War Risk Premium To Affect West Coast Shipping To UAE

Mumbai, March 30: | Updated: Mar 31 2003, 05:30am hrs
International trade from the ports on the countrys West Coast to the United Arab Emirates (UAE) will become expensive following the additional war risk premium levied by shipping conferences.

According to a notice from India-Pakistan-Bangladesh-Ceylon Conference to its shipping lines, feeder operators, serving India, Pakistan and Sri Lanka from/to the UAE ports, have announced their intentions to introduce an additional war risk premium surcharge.

Indian ports include Kochi, Mumbai/JNPT and Kandla, while Colombo and Karachi are the other ports. Exporters and importers will have to shell out $15 per container for the UAE to Kochi, Mumbai and JNPT, while between the UAE and Kandla, the additional war risk premium is $25 per container. War risk premium from Colombo and Karachi ports is $15 and $25 per container to the UAE, respectively.

Top shipping sources, however, point out that none of the Indian flag vessels operate on this route and the increase will be restricted to the cargo moving on vessels under foreign flags. Moreover, Indian hull underwriters have not yet increased the war risk premium unlike the international hull underwriters whose increase in war risk premium have compelled the foreign flag vessels to increase and pass on the surcharge to customers, they pointed out.

According to industry sources, around 300 containers move out of the Kochi Port every week to the UAE, while Mumbai and JNPT see a movement of 400-500 containers to the UAE in a week. The Kandla Port handles 100-150 containers to this destination in a week.

Meanwhile, another container conference EMERA Lines has revised the additional war surcharge from $8 to $30 per container for Abu Dhabi and Doha. The revision for the other ports effective from Sunday (March 30), is Dubai ($20), Bahrain/Dammam ($60), Kuwait ($180), Bandar Abbas ($55) and Muscat ($20).

Further, JSG Lines has revised the war risk premium on container movement to and from Jeddha port from $16 per container to $30 per container effective Sunday, the conference said.