While governments around the world continue to sit on their hands over reinsurers’ refusal to cover terrorism-related risks, shipping companies running to Middle East ports have at least been granted a reprieve.

Marine insurers have cut back premium hikes announced after September 11, when there was a fear of general chaos and a widespread war in the volatile region.  A surcharge of $50 per standard container pushed up prices in the region by 15%. Now, however, the cost is coming down by as much as 40%. For example, shipping companies wishing to insure a container going to the Persian Gulf will now pay $141.32, a cut of about $60.