Yemeni guarantees lead to. . .Marine insurance companies lower charges [Archives:2003/626/Business & Economy]

March 10 2003

The Singaporean ASP company undertaking the administration of Aden container port called on all of the port employees to take all necessary measurers for reducing operation expenditures.
The call came after the rise in value of insurance premiums on vessels against risks of war as the Aden port was negatively affected due to this increase and the company had lost its customers who turned to competing naval routes in Salala, Jedda and Djibouti.
Sources at the company mentioned that Aden's productive port dropped by over 75 per cent and the loss the company had sustained amounted to more than $ 2,5 million a month.
Three thousand of employees working for the companies in the free zone in Aden had lost their jobs at the beginning of the year 2003 after the departure of maritime companies that used to use the port as a station for distribution for the region. Marine sources nevertheless confirm that insurance companies agreement to abolish charges from 16 per cent to 3 per cent would help the port restore its activity vigorously. The companies at Aden sea port had announced they had lost around $15 million per month, especially since the blast in the French super oil tanker Limburg offshore Hadramout last November.
A Yemeni ministerial delegation had travelled to London and held negotiations with insurance companies ended in agreement to depositing Yemeni guarantee in return for reducing insurance charges. Marine sources have made it clear that Yemen has actually offered guarantees and that has urged insurance companies to agree on reducing insurance charges.
Marine sources confirm that prices would see an improvement in the coming short period as the insurance companies would embark on implementing what had been agreed upon in London concerning reducing of charges. According to the sources the imported merchandise that witnessed noticeable rise in prices during the past period, including steel, would see some drop. The possibility of war against Iraq would help add to suffering of Yemen and send mercantile ships away from Yemeni coasts.
It remains to point out that the companies that encountered problems after raising insurance charges and departure of vessels to other sea ports their circumstances would improve following a retreat in charges prices.