shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Ship Owners Face Higher Insurance as Pirates Run Amok

Ship Owners Face Higher Insurance as Pirates Run Amok

by Joshua
April 19, 2009
in Uncategorized

(With agency report)

Shipping companies,  including those who sail to  West African ports and who are already smarting from the global economic downturn are forced to part with extra cash for steeper premiums to cover multimillion-dollar ransoms or take the long way around the African continent in the hope of dodging hijackers. “The pirates were the only people who had a good year in 2008,” said Crispian Cuss, a security consultant with the Dubai-based Olive Group.
The Gulf of Aden, which connects the Indian Ocean to the Red Sea and the Suez Canal, is one of the busiest and most dangerous waterways in the world.
As pirates become more aggressive, the cost of insuring ships climbs. Some companies are spending more time training their crews, others are avoiding the area altogether – taking long trips around Africa’s southern tip that can potentially add millions to the cost of each journey.
While the coast of Somalia has been a problem for years, it was flagged in May as an area of particular concern by Lloyd’s Market Association, and premiums have been rising – at least tenfold, according to some media reports.
Large ships generally carry three types of insurance. Marine – or hull – insurance covers physical risks, such as grounding or damage from heavy seas. A second type of policy, protection and indemnity covers crew issues, while war risk insurance covers acts of war, insurgency, and terrorism.
Although war risk policies typically cover hijackings and piracy, insurers often charge extra for ships that venture into high risk areas such as the Gulf of Aden which leads to Nigerian and other West African ports.
Others, including Chicago-based Aon Corp and London’s International Security Solutions Limited, have recently launched new plans specifically tailored to cover losses incurred by piracy – for example by including ransoms and cargo delays under the same policy.
    (See full story on page 10)


Related Posts

Auto Draft

Railways Transport 693,224 Passengers On Lagos/Ibadan Standard Gauge

February 2, 2023
SHIPTALK: Basics About A Ship

SHIPTALK: Basics About A Ship

January 27, 2023
NAGAFF Congratulates Newly Promoted Comptrollers, Charges Them On Professionalism

NAGAFF Congratulates Newly Promoted Comptrollers, Charges Them On Professionalism

January 27, 2023
ONE To Acquire Three U.S. West Coast Container Terminals

ONE To Acquire Three U.S. West Coast Container Terminals

December 29, 2022

Discussion about this post

Latest News

NAGAFF Compliance Team Appoints Head Of Operations, Vows To Expose Corrupt Practitioners, Govt Officials

NAGAFF Compliance Team Appoints Head Of Operations, Vows To Expose Corrupt Practitioners, Govt Officials

February 7, 2023

Why We Postponed ANLCA Annual General Meeting—Farinto

NIMASA Lies As Navy Confirms Death Of 6 During Tank Cleaning Operation

TRUCK ACCIDENTS: FRSC, Stakeholders Partner To Sensitise Truck Drivers On Safety Standards

Kenya’s Nancy Karigithu Could Be the Next IMO Secretary General

We Are Waiting For Dangote Refinery Before Removing Subsidy – Reps

FG Unveils New Regulations To Curb Oil Theft

FUEL SCARCITY: IPMAN Pleads For Time To Comply With Official Pump Price

“After Our Tenure, Government Hijacked CRFFN”

VESSELS EXPECTED AT LAGOS PORTS AS AT 7TH FEBRUARY, 2023

VESSELS EXPECTED AT LAGOS PORTS AS AT 6TH FEBRUARY, 2023.

Council For The Regulation Of Freight Forwarding In Nigeria In The News Again

kindly like our Facebook page

Health

Unhealthy Environment Causes 12.6m Deaths Worldwide, WHO Says
Health

Unhealthy Environment Causes 12.6m Deaths Worldwide, WHO Says

December 19, 2022

The World Health Organisation has said that the number of people estimated to have died as a result of living...

Health Benefits And Side Effects Of Bitter Leaf

Health Benefits And Side Effects Of Bitter Leaf

December 12, 2022
More Women May Die During Childbirth In West Africa — Report

More Women May Die During Childbirth In West Africa — Report

December 12, 2022
The Many Wonderful Uses Of Onions

The Many Wonderful Uses Of Onions

December 5, 2022
Nigeria Yet To Achieve 70% COVID-19 Immunisation Coverage, Says NPHCDA

Nigeria Yet To Achieve 70% COVID-19 Immunisation Coverage, Says NPHCDA

December 5, 2022
COVID-19 Cases Increasing, Continue With Preventive Measures — UITH-ARD Warns

COVID-19 Cases Increasing, Continue With Preventive Measures — UITH-ARD Warns

December 5, 2022
Panic As Monkeypox Spreads To 32 States, Cases Now 604

Panic As Monkeypox Spreads To 32 States, Cases Now 604

November 28, 2022
Over 1bn Youths Risk Hearing Loss From Headphones, Loud Music — Study

Over 1bn Youths Risk Hearing Loss From Headphones, Loud Music — Study

November 28, 2022
Consuming Undercooked Meat May Lead To Tuberculosis — Epidemiologist

Consuming Undercooked Meat May Lead To Tuberculosis — Epidemiologist

November 28, 2022
Infertility Red Flags Men, Women Should Not Ignore – Experts

Infertility Red Flags Men, Women Should Not Ignore – Experts

November 28, 2022

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition