World’s largest container shipping firm, Mediterranean Shipping Company (MSC) announced that it will introduce a “war surcharge” for cargo shipments to African nations and Indian Ocean islands from the Indian subcontinent and Gulf countries.
- MSC will introduce a war surcharge on cargo shipments from the Indian subcontinent and Gulf countries to Africa and Indian Ocean islands.
- The surcharge is due to increased security risks and disruptions in maritime traffic in the Middle East.
- From the Indian subcontinent, dry containers will be charged $500 per TEU and refrigerated ones $1,000 per TEU; higher rates apply from Gulf nations.
- Only a few African oil-exporting nations, such as Nigeria, Angola, and Ghana, are expected to benefit from rising oil prices.
Mediterranean Shipping Company (MSC) announced on Thursday that it will introduce a “war surcharge” for cargo shipments to African nations and Indian Ocean islands from the Indian subcontinent and Gulf countries.
“The evolving security situation in the Middle East is affecting maritime traffic in the Straits of Hormuz and Bab El – Mandeb and causing disruption throughout our network,” the shipping giant said in a statement.
Consequently, the world’s biggest container carrier said it is implementing a War Risk Surcharge (WAR) for all cargoes moving from the Arabian Peninsula (Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, UAE) to West Africa, East Africa, South Africa, Mozambique and the Indian Ocean Islands.
For shipments from the Indian subcontinent, MSC will charge $500 per 20-foot equivalent unit (TEU) for dry containers and $1,000 per TEU for refrigerated containers.
Cargoes originating from Gulf nations will incur $2,000 for 20-foot containers, $3,000 for 40-foot containers, and $4,000 for refrigerated containers destined for African countries.
MSC continues to closely monitor the situation and is working with relevant authorities to ensure the safety of its operations.
Rising Costs for Africa
The escalating conflict in the Middle East is raising economic risks across Africa. Rising oil prices threaten to weaken local currencies, worsen trade balances, and push inflation higher throughout the continent.
Many African nations rely heavily on imported fuel, meaning global energy shocks quickly translate into higher shipping costs, rising food prices, and mounting pressure on government budgets.
According to Bloomberg Africa, only a handful of Sub-Saharan oil exporters, including Nigeria, Angola, and Ghana, are positioned to benefit meaningfully from the surge in oil prices.
