Daily Digital Magazine: Pg. 4 — July 10, 2019

Panalpina announces war risk surcharge

The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL.

   International freight forwarding and logistics company Panalpina Welttransport (U.S. OTC: PLWTF) announced a $52-per-TEU surcharge for shipments moving through the Strait of Hormuz.
   The add-on to the standard rate is in response to increased expense to insure the freight moving through the volatile shipping channel after recent vessel attacks. Since May, the region has seen attacks on a half dozen oil tankers as well as a U.S. drone.
Many large ocean carriers like COSCO, Maersk and CMA CGM already have seen insurance costs increase. Annual war risk surcharges have climbed and breach premiums have been implemented in response to recent attacks on tankers in the region. The increased risk of shipping in these waters already has brought about increases in rates and could lead to higher earnings for the tanker lines as well.

Panalpina announces war risk surcharge

The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL.

Panalpina announces war risk surcharge

The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL.

 
Continued from previous page
   International freight forwarding and logistics company Panalpina Welttransport (U.S. OTC: PLWTF) announced a $52-per-TEU surcharge for shipments moving through the Strait of Hormuz.
   The add-on to the standard rate is in response to increased expense to insure the freight moving through the volatile shipping channel after recent vessel attacks. Since May, the region has seen attacks on a half dozen oil tankers as well as a U.S. drone.
    Many large ocean carriers like COSCO, Maersk and CMA CGM already have seen insurance costs increase. Annual war risk surcharges have climbed and breach premiums have been implemented in response to recent attacks on tankers in the region. The increased risk of shipping in these waters already has brought about increases in rates and could lead to higher earnings for the tanker lines as well.
   “There is an increased risk of operating in the Gulf region and a sense of insecurity for shipments going through the Strait of Hormuz. Now that shipping lines have added insurance-related surcharges for such shipments, we have to pass these costs on in order to stay competitive and keep up the high-quality service for our customers,” said Peder Winther, Panalpina’s global head of Ocean Freight.
    Panalpina said that it will introduce a “flat” surcharge to address the increased costs of shipping through the Strait of Hormuz to simplify billing for its customers. Full container load shipments will see the flat $52 surcharge per TEU and less than container loads will see a $3 charge per cubic meter. The charges took effect Monday on all shipments in the region except those with the U.S. as the point of origin or destination. U.S. shipments will see the surcharge beginning Aug. 1.
   “Panalpina’s surcharge currently applies to shipments via the Strait of Hormuz and to shipments with destination or origin port in Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia (Eastern Province ports Dammam and Jubail), and the UAE,” the press release said.
    Last week Maersk and Hapag-Lloyd announced a $42-per-TEU surcharge and Mediterranean Shipping Company a $40-per-TEU charge, while CMA CGM and APL are charging $38 per TEU.
   Panalpina is the world’s fourth-largest provider of ocean freight services. It partners with shippers and the majority of the largest ocean carriers in the world and provides space allocations for freight on container shipping lines on nearly every global shipping lane and route. Panalpina expedited 1.5 million TEUs via ocean in 2018.   

We are seeing many more pricing requests for Southeast Asia and the Indian subcontinent. Few actually moved their supply chains outside of China because this will take time, especially for larger shippers. However, Taiwan and South Korea are in a unique situation: Some manufacturing had shifted to mainland China in the last decade due to lower costs, but that infrastructure is still in Taiwan and South Korea. Some manufacturing may temporarily shift back there until Southeast Asia infrastructure catches up. 

U.S.-flag Great Lakes freighters moved 10.6 million tons of cargo in May, an 11.9% year-on-year increase and 8.4% above the month's five-year average.

Most Popular
Latest News
Social Media

Loading...

Port Authority of New York and New Jersey unveils master plan

Commerce seeks comments for counterfeits report

Embed this story

Share Code Version 1

This version will embed the story headline and includes HTML fallback protection, ensuring the story will display even if some users decide to disable javascript in their browsers.

Copy & Paste the following code to embed this story on your website:

Preview

Panalpina announces war risk surcharge

The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL.

Jul 10, 2019 on Dec 27, 2018AmericanShipper.com

Share Code Version 2

This version will embed the story headline without any styling applied. Use this version if you will use your own custom styling on your website. This version also includes HTML fallback protection.

Copy & Paste the following code to embed this story on your website:

Preview

Panalpina announces war risk surcharge

The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL.

Jul 10, 2019 on Dec 27, 2018AmericanShipper.com