Philippine Sea

Monday, August 07, 2006

"War Risk" for Ships transiting Strait of Malacca dropped


Reported here:
The London insurance market's powerful joint war committee has removed a war-risk rating for merchant ships transiting the Malacca Strait sea lane because of an improvement in security, an insurance official said on Monday.

Neil Roberts of Lloyd's Market Association (LMA) told Reuters the designation was dropped after "significant improvement" in security in the area.

"There is no question that there has been a dramatic change on the Malaysian and Singaporean side of the Strait including naval and air patrols -- they have spent a fortune on improving things," Roberts said.

"Any transit is no longer subject to conditionality," he said.

Roberts said, however, that ships calling at ports in northeast Sumatra would still be subject to war-risk charges.

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