02 April 2009 16:59 [Source: ICIS news]
By Dan Horlock
LONDON (ICIS News)--The threat of piracy in the Gulf of Aden and the additional costs being placed on ship operators will jeopardise the future of eastbound trade to ?xml:namespace>
“These costs constitute $2,000 less on the net daily return for journeys to the
Insurance and bonus costs for a 10,000 deadweight tonne (dwt) vessel were at price levels of $30,000 for EWRI (Extra War Risk Insurance), with kidnap and ransom costs at $30,000 and an additional crew bonus at $15,000 as per ITWF (International Transport Workers Federation) scale, owners reported.
This was in addition to the transit cost imposed by the Suez Canal Authority, which is understood to be around a $100,000 lump sum for 6,000 tonne dwt vessels.
As a consequence some operators were dismissing possible arbitrage opportunities for chemical products.
Upon learning of the additional costs another ship operator, which had been contemplating using the
“For these additional costs to represent one freight shipment is absolutely scandalous. Who can justify that the EWRI costs $30,000?” the source said.
A northwest European owner added that there were other considerations involved in transiting the Suez Canal and the
“In addition you need to consider that ships passing through the Suez Canal and the Gulf of Aden need to pick up guards from south
An alternative to the Suez Canal and the Gulf of Aden would be to sail via the
“Going via the
Over the past six months, the Europe to Asia leg was noted as the firmest market out of
However, brokers and charterers were sceptical of the owners’ motives for publicising this information.
“Owners going through [the]
A lubes broker that had used the
“The bigger parcel ships include these costs into the price of freight but ultimately this is their dilemma and they have to accept the present state of the market,” he said.
Another broker said that one owner was quoting a piracy surcharge of $5/tonne on 5,000 tonne parcels passing through the
The outlook for owners targeting the Chinese market was far from ideal as kidnap and ransom risk specialists, G4S Risk Management, predicted that the piracy situation in the
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