Project Description

What is the War Risk Surcharge?

The Freightos Freight Information

Who Charges the War Risk Surcharge: Carrier

Charge At: Port to Port leg

War Risk Surcharge Description: This is a supplementary carrier charge, that is only applied when insurance underwriters designate specific zones as war risks. It covers more than actual wars (invasion, insurrection) including international events that may be escalating toward war, and areas where hijacking (piracy) is prevalent.

The surcharge is levied to recover potential extra costs, such as re-routing or additional security.

War Risk Surcharge Tips: A standard pass through charge and legally not negotiable. This surcharge has been applied relatively recently due to piracy along the horn of Africa.

It is unlikely to be charged on the Asia – North America trade lanes. The closest this surcharge was applied to those lanes was in 2005 around the Malacca Straits (South East Asia), again due to piracy.

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