Consolidators Association of India (CAI) advisory on the evolving geopolitical developments in the Gulf region and the surrounding maritime corridors

The Consolidators Association of India (CAI) wishes to draw the attention of the trade to the evolving geopolitical developments in the Gulf region and the surrounding maritime corridors, which are critical to global shipping and supply chains. The current situation has created a heightened war risk environment which may affect vessel movements, routing decisions, insurance cover, transit schedules and overall logistics operations.

Shipping lines, insurers and logistics service providers may be required to implement operational measures including vessel deviations, voyage termination, route adjustments, schedule changes and enhanced security protocols in order to safeguard vessels, crew and cargo. These developments may also result in increased operational costs across the logistics chain, including war risk insurance premiums, bunker adjustments, deviation costs, congestion related expenses and other extraordinary charges arising from the prevailing situation.

Given the extraordinary and unforeseen nature of these developments, certain circumstances arising from the present situation may fall within the scope of force majeure, war risk or related provisions contained in bills of lading, service contracts or other contractual arrangements governing the carriage of goods.

Cargo interests are therefore advised to remain in close coordination with their service providers and note that any additional costs, operational expenses or liabilities arising due to disruptions, deviations, regulatory requirements or emergency measures may be payable in accordance with the applicable contractual terms governing the shipment and established shipping practices. Cargo owners are also encouraged to ensure that adequate marine cargo insurance, including appropriate war risk cover where applicable, is in place for their shipments.

In view of the rapidly changing environment, freight rates and related charges may remain volatile and subject to revision depending on operational developments.

CAI clarifies that all commercial decisions, including pricing, surcharges and contractual terms, are determined independently by individual member companies based on their respective commercial assessments and prevailing market conditions.

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