Maersk raises emergency fuel surcharge amid Middle East war
Danish shipping company A.P. Moller-Maersk has increased its emergency fuel surcharge (EFS) on all export collections and import deliveries due to the ongoing conflict in the Middle East.
IMAGE: Maersk's vessels in Singapore. Maritime Port & Authority of Singapore
Brent crude’s price has traded north of $100/bbl this week, amid supply-related concerns from Middle East producers, as more oil tankers and commercial vessels face air assaults within the Persian Gulf and the Strait of Hormuz.
The shipping company has increased its EFS to 20%, effective 12 October, it said in a statement.
“These surcharges will continue to be reviewed regularly, and we’ll continue to share updates when necessary,” Maersk said.
Shipping lanes like the Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, serving as the world's most critical oil transit chokepoint for crude flowing out of the Middle East.
The Bab al-Mandeb Strait, another vital maritime conduit, connects the Red Sea and the Suez Canal to the Gulf of Aden, serving the shortest commercial shipping route between Europe and Asia.
The incessant risk of disruption in these transit lanes have already caused severe constraints in global seaborne oil flows.
Continued disruptions could extend delivery timelines, as vessels increasingly bypass the region and are forced to opt for a much longer voyage through the Suez Canal, west into the Mediterranean, and around Africa's Cape of Good Hope.
By Aparupa Mazumder
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