HMM Suspends New Bookings to the Middle East

[The Financial News] HMM Company Limited (HMM) announced on the 11th that it will temporarily suspend new bookings to the Middle East and implement a "deviation" of routes. The measure comes as the risk of vessel operations has increased due to the recent war in the Middle East and the closure of the Strait of Hormuz.
In a notice to shippers the same day, HMM explained that it cannot guarantee the safety of vessels, crew, and cargo in the Middle East region, and therefore new bookings are not possible under the current circumstances. The company added that cargo already en route to the Middle East will be diverted from existing routes to safer alternative ports.
An additional charge of 1,000 dollars per container will be imposed to cover extra costs incurred while moving to alternative ports. The measure applies only to three container vessels currently operating on the India–Middle East route.
Since early March, major global carriers such as Mediterranean Shipping Company (MSC), Maersk, and CMA CGM—among the world’s top 10 shipping lines—have already halted services to the Middle East. In response to the heightened risks, they have been charging an additional 2,000 to 3,000 dollars per container.
HMM, as a member of the Premier Alliance, has also established a joint response framework. The company stated that its latest decision was made in light of developments among global carriers and fellow alliance members.
An HMM official said, "Although the risk level in the Middle East is currently very high, we will make every effort to resume services in order to minimize inconvenience to our customers," adding, "Services to regions outside the Middle East are operating as normal."


ggg@fnnews.com Kang Gu-gwi Reporter