflict erupted between Israel and Palestine, with Israel officially declaring war on Hamas. What impact will the Israel-Palestine conflict have on the e-cigarette trade in Israel and surrounding Middle Eastern countries? Two Supremes conducted an investigation. 

According to data from Chinese customs, in August of this year, the value of e-cigarettes exported from China to Israel ranked 54th among all exporting countries, with a total export value of approximately $800,000, equivalent to 5.84 million yuan, a month-on-month increase of 64.69%. The data indicates a significant upward trend in China's e-cigarette exports to Israel. Meanwhile, China's e-cigarette exports to neighboring countries such as Egypt, Turkey, and Jordan are also on the rise, with exports to Egypt seeing a staggering month-on-month increase of 113.73%.  

Data on China's e-cigarette exports to Israel in 2023   Chart: Jiang Mingxi 

So, how is the e-cigarette shipping situation in the surrounding countries of Israel after the escalation of the Israel-Palestine conflict? Two Supremes learned that some e-cigarette freight companies have stopped shipments to Israel. 

Tian Xiang, a sales manager at Shenzhen Zhengshi International Logistics Supply Chain Co., Ltd., told Two Supremes that after the outbreak of the Israel-Palestine conflict, many customers are still seeking logistics channels to Israel. However, since the company provides a full compensation service for customs clearance, to avoid unnecessary losses and risks, the company has stopped accepting shipments to Israel. Currently, shipments to other regions in the Middle East are proceeding normally. 

Another logistics company, which preferred to remain anonymous, informed Two Supremes that leading e-cigarette companies are currently shipping to the Middle East through their company. E-cigarettes sent to the Middle East are generally first sent to Dubai, UAE, and then transshipped to surrounding countries, so the impact of the Israel-Palestine conflict on logistics and customs clearance is not very significant at the moment. However, there is some impact on market sales, as the consumer market in conflict countries will temporarily decrease. Currently, mainland UPS can reach Israel and can also be airlifted to the airport, but the recipient needs to go through customs clearance and pay taxes.

Lü Nengchao from Shenzhen Chaoneng Logistics Co., Ltd. told Two Supremes that the Israel-Palestine conflict has also greatly affected logistics to neighboring countries such as Egypt, Turkey, and Jordan. The current main situation of e-cigarette logistics in the entire Middle East is: relying on Dubai, UAE, to transship to other countries (regions), and 80% to 90% of the transshipment is by land transport via trucks. War and armed forces can lead to road damage and instability in public security, which will have a direct impact on logistics, slowing down timeliness and increasing safety risks. 

Lü Nengchao stated that although the conflict will lead to a decrease in market demand in the region, e-cigarette companies will not give up. Just like the ongoing Russia-Ukraine conflict, e-cigarette companies are still seeking logistics channels for shipments to Russia and Ukraine. Currently, the duration of the Israel-Palestine conflict is relatively short, and feedback from the front lines has not yet been received, but based on the logistics situation in Russia and Ukraine, e-cigarette logistics to conflict areas is expected to be delayed by two weeks to a month.