News / Hormuz uncertainty prompts carriers to add new surcharges

Photo: Hapag-Lloyd

As Strait of Hormuz transits continue to remain uncertain, container lines are implementing new surcharges in a bid to recoup additional operational costs.

Hapag-Lloyd leads the way with a wave of Middle East emergency surcharges (MESs) on its container bookings from India to the Persian Gulf.

They vary between “merchant haulage” and “carrier haulage” bookings.

“Due to the closure of the Strait of Hormuz, alternative routing and operational arrangements have been implemented to maintain service continuity for affected cargo,” said the Hamburg-based carrier.

“These arrangements involve additional operational costs, including the positioning of additional vessels, increased terminal handling expenses, and higher insurance costs for port calls in the region.”

The scale of the surcharges ranges up to $7,200 for a 40ft box from Mundra/Nhava Sheva ports in India to Kuwait, when relayed over Salalah Port in Oman under the carrier’s haulage.

“The MES applies to existing bookings already in transit and affected by the ongoing disruption,” added Hapag-Lloyd, which also warned customers that the surcharges could be higher for dangerous or hazardous cargo.

The move reflects the continuing landside capacity challenges carriers grapple with for end-to-end contracts of carriage across ports in the war zone.

To that end, CMA CGM has told Indian customers it is restricting acceptance of cargo bookings to Jeddah Port in Saudi Arabia moving under merchant haulage contracts.

The carrier won’t accept shipments booked to Jeddah for haulage to countries other than Saudi Arabia, but remains open to handling fresh bookings to the UAE, Oman, Qatar, Bahrain, Kuwait, and Iraq with carrier haulage out of Jeddah.

The move comes after the Saudi Ports Authority had taken drastic measures to prevent a further buildup of idle containers, leading to harbour congestion.

“Bookings will therefore be confirmed subject to compliance with the rules and should the booking be found non-compliant, CMA CGM will reserve its rights to cancel the contract of carriage and all cost expenses and liabilities resulting thereof shall be for merchant’s account, including but not limited to any penalties imposed by MAWANI on CMA CGM,” the Marseille-based liner noted.

Middle East cargo flows through integrated regional supply chains around the model of landbridge operations has become the new industry mantra after the Israel/US-Iran war that had made port-to-port shipping chaotic and unpredictable.

Ocean freight add-ons from carriers for Indian exporters are not limited to Middle East trades.  Maersk has implemented container overweight surcharges on freight from India to North America as well as Europe and the Mediterranean, beginning early July.

The heavy load surcharge of $500 per teu is levied on shipments with gross weight exceeding 24 tonnes to North America and 22 tonnes to Europe/Mediterranean ports.