News / Fuel crisis drives hefty CMA CGM surcharges on India-Africa cargo

The increasing volatility of fuel prices is adding to logistics cost pressures for Indian exporters/importers.

The latest blow is a wave of emergency fuel surcharges announced by CMA CGM on the inland side for Indian trades to/from Africa.

They cover shipments flowing in and out of South Africa, Tanzania, Mozambique, and Kenya, according to multiple trade notices issued by the French liner last week.

And the scale of tariff hikes is staggering: going up to some 35% of the base rate for cargo loaded/unloaded in South Africa.

Tanzania and Mozambique-related trades attract a 31% hike, with a 10% hike applying to Kenyan trade.

“Due to the current geopolitical environment and the resulting uncertainty affecting international energy markets, fuel prices are expected to remain volatile in the coming weeks,” the Marseille-based carrier told Indian customers.

“In order to continue providing reliable and sustainable inland transport services while ensuring transparency regarding fuel-related cost developments, CMA CGM will introduce an Inland Emergency Fuel Surcharge (IEFS) applicable to mode of transport impacted in each country,” it added.

It explained: “Diesel, which represents a significant component of inland transportation costs, may therefore lead to short-term fluctuations in the operating costs of inland transport services.”

CMA CGM is one of the frontline capacity participants in India-Africa trades, offering multiple weekly sailings. Its premier services include MIDAS and Swahili Express networks, according to available data.

And the French carrier is not alone in seeking “contingency inland surcharges”. Singapore-based ONE last week updated the inland haulage fee implemented in March on shipments to/from Canada and the US by rail or truck or barge, also citing the impact of higher fuel costs.

The updated inland fees vary wildly, going up to $1,100 per reefer box for outbound movement from Canada and the US in respect of some long-haul trucking points.  The revised rates will come into effect on 1 July.

“ONE will perform monthly evaluations to adjust this quantum based on the latest diesel price trends,” the carrier noted.

The carrier has also revised bunker surcharges applicable to its shipping contracts in Q3 for trades from Asia to South/East/West Africa.

Bilateral trade between India and Africa has seen steady traction in recent years, up nearly 15% year on year by value in fiscal year 2025-26, according to data.

Ocean carriers have been able to drive freight rates up in recent week due to stronger demand, data from industry sources indicates.

Booking rates from Nhava Sheva (JNPA) to Mombasa (Kenya) are currently in the region of $1,800 per teu and $2,000 per 40ft, sources said.

“Vessel space has been tight for the last few weeks,” one source told The Loadstar.

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