The continued tension in the Middle East and the Persian Gulf has also caught the foreign trade and freight forwarders in the crossfire!
After Maersk said it would change its routes, another shipping company now said it would add a war risk surcharge, some even exceeding $50/TEU!
You should know that the current freight rate for a container is not necessarily $50 for many freight forwarders. Therefore, please tell each other and don’t forget to include this fee when quoting!
CMA CGM announced that it will add a war risk surcharge of $36/TEU for goods bound for the Middle East. The French shipping giant said that due to six tanker attacks near Iranian waters in the past two months, ship insurance premiums have soared, and local war risks are also increasing further. Therefore, CMA CGM has decided to impose a war risk surcharge on goods passing through Oman, the United Arab Emirates, Qatar, Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait, and Iraq from July 5. In addition, more countries may be included in the scope of collection according to the development of the regional situation.
It is reported that this surcharge will be collected from July 5 on all routes involving the Middle East, and the collection time for routes between the Chinese and American markets and the Middle East will be postponed to August 1.
In addition, other shipping companies including Emirates Shipping are also preparing to levy similar fees. According to the announcement of Emirates Shipping, their war risk service fee in the Middle East is as high as US$52/TEU.
X-Press Feeders, a feeder liner operator, also said that it will impose a surcharge on goods in the Middle East.
“The Middle East is currently in constant conflict and crisis. In order to ensure the safety of crew members and ensure that the ship and cargo are intact, we have also taken a series of measures, such as speeding up during the day, increasing the speed, taking detours at night, and avoiding sailing in areas that are vulnerable to attacks.” The relevant person in charge of X-Press Feeders said helplessly, “We have no choice but to rely on levying additional fees to keep the route operating normally.”
It is understood that the current ship insurance premiums for the region have also increased significantly. According to a shipowner, from early May to mid-June, the premiums in the region have increased by 5% to 15% depending on the size and cargo capacity of the tanker. The Financial Times quoted an unidentified London ship brokerage company as saying: “It is certain that it will cost more to ensure the safety of ships and cargo passing through the sea area.”
It is foreseeable that more shipping companies will charge additional fees in the future. Therefore, foreign trade and freight forwarders who have goods to export to the above-mentioned areas in the near future, please be sure to confirm with the shipping company in advance.