More carriers implement war risk surcharges
Date: Monday, July 8, 2019
Source: American Shipper
Container carriers implement charges on ships sailing through the Gulf of Oman and Persian Gulf.
This week Maersk and Hapag-Lloyd announced a $42-per-TEU surcharge and Mediterranean Shipping Company a $40-per-TEU charge, while CMA CGM and APL are charging $38 per TEU.
The Federal Maritime Commission said it also has had notices from Ocean Network Express, Wan Hai and Hoegh Autoliners of their intent to implement surcharges.
The area where the surcharges apply and the implementation dates vary from line to line and also depend on the country of the shipper. The U.S. Federal Maritime Commission, for example, generally requires carriers to give 30 days of notice before increasing rates. Most carriers are implementing the surcharges on ships traveling through the Gulf of Oman, Strait of Hormuz and Persian Gulf (called the Arabian Gulf by some carriers).
Maersk noted that it has seen “a notable impact on our cost base for our shipping and logistic activities” in the region.
Steven Weiss, a senior vice president and chief underwriting officer at Roanoke Insurance Group, noted that insurance rates for tankers going into the Persian Gulf have increased substantially from about $25,000 per trip to $185,000 per trip.
He did not know how much insurance costs are going up for containerships, but said that it makes sense that container carriers also are seeing substantial increases in shipping costs.
Ports in the region include major transshipment hubs in addition to smaller ports used for local imports and exports. For example, Dubai is the ninth-largest container port in the world.