The world’s largest container shipping company, Mediterranean Shipping Company (MSC), has announced a new “war risk surcharge” on cargo shipments heading to Africa and Indian Ocean islands, citing growing security concerns in key maritime routes in the Middle East.
According to the company, the surcharge follows the worsening security situation around the Straits of Hormuz and the Bab el-Mandeb passage, two critical waterways for global shipping. The instability in these areas has begun disrupting maritime traffic and affecting shipping networks.
In a statement released on Thursday, MSC said the evolving tensions in the region have forced the company to introduce the War Risk Surcharge (WAR) on cargo transported from the Arabian Peninsula and the Indian subcontinent to several African destinations.
The surcharge will apply to shipments moving from Gulf countries including Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates to West Africa, East Africa, Southern Africa, Mozambique and the Indian Ocean Islands.
Under the new pricing structure, shipments from the Indian subcontinent will attract a charge of $500 per 20-foot container for dry cargo and $1,000 per container for refrigerated goods.
Cargo originating from Gulf countries will face significantly higher costs. MSC says shipments will be charged $2,000 for 20-foot containers, $3,000 for 40-foot containers and as much as $4,000 for refrigerated containers destined for African ports.
The company noted that it will continue to monitor developments in the region and work closely with relevant authorities to maintain the safety of its vessels and crew.
The new surcharge is expected to increase the cost of trade for many African countries that rely heavily on imported goods. Economists warn that the growing tensions in the Middle East could also drive global oil prices higher, potentially weakening African currencies, widening trade deficits and pushing inflation upward across the continent.
