DUBAI, United Arab Emirates – Has your balikbayan box from Dubai not arrived yet? Here’s why.

The president of the 10-member-strong League of Freight Forwarders (LFF) said the current Middle East conflict, which has caused the Strait of Hormuz to be closed, has stopped the safe flow of cargo and other shipments from the region.

“Wala pong movement ngayon ng mga containers (There is no movement of containers, currently),” Rumelyn Dorado Aribon told Rappler. 

She said shipping companies have imposed a war risk surcharge of $3,500 per container. This surcharge must be paid before the shipment can leave the port in the Philippines, she added.

As a result, cargo forwarders have passed on the additional fee to consumers in the form of a temporary rate adjustment: a 15% to 20% increase in charges depending on box size and destination, Aribon said.

In the warehouse

In the meantime, cargo forwarders have decided to wait it out and stock the collected balikbayan boxes in their warehouses instead of dropping them off at the Dubai port, where they would have to pay storage fees and other charges on top of the war surcharge, Aribon said.

The amount increases the longer the container stays at the port, she added.

“Puro cancel. Walang loading na nagaganap. Nandito lang sa warehouse ang mga boxes, naghihintay pa rin kami. Wait and see tulad ng lahat ng industrya. Bigla yung taas (ng bayarin),” said Aribon.

(The shipments are canceled. There is no loading. The boxes are here in the warehouse. We are still waiting. It’s wait and see like all other industries. The increase in shipping rates happened suddenly.)

The shipping companies have suspended their March 9 and 16 departures, she said.

She added that balikbayan boxes are the lowest priority for shipping companies compared to perishable items. Approximately 2.5 million containers are processed at Dubai’s seaports every month, Aribon said.

The LFF and non-LFF members together send about 250 containers a month, she added.

Risks

She said shipping companies “don’t want to take the risk” of passing through the Strait of Hormuz.

“Malaki ang mawawala kung ma-bomba ang barko nila. They are exploring possibilities na hindi dadaan sa Strait of Hormuz, like Shalala in Oman, pero dagdag na gastos,” Aribon said.

(The shipping companies will lose a lot if their vessel is bombed. They are exploring possibilities where they don’t have to pass through the Strait of Hormuz, like Shalala in Oman, but that would entail additional expenses.)

The Strait of Hormuz is a narrow body of water between the Persian Gulf in Iran and the Gulf of Oman. It is a major shipping route to the open ocean – a choke point.

Iran has warned it will fire at vessels navigating the strait.

A Thai bulk carrier was struck Wednesday morning, March 11, while passing through the waterway after departing the UAE. – Rappler.com