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Volcanic Ash Cloud Halts European Diamond Shipments


Post Date: 19 Apr 2010    Viewed: 482

Europe-bound diamond shipments came to a standstill Sunday, as the volcanic ash cloud smothering the continent's skies prompted hundreds of flight cancelations. Diamond shipments bound for the United States and Asia are currently pending alternative routes.


 


Sunday is one of the busiest days in the Israel Diamond Exchange-based diamond customs station, operated by the Trade, Labor and Industry Ministry. This morning however, the station's import-export room was empty. Calls to several diamond companies discovered that diamond import and exports shipments were suspended.


 


At this time, it is believed that 50-80% of diamond shipments have failed to arrive at their destination. US and Hong Kong customers, who are used to receiving their goods within 36-48 hours and have the utmost faith in their Israeli diamond suppliers, have been sympathetic to the constraints caused by the Icelandic force majeure.


Aharon Hochberg, CEO of the Malca-Amit courier company told IDI that, "The company is pursuing alternative solutions and is also considering using private charters for deliveries. The company is in constant contact with aviation authorities and is immediately informed of any decision to close airports.


"The main problem stems for the logistics involved in changing flight plans so frequently, according to the volcanic cloud's movement. We cannot use any available air fields, since we put the safety and security of our precious cargo first."


 


Gilad Ben Ari, Head of Brinks Israel, told IDI that shipments to and from Europe were "stuck in Brinks branches, but deliveries to the United States and Asia are conducted as usual. We are looking for alternative ways to deliver shipments to Asia via Hong Kong, and on from there, and are awaiting updates about the volcanic cloud's impact on flight possibilities."


D2D owner Yossi Friedman, added that his company "is currently able to make deliveries to the US and Asia, using flights which circumvent Europe. Our branch in Belgium attempted ground deliveries, but those options are rapidly decreasing, with more and more airports shutting down due to the volcanic cloud.


"Some European airliners are currently exploring low-altitude flights inside Europe and we are in constant contact with El-Al and other airlines." D2D, he added, will be able to resume shipments to European as soon as planes are cleared for takeoff.


 


Sources in the diamond industry said that the suspended shipments are unlikely to harm the industry, since not many shipments were planned for the dates corresponding with Israel's Fallen Soldiers and Victims of Terrorism Remembrance Day and Independence Day.


Diamond deliveries will resume as soon as the cloud disperses.


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