CMA CGM, the world’s fourth largest containerline, will institute a war risk surcharge of $36 per teu for cargo heading to the Middle East, reports Splash 24/7.
The French shipping giant said due to spiralling insurance costs in the wake of six tanker attacks near Iranian waters in the past two months, traffic to and from Oman, the UAE, Qatar, Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait and Iraq will be subject to the surcharge for all trade lanes from July 5 except the US and China which will be added from August 1.
CMA CGM joins X-Press Feeders in warning clients of the extra costs for Middle Eastern shipments. In a note to clients last week, X-Press Feeders detailed its own war risk surcharge plans. Other liners are believed to be looking to following suit.
The roro division of Japan’s Nippon Yusen Kaisha (NYK) has also put a $2.80 per cu m war risk surcharge for all shipments passing through the Strait of Hormuz and the Gulf of Oman, effective from July 24.
Additional premiums have already made a big impact on tankers trading in the area. Additional premium rates for transits out of the Gulf are now set within a range of between 0.125% and 0.25% making the additional premium for a $100m VLCC cargo up to $250,000.