Urgent notice: The new surcharge in the Middle East and Persian Gulf exceeds US$50/TEU, foreign trade and freight forwarders need to be vigilant!

Tensions in the Middle East and the Persian Gulf have had a direct impact on the foreign trade and freight forwarding industries. Recently, some shipping companies announced that they will impose a war risk surcharge, with the cost even exceeding US$50 per TEU.

According to the latest news, CMA CGM has decided to impose a war risk surcharge of US$36/TEU on cargo shipped to the Middle East starting from July 5. The move comes as six tanker attacks have occurred near Iranian waters in the past two months, leading to a sharp rise in ship insurance costs and related war risks. In addition, CMA CGM may further include more countries in the scope of fee collection based on the development of regional situations.

For routes in the Middle East, involving shipping between the Chinese and US markets and the Middle East, the surcharge will be levied starting from August 1. It is worth noting that other shipping lines such as Emirates Shipping Lines are also considering similar charges. According to Emirates Shipping’s announcement, their war risk service fee is as high as US$52/TEU.

At the same time, regional liner operator X-Press Feeders said that due to crew safety concerns, they will also impose surcharges on cargo from the Middle East. The relevant person in charge of X-Press Feeders said that the Middle East is currently full of crises. In order to ensure the safety of ships and cargo, they are taking a series of measures, such as increasing speed, detouring at night, etc., and their only option is to levy additional fees to maintain Routes are operating normally.

It is understood that since the beginning of May, ship insurance premiums in the region have increased by 5% to 15% depending on the size and cargo capacity of the tanker. A London-based shipbroker, who asked not to be named, pointed out that the cost of ensuring the safety of ships and cargoes is increasing, and ships heading to the waters will have to bear higher costs.

In response to this change, foreign trade and freight forwarding personnel should ensure that war risk surcharges are added when quoting, and confirm relevant policies with shipping companies in advance to avoid unnecessary losses.