Kevin Carpenen: "Surcharges Should Reflect on Upcoming Orders"

Shipping companies are already announcing surcharges ranging from $500 to $2,000, which could further increase import costs, warns Kevin Carpenen, president of the Professional Association of Forwarders.

Since the outbreak of the war, have you noticed any changes in maritime freight?Yes. Some shipping companies have announced surcharges. For example, CMA CGM has communicated a surcharge of $2,000 for a 20-foot container and $4,000 for a 40-foot container. However, these fees only apply to cargo coming from thirteen specific ports in the Middle East, including Bahrain, Saudi Arabia, the United Arab Emirates, and Jordan, to name a few.

Does Mauritius import goods from these countries?Not necessarily from all these countries. However, some goods indeed arrive from the region, especially via the Jebel Ali port in the UAE. In this region, we are mainly talking about products such as oil, gas, and some food and cosmetic products from the Middle East.

Have other companies also announced surcharges?Yes. MSC recently announced a surcharge of $500 for a 20-foot container and $1,000 for a 40-foot container, as well as $1,000 for a refrigerated 20-foot container and $2,000 for a refrigerated 40-foot container. But again, these apply to specific countries, including India, Pakistan, Sri Lanka, and Bangladesh towards East Africa, Somalia, Mozambique, and the islands of the Indian Ocean.

So, Mauritius will be affected by these new fees...Yes, we will be impacted by these surcharges while waiting for the increase in oil barrel prices. Currently, shipping companies have suspended taking new orders to or from Middle Eastern countries. Their priority remains the safety of their ships and crews.

When might these surcharges start to be felt in Mauritius?They should reflect on upcoming orders. The surcharges have already been announced, and we will also need to monitor the evolution of oil barrel prices, which will undoubtedly increase. This will add to these additional surcharges, for sure.

The rise in prices of imported products is therefore inevitable...For now, some shipping companies have instructed their ships to stay sheltered for safety reasons. Once the situation stabilizes and maritime traffic resumes, we will be able to better assess the impact on prices in the coming weeks or months. For now, the situation remains uncertain, but one thing is certain, we are not out of the woods yet.