Freight forwarders: Higher fees in sending balikbayan boxes amid Middle East conflict

DUBAI, UNITED ARAB EMIRATES – A freight forwarders group has warned overseas Filipino workers (OFWs) in the Middle East of higher charges in sending balikbayan boxes to the Philippines due to War Risk Surcharges (WRS) charged by shipping companies.

Rumelyn Aribon, head of the 10-member strong League of Freight Forwarders (LFF), said OFWs should think twice when dealing with care box companies who don’t charge extra because no one is exempted from the WRS that shipping companies are imposing.

“Mag-iingat po sa mga cargo companies na hindi magtataas ng kanilang mga rates, kasi for sure, they will not be able to clear the shipment when it reaches the Philippines,” Aribon told GMA News Online.

(Be wary of cargo companies that won’t hike their rates, because for sure, they will not be able to clear the shipment when it reaches the Philippines.)

“Meron po talagang mga cargo companies na sasabihin, ‘Sa amin na kayo magpa-pick-up at hindi kami nag-increase.’ Mag-iingat po sa mga ganun, kasi walang ma-eexempt sa WRS na charges sa shipping lines,” she added.

(There are cargo companies who would say, ‘Have your balikbayan boxes picked up by us because we won’t increase our fees.’ Be wary of that, because no one is exempted from the WRS charges of shipping lines.)

There is a chance that such firms would collect the balikbayan boxes and fees, then leave these in warehouses back home because they did not pay the WRS, Aribon said.

WRS

The WRS is an automatic rate of $3,500 per container that needs to be paid before the shipment could depart the port in the Philippines, Aribon said.

It covers additional fees levied by shipping lines such as higher insurance premiums and security costs in transporting cargo through high-risk and conflict-affected areas. 

She said cargo companies have passed on the additional fee to consumers through temporary rate adjustments of 15 to 20% increase in charges, depending on box size and destination.

Legitimate companies have balikbayan boxes stored in their warehouses to avoid storage fees at Dubai’s port prior to loading it on the ship, which will leave when all is clear at the Strait of Hormuz.

Complaints

Aribon said they have not received any complaint yet from OFWs that they were duped.

“Wala pa po naman so far, kasi sa ngayon hindi pa sila magrere-reklamo dahil siyempre ang alam nila nakamura sila. Malalaman natin yan ‘pag may mga maa-abandona na mga containers na naman sa Pilipinas after ng giyera na ito,” she said.

(We haven’t received complaints so far, because for now, they will not complain, all they know is that they got a cheaper deal. We will know for sure when the containers are abandoned in the Philippines after this war.)

Clients

Aribon said the LFF has been receiving balikbayan boxes this early from those scheduled to go on vacation but had their flights canceled due to the war, and for other reasons.

 “Everyone is hoping and praying na magbubukas siya anytime soon. Would you believe na may nagda-drop-off ng mga boxes nila sa offices namin? We ask them to sign a waiver,” Aribon said.

(Everyone is hoping and praying that the Strait of Hormuz will open anytime soon. Would you believe there are those who drop off their boxes at our offices?)

Letter for help

Aribon has sent Philippine Ambassador to the UAE Alfonso Ver a letter asking for help on the WRS.

“The ongoing conflict in the Middle East and the closure of the Strait of Hormuz have led major shipping lines to impose War Risk Surcharges (WRS) effective March 2, 2026 amounting to $3,000 per container… to cover heightened insurance premiums and operational cost,” Aribon said.

She warned that “if unmitigated, the consequences could be severe,” including widespread rate increases across the logistics industry as well as economic and employment risks.

“Unscrupulous operators may exploit the situation,” Aribon said, adding that these people may lure “customers with lower rates with the intent of abandoning containers in the Philippines.”

Ver promptly replied to Aribon and said the matter has “been conveyed to the relevant authorities for their awareness and appropriate consideration.”

“We recognize the importance of engaging concerned government and industry stakeholders to assess these developments,” Ver said in a letter to Aribon. — JMA, GMA Integrated News