Arab Today, arab today piracy wave set to hit households in the gcc
Last Updated : GMT 01:44:06
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Piracy wave set to hit households in the GCC

Arab Today, arab today

Arab Today, arab today Piracy wave set to hit households in the GCC

Dubai - Arabstody

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. The UAE alone received Dh485.4 billion in imports in 2010 which translated into roughly 318,000 tonnes per day entering the country, according to the Federal Customs Authority.

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