Mediterranean Shipping Company (MSC) has announced the implementation of a “war surcharge” on cargo shipments moving to African nations and Indian Ocean islands from the Indian subcontinent and Gulf countries, citing disruptions to maritime traffic in the strategic waterways of the Strait of Hormuz and Bab el‑Mandeb Strait.
The surcharge, effective Thursday, will apply to cargo originating from the Indian subcontinent to destinations including East Africa, Somalia, Mozambique and Indian Ocean island nations. It will also apply to shipments from Gulf countries bound for West Africa, East Africa, South Africa, Mozambique and the Indian Ocean islands.
For cargo moving from the Indian subcontinent, MSC will levy an additional $500 per 20-foot equivalent unit (TEU) for dry containers and $1,000 per TEU for refrigerated containers.
For shipments from Gulf countries to African destinations, the company will impose $2,000 per 20-foot container, $3,000 per 40-foot container, and $4,000 per refrigerated container.
MSC said the surcharge reflects the increased operational risks and costs resulting from the current security situation affecting key maritime routes in the Middle East region. The move is expected to further increase freight costs for exporters shipping goods from the Indian subcontinent and Gulf region to African markets.
