Shipping firms impose extra fees as Red Sea attacks hit global trade

A transport bottleneck caused by Houthi attacks across the Red Sea has forced shipping firms to impose extra charges as they re-route ships. (AFP/File photo)
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Updated 22 December 2023
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Shipping firms impose extra fees as Red Sea attacks hit global trade

  • Chinese automaker Geely says a delivery delay to Europe will likely hurt its electric vehicle sales, the latest company to warn of disruption
  • A multinational force is being formed to patrol the Red Sea, but details have yet to emerge and shipping companies continue to avoid the area

Chinese automaker Geely says a delivery delay to Europe will likely hurt its electric vehicle sales, the latest company to warn of disruption

A multinational force is being formed to patrol the Red Sea, but details have yet to emerge and shipping companies continue to avoid the area

OSLO/PARIS, Dec 22 : Some of the world’s largest shipping firms, including Maersk and CMA CGM, will impose extra charges after they re-routed ships in response to attacks on vessels in the Red Sea, as worries about disruption to global trade grow.
The surcharges, designed to cover longer voyages around Africa compared with routes via the Suez Canal, will add to rising costs for sea transport since Yemen’s Houthi militant group started targeting vessels.
Maersk and CMA CGM were the first to introduce the fees, followed by Germany’s Hapag-Lloyd later on Friday.
The three are among leading shipping lines to have suspended the passage of vessels through the Red Sea that connects with the Suez Canal, the quickest sea route between Asia and Europe.
Instead, they are directing ships around the Cape of Good Hope at the southern tip of Africa, adding about 10 days to a journey that would normally take about 27 days from China to northern Europe.
Citing “severe operational disruption,” Maersk said late on Thursday it was imposing an immediate transit disruption surcharge (TDS) to cover extra costs associated with the longer journey, plus a peak season surcharge (PSS) from Jan. 1.
Hapag-Lloyd has said it would redirect 25 ships by the end of the year to avoid the area.
On Friday, Chinese automaker Geely told Reuters its electric vehicle sales were likely to be hurt by a delay in deliveries to Europe, the latest company to warn of disruption.
China’s second largest automaker by sales said most of the shipping firms it uses for European exports have plans to go around southern Africa.
The alert bodes ill for other automakers in China as they seek to increase exports to Europe due to overcapacity and weak demand at home.
The United States has announced a multinational force to patrol the Red Sea, but shipping sources say details have yet to emerge and companies continue to avoid the area.
In a message to customers, logistics firm CH Robinson Worldwide said it had re-routed more than 25 vessels to southern Africa over the past week.
“That number will likely continue to grow due to ongoing war risks in the Red Sea and the drought in the Panama Canal,” it said.

Surcharges
CH Robinson said cancelations and rate increases were expected to continue into the first quarter and recommended customers book 4-6 weeks in advance to ensure space on vessels.
Maersk said a standard 20-foot container traveling from China to Northern Europe now faced total extra charges of $700, consisting of a $200 TDS and $500 PSS.
Containers bound for the east coast of North America will be charged $500 each, consisting of the $200 TDS payment and a $300 PSS, the company added.
Maersk also said routes in other parts of its network would be affected by the Suez disruption, triggering emergency contingency surcharges on a wide range of journeys.
CMA CGM announced surcharges late on Thursday including an extra $325 per 20-foot container on the North Europe to Asia route and $500 per 20-foot container for Asia to the Mediterranean.
The charges were part of its contingency plan to re-route vessels around the Cape of Good Hope, it said.
France-based CMA CGM listed 22 of its vessels as having been re-routed.


Over 100 former senior officials warn against planned staff cuts at US State Department

Updated 04 July 2025
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Over 100 former senior officials warn against planned staff cuts at US State Department

  • State Secretary Rubio faulted for recklessness in amid "unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats"

WASHINGTON: More than 130 retired diplomats and other former senior US officials issued an open letter on Thursday criticizing a planned overhaul of the State Department that could see thousands of employees laid off.
“We strongly condemn Secretary of State Marco Rubio’s announced decision to implement sweeping staff reductions and reorganization at the US Department of State,” the officials said in the letter.
The signatories included dozens of former ambassadors and senior officials, including Susan Rice, who served as national security adviser under President Barack Obama, a Democrat.
The timing of the cuts remains unclear, with the US Supreme Court expected to weigh in at any moment on a bid by US President Donald Trump’s administration to halt a judicial order blocking the firings.
The administration in late May notified Congress of a plan to overhaul its diplomatic corps that could cut thousands of jobs, including hundreds of members of its elite Foreign Service who advocate for US interests in the face of growing assertiveness from adversaries such as China and Russia.
Initial plans to send the notices last month were halted after a federal judge on June 13 temporarily blocked the State Department from implementing the reorganization plan.
The shake-up forms part of a push by Trump to shrink the federal bureaucracy, cut what he says is wasteful spending and align what remains with his “America First” priorities.
“At a time when the United States faces unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats, Secretary Rubio’s decision to gut the State Department’s institutional knowledge and operational capacity is reckless,” the former officials wrote. 

 

 

 


US Supreme Court sides with Trump in South Sudan deportation fight

Updated 04 July 2025
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US Supreme Court sides with Trump in South Sudan deportation fight

  • Trump administration has sought to deport 8 migrants to unstable South Sudan
  • District judge had said the deportation attempt violated his injunction

WASHINGTON: The US Supreme Court again sided with President Donald Trump’s administration in a legal fight over deporting migrants to countries other than their own, lifting on Thursday limits a judge had imposed to protect eight men who the government sought to send to politically unstable South Sudan.
The court on June 23 put on hold Boston-based US District Judge Brian Murphy’s April 18 injunction requiring migrants set for removal to so-called “third countries” where they have no ties to get a chance to tell officials they are at risk of torture there, while a legal challenge plays out.
The court on Thursday granted a Justice Department request to clarify that its June 23 decision also extended to Murphy’s separate May 21 ruling that the administration had violated his injunction in attempting to send a group of migrants to South Sudan. The US State Department has urged Americans to avoid the African nation “due to crime, kidnapping and armed conflict.”
Two liberal justices, Sonia Sotomayor and Ketanji Brown Jackson, dissented from the decision.
The court said that Murphy should now “cease enforcing the April 18 injunction through the May 21 remedial order.”
Murphy’s May 21 order mandating further procedures for the South Sudan-destined migrants prompted the US government to keep the migrants at a military base in Djibouti. Murphy also clarified at the time that non-US citizens must be given at least 10 days to raise a claim that they fear for their safety.
After the Supreme Court lifted Murphy’s April injunction on June 23, the judge promptly ruled that his May 21 order “remains in full force and effect.” Calling that ruling by the judge a “lawless act of defiance,” the Justice Department the next day urged the Supreme Court to clarify that its action applied to Murphy’s May 21 decision as well.
Murphy’s ruling, the Justice Department said in court filings, has stalled its “lawful attempts to finalize the long-delayed removal of those aliens to South Sudan,” and disrupted diplomatic relations. Its agents are being “forced to house dangerous criminal aliens at a military base in the Horn of Africa that now lies on the borders of a regional conflict,” it added.
Even as it accused the judge of defying the Supreme Court, the administration itself has been accused of violating judicial orders including in the third-country deportation litigation.
The administration has said its third-country policy is critical for removing migrants who commit crimes because their countries of origin are often unwilling to take them back. The Supreme Court has a 6-3 conservative majority. Its three liberal members dissented from the June 23 decision pausing Murphy’s injunction, with Justice Sonia Sotomayor calling it a “gross abuse” of the court’s power that now exposes “thousands to the risk of torture or death.”
After the Department of Homeland Security moved in February to step up rapid deportations to third countries, immigrant rights groups filed a class action lawsuit on behalf of a group of migrants seeking to prevent their removal to such places without notice and a chance to assert the harms they could face.
In March, the administration issued guidance providing that if a third country has given credible diplomatic assurance that it will not persecute or torture migrants, individuals may be deported there “without the need for further procedures.”
Murphy found that the administration’s policy of “executing third-country removals without providing notice and a meaningful opportunity to present fear-based claims” likely violates due process requirements under the US Constitution. Due process generally requires the government to provide notice and an opportunity for a hearing before taking certain adverse actions.
The Justice Department on Tuesday noted in a filing that the administration has received credible diplomatic assurances from South Sudan that the aliens at issue will not be subject to torture.”
The Supreme Court has let Trump implement some contentious immigration policies while the fight over their legality continues to play out. In two decisions in May, it let Trump end humanitarian programs for hundreds of thousands of migrants to live and work in the United States temporarily. The justices, however, faulted the administration’s treatment of some migrants as inadequate under constitutional due process protections.

 


Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

Updated 03 July 2025
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Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

  • Two people had been killed in Pokrovsk, a key logistics hub

KYIV: Russian shelling killed five people on Thursday in and near the eastern Ukrainian city of Pokrovsk, the regional governor said, a key target under Russian attack for months.

Vadym Filashkin, writing on the Telegram messaging app, said two people had been killed in Pokrovsk, a key logistics hub, where local authorities have been urging residents to evacuate.

Two died in Bylitske, northwest of Pokrovsk, and another in Illinivka, between Pokrovsk and Kramatorsk, another frequent target in Russia’s slow westward advance through Donetsk region.


University of California reiterates ban on student government boycotts of Israel

Updated 03 July 2025
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University of California reiterates ban on student government boycotts of Israel

SAN FRANCISCO: The president of the University of California this week reiterated that student governments are prohibited from financial boycotts of companies associated with any particular country, including Israel, as the Trump administration continues its probe of alleged antisemitism on college campuses.
Michael Drake did not mention Israel by name, but he did single out student governments in a letter he sent to chancellors of the university system. He said that while freedom of speech and inquiry are core commitments of the university, its policies also require that financial decisions be grounded in sound business practices, such as competitive bidding.
“This principle also applies to student governments,” he wrote. “Actions by University entities to implement boycotts of companies based on their association with a particular country would not align with these sound business practices.”
UC spokesperson Rachel Zaentz said in a statement that the letter is in keeping with the university’s opposition to financial boycotts of companies associated with a particular country.
“While our community members have the right to express their viewpoints, financial boycotts are inconsistent with UC’s commitment to sound business practices, academic freedom and the free exchange of ideas,” she said.
College campuses exploded with pro-Palestinian protests in the wake of the war in Gaza, including a particularly brutal clash involving police at the University of California, Los Angeles last year. At the start of his term this year, President Donald Trump launched antisemitism probes at several universities, including the University of California, Berkeley.
The US Department of Health and Human Services and National Science Foundation are requiring research grantees to certify they will not engage in boycotts of Israel or promote diversity, inclusion and equity or risk federal funding.
The UC Student Association, which represents students across the campuses, did not immediately respond to a request for comment. But its president, Aditi Hariharan, told the Los Angeles Times that she disagreed with the ban.
“Students already have little influence on how the university works, and student government is one of the few places where they can really get involved and have their voices heard,” she said in an interview before the letter was released.


Trump says ‘didn’t make any progress’ on Ukraine during Putin call

Updated 04 July 2025
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Trump says ‘didn’t make any progress’ on Ukraine during Putin call

  • Putin told Trump Russia will not ‘give up’ aims in Ukraine: Kremlin
  • Ukraine’s Zelensky hopes for Friday call with US president

WASHINGTON/MOSCOW: US President Donald Trump said he had made no progress with Russian counterpart Vladimir Putin toward a ceasefire in Ukraine after the two leaders spoke by phone on Thursday.

“No, I didn’t make any progress with him at all,” Trump told reporters when asked if he had moved closer toward a deal to end Russia’s invasion, adding that he was “not happy” about the ongoing war.

The Kremlin earlier said Putin told Trump that Moscow will not “give up” on its aims in Ukraine.

The pair spoke as US-led peace talks on ending the more than three-year-old conflict in Ukraine have stalled and after Washington paused some weapons shipments to Kyiv.
The Kremlin said the call lasted almost an hour.

Trump has been frustrated with both Moscow and Kyiv as US efforts to end fighting have yielded no breakthrough.
“Our president said that Russia will achieve the aims it set, that is to say the elimination of the root causes that led to the current state of affairs,” Kremlin aide Yuri Ushakov told reporters.
“Russia will not give up on these aims.”
Moscow has long described its maximalist aims in Ukraine as getting rid of the “root causes” of the conflict, demanding that Kyiv give up its NATO ambitions.
Moscow’s offensive in Ukraine has killed hundreds of thousands of people and Russia now controls large swathes of eastern and southern Ukraine.
Even so, Putin told Trump that Moscow would continue to take part in negotiations.
“He also spoke of the readiness of the Russian side to continue the negotiation process,” Ushakov added.
“Vladimir Putin said that we are continuing to look for a political, negotiated solution to the conflict,” Ushakov said.
Moscow has for months refused to agree to a US-proposed ceasefire in Ukraine.
Kyiv and its Western allies have accused Putin of dragging out the process while pushing on with Russia’s advance in Ukraine.
The Kremlin said that Putin had also “stressed” to Trump that all conflicts in the Middle East should be solved “diplomatically,” after the US struck nuclear sites in Russia’s ally Iran.
Putin and Trump spoke as Kyiv said that Russian strikes on Thursday killed at least eight people in Ukraine.
Ukrainian President Volodymyr Zelensky was visiting ally Denmark on Thursday.
A senior Ukrainian official told AFP that Trump and Zelensky planned to speak to each other on Friday.
The US deciding to pause some weapons shipments has severely hampered Kyiv, which has been reliant on Western military support since Moscow launched its offensive in 2022.
Zelensky told EU allies in Denmark that doubts over US military aid reinforced the need for greater cooperation with Brussels and NATO.
He stressed again that Kyiv had always supported Trump’s “unconditional ceasefire.”
On Wednesday, Kyiv scrambled to clarify with the US what a White House announcement on pausing some weapons shipments meant.
“Continued American support for Ukraine, for our defense, for our people is in our common interest,” Zelensky had said on Wednesday.
Russia has consistently called for Western countries to stop sending weapons to Kyiv.