Sea Views: Yemen slams hike in insurance

Following the Limburg incident, the Republic of Yemen's Ministry of Transport and Maritime Affairs has said Yemeni ports are safe and that insurance companies are unjustified in raising premiums for ships entering Yemeni waters.

In a statement, the ministry said, it had come to its notice that some shipping and insurance companies were intending to, or have already raised the insurance premiums on cargo destined to Yemen.

The statement went on, "The ministry is highly concerned at such unreasonable steps and would like to assure the international shipping community that all the Yemeni ports and their approaches are completely safe to receive and handle all types of vessels. The Ministry therefore, sees no reason whatsoever for ships to avoid Yemeni, ports or for insurance companies to raise their premiums."

Meanwhile, Yemen's plans to set up a coast guard force received a boost during a visit of Chief of the U.S. Army's Central Command Gen. Tommy Franks to Yemen's President Ali Abdullah Saleh during which Franks reaffirmed his country's willingness to continue to assist Yemen set up a coast guards force to counter the infiltration of terrorists.

In a press conference held after his arrival in Sana'a, he said the length of the Yemeni shoreline needed a coast guard. He added that the United States fully encouraged president Saleh's actions in setting up a coast guard force.

Yacht Solutions to issue radio licences: Dubai-based Yacht Solutions has announced that in association with the Dubai International Marine Club (DIMC) it has received accreditation from the Royal Yachting Association to issue VHF/SRC Radio Licences.

This is a first for the region, making Yacht Solutions the only training outlet in the Middle East that can issue these licences. On successful completion of an 8-hour course students will be presented with an internationally recognised radio licence, which is valid for life.

Operations manager and Yacht School Principal, Captain Stephen Corbett said, "With the development of major marine leisure projects such as Dubai Marina and the Palm Islands, Dubai's recreational marine activities are rapidly expanding and the setting of standards is vital to ensure that safety considerations are maintained in a pastime that can be very dangerous if the basics are ignored."

He went on to say, "The licence qualifications will help to ensure that operational standards are maintained particularly with respect to knowledge of distress, emergency and safety procedures."

He added that a maritime radio might only be operated by a holder of the appropriate Certificate of Competence and authority to operate or by someone under their direct personal supervision.

In a separate development that also underlines the regularisation of the leisure boating industry in Dubai waters, the Marine Advisory Board to Dubai Government has recently approved provisions to introduce minimum survey standards for small commercial leisure craft. Each such boat will require a safety survey and be issued with a safety certificate before being permitted to operate from marinas in the Emirate.

IMB warnings on fresh attacks: Fairplay has quoted a Reuters report that tankers in Middle Eastern, Pakistani and Indonesian waters should be alert to the possibility of fresh attacks following the Limburg explosion.

Jayant Abhyanker, the deputy director of the International Maritime Bureau (IMB) warned last week, "Oil tankers and LPG tankers entering and departing ports in the Middle East, Pakistan and Indonesian ports should seek advice from port agents or their owners on the level of risk in these places."

He added that the warning followed acceptance that the blast was a terrorist attack. The first IMB warning was issued on October 13, but warnings will now continue every day until the IMB decides the danger has passed, Abhyankar said.

Indonesian waters declared a war risk zone: The Lloyds joint war committee, which represents London underwriters, has declared the entire Indonesia archipelago to be a 'war risk zone' following last week's terrorist attack in Bali.

Speaking to the Singapore Shipping Times from London, Lloyd's Underwriters Association spokesman Neil Smith confirmed that a general notice was issued to the underwriting market on Tuesday. He said, "Indonesia has been added to the general war trading warranties. All vessels visiting Indonesian ports will have to consult with their underwriters for their war coverage."

The purpose of the notice is to inform hull underwriters that Indonesia (like Yemen) has been placed onto a list of excluded areas. This means a vessel's existing insurance coverage can be cancelled if it intends to travel into this area.

Shipping lines wishing to trade within such areas are then faced with steep increases in premiums under what are known as War Risks Trading Warranties. Shipping lines are understandably critical of underwriters when such premiums are applied, often blaming them for being too reactionary.

Ultimately, it is the consumer that pays for this added insurance cover as the costs are passed 'down the line' but in some instances, as with larger expensive ships, such calls are often considered too risky as was the case last year in Sri Lanka, following the Tamil Tiger attack on Colombo's airport. This resulted in war risk premiums for ships climbing as high as 0.7 per cent of the hull value and many lines just rerouted to miss out Colombo.

Filipino shipowners call for laws to be liberalised: The Filipino Shipowners Associa-tion has presented a petition to the Department of Transport-ation calling for the government to liberalise the 1992 Philippine Overseas Shipping Develop-ment Act since it excludes Philippine shipping companies, which either charter in or charter out their vessels, from availing themselves of financial incentives.

The association, which is the largest organisation of Filipino shipowners engaged in the overseas trade, said that most Philippine shipowners resort to chartering since they cannot afford to purchase their own vessels.

Furthermore, according to the association, foreign banks presently refuse to lend to local ship owners because their rights to recover loans are given lower preferences.