UPDATE | AUGUST 2019
12 AUGUST 2019 | LOGISTICS MIDDLE EAST http://www.logisticsmiddleeast.comArabian Gulf war risk surcharges
spread to container shipping
CMA CGM, the
world’s fourth
largest container-
line, will institute a war risk
surcharge of $36 per teu for
cargo heading to the Middle
East, reports Splash 24/7.
The French shipping gi-
ant said due to spiralling
insurance costs in the wake
of six tanker attacks near
Iranian waters in the past
two months, traffic to and
from Oman, the UAE, Qatar,
Bahrain, Saudi Arabia (Dam-
mam and Jubail), Kuwait and
Iraq will be subject to the
surcharge for all trade lanes
from July 5 except the US
and China which were added
from August 1.
CMA CGM joins X-Press
Feeders in warning clients
of the extra costs for Mid-dle Eastern shipments. In
a note to clients last week,
X-Press Feeders detailed its
own war risk surcharge plans.
Other liners are believed to
be looking to following suit.
The roro division of Japan’s
Nippon Yusen Kaisha (NYK)
has also put a $2.80 per cu
m war risk surcharge for all
shipments passing through
the Strait of Hormuz and the
Gulf of Oman, effective from
July 24.
Additional premiums have
already made a big impact
on tankers trading in the
area. Additional premium
rates for transits out of the
Gulf are now set within a
range of between 0.125% and
0.25% making the additional
premium for a $100m VLCC
cargo up to $250,000.STORY SUMMARY
KUWAIT PROTECTS PORTS AMID IRAN TEN-
SIONS
Kuwait’s navy and ports au-
thority will prepare security
plans to protect its ports amid
heightened tensions between
Iran and the West, reports Gulf
News.
The key Opec exporter wants
to ensure that it’s access to mar-
ket is not impacted by a potential
conflict in the region.
A joint cooperation protocol
was signed “at an important pe-
riod which the region is passing
through security-wise,” Kuwait
Port Authority manager Shaikh
Yousuf Abdullah Al Nasser Al
Sabah said.
Shaikh Yousuf said concerted
efforts were needed to maintain
the security of Kuwait’s ports
and “ensure full readiness for
any potential emergency,” in-
cluding training and exchange
of experiences, according to
a report by state-run KUNA.Truebell targets expansion in projected
$14 bn MEA probiotic market
UAE-based True-
bell has announced
plans to expand
its port-folio of probiotic
products following the open-
ing of its new state-of-the-art
distribution centre in Dubai
Industrial Park.
Truebell has more than 60
global products in its portfolio
including Yakult – a Japanese
probiotic fermented milk drink- with Truebell management
planning to broaden its probiotic
offerings in the next 12 months.
“Probiotics are very sensi-
tive products – often with very
short shelf lives – therefore they
require an efficient cold chain
network in order to be delivered
from where they are manufac-
tured to the retailers where they
are sold in a careful and timely
manner,” said Truebell divisional
manager, retail & food service,
Bhushant J. Gandhi.
“We specialise in perishable
air cargo products, so anything
from 14 to 45 days. For our exist-
ing probiotic product Yakult, the
Japanese probiotic fermented
milk, we fly pallets over on a
weekly basis to each of the GCC
markets in which we distribute
including UAE, Kuwait, Oman
and Bahrain where we have our
own facilities in each of these
logistics hubs,” he added.
The global probiotic market
is expected to reach US $57.
billion by 2022, rising at a Com-
pound Annual Growth Rate
(CAGR) of 7.7%, according to
Allied Market Research.
Meanwhile, recent reports
have citied that the Middle East
and Africa’s probiotic market
will grow to almost US $14.
billion by 2023 with a significant
increase in disposable income
and initiatives by key market
players to promote natural prod-ucts driving this growth.
“With our new 25,000sqm
purpose-built fulfilment centre,
featuring multi-temperature
storage accommodating up to
21,000 storage locations across
ambient, frozen and chilled pro-
duce, we have the correct infra-
structure in place to handle and
store probiotics,” said Gandhi.
“Strategically located with
easy connectivity to Jebel Ali
Port, Al Maktoum International
Airport and the Expo 2020 site,
our fleet of 45 trucks can trans-
port probiotics effectively and
efficiently at their required tem-
perature and within the required
timeframe,” he adds.
Truebell has gone from
strength-to-strength since it
was established in 1984 with
expertise across five key divi-
sions including food, beverage,
hospitality, suppliers and retail
duty free.