Could War Risk surcharges become widespread?
Airfreight carrier Cargolux introduced a War Risk surcharge of $0.20 per kg last week.
Although they faced criticism for the decision, there are already suggestions that other carriers could soon follow suit.
War Risk surcharges are meant to offset additional costs and risks arising as a result of ongoing violence. In recent times they have mainly been used for trade in areas badly affected by piracy.
As the war in Ukraine continues it will become more and more likely that additional carriers introduce these surcharges.