Financial Daily from THE HINDU group of publications
Thursday, Mar 27, 2003
Financial Daily from THE HINDU group of publications Thursday, Mar 27, 2003 |
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Logistics
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Shipping Shipping lines to pay additional war-risk premium Our Bureau
NEW DELHI, March 26 SHIPPING lines operating on the Indian sub-continent/Gulf sector will have to pay additional war-risk premium (AWRP) surcharge to feeder operators. This will cover ports such as Kochi, Kandla, Mumbai and JNPT, an official with a major shipping line said. The feeder operators have imposed an additional war-risk premium surcharge of $25 per twenty-foot equivalent units (TEUs) on the United Arab Emirates (UAE)- Mumbai, JNPT and Kandla sectors and $15 per TEU on the UAE-Cochin sector and vice-versa. The additional war-risk premium surcharge imposed by the feeder operators on the shipping lines is over and above the additional war-risk premium of 0.5 per cent of the hull value of the ship levied by international underwriters from the ship owners including feeder lines for sailing into the Gulf region. The feeder operators plying in the Persian Gulf sector carrying containers meant for mainline vessels have decided to pass on the additional war-risk premium levied by the underwriters to shipping lines in the form of a surcharge. The surcharge which came into effect from March 24 will be reviewed on March 31, a notice issued to trade by the feeder operators said. Mainline operators said that they would in turn pass on the surcharge imposed by the feeder operators to their customers. "Obviously, we are not in a position to absorb the surcharge levied by the feeder operators," the official said. In fact, the shipping lines have started quoting rates to cover for the additional war-risk premium surcharge quoted by the feeder operators. The surcharge is the highest on the UAE-Shuwaikh & Shuaibah (Kuwait) sector at $65 per TEU followed by UAE-Bahrain & Dammam sector where the feeders are collecting a surcharge of $35 per TEU from the shipping lines. The surcharge on the UAE-Bandar Abbas and UAE-Karachi sectors is $25 per TEU, while that for UAE-Colombo sector is $15 per TEU.
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