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

A major Saudi Arabian polymer producer, Advanced, has asked its distribution partners to pass on additional logistics charges to customers, citing a sharp rise in freight and insurance costs linked to the ongoing conflict in the Middle East.

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.

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