Gulf shipping could be crippled by massive insurance charges, following the terrorist attacks in the US, a Bahraini industry leader warned on Wednesday.
Governments in the region are being urged to step in, to keep rates down for shippers.
International underwriters have declared their intention to make the Gulf an exclusion zone from normal war risk cover.
"This will result in devastating consequences for ships entering the Gulf and the businesses that serve them," Asry chief executive, Mohammed Al Khateeb, told the Gulf Daily News.
"The declaration, made following the terrorist attacks in the US last week, will force each oil tanker entering the Gulf waters to pay a massive insurance premium of up to $20,000 (BD7,560) a day.
"The new move has shifted the insurance cover to the level of the Gulf War period."
Khateeb said the declaration had already sent freight charges shooting up.
The freight rate for a 20-foot container has jumped by $100 (BD37.8) and for a 40-feet container by $200 (BD75.6).
Khateeb urged the GCC Governments to strongly oppose the extra war risk insurance cover and to convince international underwriters that the Gulf remained a peaceful area.
"If their pressure is unsuccessful, the GCC Governments should evaluate the claimed risk and declare to all commercial vessels entering Arab ports in the Gulf that they will cover them for any war or terrorist risk," he said – Albawaba.com
