War risk surcharge, emergency bunker surcharge, general rate increase continue to raise landed costs of raw materials, finished goods; industry sees 2–3 months for relief The post Hormuz reopens but $3,000 war risk charges keep trade costs elevated appeared first on Profit by Pakistan Today.
Trade and industry stakeholders have welcomed the reopening of the Strait of Hormuz but said the impact on supply chains will depend on how quickly shipping lines withdraw war-related surcharges that have raised import costs, according to a news report. Industry representatives said charges such as war risk surcharge (WRS), emergency bunker surcharge (EBS), and general rate increases (GRI) continue to inflate the landed cost of raw materials and finished goods. During the conflict, cargo movement through key transshipment hubs including Jebel Ali and Port of Salalah was disrupted, affecting shipments bound for Pakistan.
Shipping lines imposed a GRI of $300–500 per container on routes from Australia, Singapore, China, and Thailand, equivalent to around $12–20 per tonne. Additional charges included a war risk surcharge of $1,200–2,000 for 20-foot containers and $2,300–3,000 for 40-foot containers, along with emergency bunker surcharges ranging between $70 and $400 depending on container size. Business groups said the reopening of Hormuz is expected to stabilise supply chains, reduce transit risks, and lower insurance costs, though the adjustment in freight charges may take time.
Representatives from the wholesale and trading sector said it could take two to three months for the impact to reflect in prices, as existing shipments continue to carry higher costs. They added that current market conditions, including oversupply in commodities such as pulses, have kept local prices competitive, but rising input costs—such as fuel, fertiliser, utilities, and freight—may push prices higher in the coming months. Industry officials said the restoration of shipping routes is a positive development for trade flows, but full normalisation will depend on the removal of surcharges and stabilisation of logistics costs.