Zim’s Significant Hike in Transportation Costs from the Far East to Israel: Navigating the Add-ons and Negotiations

Zim has announced a significant increase in transportation costs for its containers from the Far East to Israel, effective May 25. This hike is due to the update of the peak season levy (PIS) and amounts to $450 for a 20-foot container and $900 for a 40-foot container.

The base price for shipping a 20-foot container from the Far East is currently around $3,100, but various surcharges are added on top of this amount, such as China Port Service (THC), special equipment transportation (SEH), extra fuel for longer routes, war levy (NBF), security ports (IPS), and port of destination services (THD). In total, these levies amount to about 27.3% of the new price on the Far East-Israel line, making it approximately $4,260 for a 20-foot container.

Unfortunately, these levies are non-negotiable, with only the base price being open to negotiation. This means that any discounts offered by the shipping company will be calculated based on the base price and not the final cost. This can create challenges for importers who need to factor in these additional charges when pricing their products.

According to Elad Barshan, a customs broker and shipping expert, a significant portion of transportation costs consist of fixed charges that cannot be negotiated. This leaves room for discounts to be offered solely on the base price, which is only a segment of the total cost. Additionally, some shipping companies have adjusted their routes due to geopolitical reasons, impacting certain ports like Haifa in Israel.

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