Trade Loss for Shipping Companies

7/31/2019 Trade Loss for Shipping Companies

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TRADE LOSS FOR SHIPPING

COMPANIES

PRSESENTED BY

ASHISH MASSEY

LIVINGSTON

ABIN TIJO

DIVYAN

JERRY

SAM


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TRADE LOSS FOR SHIPPING COMPANIES

REASONS

SEA PERILS

PIRATES


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SEA PERILS

Fortuitous accidents or casualties peculiar to transportation over

navigable waters; events such as unusual violence (but not ordinary

action) of waves or wind, collision of ships, striking a submerged

object, and sinking.


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SEA PERILS
http://c/Users/Abin%20Tijo/Desktop/Container%20ship%20flexing%20in%20rough%20weather.flv


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PIRATES

A person who attacks and robs ships at sea

A ship used by pirates in attacking other vessels


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SOMALIA AND THE GULF OF ADEN

In 2008 alone, there were a total of 111 attacks in total resulting in 42 vessels being

hijacked and 815 crew members taken hostage. Piracy incidents off the Somali coast

peaked in September 2008 with 19 attacks in that month alone. The rate of attacks in

January and February 2009 was about 10 times higher than during the same period in

2008. However, authorities estimate that only 10% to 50% of attacks are actually

recorded due to vessel owners looking to keep their insurance premiums down by

not reporting unsuccessful piracy attempts and also because there is much illegal

activity in Somali waters.


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PIRATES IN SEA
http://pirates%20seize%20ship%20with%20russian-british%20crew.flv/


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THE AFFECT OF PIRACY ON INTERNATIONAL TRADE (OIL TRADE )

Some 16,000 ships a year pass through the Gulf of Aden, carrying oil

from the Middle East and goods from Asia to Europe and North

America. Any company, whose cargo is prevented from reaching its

destination on time, will lose money. Add to this the cost of payingransoms and the damaging economic effect of Somali piracy is

obvious. The consequences are not limited only to companies whose

vessels are hijacked either; of wider concern is the rapidly risinginsurance premiums for ships that need to pass through the Gulf of

Aden..


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The danger means that war risk insurance premiums must now be

paid, and premiums are reported to have risen tenfold in a year. If the

cost of extra insurance becomes prohibitive, or the danger simply too

great, shipping companies may avoid the Gulf of Aden and take thelong route to Europe and North America around the Cape of Good

Hope. The extra weeks of travel and fuel consumption would add

considerably to the cost of transporting goods. At a time when theprice of oil is a major concern, anything that could contribute to a

further rise in prices must be considered as very serious indeed.


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ROLE OF INSURANCE COMPANY

Marine Insurance policies protect the assured against maritime perils.

"Maritime Perils" mean perils consequent on, or incidental to, the

navigation of the sea, that is to say, perils of the sea, fire, war perils,

pirates and rovers, thieves, captures, seizures, restraints and

detainment of princes and peoples, jettisons, barratry and any other

perils which are either of the like kind or may be specified by the

policy.


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Conclusion

Shipping industry is a huge industry, which is the major revenue for our

government. But the fact is that government take less action for protecting

our shipping industry from this risk.
http://www.spiegel.de/international/business/0,1518,grossbild-1375141-594710,00.html

Trade Loss for Shipping Companies

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