Shipowners urge Malacca risk review

Shipowners urge Malacca risk review

SINGAPORE: An urgent review of the Malacca Strait risk
assessment by London marine underwriters is needed, the
Federation of ASEAN Shipowners' Associations (Fasa) said in a
report on Tuesday.

"There is no valid reason for war risk insurers to take hasty
action in seeking to charge additional premiums before this
review is completed," The Business Times quoted Fasa chairman
S.S. Teo as saying.

Wider consideration is also needed via a thorough review, said
Teo, also president of the Singapore Shipping Association.

Fasa welcomed the start of dialogue after a briefing last week
by the Joint War Committee of London's marine hull underwriters
given for industry and government officials.

It said it remained optimistic the war risk rating for the
Strait, one of the world's busiest, would soon be removed.

The strategic sea lane was included in June on a list of 21
high-risk areas around the world, triggering widespread
opposition. Also included were parts of southern Thailand and
portions of the southern Philippines.

The classification of the waterway as a war and terrorism risk
allows for extra insurance premiums to be levied on ships. It was
based on an assessment by Aegis Defense Services. -- DPA