News / MSC hits Middle East cargo with $800 surcharge and declares 'end of voyage'

MSC has applied an $800 surcharge on every container currently booked for Middle East destinations affected by the Iran conflict, which it said was to cover “deviation costs”.

The world’s largest shipping company said it was invoking clause 13 on its bills of lading, which effectively means it is entitled to unload a container at any port and pass the cost of recuperating that box onto the customer.

“In light of the ongoing situation in the Middle East, MSC regrets to inform you that it is compelled to declare an ‘end of voyage’ for all shipments currently under MSC’s custody and care, whether located ashore or at sea, and destined for ports in the Arabian Gulf.

“A mandatory surcharge of $800 per container will apply to all affected shipments, without exception, to cover deviation costs,” it added.

Forwarders said this meant that they and their shippers would be liable for demurrage costs from day one.

“Furthermore, all discharge-related expenses – including, but not limited to, handling, storage, and any ancillary charges – shall be for the sole account and risk of the cargo,” the MSC customer advisory said.

“Basically, we’ve got to pay for everything,” a forwarder told The Loadstar.

Meanwhile, other carriers have also introduced surcharges on cargo en route to the Middle East, for example, CMA CGM has announced a $3,000 per 40ft war-risk surcharge on all shipments to the Midde East, including cargo “already afloat but not yet discharged or loaded to/from the countries mentioned”.