MSC imposes war surcharge on shipments to Africa and Indian ocean islands

MSC Adds War Surcharge to Africa, Indian Ocean Shipments Amid Maritime Risks

MSC Implements War Surcharge on Shipping Routes

Background and Reason for Surcharge

March 5 (Reuters) - Shipping company MSC said on Thursday it would implement a "war surcharge" for cargoes moving to African nations and Indian Ocean islands from the Indian subcontinent and the Gulf countries, after maritime traffic was affected in the Straits of Hormuz and Bab El-Mandeb.

Details of the Surcharge

Effective Dates and Applicable Routes

The surcharges, effective on Thursday, apply to cargoes from the Indian subcontinent to East Africa, Somalia, Mozambique and Indian Ocean islands, as well as from the Gulf nations to West Africa, East Africa, South Africa, Mozambique and the Indian Ocean islands, MSC said. 

Surcharge Amounts by Container Type and Origin

Indian Subcontinent to Africa and Indian Ocean Islands

The surcharge for cargoes from the Indian subcontinent will be $500 per 20-foot equivalent unit (TEU) for dry containers and $1,000 per TEU for refrigerated containers, MSC said.

Gulf Nations to Africa and Indian Ocean Islands

The shipping company said it will charge $2,000 for 20-foot containers, $3,000 for 40-foot containers and $4,000 for refrigerated containers on cargoes from Gulf nations to African countries.

Reporting Credits

(Reporting by Shubham Kalia in Bengaluru; Editing by Emelia Sithole-Matarise)