Financial Daily from THE HINDU group of publications
Saturday, Jun 08, 2002
Industry & Economy - Petroleum
Logistics - Shipping
Freight on imported crude likely to go up
MUMBAI, June 7
FREIGHT on imported crude is expected to go up following the imposition of additional war-risk premium by marine insurers on foreign ships calling on ports on the western coast.
Currently, over 50 per cent of the imported crude is carried by foreign vessels, of which a major portion is handled through Kandla port.
While public sector oil companies employ Indian ships, private refineries like Reliance import most of its oil through foreign VLCCs.
International marine insurers on Thursday announced an additional 0.1 per cent war-risk premium on all foreign vessels calling at ports on the western coast including Kandla, Mumbai and JN Port.
Indian flag vessels are covered by a war-risk insurance policy operated by the Union Government.
The government had imposed additional premium on ships sailing on some risk-prone zones during the US operations against terrorist in Afghanistan last year.
Some Indian shipowners fear that the Indian Government may review its war-risk premium following the action of the global insurers.
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