Swiss shipping company MSC diverts all Gulf cargo to safe ports; charges a variance fee of $800 per container

March 4 Swiss shipping giant Mediterranean Shipping Company (MSC) has announced the “end of voyage” for shipments destined for ports in the Arabian Gulf, effectively halting deliveries to the originally contracted destinations due to the war between Iran and Israel. ‘End of voyage’ in shipping parlance means that the ship ends its voyage at a port other than its original destination, usually due to unavoidable circumstances and emergencies.

This means that containers currently under MSC management – ​​both at sea and on land – and heading to the Arabian Gulf will not reach their intended ports. Instead, the container ships will divert to the next safe port of discharge, where the cargo will be made available to customers for local recovery and further arrangements.

Sources said other shipping companies could follow suit with similar announcements.

$800 mandatory fee

MSC said a mandatory surcharge of $800 per container will apply to all affected shipments without exception to cover deviation costs. The costs are borne by the sender.

It is unclear how many MSC ships were involved en route to the Arabian Gulf at the time of the announcement. Industry sources indicated other global airlines could consider similar steps if disruptions persist.

Unloading costs for cargo owners

The carrier stated that all costs associated with unloading – including handling, storage and additional costs – are at the sole expense and risk of the cargo owner. This is in accordance with the terms and conditions of the MSC Sea Waybill/Waybill, in particular Article 13 on ‘Special Circumstances’.

The measure also applies to empty containers that have already been released for filling and intended for export to destinations in the Arabian Gulf.

Industry response

J Krishnan, partner at Chennai-based S Natesa Iyer Logistics LLP, said shipping companies have the right to use what is commonly called a ‘voyage abandonment’ clause.

“Experienced exporters normally cover this hazard in their insurance. It is critical that insurance coverage is correctly worded in such exceptional circumstances,” he said.

Edwin Samuel, managing director of Thoothukudi-based Pearl Shipping Agencies, said this is the usual way shipping companies manage such risks, and it is done under proper regulatory insulation and instruments. Only shippers/importers are affected, leading to massive supply chain disruptions.

Captain K. Ramakrishnan, a master seaman, said that while the Bill of Lading provides for such cases, it is not widely applied. During the Iran-Iraq war, some Indian shipments to Iraq were offloaded by the carriers in Dubai.

With all Gulf states in a state of war, the Lines could have chosen this option as both sides have promised to prolong the war, he added.

Amanda Bradfield, Director, End to End Logistics, Fremantle, Western Australia, explained in a social media post that when a carrier declares that the journey has ended prematurely, they are in effect indicating that they will no longer complete the originally scheduled delivery.

“Carriers normally complete scheduled port visits unless there is a significant disruption, such as security risks, port closures, extreme weather or safety concerns,” she said.

With an “end of voyage” declaration, ships divert to a safe port, unload their containers and make them available to the cargo owner. From that moment on, responsibility and costs shift back to the cargo owner.

“This is not a routine delay or schedule change. It reflects exceptional circumstances and has real commercial implications for shippers,” she added.

French shipping giant CMA CGM said emergency measures are being taken for all shipments to and from the following countries: Iraq (port of Umm Qasr), Bahrain, Kuwait, Yemen, Qatar, Oman, the United Arab Emirates and Saudi Arabia.

These measures include, but are not limited to, vessel diversions to emergency ports. Such diversions will be carried out in accordance with Article 10 of the CMA CGM Bill of Lading and will be subject to applicable force majeure provisions. Customers will then be asked to provide further instructions on the further handling of their cargo.

Available options

The options available are emergency port delivery (BL completed). The equipment must be returned at the emergency port; delivery to the location of your choice by road or rail, subject to agreement on price and availability; change of destination (COD) to the port of your choice, subject to agreement on price, service and port availability in current conditions.

All costs arising from the application of the above provisions in the bill of lading would be borne by the cargo, the report said.

Published on March 4, 2026