CARRIERS IMPOSE MIDDLE EAST WAR RISK SURCHARGES
Shipping lines of the Europe Middle East Rate Agreement have notified shippers that they will raise their so-called additional surcharge for Middle East shipments, because of the war in Iraq, potentially setting a precedent for other carriers to follow.
“Following the commencement of hostilities in the (Middle East) Gulf region, the costs to member lines of operating services to various Gulf ports has increased substantially, primarily as a result of increases in extra risk insurance premia,” the Europe/Middle East conference said.
The additional surcharge, previously set at $8 per TEU, will be increased manifold, effective March 30, to levels that depend on the Middle East port or country.
The carriers will apply surcharges per TEU as follows: $180 for Kuwait; $60 for Bahrain/Dammam; $55 for Bandar Abbas (Iran); $30 for Abu Dhabi and Doha; and $20 for Dubai and Muscat.
Carriers in the U.S./Middle East trade are understood to be considering the introduction of war risk surcharges in their U.S. tariffs.