- Insurance pressure is intensifying, with costs up 35pc and war-risk cover being withdrawn from key routes.
Djibouti banned retroactive freight surcharges on cargo loaded before Iran war escalation
Order issued by Djibouti Ports Authority dated March 10, 2026
Shipping lines had begun charging up to $2,000 per TEU surcharge
Directive separates pre-war cargo from higher-risk post-war shipments
Policy aims to prevent spillover of geopolitical risk costs into existing trade flows
Ethiopia relies on Djibouti corridor for over 90% of external trade (contextual dependency)
Measure protects importers from unexpected cost escalation and contract disputes
Why it matters?
This decision stabilizes freight costs on Ethiopia’s main corridor, limiting sudden logistics inflation. It directly protects importers, truck operators, and LC-based trade flows from war-driven pricing shocks.