Piracy on high seas may push prices up for GCC consumers
Gulf News reports:
The cost of GCC household goods may be on the rise as shipping companies pass along to consumers a 300-fold increase in emergency insurance premiums – per voyage – to ply pirate-infested waters, experts say.
A rash of attacks on bulk carrier ships by rocket-toting Somali pirates has prompted London insurance authorities to list the eastern coastal areas of the Arab peninsula as ‘War Risk’ zones, prompting some marine underwriters to boost their insurance coverage from $500 (Dh1,836) per voyage to GCC countries up to $150,000 per trip by some accounts.
Gulf countries such as the UAE are highly dependent on the daily shipments of perishable foods, electronics, clothing and household goods from Europe and Asia and are vulnerable to the trickle-down effects of higher shipping costs.
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