War risk premium hike to affect West Coast shipping to UAE

International trade from ports on the west coast of India to the United Arab Emirates (UAE) would become expensive following the additional war risk premium levied by shipping conferences. According to a notice from India-Pakistan-Bangladesh-Ceylon (IPBC) conference to its shipping lines, feeder operators, serving India, Pakistan and Sri Lanka from/ to the UAE’s ports, have announced their intentions to introduce an additional war risk premium surcharge.

Indian ports include Kochi, Mumbai/ JNPT and Kandla, while Colombo and Karachi are the other ports. Exporters and importers will have to shell out $15 per container for the UAE to Kochi, Mumbai and JNPT, while between the UAE and Kandla, the additional war risk premium is $25 per container. War risk premium from Colombo and Karachi ports is $15 and $25 per container to UAE, respectively. Sources point out that none of the Indian flag vessels operate on this route and hike is restricted to cargo moving on vessels under foreign flags.

Moreover, Indian hull underwriters have not yet increased the war risk premium unlike the international hull underwriters whose increase in war risk premium have compelled the foreign flag vessels to increase and pass on the surcharge to customers, sources said. According to sources, around 300 containers move out of Kochi every week to the UAE, while Mumbai and JNPT see movement of 400-500 containers to the UAE every week. Kandla handles 100-150 containers to the UAE every week.

Another container conference, EMERA Lines has revised additional war surcharge from $8 to $30 per container for Abu Dhabi and Doha. The revision for the other ports effective March 30 is Dubai ($20), Bahrain/ Dammam ($60), Kuwait ($180), Bandar Abbas ($55) and Muscat ($20). JSG Lines has revised the war risk premium on container movement to and from Jeddha port from $16 per container to $30 per container effective March 30.