Global container lines including Mediterranean Shipping Company, CMA CGM and Hapag Lloyd have announced surcharges on Indian containers as ships take a longer transit route via the Cape of Good Hope to ward off attacks from Houthi militants in the Red Sea region.
From 20 December (last container gate in date) until further notice, MSC will implement a Contingency Surcharge (CAC) of $500 per twenty-foot equivalent unit (TEU) on all shipments from Middle East, India/Pakistan, Sri Lanka and Bangladesh to West Africa destinations, the liner said in a 20 December trade advisory to customers.
In view of the recent events in the Red Sea, MSC has taken the decision to divert its ships covering the westbound trades via the Cape of Good Hope to maintain the safety of the crew, cargo, and ship.
CMA CGM has imposed a Red Sea charge of $1,575 per 20-foot dry container, $2,700 per 40-foot dry container and $3,000 per reefer container and special equipment with immediate effect.
The Red Sea charge covers shipments from and to Jeddah, Port of Neom, Djibouti, Aden, Hodeidah, Port Sudan, Massawa, Berbera, Aqaba and Sokhna.
The French line said in a customer advisory on 20 December that the re-routing of the vessels was a precautionary measure taken to navigate away from potentially unsafe areas.
This decision, CMA CGM said, is in line with Clause 10 of its Bill of Lading, and while it may impact the logistics and supply chain operations of customers, it is a “necessary step which comes with a cost”.
German carrier Hapag Lloyd said it will levy an Operational Recovery Surcharge for shipments between Europe and Arabian Gulf, Red Sea and Indian Subcontinent from 1 January.
From Arabian Gulf, Red Sea and Indian Subcontinent to North Europe and South Europe, the Operational Recovery Surcharge will be $750 per 20-foot container and $1,500 per 40-foot container.
The Operational Recovery Surcharge from North Europe and South Europe to Arabian Gulf, Red Sea and Indian Subcontinent will be $500 per 20-foot container, $1,000 per 40-foot container and $1,500 per 40-foot reefer container.
Ships on the east-west trade have to sail through the Red Sea region to enter and exit the Suez Canal, a key waterway that moves as much as 12 percent of the global sea borne trade.
Re-routing vessels via South Africa’s Cape of Good Hope entails longer transit times of 7-8 days to Europe and 10-12 days to the United States of America and more fuel use.
“Forget about shipping lines and shippers (cargo owners), at the end of the day, consumers across the globe are going to pay the extra costs arising from the developments in the Red Sea,” said an executive with one of the container lines based in Europe.
