Saudi polymer producer requests $300/ton export surcharge as war drives logistics costs higher

In a letter issued from Al Jubail on March 11, the company stated that export shipments from Saudi Arabia are now expected to incur roughly $300 per ton in extra logistics expenses due to worsening regional conditions.
The producer explained that several cost components — including freight, war-risk surcharges, marine insurance, inland transportation, and other export logistics services — have increased significantly as third-party service providers adjust prices to reflect rising geopolitical risks.
The request was sent to IVICT (Singapore) Pte. Ltd., asking the distributor to communicate with customers across multiple regions and obtain acceptance of the additional charges for shipments leaving Saudi Arabia starting from March 1 onward.
According to the letter, implementing the surcharge is necessary to ensure that scheduled March shipments can proceed, as logistics providers continue to raise fees amid deteriorating security conditions affecting regional trade routes.
The development highlights the growing pressure on polymer supply chains across the Middle East, where escalating freight rates, war-risk premiums, and insurance costs are increasingly being passed on to buyers in import-dependent markets.
Stay ahead of market trends with the Credco app. For any queries, please reach out to us via WhatsApp at +918448083211
Related on the Wire
- Polymer·Friday, 23 October 2026
Rising Costs Weaken China’s PP and PE Export Competitiveness
China’s position as a key supplier helping Southeast Asia cope with polyolefin supply disruptions has shifted significantly since the US-Iran conflict began earlier this year. Initially, Chinese producers helped replace some of the Middle Eastern volumes lost to disrupted ship…
Read story - Polymer·Tuesday, 8 September 2026
Saudi Producer Raises PE Offers for Vietnam’s Nov-Dec Shipments
Traders reported that a Saudi Arabian producer has announced new LLDPE and HDPE offers for Vietnam for November and December shipments. The producer increased its HDPE offer by $60/ton, while LLDPE offers rose by $20-30/ton from the previous levels. The latest offers were repo…
Read story - Polymer·Monday, 12 October 2026
Indian Producer Raises HDPE Pipe and Select LDPE Prices, Keeps Film Grades Unchanged
A major private-sector petrochemical producer in India has announced selective increases in domestic polyethylene (PE) prices effective October 10. The latest revision raises HDPE pipe prices and selected LDPE grades, while standard film, general packaging and the entire LLDPE…
Read story - Polymer·Saturday, 10 October 2026
Southeast Asian PP Imports Face Price Test as Chinese Sellers Return With Higher Offers
Southeast Asia’s imported polypropylene (PP) market remained mostly steady in early October, with weekly average prices for homo-PP raffia, homo-PP injection and PP block copolymer (PPBC) injection holding near their highest levels in around five months. However, the rally tha…
Read story