War risk surcharges /05 Oct 2001/

Carrier groupings in the Middle Eastern and South Asian trades have announced war risk surcharges of up to US$300 per TEU from October 1, to help defray massive war risk insurance hikes imposed by marine insurers.

The Informal Rate Agreement (IRA) is levying a "temporary additional risk surcharge" (TARS) of $150 per TEU for all shipments in the Far East/Middle East trades, with the exception of shipments to and from Iraq, which will be subject to a $300 per TEU surcharge. A surcharge of $7.50 per revenue ton for LCL shipments in these trades will also be applied, except Iraq, for which surcharge has yet to be advised.

The Far Eastern Freight Conference (FEFC) is applying an emergency surcharge for Suez transit of $10 per TEU, with the rider that this level will be increased at four days notice if war risk premia, as is generally expected, rise suddenly.

The Far East/Gulf of Aden and Red Sea Conference (FEGARSC) has advised a $200 per TEU surcharge on Middle Eastern ports, including Aden and Jeddah, but excluding Aqaba, which will be subject to a $250 per TEU surcharge. It may become necessary to revise these rates at short notice, the conference warns.

The FEFC/Mediterranean Rate Agreement trade to and from Egypt, Syria and Lebanon will also take a $250 per TEU surcharge. It may become necessary to revise these rates at short notice, the group warns.

The Europe Middle East Rate Agreement (EMERA) is levying an "extra risk insurance surcharge" of $125 per TEU for all vessels loading eastbound containers ex Europe and westbound containers ex Gulf ports, warning that the charge may be subject to sudden fluctuation depending upon developments in the region.

The Jeddah Service Group (JSG) is also applying an "war risk surcharge" of $125 per TEU for all vessels loading eastbound containers ex Europe, warning that the charge may be subject to sudden fluctuation depending upon developments in the region.

The Aqaba Rate Agreement (ARA) has an "extra risk insurance surcharge" of $125 per TEU for all vessels loading eastbound containers ex Europe, warning that the charge may be subject to sudden fluctuation depending upon developments in the region.

The India Pakistan Bangladesh Ceylon Conferences (IPBCC) is levying a charge of $10 per TEU on all vessels transiting the Suez Canal ex Europe, subject to change at short notice. Additional "war risk surcharges" of $175 per TEU for shipments to Pakistan and $150 per TEU for shipments to Sri Lanka also apply.

The Europe/Mediterranean Trade Agreement (EMTA) had already announced a "war risk surcharge" on its North Europe/Israel Service of US$150 per TEU for all vessels arriving in Israeli ports, and of $250 per TEU for all vessels arriving in Egyptian, Syrian and Lebanese ports. The surcharges apply to all cargo on Bills of Lading dating from September 27. The surcharge may be subject to sudden fluctuation depending upon developments in the region.