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Carriers demand new surcharges as Middle East conflict sees bunker costs surge

Container lines are seeking a new wave of emergency fuel surcharges as an escalation of hostilities in the Middle East has made bunker fuel more expensive and availability increasingly volatile. CMA CGM has told Indian customers it will impose a scale of surcharges on long-haul and intra-regional trades for cargo loaded from 1 August. The updated levy will be $150 per teu for dry cargo and $165 per teu for reefer cargo on the headhaul leg, and $75 and $90 respectively on backhaul and intra-regional trade. "Following the renewed escalation of hostilities in the Strait of Hormuz over the past days, fuel prices have surged sharply again, reversing the easing observed in recent weeks," explained the Marseille-based carrier to customers. Other major lines, including ONE, Maersk, and MSC, have also announced new fuel surcharges to recoup rising operating costs. ONE's revised EFS of $75 per teu for dry shipments and $100 per teu for reefers on the headhaul, and $38 and $50 on the backhaul and shortsea services, are slated for 15 August, the Singapore-based liner adding: "We will continue to monitor the evolving market conditions and will make necessary adjustments to the surcharge as circumstances dictate." Maersk applied its levy from 22 July, describing it as an "emergency inland fuel/energy surcharge", on its Nordic trade coverage of Denmark, Norway, Sweden, Finland, Latvia, Estonia, and Lithuania. Meanwhile, container freight rates from India to the Persian Gulf have continued to climb, as vessel capacity remains tight and port-to-port services remain problematic. Industry sources have reported a 40% to 50% increase in booking prices out of Nhava Sheva (JNPA) to several key Middle East gateways over the past two to three weeks. For example, rates from JNPA to Dammam in Saudi Arabia have surged to about $6,500 per teu and $7,500 per 40ft, according to sources. As mainline carriers struggle to move cargo into the conflict region, Indian port yards continue to be crowded by Middle East-related transhipment volumes, causing terminal congestion and slowing productivity, according to trade updates. According to new data, JNPA saw some 93,000 teu of transhipment box movement in June, nearly as much as it had handled in May. Raising fresh concerns, the Brihanmumbai Customs Brokers Association, representing customs agents in Mumbai, has told trade stakeholders its members should be held responsible for any delays in cargo evacuation and "other potential penalty consequences", like port ground rent and line detention charges. "Road congestion in and around the port [JNPA], delays at the empty container depots, congestion at the terminals and elongated gate queues are together driving an increasing incidence of [cargo] shutouts," the group claimed.

IAG Cargo's Q2 revenues and traffic down, but yields up

IAG Cargo's second quarter revenues and cargo traffic fell year on year due to the Middle East conflict, although the business boosted yields through a focus on premium cargo. Cargo revenue was £295m in the second quarter ending 30 June. This was down 5.1% from £311m in the second quarter of 2025. IAG Cargo's cargo traffic was also down 16.9% on the second quarter of 2025 to 1.1bn cargo tonne kms (CTKs). Though revenues and volumes were down, cargo yields, measured as cargo revenue per cargo tonne kilometre (RTKs), were up 14.2%. In its first half results release, IAG said: "Cargo capacity was impacted from March onwards by cancellations to destinations in the Middle East. The impact of lower revenues was mainly offset through operating cost savings and fuel-related price increases." "The cargo business continued to prioritise premium and higher-yielding flows, particularly across Asia Pacific and India, supported by strong demand for specialist products." IAG Cargo said it has also advanced the planned launch of its joint global cargo business with Qatar Airways Cargo and MASkargo, with operations commencing across 59 markets while continuing to invest in its network and customer offering. The joint business aims to bring together the combined expertise and infrastructure of the airlines and is expected to enable a streamlined product offering, enhanced connectivity, faster transit times, and new routing opportunities across the airlines' combined networks. Once fully launched, the joint business is expected to provide customers with access to more than 400 destinations worldwide. IAG Cargo saw both revenues and cargo traffic decline in the first quarter of the year as the Middle East conflict, a weaker dollar and a strong comparison period last year affected comparisons.

EU levy on ecommerce imports reduces demand and freighter flights

The introduction of new fees on low-value ecommerce imports into the EU triggered a sharp contraction in Asia-Europe freighter capacity - though there is confidence the market will eventually rebalance. According to Aevean, APAC/MESA freighter capacity into Europe fell 14% in June, equivalent to around 18 fewer widebody freighter flights a day. Several major European cargo gateways recorded steep declines, with Liège down 16%, Milan Malpensa 24%, Schiphol 12% and Budapest 46%., The figures appear to support reports from airports that the EU charges have dampened demand for cross-border ecommerce shipments. Dario Nanna, commercial aviation manager at Milan Bergamo Airport, told The Loadstar: "We have experienced a 40% reduction in e-commerce cargo movements at our airport, reflecting the immediate impact of the increased costs on the market and the drop of the demand." While The Loadstar has reported accounts that suggest traffic has been diverted between European gateways, as customs regimes differ and Italy a main beneficiary, Mr Nanna said the country had not escaped the broader downturn. "Italy has been affected to the same extent as other European markets by the introduction of this fee. Fortunately, the Italian government decided to postpone the introduction of the additional €2 levy on each ecommerce item with a value below €150 until October. Had this measure been implemented as originally planned, it would have had a further negative impact on Italy's ecommerce traffic." Despite the immediate shock, Mr Nanna said he expected the market to adjust at some point. "In my view, these effects are likely to be temporary. I believe that, over the coming months, the market will gradually adapt to the new environment and establish a new equilibrium. Market participants will identify solutions to improve loads and restore cargo volumes to levels closer to those seen before the introduction of the additional fees," he explained. However, he warned that options for airports to mitigate the impact remained limited. "Unfortunately, there is very little airports can do directly. The underlying issue is the decline in demand caused by the higher cost of each ecommerce item. "Moreover, airports have a direct commercial relationship with the airline operators, rather than with the ecommerce platforms or shippers. As a result, any mitigation measures would primarily need to be developed in close cooperation with the airlines."