Shipping premiums expected to drop after Yemen ports review
International maritime insurance firms are expected to lower their insurance premiums on vessels headed for Yemen, following an expert review of the new security measures introduced in Yemeni ports, stated Sea Transport Minister Said Yafaai.
Following the October 2002 attack on a French oil tanker Limburg, shipping insurance companies raised their War Risk Surcharges [WRS], hiking rates by up to 300 percent. As a result, many shipping firms decided to bypass Yemeni ports and activity in Yemeni ports has dropped by 50 percent.
Under a recently concluded agreement with the insurance companies, the Yemeni government opened a $50 million bank account to serve as a guarantee in case of another terrorist attack against tankers arriving at its ports.
Last month, the government contracted Canada’s Nexen company to supply wireless monitoring systems, vessels and coastguard training. In addition, American-training naval technicians have been assigned to join Yemen's newly established coast guard unit, to patrol the nation’s high-traffic 2,400-kilometer coastline. — (menareport.com)
© 2003 Mena Report (www.menareport.com)