Shipping is expected to become more expensive as companies begin paying higher insurance premiums to protect their ships, cargoes and crewsMalaysian branch of the International Maritime Bureau Piracy Reporting Centre (IMBPRC) head Noel Choong said Malaysians may end up having to pay more for goods.
"These extra premiums could ultimately lead to the consumer bearing the brunt of increased prices for goods," he said.
He regards acts of piracy as committed by criminals and not terrorists.
Thus, reports that terrorists in the guise of pirates were attacking vessels were untrue, he said.
Update: Hong Kong shipping companies to fight the insurance price increases:
Hong Kong's biggest ship owners are leading a regional charge to overturn a move by an influential group of London insurers to class the Malacca Strait a "war risk," said Sunday's South China Morning Post.The insurers announced a price increase due to
Arthur Bowring, managing director of the Hong Kong ship owners Association, said his group was deeply worried at the impact of the war risk assessment. He warned that it could hit economies across the region as increased cost inevitably flowed down industry supply chains.
The Joint War Committee insurers' grouping based in London, whose decisions are generally followed internationally, cited a private defense report that warns of an al-Qaida attack on a "significant maritime target" this year.See comment 3 below for one situation that may be driving the increase...