End of war risk charges for sub-continent

End of war risk charges for sub-continent

Feeder operators on Monday withdrew an insurance surcharge of $25 a TEU - the last of the war-risk charges to shippers - five months after the official end of the Iraq war.

The India-Pakistan-Bangladesh-Ceylon Conference (IPBCC) announced that member lines were dropping the war risk surcharge Oct. 6 levied by feeder operators on cargo relayed via ports in the United Arab Emirates to and from Cochin, Mumbai, Jawaharlal Nehru, and Kandla in India; Colombo in Sri Lanka, and Karachi in Pakistan.

The conference, which controls 80 percent of the trade between the Indian region and Europe, had withdrawn the insurance surcharge levied by member lines in July.

Also, the IPBCC announced that because of lower bunker costs, it is reducing the fuel surcharge on cargo beginning Nov. 1.

The reductions are minor since the IPBCC hiked freight rates by $150 a TEU on eastbound and westbound shipments for cargo to and from Europe to the Indian region.

- N. Vasuki Rao in New Delhi