Iraq Situation and possible consequences.

Iraq Situation and possible consequences:

We would like to advise our clients of the impact of war breaking out in Iraq since this will have a significant effect on our industry.


Fuel Surcharge:

The current fuel surcharge has already been increased to 15c/k by most carriers and it is likely that another 5c/kg increase will take place within the next two or three weeks whether hostilities commence or not .

Security Surcharge:

This is also subject to increase during the crisis

War Risk Surcharge:

This was implemented by the carriers at the time of the last Gulf War in 1991. It is possible that this may be introduced again to cover expected increases in insurance premiums if war breaks out.


The United States Government has the right to commandeer aircraft –both passenger and cargo -from US flag carriers as it sees fit during any military action. Should this occur , capacity will be severely reduced and possibly actual airfreight rates may be increased.

Airspace will also be restricted over the Middle East , causing rerouting of many flights especially from Asia to Europe where a technical / refueling stop at certain Middle East points is currently very common.

Security Issues:

The TSA continues to mandate regulations for cargo movements which have been in place for some time , such as clarification of known shipper / unknown shipper and the more recently introduced 24 hour manifest rule for ocean freight. There is a clear possibility that a manifest rule will also be implemented for airfreight although so far no concrete guidelines have been established

Yusen’s policy:

Yusen of course will constantly strive to move its clients’ freight in the most expeditious and cost effective manner possible . We recently faced another crisis situation with the West Coast labor dispute where space was also severely affected , nevertheless we were still able to provide efficient movement of freight during this period

This situation may become more and more volatile as events develop. We will continue to provide updates on our website and of course your local Yusen office is able to assist you at any time.

Thank you for your continued support and understanding.