Iran war leads largest shipping line to terminate Mideast Gulf voyages, levy $800 charge

MSC diverting shipments to safe ports

(Screengrab from MSC video)

Mediterranean Shipping Co. is diverting all cargo destined for the Arabian Gulf region to safe ports due to the war in Iran, and levying an $800 charge on shippers to cover the termination changes.

For the current Middle East situation, MSC on March 3 has issued an “End of Voyage” declaration for cargo, whether still ashore or at sea, billed to ports in the Arabian Gulf.

The order, which extends to empty containers already released for stuffing that were intended for export to Gulf ports, diverts to the next safe port of discharge. Cargo will be discharged and placed at customers’ disposal for local delivery and recovery, MSC said.

The order comes after military forces from the United States and Israel attacked Iran February 28. Tehran responded with drones and missiles against ports and merchant vessels in the Persian Gulf.  Iranian forces have all but closed the Strait of Hormuz to global traffic at the gulf’s entrance, though some locally-based ships continue to make transits.

Geneva-based MSC has imposed a mandatory surcharge of $800 per container on all affected shipments, to cover deviation costs. All discharge‑related expenses such as handling and storage are the responsibility of the shipper, per the bill of lading terms, which includes a clause for “special circumstances”.

Customers seeking onward forwarding are required to do so through new booking through their usual MSC agency.​​

Read more articles by Stuart Chirls here.

Related coverage:

Kelly: U.S. maritime ‘critical’ to national, economic security

Here’s where container rates will go in extended Iran war

As shipping contract talks begin, Suez Canal traffic “flowing normally,” absent major lines

VIDEO: Iran attacks refineries; CMA CGM shuts down all cargo bookings to Middle East

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.