The ongoing US and Israeli attacks on Iran have compelled MSC, the world’s largest container carrier, to announce an “End of Voyage” declaration. MSC will offload all Gulf-bound cargo at the nearest safe seaport. The declaration will equally apply to empty containers intended for export to Gulf ports.
MSC has also announced a mandatory $800 per container surcharge for all affected shipments without exception to cover any deviation costs. Customers will take on the responsibility for containers at the discharge port.
MSC has moved a step further to suspend all cargo bookings to the Middle East until further notice. It will work closely with authorities to ensure the safety of its operations in the region.
Container shipping has comparatively little to lose compared to other shipping sectors. However, container shipping will not be exempt from the disruptions and associated costs arising from the Iran war. Up to 147 container ships were sheltering in the Persian Gulf, creating delays, freight rate increases, and port congestion.
Major container shipping vessels will opt to reroute vessels around the Cape of Goodhope.