Red Sea piracy worries local marine insurers
Increased levels of hijacking and piracy off the coast of Somalia are worrying marine insurers.
Associated Marine Insurers CEO Stephen Ford says a significant amount of Australian cargo passes through the area on the way to and from the Suez Canal. He says the increasing incidence of piracy in the area “does cause us some concern”.
The hijacking of a Danish cargo ship by heavily armed Somali pirates brings the number of ships attacked in the Gulf of Aden off the Somali coast this year to 81. The total includes 32 hijackings, and 11 ships and more than 200 crew are still being held by Somali pirates.
The latest hijacking comes despite the presence in the area of US and European warships which have been sent to protect commercial shipping.
Mr Ford told insuranceNEWS.com.au at least one Australian cargo has reputedly been hijacked by pirates in the area recently, although the ship and cargo were not insured in Australia.
“I’m not aware of any Australian marine insurers having any direct issues, but when you consider the amount of Australian cargo that passes through that area, it is a matter of concern,” he said.
Premiums for ships and cargo passing through the area have increased tenfold, and new proposed wordings to deal with the hazard have been circulated by London market marine insurers.
UK think tank Chatham House says the danger and increased insurance cost “means that shipping could be forced to avoid the Gulf of Aden/Suez Canal and divert around the Cape of Good Hope”.
Associated Marine Insurers CEO Stephen Ford says a significant amount of Australian cargo passes through the area on the way to and from the Suez Canal. He says the increasing incidence of piracy in the area “does cause us some concern”.
The hijacking of a Danish cargo ship by heavily armed Somali pirates brings the number of ships attacked in the Gulf of Aden off the Somali coast this year to 81. The total includes 32 hijackings, and 11 ships and more than 200 crew are still being held by Somali pirates.
The latest hijacking comes despite the presence in the area of US and European warships which have been sent to protect commercial shipping.
Mr Ford told insuranceNEWS.com.au at least one Australian cargo has reputedly been hijacked by pirates in the area recently, although the ship and cargo were not insured in Australia.
“I’m not aware of any Australian marine insurers having any direct issues, but when you consider the amount of Australian cargo that passes through that area, it is a matter of concern,” he said.
Premiums for ships and cargo passing through the area have increased tenfold, and new proposed wordings to deal with the hazard have been circulated by London market marine insurers.
UK think tank Chatham House says the danger and increased insurance cost “means that shipping could be forced to avoid the Gulf of Aden/Suez Canal and divert around the Cape of Good Hope”.