News / Israel-Hamas war driving up costs for carriers and their customers

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Maersk has followed Zim and Hapag-Lloyd in introducing an emergency risk surcharge (ERS) for cargo discharged at Israeli ports, amid the conflict in Gaza. 

Last week, it announced: “Additional insurance has enabled us to keep operations moving as steadily as possible and secure capacity in the market for our customers over the final three months of the year. 

“Moving into 2024, insurance premiums continue to be raised for vessels bound for Israel, which has brought about the need for Maersk to officially implement an emergency risk surcharge.” 

The surcharge will be $50 per teu and $100 per feu and will be applied to Israeli import cargo for bookings from 8 January. 

This compares with Hapag-Lloyd’s  1 January $40 surcharge on intra-Europe shipments to Israel, and $80 per teu on shipments from other origins, and Zim’s variety of war-risk surcharges last month, ranging from $25 to $100 per teu, depending on the service. 

Maersk said its ERS would apply for “as long as necessary to cover the increased insurance costs that [it is] incurring”.  

However, Maersk also advised customers that, if services in Israel remained “operational and stable”, and “bookings for ocean, rail, road and air services to and from Israel continue to be accepted and facilitated”, it was removing a number of special measures to support Israeli shippers and importers.  

In early October, Maersk introduced support packages for customers impacted by the conflict, including free change of destination (COD) services, a detention and demurrage (D&D) ‘clock stop’ and waived spot booking amendment and cancellation fees. 

Maersk said it had been “assessing the packages in line with customer requirements”, but “given the operational stability in Israel… these will no longer be available from 9 December”. 

Despite this, it noted that “risk does indeed remain and the situation in Israel could change at short notice”. In this instance, Maersk was “fully prepared to reassess [its] customer support packages”, it added.  

The rising threat of vessels being attacked by Yemen’s Houthi rebels on the approach lanes to the Suez Canal has forced carriers to divert some Israel-bound vessels to the Cape of Good Hope, according to Freightos data. At least two Maersk vessels and one Zim ship opting to take the route which adds some 7,000 miles and up to two weeks’ additional sailing time. 

“Freightos data shows that, while the average cost per container for Asia-Mediterranean shipments had increased only 9% by the end of November, compared with October, rates from some Chinese origins to Israel climbed between 16% and 36%, suggesting that the war is leading to higher costs for carriers and higher prices for their customers,” the company said.