Maersk has followed Zim and Hapag-Lloyd in introducing an emergency risk surcharge (ERS) for cargo discharged at Israeli ports, amid the conflict in Gaza, says an article published on loadstar website.
Maersk Implements Emergency Risk Surcharge
Maersk, following Zim and Hapag-Lloyd, introduces an Emergency Risk Surcharge (ERS) for cargo discharged at Israeli ports due to the ongoing conflict in Gaza.
The surcharge, set at $50 per TEU and $100 per FEU, is a response to increased insurance costs for vessels bound for Israel. This measure aims to cover insurance premiums and will be in effect for as long as necessary.
Insurance Challenges And Operational Stability
Background And Context
Insurance challenges resulting from the Israel-Hamas conflict prompted Maersk to implement the ERS. Additional insurance measures initially helped maintain operations, securing capacity for customers over the final months of the year.
Continued Challenges And Adjustments
Heading into 2024, ongoing increases in insurance premiums for vessels bound for Israel necessitated the introduction of the emergency risk surcharge by Maersk. The company emphasized its commitment to keeping operations moving as steadily as possible during the conflict.
Comparison With Other Carriers
Industry Response To Conflict
Hapag-Lloyd had previously introduced a $40 surcharge on intra-Europe shipments to Israel and an $80 per TEU surcharge on shipments from other origins, effective from January 1. Zim also implemented war-risk surcharges in the previous month, ranging from $25 to $100 per TEU based on the service.
Duration Of Surcharge
Maersk clarified that the ERS would be applied for as long as necessary to cover the increased insurance costs incurred during the conflict. However, the company remains prepared to reassess the situation and customer support packages, acknowledging the potential for short-notice changes.
Operational Stability And Customer Support Measures
Operational Status And Support Packages
As long as services in Israel remain operational and stable, Maersk informed customers that bookings for ocean, rail, road, and air services to and from Israel would continue to be accepted and facilitated.
Changes To Customer Support Measures
While acknowledging the operational stability in Israel, Maersk announced the removal of special measures, including free change of destination services, a detention and demurrage clock stop, and waived spot booking amendment and cancellation fees, effective from December 9.
Flexibility In Response
Maersk emphasized its flexibility to reassess customer support packages in response to any changes in the operational situation in Israel, recognizing the potential for risk that could evolve at short notice.
Navigational Challenges And Diversion Of Vessels
Suez Canal Risk And Route Diversions
The rising threat of vessels being attacked by Yemen’s Houthi rebels on the approach lanes to the Suez Canal has compelled carriers, including Maersk, to divert some Israel-bound vessels to the Cape of Good Hope. This alternative route adds approximately 7,000 miles and up to two weeks of additional sailing time.
Freightos Data Analysis
Freightos data indicates that due to the war, some vessels are opting for the longer route, impacting shipping costs. The average cost per container for Asia-Mediterranean shipments increased by 9% by the end of November compared to October.
Rates from certain Chinese origins to Israel showed a more substantial increase, ranging between 16% and 36%, suggesting higher costs for carriers and increased prices for customers.
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Source: Loadstar
