Middle East Crisis: MSC Declares Emergency "End of Voyage" for Gulf-Bound Cargo, Imposes $800 Surcharge

MSC, the world's largest container shipping line, announced on Tuesday that all cargo destined for ports in the Gulf region will be discharged at the nearest safe seaport. This emergency decision comes amid ongoing hostilities in the Middle East following US and Israeli strikes on Iran.

Invoking the "End of Voyage" Clause and Deviation Surcharge

In a customer advisory, the Geneva-based carrier stated that this move is officially termed an "End of Voyage" declaration. This regulation also applies to empty containers that have already been released for stuffing and are intended for export to Gulf ports.

Notably, MSC announced it will apply a mandatory $800 surcharge per container for all affected shipments, with no exceptions. This fee aims to offset the costs of vessel diversion.

Explaining this decision, a company representative expressed: "MSC sincerely regrets the necessity of this decision, which arises from exceptional circumstances beyond its control."

The Burden Shifts to Shippers

Commenting on the practical impact on LinkedIn, Lars Jensen, CEO of Vespucci Maritime—a consultancy specializing in container shipping—analyzed that customers will now bear full responsibility for the containers at the discharge port. This means shippers are left to find alternative modes of transport and pay local port charges (including demurrage and detention) themselves.

The Big Picture: Congestion at the Hormuz "Chokepoint"

The conflict has caused a massive backlog of vessels, including oil tankers and container ships, at the critical Strait of Hormuz chokepoint, raising fears that global fuel prices could skyrocket.

According to data from Drewry, a London-based maritime consultancy, as of Sunday, there were 158 container ships present in the Middle East region, encompassing the Gulf of Oman, the Arabian Sea, and the Gulf. This figure represents approximately 2.1% of the total active global container fleet.

Knock-on Effects on the Global Supply Chain

Earlier this week, MSC and ONE stopped accepting cargo bookings destined for the affected areas in the Middle East. Industry experts warn that the conflict will trigger cascading delays, and the disruptions could take weeks to resolve as operators are forced to reroute vessels, containers, and other assets.

Assessing the extent of the damage to the industry, Simon Heaney, Senior Manager of Container Research at Drewry, noted in a report on Tuesday: "Container shipping has less ⁠to lose from the Iran conflict compared to other shipping sectors, but it cannot escape disruption and higher costs"

See more:

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Source: Phaata.com (According to Reuters)

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