Full Breakdown
MSC and CMA CGM Implement Emergency Fuel Surcharges Amid Rising Bunker Costs
3/9/2026, 9:23:47 PM
Overview of Freight Rate Increases
Mediterranean Shipping Company (MSC) has announced a series of freight rate increases and surcharges across key trade routes, effective from mid-March and early April 2026. The new rates will apply to shipments from India and Pakistan to Europe starting March 16, with cargo from Nhava Sheva to Antwerp priced at $2,150 per 20-foot and 40-foot container, and shipments to Valencia costing $2,250 per container. Additional charges will be implemented for cargo departing from Ennore and Kolkata to various European destinations, remaining in effect until March 31, 2026.
Emergency Fuel Surcharges in Response to Geopolitical Tensions
In light of escalating geopolitical tensions in the Near and Middle East, MSC will introduce an Emergency Fuel Surcharge (EFS) on cargo moving from Northern Europe to the Indian Subcontinent, effective March 16. This surcharge will be $100 per twenty-foot equivalent unit (TEU) for dry containers and $150 for refrigerated containers. CMA CGM has also announced a similar EFS, set to take effect on March 23, 2026, due to a surge in global fuel prices, which have risen sharply amid ongoing conflicts in the region.
Impact of Rising Oil Prices
The recent spike in oil prices, which surpassed $100 per barrel, has prompted both MSC and CMA CGM to implement these surcharges to offset increased bunker costs. CMA CGM's EFS will vary based on trade direction and cargo type, with rates reaching up to $180 per container. For example, dry cargo on long-haul trades will incur a surcharge of $150 per TEU, while refrigerated cargo will face a higher surcharge of $180 per TEU.
Suspension of Services by Other Carriers
In addition to the surcharges, other shipping companies are adjusting their operations in response to the heightened risks in the Middle East. Cosco Shipping has suspended all new bookings for routes involving the United Arab Emirates, Bahrain, Iraq, Saudi Arabia, and Kuwait, citing safety concerns and restrictions on maritime traffic through the Strait of Hormuz. Hapag-Lloyd has also temporarily halted its IG1 and KWF services due to the current security situation affecting vessel movements and port operations in the region.
Criticism and Opposition
The implementation of these surcharges and service suspensions has drawn criticism from various stakeholders within the shipping industry, who argue that such increases could further strain supply chains already impacted by geopolitical instability and rising operational costs.
Official Statements
MSC has stated that the new surcharges are necessary to maintain service levels expected by customers amid strong demand on certain trade lanes. CMA CGM emphasized that the EFS is essential for providing reliable and sustainable services in the current context of rising fuel prices.
Verbatim Quotes
- “To continue providing reliable and sustainable services in this exceptional context, CMA CGM will implement an Emergency Fuel Surcharge (EFS) as follows,” — CMA CGM
- “MSC attributed the peak season surcharge to strong demand on the Europe–Southern Africa trade lane, stating that the additional charge is required to sustain services at the level expected by customers.” — MSC
This series of freight rate adjustments and surcharges reflects the ongoing challenges faced by the shipping industry as it navigates fluctuating fuel prices and geopolitical tensions.
