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HomeGULFUAECargo Services Resume in UAE as War Risk Surcharge Rises

Cargo Services Resume in UAE as War Risk Surcharge Rises

Cargo services in the United Arab Emirates have resumed after several days of disruption caused by the ongoing conflict in the Middle East. With airports gradually returning to operation, both air and sea cargo movements have restarted, bringing relief to traders and expatriates who rely on shipping goods to their home countries.

Industry representatives said the restoration of cargo services is particularly important for expatriates sending essential items to their families and for those preparing to return home after completing their overseas employment.

Navneet Prabhakaran, owner of Rono Cargo in Dubai, said the return of air services has helped restore logistics operations. Sea cargo is commonly used by expatriates transporting household goods when leaving the UAE, while air cargo remains the preferred option for regularly sending parcels. A large portion of workers in the UAE cargo sector are from Kerala, and a significant share of shipments is destined for India.

Despite the resumption of services, traders are facing higher costs due to the introduction of a “war risk surcharge” imposed by major international shipping companies.

Shipping giant Hapag Lloyd has introduced an additional fee of about 1,500 US dollars for standard containers destined for the Upper Gulf, Persian Gulf and Arabian Sea regions, while refrigerated containers face a surcharge of about 3,500 dollars. The company has also temporarily suspended voyages through the Strait of Hormuz.

Similarly, CMA CGM has imposed an “Emergency Conflict Surcharge” of 2,000 dollars for 20 foot containers, 3,000 dollars for 40 foot containers and 4,000 dollars for refrigerated units.

Meanwhile, DP World has informed cargo owners that temporary logistics arrangements have been introduced to facilitate the movement of goods. Containers can be unloaded at Port of Khorfakkan or Port of Fujairah and then transported by bonded road transit to Jebel Ali Port, where final customs clearance will be processed through the Dubai Trade system.

Local cargo companies say that despite the additional charges imposed by international shipping lines, many service providers have maintained their existing parcel rates to support customers during the current situation. Authorities and logistics operators continue to monitor developments as regional tensions affect global shipping routes and supply chains.

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