Sri Lanka Declared War Risk Zone, Shipowners to Pay

Wednesday, August 08, 2001
Sri Lanka Declared War Risk Zone, Shipowners to Pay Sri Lanka said Lloyds of London has declared the country as a war-risk zone which could result in hefty surcharges for ships entering the country's main port and hurt the trade-dependent economy. Surcharges of up to $150,000 could be slapped on larger ships entering Colombo port along with further charges for the amount of cargo carried. "Reinsurers in London have imposed a surcharge on insurance which we feel is completely unreasonable," Minister of Ports Ronnie de Mel said. The move comes after a massive attack at country's only international airport on July 24 by a suicide squad of Tamil Tiger guerrillas, who also launched a less destructive raid on the Colombo port in 1996. Last month's attack destroyed four commercial airliners and many military aircraft at an adjoining air force base, raising insurance premiums for flights to Sri Lanka and prompting airlines to review trips to Colombo. De Mel said he hoped the blanket label by the war-risk rating committee of Lloyds would be revoked soon. "All steps have been taken in the last several years to strengthen security at the port of Colombo," de Mel said. "The incident took place 20 miles (32 km) away," he said, adding that he did not believe there was any risk to ships arriving at the Colombo port. "I think there is a gap between perception and war risk," he said. More than a dozen separatists carried out the attack that caused estimated damage of more than $500 million to the national airline and $30 million to the air force. A Ministry of Defense statement said steps were being taken to increase security at the port, including the deployment of security personnel and the setting up of more watchtowers. Industry officials did not say what impact the surcharges would have on container volumes handled at the port. The port handled 1.7 million TEU last year, with almost 70 percent of that in trans-shipment volumes. Trans-shipment volumes have slipped in the past three years due to stiff competition from regional ports. The country has two other ports which service international shipping, at Galle on the southern coast and at Trincomalee on the east cost. - (Reuters)
Maritime Reporter October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Electronics

IMTRA Debuts Omega LED lights

IMTRA today released its Omega LED lights. Designed specifically for recessed lighting applications in large yachts, the DC-powered Omega LED lights feature a high-quality,

Using Big Data for Engine Preventive Maintenance

Mitsui O.S.K. Lines, Ltd. announced that it has started a demonstration test of a next-generation condition-based engine monitoring system called “CMAXS e-GICSX”

Hydrographic Survey of Malacca Strait Underway

A hydrographic survey of the Straits of Malacca and Singapore (SOMS) was launched today by the three littoral States - Indonesia, Malaysia and Singapore - and


Commodity Surge Boosts World Equities; Dollar Falls

Major world stock markets were poised for their biggest weekly advance since 2011 on Friday, as greater investor appetite for riskier assets propelled gains in

Commodities See Biggest Price Jump in 3 Years

Commodities jumped on Friday, headed for their largest weekly gain in more than three years as base metals roared higher after Glencore pledged to slash zinc output

Asia-N.Europe Box Rates Plunge 17 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 17.3 percent to $259 per 20-foot container (TEU) in the week ended on Friday,

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1236 sec (8 req/sec)