Shipowners to Face Higher Insurance Premiums This Year

Marine insurers are expected to charge shipowners higher insurance premiums this year, which would raise shipping rates, reports Channel News Asia. The increase has implications on the cost of doing business and how much the extra spending can be passed on to consumers.

 

The rise in insurance premiums is due to rising piracy risks globally, the political uncertainty in Korea and unrest in the Middle East.

 

Citing analysts, CNA says that a typical bulk carrier valued at US$50 million will now have to pay an estimated additional premium of US$50,000 a month.

 

Shipping analysts told CNA that higher costs will eventually be absorbed by the average consumer on the street as shipowners will be charging shipliner companies higher freight rates.

 

 

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