United Arab Shipping Company announced an increase in its emergency risk surcharges on containers moving through the pirate-infested waters of the Gulf of Aden and the Indian Ocean, the Journal of Commerce reports.
The surcharge will increase to $49 per 20-foot equivalent unit from $40 per TEU. The revision will take effect May 26 for shipments not requiring tariff-filing with the Federal Maritime Commission, and June 8 for FMC-regulated trades.
The Middle East carrier also said it would apply a piracy risk surcharge of $120 per TEU on shipments to and from Aden (Yemen), Djibouti and Ethiopia, effective immediately for non-FMC trades and June 8 for FMC trades.
“Due to the continuous activities and expanding geographic coverage of pirates, marine insurance premiums and fuel costs (because of the increasing sailing distance and speed) in the affected zone have been increasing, necessitating a hike in emergency risk surcharges,” UASC said.