The Nation (Nairobi)

Kenya: Terror Attacks: Shipping, Airline Charges Rise With Insurance Costs

Shipping firms and airlines have started implementing new charges to cover themselves for increased insurance costs.

Members of the East Africa Conference Lines will from this Friday introduce a $90 (about Sh7,200) per 20-foot container war risk surcharge, a notice the group issued indicates.

And the national carrier, Kenya Airways, will from next Monday charge an extra $5 (Sh400) for travellers to destination where the airline is the designated carrier.

Although this new charge was expected to take effect yesterday, the airline has given travellers a one week grace period.

Last week the government provided the airline with a $700 million (Sh56b) cover for increased insurance premiums following the terrorist attacks in the United States. The additional cover runs for 30 days and the airline was optimistic that it will be able to secure additional war/terrorist insurance cover.

For the shippers, a notice issued from the line's London secretariat said the surcharge will come into force with the arrival of two vessels MSC Adele and WEC Rotterdam at the Mombasa port.

Information given to the Nation by the Kenya Ports Authority indicates that MSC Adele is expected at the port on October 5.

The shipping line announced the intention to introduce a war surcharge last week due to the impending strikes by US-led forces against countries suspected to be harbouring terrorists behind the attacks in New York and Washington.

The East African Conference Lines said the impending changes followed a move by their underwriters to introduce additional war risk insurance premiums.

"The surcharge will be subject to constant review and will be adjusted accordingly in the light of further information received by he Lines from their underwriters," the notice added.

The new surcharge will affect vessels calling or transiting certain specified ports and areas.

The notice said the new development will affect vessels operated by P & O Nedlloyd, Wec Lines, H.Stinnes Linien Gmbh, Mediterranean Shipping Company, Ellerman Lines and Kenya National Shipping Line.

Shipping experts said independent shipping lines and those having vessel sharing agreements (VSA) will also increase charges as they are expected to receive similar advice from their insurers.

The US is preparing to strike at Afghanistan which it accuses of harbouring terrorists behind the attacks on the World Trade Centre in New York and the Pentagon in Washington.

The US says, Mr Osama bin Laden, their prime suspect in last week's attacks, was hiding in Afghanistan.


Copyright © 2001 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment