Shipping line announce war risk surcharges at Israeli ports
Date：10-25 153 Belong to：News Information
Shaul Schneider, executive chairman of the board of directors of Israel's Ashdod Port Company, said that despite the ongoing conflict between Israel and Hamas,
But Ashdod Port, one of the country's largest ports and an important asset in the national economy, is still operating normally.
In an interview with Container News, he noted that Ashdod Port Company employees continue to maintain operational continuity for the Israeli economy and work at a faster pace, understanding the importance of maintaining normal operations at the port.
The Port of Ashdod, Israel's only state-owned port, operates around the clock, with employees working longer shifts, for two main reasons.
The first reason is their own safety.
Schneider said it's safer for port employees to stay in the port area than on their way home.
In addition, the Israeli military has recruited 10 percent of the Ashdod Port Company's staff, so the remaining employees must fill vacancies.
Regarding special measures and guidelines that Israeli ports may receive from the government, Schneider said there are no special regulations for Ashdod port.
"We are trying to maintain normal operations under the circumstances," he said.
Schneider also said the port is in contact with shipping companies, which are still moving cargo through the port without any major disruptions.
Conflict could escalate. - Potential risk
At the time, we had not yet seen the conflict between Israel and Hamas create difficulties for global trade.
However, the conflict could expand, potentially posing challenges to key shipping lanes.
Christian roeloff, co-founder and CEO of Container xChange, an online platform for container logistics, explained: "In the case of the Israeli conflict, any expansion of hostilities beyond the country's borders could pose a risk to two important shipping chokepoints.
The Suez Canal, a vital waterway for a variety of commercial vessels, including container ships, could face disruption.
Similarly, the Strait of Hormuz, a pillar of oil and gas transport, could be affected.
However, the extent of these impacts depends to a large extent on the expansion and duration of the conflict."
On the other hand, Israel's container shipping market is relatively small, with its major ports of Ashdod and Haifa accounting for only 0.4 percent of global throughput, according to container xChange's analysis, so the threat of disruption of container trade flows through the Mediterranean region remains limited.
The first is the war surcharge
However, it is still important to see the impact of the conflict on container freight rates in and out of Israeli ports.
He also believes shipping companies will not raise rates in Ashdod, saying he has not seen any rate increases, surcharges or additional charges so far.
However, he expressed concern about the possible increase in insurance costs.
In any case, South Korean shipping company HMM has already announced a war risk surcharge (WRS) on Israeli cargo in a customer consultation on October 18.
"Due to increased costs due to the deteriorating conditions to and from Israel, we have to inform our customers that we will immediately implement WRS (War risk surcharge) for all types of equipment in order to maintain service to and from Israel," HMM said in the announcement.
HMM WRS are as follows:
*WRS is effective immediately until further notice
ZIM also announced additional costs.
"In light of the war situation, the insurance company has imposed an additional war risk insurance premium on all ships calling at Israeli ports, which we are now obligated to pay in order to maintain services to and from Israel," the company said in its latest update.
The company has decided to implement the following new War risk premium (WRP) for shipments to and from Israel effective October 12.
Line/Service War risk premium Surcharge
ZNI US$50/TEU
ZMP, MGX, SAM, ZCA US$100/TEU
TBX, LBX US$80/TEU
ADE, TYR US$50/TEU
But Ashdod Port, one of the country's largest ports and an important asset in the national economy, is still operating normally.
In an interview with Container News, he noted that Ashdod Port Company employees continue to maintain operational continuity for the Israeli economy and work at a faster pace, understanding the importance of maintaining normal operations at the port.
The Port of Ashdod, Israel's only state-owned port, operates around the clock, with employees working longer shifts, for two main reasons.
The first reason is their own safety.
Schneider said it's safer for port employees to stay in the port area than on their way home.
In addition, the Israeli military has recruited 10 percent of the Ashdod Port Company's staff, so the remaining employees must fill vacancies.
Regarding special measures and guidelines that Israeli ports may receive from the government, Schneider said there are no special regulations for Ashdod port.
"We are trying to maintain normal operations under the circumstances," he said.
Schneider also said the port is in contact with shipping companies, which are still moving cargo through the port without any major disruptions.
Conflict could escalate. - Potential risk
At the time, we had not yet seen the conflict between Israel and Hamas create difficulties for global trade.
However, the conflict could expand, potentially posing challenges to key shipping lanes.
Christian roeloff, co-founder and CEO of Container xChange, an online platform for container logistics, explained: "In the case of the Israeli conflict, any expansion of hostilities beyond the country's borders could pose a risk to two important shipping chokepoints.
The Suez Canal, a vital waterway for a variety of commercial vessels, including container ships, could face disruption.
Similarly, the Strait of Hormuz, a pillar of oil and gas transport, could be affected.
However, the extent of these impacts depends to a large extent on the expansion and duration of the conflict."
On the other hand, Israel's container shipping market is relatively small, with its major ports of Ashdod and Haifa accounting for only 0.4 percent of global throughput, according to container xChange's analysis, so the threat of disruption of container trade flows through the Mediterranean region remains limited.
The first is the war surcharge
However, it is still important to see the impact of the conflict on container freight rates in and out of Israeli ports.
He also believes shipping companies will not raise rates in Ashdod, saying he has not seen any rate increases, surcharges or additional charges so far.
However, he expressed concern about the possible increase in insurance costs.
In any case, South Korean shipping company HMM has already announced a war risk surcharge (WRS) on Israeli cargo in a customer consultation on October 18.
"Due to increased costs due to the deteriorating conditions to and from Israel, we have to inform our customers that we will immediately implement WRS (War risk surcharge) for all types of equipment in order to maintain service to and from Israel," HMM said in the announcement.
HMM WRS are as follows:
*WRS is effective immediately until further notice
ZIM also announced additional costs.
"In light of the war situation, the insurance company has imposed an additional war risk insurance premium on all ships calling at Israeli ports, which we are now obligated to pay in order to maintain services to and from Israel," the company said in its latest update.
The company has decided to implement the following new War risk premium (WRP) for shipments to and from Israel effective October 12.
Line/Service War risk premium Surcharge
ZNI US$50/TEU
ZMP, MGX, SAM, ZCA US$100/TEU
TBX, LBX US$80/TEU
ADE, TYR US$50/TEU
