EUROPE/MIDEAST LINES EXPECT WAR RISK SURCHARGE

EUROPE/MIDEAST LINES EXPECT WAR RISK SURCHARGE    The Europe Middle East Rate Agreement, a group of ocean carriers in the Europe/Mideast trade, have advised shippers that they expect to face additional war risk insurance costs for vessels calling or transiting the region.
   “In the light of recent developments, member lines are being advised by their insurance underwriters that additional war risk insurance costs will be incurred,” the conference said.
   A spokesman for the carrier group said insurance underwriters are discussing the amount and conditions of the war risk premium.
   When introduced, the extra insurance cost will be passed on to shippers through a freight surcharge.
   The extra insurance costs are likely to result from higher insurance premiums on hull and machinery, and possibly on containers and ships’ crews, he said.
   The Europe Middle East Rate Agreement carriers are Andrew Weir Shipping (Ellerman), CMA CGM, Hapag-Lloyd, Maersk Sealand, P&O Nedlloyd, Safmarine, Senator Lines and United Arab Shipping Co.