Zim lines imposed Gulf of Aden surcharge

Zim imposed the surcharge of $18 per standard container (TEU) on all containers being moved to and from East Africa, South Africa and the Far East
 
Israeli container shipping line Zim integrated shipping services Ltd. imposed a surcharge for hauling cargo through the piracy-ridden Gulf of Aden.
 
Zim integrated shipping services Ltd. imposed the surcharge of $18 per standard container (TEU) on all containers being moved to and from East Africa, South Africa and the Far East, with effect from 1st February.
 
The Aden Gulf surcharge, it said, was meant to cover high insurance and other security-related costs of transiting through the prime trade route.
 
It is understood that maintaining high speed while crossing the Gulf of Aden and moving in convoys guarded by warships are some measures that the shipping firm have adopted to ensure the security of its ships sailing through the troubled waters off Somalia.
 
The Israeli Shippers' Council (ISC) noted, however, that they do not “buy” this argument. They say that piracy risks are covered by insurance, a cost element that is included in freight rates quoted to shippers.
 
ISC issued a harsh statement following Zim's announcement arguing that the new surcharge is seen as a back door attempt to raise extra resources at a time when freight rates have been falling.