Shipping group A.P. Moller-Maersk said on Thursday it will introduce a risk surcharge next year on container shipments to Israel to cover rising insurance premiums due to the security situation.

“Moving into 2024, insurance premiums continue to be raised for vessels bound for Israel, which has brought about the need for Maersk to officially implement an Emergency Risk Surcharge (ERS),” the Danish company said in a statement.

“The surcharge will be used to accommodate additional insurance costs and ultimately ensure a continued and sustainable service for our customers to Israel,” it added.

Customers will from Jan. 8 face a $50 surcharge on 20-foot containers while the charge for containers measuring 40 and 45 feet will be $100, Maersk said.

Source: Reuters reported by Terje Solsvik and edited by Louise Rasmussen