Egypt-Gulf shipping costs surge as war risk surcharges take effect

Global maritime carriers have introduced new surcharges on shipping routes between Egypt and the Gulf, as persistent regional instability continues to drive up insurance and operational costs.

Industry sources say the additional fees range from $1,000 to $4,000 per container, reflecting a sharp increase in risk premiums as the industry navigates heightened security threats.

While the move is expected to lift import costs, traders say disruptions to agricultural exports to the Gulf because of war-related turmoil could push prices for those products down in Egypt’s domestic market.

According to a notice reviewed by Al Manassa, French shipping company CMA CGM, which manages and operates the Tahya Misr container terminal at Alexandria Port, informed importers and exporters that the new fees take effect on March 2.

Under the notice, the additional charge was set at $2,000 for a 20-foot container and $3,000 for a 40-foot container, while fees reach $4,000 for refrigerated containers and special equipment.

The surcharges apply to shipments departing from and arriving to ports in Egypt, Bahrain, Kuwait, Djibouti, Oman, Qatar, Eritrea, Sudan, Iraq, the United Arab Emirates, Jordan, Yemen, and Saudi Arabia.

MSC Mediterranean Shipping Company imposed an additional $1,000 fee per container, while German shipping company Hapag-Lloyd applied extra charges of $1,500 per container and $3,500 for refrigerated containers and special equipment, an official at an exporting company that works with the lines told Al Manassa, requesting anonymity.

Ahmed Al-Mallawany, head of the Foreign Trade Committee at the Importers Division of the Federation of Egyptian Chambers of Commerce, told Al Manassa that prices of goods imported from abroad are likely to rise by about 10%, driven by shipping-price increases recently approved by international transport companies.

He said shipping costs under normal conditions account for about 10% of a shipment’s total value, adding that while the latest increases have an impact, they are not large compared with periods that saw severe disruption in global supply chains.

Egypt currently has nine container terminals, which handled about 8.9 million containers by the end of 2024.

Agricultural exports threatened

Mostafa El-Naggari, head of the Agriculture and Irrigation Committee at the Egyptian Businessmen’s Association and a board member of the Union of Producers and Exporters of Horticultural Crops, told Al Manassa that the latest regional events have directly affected Egypt’s agricultural exports, especially those headed to Gulf countries.

He said some export destinations are currently unavailable for shipping, by sea or air, leading to a backlog of consignments that had been destined for export.

“The Gulf states account for about 35% of Egypt’s total agricultural exports, so any disruption in that region directly affects export flows,” El-Naggari added, noting that the crisis hit in the final third of the export season, which typically begins in September and October and ends in May, limiting the impact compared with a crisis at the start of the season.

El-Naggari expected some local fruit prices to go down in the coming days as supply increases after export delays.

He said orange prices could fall noticeably in popular markets, and strawberries will also become more abundant locally after having been largely directed to Gulf export markets, potentially pushing prices down to avoid spoilage of fast-perishing goods, especially as the government moves to expand sales of agricultural goods through various outlets to absorb the surplus.

During Tuesday’s cabinet meeting, Prime Minister Mostafa Madbouly said the price of a barrel of oil has reached $84 and gas prices have also risen, warning that there are concerns transport costs could climb further during the crisis.

“If the war continues for long periods, we will revisit prices. This is an exceptional measure and it was not in the government’s plan,” he said.