MSC Ships To Offload All Cargo Destined For Middle Eastern Countries At Nearest Safe Port

MSC, the largest carrier of maritime container cargo, issued a statement that all cargo destined for Gulf ports will be offloaded at the closest safe seaport because of the ongoing tensions and compromised safety situation following the U.S-Iran war.

Termed as ‘End of Voyage’ Declaration, this would also apply to empty containers which were released for loading with cargo and are intended for export to the Gulf ports.

A surcharge of $800 per container will apply to all affected shipments, without exception, to cover deviation costs, the company added.

Lars Jensen, CEO of container shipping-focused consultancy Vespucci Maritime, said on LinkedIn that customers have to take responsibility for the containers at the discharge port, which means shippers will have to find alternate transport and pay local port fees.

The missile attacks targeting ships in the region have caused oil tankers, gas carriers and a few container ships to drop anchor at the Strait of Hormuz, causing worries that global oil prices might increase further in the coming days.

At present, around 158 vessels are stranded in the Middle East waters, including the Gulf of Oman and the Arabian Sea, representing 2.1% of the current active container ship fleet, per Drewry, a maritime consultancy.

MSC and Ocean Network Express (ONE) are not taking on cargo destined to the affected regions in the Middle East.

Analysts warn that hostilities could lead to delays, disruptions and port congestion as ships reroute around the Cape of Good Hope.

Simon Heaney, Drewry’s senior manager of container research, said that container shipping has less to lose from the Iran-US war compared to other sectors, but it will still face the ripple effects and higher costs.

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