Peter T. Leach, Senior Editor | Jan 26, 2012 9:55AM EST
Mediterranean Shipping Co. said it will put a new piracy surcharge into effect on containers it transports between ports in South Africa and East Africa beginning in March.
The Geneva-based carrier said it is implementing the surcharge because “piracy activities are becoming more and more aggressive, consequently the insurance costs on the vessels to the region have become prohibitive.” MSC said the increasing incidence of hijacking has forced it to improve the means of defense against piracy, including special routes and extra high speed to bypass the area.
It will increase its piracy risk surcharge by $100 per 20-foot equivalent unit to $230 per TEU on cargo carried from and to South Africa to and from East Africa, including the ports of Dar Es Salaam, Tanga, Zanzibar, Mombasa and Nacala.
The new piracy risk surcharge will be effective on March 2 with the departure of the MSC Jasmine from Durban that same day, and the departure of the MSC RICKMERS from Nacala. MSC has already increased the freight rate on shipments between east and South Africa by $300 per TEU as of Feb. 5 because of what it called “various local problems” that were causing its vessels to experience “a major increase in costs.”’
Contact Peter T. Leach at pleach@joc.com.