Container shippers getting hit with war risk surcharges

CMA CGM and X-Press feeders have implemented surcharges, and other carriers are evaluating the situation.

Container shippers getting hit with war risk surcharges

CMA CGM and X-Press feeders have implemented surcharges, and other carriers are evaluating the situation.

Container shippers getting hit with war risk surcharges

CMA CGM and X-Press feeders have implemented surcharges, and other carriers are evaluating the situation.

 

   The tensions in the waters around the Strait of Hormuz are beginning to hit container shippers in the pocketbook.
    CMA CGM announced Monday it will implement a $36-per-TEU war risk surcharge, citing “recent incidents in the Strait of Hormuz and the related significantly increasing insurance costs in the Middle East Gulf region.”
    It said the charge will be e
ffective Friday (bill of lading date) for all trades, except USA and China, for which the effective date will be Aug. 1.
    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 Feeders, which operates a number of services in the region, said in a Thursday announcement that because of recent attacks on oil tankers in the Gulf of Oman and “escalating geopolitical risks and tension in the Middle East region,” additional war risk insurance premiums have been imposed to all ships transiting through the Gulf of Oman.
    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.
   Hapag-Lloyd said, “Due to increasing operating costs and in order to ensure service continuity, we are reviewing the need for a war risk surcharge for our services to and from the Arabian Gulf. Customers will be informed immediately once this process and details are finalized.”
   
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.”

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Container shippers getting hit with war risk surcharges

CMA CGM and X-Press feeders have implemented surcharges, and other carriers are evaluating the situation.

Jul 02, 2019 on Dec 27, 2018AmericanShipper.com

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Container shippers getting hit with war risk surcharges

CMA CGM and X-Press feeders have implemented surcharges, and other carriers are evaluating the situation.

Jul 02, 2019 on Dec 27, 2018AmericanShipper.com