Asian shipowners afraid of higher premiums for Malacca Strait trade

THE Ship Insurance and Liability Committee (SILC) of the Asian Shipowners Forum (ASF), a group consisting of 12 shipowners' associations in Asia, recently expressed its disappointment at the outcome of a briefing meeting held on August 16 in London with representatives of the Joint War Committee (JWC).



The SILC said in a statement that it believes that the addition of the Malacca Strait, a busy and economically important artery, to the world's listed dangerous areas will place an unacceptable and expensive administrative burden on ship owners, brokers and underwriters.



The group said it supports the International Chamber of Shipping in asking underwriters to refrain from demanding additional premiums while a consultation period with owners and other interested parties was on-going.



In this respect, the ASF member associations are already receiving reports that their members are having to declare ships passing through the strait and, in a few cases, are asked to pay an additional premium.



The SILC said it further believes that the addition of the Malacca Strait to the listed areas was based on incomplete intelligence.



The SILC is concerned that the JWC has based its decisions on the report of one commercial consultant. The report made by the consultants used by the JWC has been the subject of much criticism by those in the region more closely involved with the analysis of regional piracy and terrorism. All those at the meeting agreed that, to date, there has been no terrorist attack in the Strait and the SILC believes that there is presently no evidence of a continuing threat of an Al-Qaeda inspired attack in the strait.



ASF owners and managers are thought to control around 40 per cent of the world's cargo carrying fleet.