Asian ship owners disappointed with Malacca Strait ruling

Asian ship owners disappointed with Malacca Strait ruling    The Ship Insurance and Liability Committee (SILC) of the Asian Shipowners Forum Friday expressed its deep disappointment at the outcome of an Aug. 16 briefing in London with representatives of the Joint War Committee over the JWC's decision to place the Malacca Strait on a list of high-risk area for merchant ships.
   The move is expected to increase transport costs. ASF associations said they are already receiving reports that members are having to declare ships passing through the strait and, in a few cases, asked to pay an additional premium.
   The SILC, in a statement, said it believes the addition of the Malacca Strait, a busy and economically important artery, to the list will place an unacceptable and expensive administrative burden on ship owners, brokers and underwriters. The SILC supports the International Chamber of Shipping in asking underwriters to refrain from demanding additional premiums while a consultation period with owners and other interested parties was ongoing.
   The SILC also said the decision on the strait, which cuts between Indonesia and Singapore, was based on incomplete intelligence, and that the JWC and its consultants have not yet taken the opportunity to gather better intelligence of the region with ASF members.
   The London insurance market, through the JWC, added the strategic channel to a list of 21 areas it deemed high risk for merchant ships and prone to war, strikes, terrorism and related perils on June 20. Earlier this month, they said the decision could be reversible.
   The SILC comprises 12 shipowners’ associations in the Asian region.