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. specialist in ship arrest, and is distributed free by email to maritime professionals throughout the world.
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.
