Liners start implementing Middle East war risk surcharges

Liners start implementing Middle East war risk surcharges

CMA CGM, the world’s fourth largest containerline, will institute a war risk surcharge of $36 per teu for cargo heading to the Middle East. The French shipping giant said due to spiralling insurance costs in the wake of six tanker attacks near Iranian waters in the past two months, traffic to and from Oman, the UAE, Qatar, Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait and Iraq will be subject to the surcharge for all trade lanes from July 5 except the US and China which will be added from August 1.

CMA CGM joins X-Press Feeders in warning clients of the extra costs for Middle Eastern shipments. In a note to clients last week, X-Press Feeders detailed its own war risk surcharge plans. Other liners are believed to be looking to following suit.

The roro division of Japan’s Nippon Yusen Kaisha (NYK) has also put a $2.80 per cu m war risk surcharge for all shipments passing through the Strait of Hormuz and the Gulf of Oman, effective from July 24.

Additional premiums have already made a big impact on tankers trading in the area. Additional premium rates for transits out of the Gulf are now set within a range of between 0.125% and 0.25% making the additional premium for a $100m VLCC cargo up to $250,000.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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