War Risk Surcharge

Common Freight Costs and Charges

Who Charges the War Risk Surcharge: Carrier

Charges at: the port-to-port leg.

War Risk Surcharge Description: This is a supplemental carrier charge that applies only when insurance underwriters designate certain zones as war risks. It encompasses more than just actual conflicts (invasion, insurgency), including international events that may escalate into war and places where hijacking (piracy) is common.

The surcharge is paid to cover anticipated additional expenditures, such as re-routing or increased security.

War Risk Surcharge Tips: This is a typical pass-through charge that cannot be legally negotiated. This surcharge was implemented very recently in response to piracy near the Horn of Africa.

It is unlikely to be charged along the Asia-North America commerce routes. The last time this surcharge was applied to such waterways was in 2005, around the Malacca Straits (South East Asia), due to piracy.