CMA CGM said the charge would apply on container shipments moving to and from Oman, the United Arab Emirates, Qatar, Bahrain, the ports of Dammam and Jubail in Saudi Arabia, Kuwait and Iraq and that other countries might be added depending on the situation in the region.
X-Press said, “In addition, to ensure the safety of the crew as well as goods onboard, critical measures such as vessel speed escalation in the day and avoiding in night sailing through the vulnerable areas will be undertaken. As a result, whereof, our costs have increased sharply and we have no choice but to implement this war risk surcharge (WRS) as a recovery mechanism to all our services operating within the Arabian Gulf as well as transiting through the Gulf of Oman.”
X-Press said it was applying the surcharge on regions identified by the Joint War Committee in a May 17 notice. X-Press did not indicate the size of the surcharge in its announcement.
Several container ports in the Gulf of Oman and Persian/Arabian Gulf are among the largest in the world. In December, Lloyd’s List ranked Dubai in the UAE as the ninth largest; Banda Abbas in Iran as the 69th largest; Khorfakkan in the UAE as the 78th largest; and Dammam in Saudi Arabia as the 97th largest. Salalah in Oman is ranked as the 39th largest but is located far outside the Gulf of Oman on the coast of the Arabian Sea.
Other carriers may follow CMA CGM and X-Press Feeders.
Maersk said, “To minimize service disruptions towards our customers and the cost of our services, we are monitoring the developments in the Gulf area and evaluating their impact on our shipping and logistics activities. In that connection, we are evaluating how to deal with the costs directly incurred in our services or indirectly passed on from our suppliers. We will inform our customers as soon as we conclude.”