War Risk Surcharge

Illustration for War Risk Surcharge, Pricing & Surcharges

A surcharge applied to shipments routed through areas designated as high risk due to conflict, piracy, or political instability.

In depth

War risk surcharges cover the sharply higher insurance premiums, crew compensation, and security measures that apply when vessels transit listed high-risk areas. The designations are set by marine insurance bodies and change as conditions do. The surcharge is separate from — and often accompanied by — routing changes, since carriers may divert around a risk area entirely, adding significant distance and transit time. Shippers should confirm both the surcharge and the routing, because a diversion can matter more to a delivery date than the cost does.

Key points

  • Covers elevated insurance, crew, and security costs in high-risk areas
  • Risk areas are designated by marine insurance bodies and change over time
  • Often accompanied by route diversions that add transit time
  • Confirm routing as well as cost when a surcharge is in force

← Back to full glossary

War Risk Surcharge: Freight Glossary | CargoLinked | CargoLinked