As safety concerns over Middle Eastern waters intensify due to the war situation surrounding the Strait of Hormuz, HMM has decided to completely halt cargo transport to the region. The decision was made based on the assessment that risks to ships and crew safety have increased significantly.

Additionally, the company has decided to impose $1,000 per container to cover additional costs incurred as existing vessels are diverted to safe alternative routes or ports.

As a result, shippers now face substantial additional expenses along with the burden of having to receive their cargo at third-party ports rather than their intended destinations.

On March 11, HMM notified shipper customers that it is suspending cargo transport on Middle East routes, including the Arabian Gulf, the Red Sea, and East African waters. The company determined that serious risks could arise to the safety of vessels, cargo, and crew members passing through these areas.

Accordingly, cargo already in transit will be subject to “Deviation” measures, whereby vessels are rerouted to safe ports instead of following their original routes. When necessary, cargo will be handled by unloading at the nearest safe port.

To cover costs arising from route changes and unloading processes, an additional charge of $1,000 per container will be imposed on all affected cargo. These charges include costs for related services such as unloading, storage, and re-transport preparation.

Cargo that has been booked but not yet loaded cannot be transported under current circumstances. Cargo that has arrived at terminals or container yards will either be released or handled at the shipper’s expense.

HMM has also immediately suspended new bookings for ports in the Arabian Gulf, the Red Sea, and East Africa.

Global shipping companies are implementing similar measures in succession. Maersk, the world’s second-largest shipping company, has suspended operations of all vessels passing through the Strait of Hormuz. For cargo bound for the Middle East, it is applying emergency freight surcharges of approximately $1,800 per container.

MSC, the world’s largest shipping company, has also indefinitely suspended accepting cargo bookings for shipments to the Middle East.

French shipping company CMA CGM has introduced emergency conflict sur charges ranging from $2,000 to a maximum of $4,000.

Source:Business Korea