GlossaryEN1 min readUpdated: Jul 21, 2026
War Risk Surcharge
The war risk surcharge (WRS) is a supplement that shipping lines and airlines add to the freight rate when vessels or aircraft transit areas with an elevated risk of war, terrorism or piracy.
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Source: https://www.freightos.com/glossary/war-risk-surcharge/
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Definition & Explanation
The war risk surcharge (WRS) is a supplement that shipping lines and airlines add to the freight rate when vessels or aircraft transit areas with an elevated risk of war, terrorism or piracy. It passes on the extra costs carriers incur through higher war risk insurance premiums, security measures and crew allowances. The level depends on how insurance markets such as the Joint War Committee in London classify the trading area and can multiply within days when a situation escalates – for example a naval blockade or attacks at a chokepoint such as Bab al-Mandab. For freight forwarders the surcharge is critical for costing, as it is often announced at short notice and charged per container or per kilogram; quotations should therefore include appropriate reservations. If a vessel avoids the risk area, rerouting costs arise instead. Not to be confused with war risk insurance: that is the insurance cover itself, while the war risk surcharge is its pass-through to shippers.
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