VESSEL INSURERS CANCEL CONTRACTS FOR INDIAN, PAKISTANI PORTS

VESSEL INSURERS CANCEL CONTRACTS FOR INDIAN, PAKISTANI PORTS    Shipping lines of the India Pakistan Bangladesh Ceylon Conferences reported that insurance underwriters have decided to cancel normal insurance and reinsurance contracts for ports North of 18 degrees N and West of 73 degrees E — the area that covers the main Indian and Pakistani ports of Mumbai and Karachi.
   As a result, ocean carriers’ extra risk insurance costs have increased, the group of Europe/Indian Subcontinent shipping lines said.
   The conference will introduce a war risk surcharge of $25 per TEU, effective July 1. The surcharge will apply to shipments for Mumbai and Karachi ports.
   “Lines will continue to try and persuade insurers to reduce or remove surcharges as soon as conditions in the region return to normal,” the conference said.