Shipping Giant MSC Facilitates Trade From Israeli Settlements Through EU

A major international shipping company, Mediterranean Shipping Company (MSC), has come under renewed scrutiny following reports that its logistics network is being used to transport goods originating from Israeli settlements in the occupied West Bank into European Union markets. Human rights groups and trade watchdogs say the practice raises serious legal and ethical concerns, as EU policy does not recognize Israeli settlements as part of Israel and considers them illegal under international law.
According to investigative findings shared with European regulators, cargo linked to settlement-based agricultural and industrial producers has been shipped through MSC’s Mediterranean routes and distributed via ports in Italy, Spain, and the Netherlands. The shipments allegedly entered the EU supply chain without clear labeling of their true origin, making it difficult for customs officials and consumers to distinguish settlement products from those produced within Israel’s internationally recognized borders.
Legal and Political Sensitivities
The European Union has long maintained that products from Israeli settlements must be labeled differently from those made in Israel. In a 2019 ruling, the European Court of Justice required settlement goods to be clearly identified so that consumers could make informed purchasing decisions.
However, campaigners argue that shipping companies play a critical role in enabling settlement trade by providing transport services that obscure the origin of goods.
“Without global shipping firms, these products could not reach European markets at this scale,” said Marie Keller, a spokesperson for a Brussels-based trade ethics organization. “This is not just a commercial issue. It has direct political and legal consequences.”
MSC has not been accused of violating EU sanctions, but critics say its involvement demonstrates gaps in enforcement and oversight within international supply chains.
Company Response
In a brief statement, MSC said it complies with all applicable international and local regulations and does not knowingly transport prohibited goods.
“MSC operates as a neutral carrier and does not determine the origin of the cargo beyond the documentation provided by exporters and authorities,” the company said. “We adhere strictly to customs and trade laws in all jurisdictions in which we operate.”
The company also stressed that responsibility for labeling rests with exporters and importers, not with shipping firms.
Despite this, activists argue that large logistics providers have a responsibility to conduct due diligence on the origin of goods, especially in conflict zones where trade may contribute to violations of international law.
Pressure From Rights Groups
Several European human rights organizations have urged EU governments to investigate whether shipping routes from Israeli ports indirectly serve settlement producers. They claim that some settlement companies use Israeli-based intermediaries to export goods, allowing them to bypass labeling requirements.
“These are not isolated cases,” said Omar Haddad, a researcher specializing in supply chain transparency. “There is a systemic problem where settlement goods are integrated into Israel’s export system and then shipped worldwide.”
Advocacy groups have called for stricter customs checks and for shipping firms to publish more transparent data about their cargo origins.
Diplomatic Impact
The issue comes amid growing tensions between European governments and Israel over settlement expansion. Several EU member states have reaffirmed their opposition to settlement activity and expressed concern that commercial ties may indirectly support it.
A senior EU official, speaking on condition of anonymity, said Brussels was reviewing trade compliance mechanisms.
“We expect companies operating within the EU to respect both the letter and the spirit of European law,” the official said. “This includes ensuring that goods from disputed territories are not misrepresented.”
Broader Trade Implications
The controversy highlights the complexity of modern global trade, where goods often pass through multiple countries and intermediaries before reaching consumers. Experts say this makes enforcement of ethical trade policies difficult, especially when shipping companies handle millions of containers each year.
“Supply chains are opaque by design,” said Dr. Elena Rossi, an international trade analyst in Milan. “Unless there is mandatory disclosure and digital tracking, it is extremely hard to verify where products truly come from.”
The European Commission is reportedly considering new measures that would require greater transparency from logistics companies and importers, particularly for goods originating in conflict-affected regions.
Looking Ahead
For now, MSC continues to operate its Mediterranean routes as usual, while pressure mounts from activists and lawmakers for greater accountability. The debate underscores a broader question about the role of multinational corporations in politically sensitive trade and whether neutrality is possible in deeply contested regions.
As investigations continue, the case is likely to fuel calls for tighter regulation of shipping firms and renewed scrutiny of EU-Israel trade relations. The outcome could set an important precedent for how international logistics companies are held responsible for the origins of the goods they transport.