Major container carriers around the world are imposing war risk and emergency surcharges while restricting bookings and rerouting services in response to escalating conflict and security threats in the Middle East, particularly near the strategic Strait of Hormuz. These measures are significantly affecting global logistics, leading to higher costs and disruptions for exporters, importers, and supply chains.
Surcharges, Booking Suspensions and Service Changes
With regional hostilities intensifying, international shipping lines have taken decisive action to mitigate risk and protect crew, cargo, and equipment. Among the major developments:
- War Risk Surcharges (WRS) of around $1,500 per TEU ($3,500 for reefers/special cargo) have been introduced by carriers like Hapag‑Lloyd, applied to shipments involving Gulf destinations.
- Emergency Conflict Surcharges (ECS) from carriers such as CMA CGM can reach $2,000–$4,000 per container depending on size and cargo type.
- MSC has declared an “End of Voyage” surcharge of $800 per container, requiring cargo destined for the Gulf region to be discharged at alternative safe seaports and shifting handling and storage costs onto shippers.
- Some carriers have paused cargo bookings to and from Middle East ports, especially in the Gulf and Arabian Peninsula, in response to heightened security risks.
These measures are being applied not only to new shipments but also to cargo already in transit or awaiting loading, generating frustration among exporters, freight forwarders, and businesses facing sudden cost increases.
Rerouting and Safety Priorities
The crisis has also prompted carriers to avoid transits through the Strait of Hormuz — a chokepoint through which a significant portion of global oil and goods typically flow. Some shipping lines are rerouting via the Cape of Good Hope to bypass the conflict zone, adding days to transit times and increasing fuel and operational costs.
Additionally, suspensions on cargo bookings and induced service slowdowns have created logistical bottlenecks at key ports, with container space tightening and sailing schedules uncertain as carriers prioritize safety and risk avoidance.
Rising Costs and Insurance Challenges
One of the most disruptive impacts comes from war risk insurance dynamics — with some major maritime insurers cancelling coverage for vessels operating in or near the conflict region and premiums surging. These increased insurance costs are being passed on to shippers through surcharges as carriers seek to hedge against operational and financial risks.
For businesses involved in international trade, these developments are translating into significant cost increases, supply chain delays, and increased complexity in planning global shipments, particularly for goods bound for or transiting through the Middle East.
Exporters and industry associations have raised concerns over the retrospective application of surcharges and the lack of clarity on cost responsibilities — prompting calls for governmental support and engagement with carriers to protect trade competitiveness and avoid inequitable cost burdens.
As geopolitical tensions continue to shape maritime operations, companies and supply chain stakeholders are advised to monitor carrier advisories, assess alternative routing options, and factor additional surcharges and transit delays into their logistics planning for the foreseeable future.
Source:
Global logistics is on edge as major container shipping companies take drastic measures against the escalating war between the U.S., Israel and Iran.
