Middle East War: Brace For Higher Import Charges- Ghana Shippers Authority

The Ghana Shippers Authority (GSA) has urged importers to brace for higher freight charges following the introduction of war risk surcharges and emergency conflict surcharges on cargo originating from or transiting through the Middle East.

In a statement, it said the conflict between Iran and Israel, backed by the US, had resulted in significant disruptions to maritime traffic in the Strait of Hormuz, one of the world’s most critical maritime trade corridors.

The Authority noted that the introduction of War Risk Surcharges (WRS) and Emergency Surcharges is intended to offset the significant increase in operational risks and costs associated with navigating high-risk maritime areas.

This, it explained, is a global industry practice for shipping lines when vessels operate in or near conflict-affected regions.

These surcharges serve as temporary cost recovery mechanisms to cover elevated insurance, security and operational expenses arising from additional costs related to security measures, rerouting of vessels, longer transit times and higher fuel consumption.

The situation will have implications on Ghanaian imports, including higher freight rates and shipping costs; longer transit times due to vessel rerouting; supply chain disruptions for certain commodities; possible increase in landed cost of imported goods; delays in vessel availability to the affected region; and Changes in shipping schedules.

The GSA has therefore encouraged Ghanaian importers to engage proactively with shipping lines and logistics providers regarding freight rates and surcharges; factor potential shipping delays and cost adjustments into contractual and commercial planning; review insurance arrangements where necessary; and monitor developments in global shipping routes and fuel prices.

According to the Authority, the War Risk Surcharge is approximately USD 1,500 – USD 2,000 per TEU, while there are additional charges for 40-foot containers and refrigerated containers.

Meanwhile, it affirmed that the Authority has not and does not impose surcharges on shipments on behalf of Shipping Lines.

“The Authority regulates charges of Shipping Service Providers to ensure fairness, protection of the interest of the Ghanaian consumer and reduction in the cost of doing business,” it emphasised.

Story by Hajara Fuseini

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