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Malacca Straits Remains on At-Risk List

Maritime Activity Reports, Inc.

February 10, 2006

The Joint War Committee (JWC) of Lloyd's Market Association announced that the Malacca Straits would remain on its list of areas at risk from terrorism and other related perils. The announcement came despite a collective campaign by the three littoral states of Indonesia, Malaysia and Singapore to have the Malacca Straits removed from the list. The decision of the Joint War Committee is based on risk assessments of the region, which concluded that the Straits are a terrorist target. This will mean increased shipping costs for ships transiting the Straits. When similar war insurance premiums were applied to ships calling at Yemeni Ports following the terrorist attack on the French supertanker the MV Limburg in 2002, the impact on the Yemeni economy was severe. The initial decision in June 2005 to put the Malacca Straits on the JWC list caused an outcry from the three littoral states. (Source: www.jamestown.org)

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