The Cost of War

There was a predictable outcry against the London-based War Risk Rating Committee for imposing a huge surcharge on sailings to Sri Lanka following the suicide bombing at Bandaranaike Airport last month, never mind that the surcharge was subsequently cut by a factor of ten. It has been estimated that the total insurance bill for the bombing will wipe out thirty years of the world's total hull aviation premium income in one go. If true, this proves just one thing - that aviation rates are too low. It also overlooks one other thing - that all the needless war risk premiums paid over the years in the hull, cargo and aviation markets would comfortably fund a number of Bandaranaike claims. www.lloyds.com

Excerpted from Maritime Advocate Online, sponsored by Barcelona lawyer Ignacio de Ros, a specialist in ship arrest, and is distributed free by email to maritime professionals throughout the world. www.maritimeadvocate.com. Ignacio Ros can be contacted at: [email protected]