Yemen forces Maersk to demand risk charges on 'Israel'-bound cargo

By Al Mayadeen English
Source: Agencies
8 Dec 2023 20:43
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The A.P. Moller-Maersk conglomerate says the increased cost aims to cover rising insurance premiums caused by the security situation.

The MV Maersk Mc-Kinney Moller, the world's then biggest container ship, arrives at the harbor of Rotterdam on August 16, 2013 (AFP)

The world's second-largest shipping company, A.P. Moller-Maersk, announced it will start imposing a new risk surcharge on container shipments heading to "Israel" starting next year, citing the need to cover rising insurance premiums due to the unstable security situation.

This decision comes after a number of operations carried out by Yemen against Israeli vessels in the Red Sea, most significantly the capture of Galaxy Leader and leading it to the coast of Hodeidah, in response to the entity's ongoing brutal war on Gaza. Meanwhile, Sanaa repeatedly stressed that these attacks would continue until the war on the Strip stops.

The Yemeni Armed Forces announced on December 3 targeting the Israeli-owned Unity Explorer and Number 9 vessels in Bab al-Mandab Strait off the coast of Yemen with a naval missile and drone, confirming direct hits on both.

The Danish shipping giant, in a formal statement, indicated that the continuous increase in insurance premiums for ships en route to the occupation entity necessitates the introduction of an Emergency Risk Surcharge (ERS) starting in 2024.

“The surcharge will be used to accommodate additional insurance costs and ultimately ensure a continued and sustainable service for our customers to Israel,” the statement read.

Starting from January 8, Maersk customers will incur an additional fee of $50 for 20-foot containers. For larger containers, measuring 40 and 45 feet, the surcharge will be $100, as per the company's announcment.

Reiterating and confirming Yemen's commitment, the Minister of Defense in Yemen's Sanaa reaffirmed earlier this week that the Red Sea remains a theatre of operations for the Yemeni army against Israeli ships until the war on the Strip ends.

Dwindling wartime economy

Bloomberg recently reported that "Israel's" entry into the wartime economy has left businesses struggling to sustain their economic activities, even forcing many to close down just two months into the war and less than 6 weeks into the invasion of Gaza.

The entity's top five banks have increased credit loss provisions for small businesses by about eight times compared to last year, according to the agency's information.

According to a survey conducted by "Coface BDI", 57,000 Israeli companies will close their doors this year, compared to 42,000 companies in 2022, due to the impact of rising rates, inflation, and months of political unrest resulting from judicial amendments and protests.

Meanwhile, the increased cost of shipping premiums will have a noticeable negative impact on inflation, subsequently influencing the central bank to keep higher interest rates for longer, or even increase them in the worst-case scenario.

US unlikely to face Yemen

On Thursday, Politico reported that senior officials in the Biden administration agreed that, at present, taking military action against the Yemeni Ansar Allah movement is not the appropriate course of action.

Despite some military officers proposing more robust responses to the attacks in the Red Sea, there is a consensus at the highest levels of the administration that it does not make sense for the US military to engage with Ansar Allah directly, the news website revealed citing US officials.

The report continued that, although military officers responsible for US operations in the Middle East have developed options for responding to Ansar Allah, these options are not actively being advocated at this time.