Mediterranean Shipping Company (MSC), the global leader in container shipping, has begun applying a new war risk surcharge to cargo moving from the Indian subcontinent and Gulf states to African ports and Indian Ocean islands, citing sharply elevated threats in the Straits of Hormuz and Bab el-Mandeb.
The fees took effect immediately after several leading marine insurers, including Gard, Skuld and NorthStandard, withdrew war-risk cover for the region, sending hull and cargo premiums surging and leaving carriers with little choice but to pass on the added expense.
Under the new structure, shipments originating in the Indian subcontinent and heading to East Africa, Somalia, Mozambique and Indian Ocean islands will face an extra $500 per 20-foot equivalent unit (TEU) for dry containers and $1,000 per TEU for refrigerated units.
Cargoes from Gulf origins (Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE) to West Africa, East Africa, South Africa, Mozambique and Indian Ocean islands will incur higher levies: $2,000 for a 20-foot box, $3,000 for a 40-foot container and $4,000 for reefer cargo.
The move follows similar surcharges announced this week by rivals such as Hapag-Lloyd and builds on MSC’s recent suspension of certain Gulf-origin bookings and diversion of containers to safer discharge points.
Annual containerised trade between Africa and the combined Indian subcontinent-Gulf region exceeds $100 billion. Industry executives expect the new charges layered on top of still-elevated freight rates from earlier Red Sea disruptions to be passed through to importers, raising the cost of consumer goods, machinery, electronics and perishables across the continent.
“Carriers are simply transferring these unprecedented insurance hikes straight to customers, which could slow down trade volumes in vulnerable African markets already battling currency volatility and inflation,” said Lars Jensen, founder of SeaIntelligence, a Copenhagen-based maritime consultancy specialising in container shipping economics.
MSC told customers the surcharge would remain “until further notice” while the company continues to monitor the situation in coordination with authorities and insurers. The Swiss-headquartered operator declined to comment on the expected financial impact.
The development adds fresh pressure to already strained global supply chains. Oil-tanker rates out of the Gulf have climbed to multi-year highs, and African ports are bracing for possible knock-on effects, including longer lead times and tighter inventory availability for importers.
