Panalpina introduces war risk surcharge on Middle East sea freight
PANALPINA Welttransport has introduced a US$52 per TEU 'war risk surcharge' for Middle East shipments passing through the Strait of Hormuz to cover the higher costs associated with insuring cargo moving through the volatile shipping channel in the wake of recent vessel attacks
PANALPINA Welttransport has introduced a US$52 per TEU 'war risk surcharge' for Middle East shipments passing through the Strait of Hormuz to cover the higher costs associated with insuring cargo moving through the volatile shipping channel in the wake of recent vessel attacks.
Since May, half a dozen oil tankers and a US drone have been attacked in the region.
Many large shipping lines like Cosco, Maersk and CMA CGM have already seen insurance costs rise. Annual war risk surcharges have increased and breach premiums have been implemented in response to these attacks.
The heightened risk of shipping in these waters has already led to rate hikes and could also drive higher earnings for the tanker lines, reported New York's FreightWaves.
'There is an increased risk of operating in the Gulf region and a sense of insecurity for shipments going through the Strait of Hormuz. Now that shipping lines have added insurance-related surcharges for such shipments, we have to pass these costs on in order to stay competitive,' said Panalpina ocean freight chief Peder Winther.
The international freight forwarding and logistics company said that it will introduce a 'flat' surcharge to simplify billing for its customers. The flat $52 surcharge per TEU will be levied on full container load (FCL) shipments, and less than container loads (LCL) will be charged $3 per cubic metre.
The charges for all shipments in the region took effect on July 8, excluding those with the US as the point of origin or destination. The surcharge for US shipments will be implemented on August 1.
'Panalpina's surcharge currently applies to shipments via the Strait of Hormuz and to shipments with destination or origin port in Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia (eastern province ports Dammam and Jubail) and the UAE,' a company press release said.