Yemeni ports face shipping fee hike amid Iran conflict

Yemen’s government rejects new shipping surcharges, as fears grow of humanitarian crisis.

Mukalla, Yemen – A reported decision to impose thousands of dollars in fees on shipping headed for Yemen has experts worried that the price of imported goods and food will increase in the war-torn country, as it starts to feel the economic impact of the United States and Israel’s conflict with Iran.

Local traders and officials have said that international shipping companies informed importers earlier this month of the imposition of new fees of about $3,000 on each container bound for Yemen, described as “war risk” fees. The surprise move prompted government officials to scramble to assess and address its potential repercussions.

Because Yemen imports nearly 90 percent of its food and other essential commodities, economists and humanitarian organisations warn that the rise in shipping and insurance costs could quickly translate into higher prices for fuel, food and other goods, further worsening an already dire humanitarian situation.

Mohsen al-Amri, transport minister in Yemen’s internationally-recognised government based in the southern city of Aden, said he had instructed that the fees not be paid by ships already docked at Yemeni ports or those bound for the country, insisting that the ports remain safe.

“Our ports are far from the areas of geopolitical tension in the Gulf and the Strait of Hormuz, making the imposition of ‘risk’ fees on shipments to these relatively safe areas unjustified from both operational and security perspectives,” he said in a social media post last week.