Mediterranean Shipping Company (MSC) will introduce an emergency fuel surcharge (EFS) effective March 16, 2026, on cargo moving from the Mediterranean and Black Sea to the Indian subcontinent, Red Sea, and East Africa. Charges will range from $30 to $90 per TEU depending on cargo type and destination.
Global shipping continues to face rising costs due to bunker fuel price volatility and geopolitical disruptions. MSC, one of the world’s largest container shipping companies, announced the surcharge to stabilize operations and offset escalating expenses. The measure will remain in place until further notice.
Surcharge Details
For shipments to the Red Sea, the surcharge will be $30 per dry TEU and $50 per reefer TEU. Cargo bound for the Indian subcontinent will be charged $40 per dry TEU and $60 per reefer TEU. Shipments to East Africa will incur $60 per dry TEU and $90 per reefer TEU.
Key Highlights
- MSC introduces emergency fuel surcharge effective March 16, 2026
- Applies to cargo from Mediterranean and Black Sea to Indian subcontinent, Red Sea, East Africa
- $30 dry TEU / $50 reefer TEU for Red Sea shipments
- $40 dry TEU / $60 reefer TEU for Indian subcontinent shipments
- $60 dry TEU / $90 reefer TEU for East Africa shipments
- Measure to remain until further notice amid rising fuel costs
Market Impact
The surcharge is expected to increase freight costs for exporters and importers across affected regions. Analysts note that while the measure adds short-term financial pressure, it highlights the vulnerability of global trade to energy price fluctuations and geopolitical instability.
Sources: Reuters, Economic Times, Business Standard, Mint, Moneycontrol