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