Armed Guardians Will Reduce Insurance Costs for Shipping Companies

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Insurance comapnies' costs are going to pay ransoms if ships and crew members are kidnapped by Somali pirates which could be reduced by 75 % if vessels employ private armed guardians.
The maritime insurance broker which is based in London reduces its premiums by that value, or more if additional security measures are taken onboard ships transiting a high-risk regions told the director of the company - Nick Maddalena.
If the other owners employ 4 armed guardians, hijacks and the rates of ransom insurance will fall to about $4,500 from $15,000 for a big tanker’s single transit, Maddalena told, adding about 20 % of all vessel owners buy the coverage.
Attacks of the pirates increased to a record off the coast of Somalia and Indian Ocean last year, a region of sea bigger than continental U.S. via that 42,500 ships sail every year. Owners have paid $160 million in ransom payments in 2011 and $79.8 million in 2010, regarding to figures from the European Union Naval Force and Broomfield, Colorado-based non-profit One Earth Future Foundation.
Hijacks and ransom insurance is optional, on top of premiums that charged by other suppliers when vessels travel via designated high-risk piracy regions, Maddalena told. The extra premium is typically 0.4 % of the vessel's value.
Further premiums for very big crude oil carriers, tankers which ship 2-million barrels of oil, are reduced by 60 percent to $11,200 per transit from $28,000, if shipowners take out kidnap and ransom insurance.
The insurance pricing measures mean the price arbitrage might save some broader, and more expensive vessels, like liquefied natural gas carriers, as much as $15,000 in fees for every journey.
Teams of armed guardians will cost about $60,000 for a crossing, Roland Hoeger, managing director of the based in Hamburg shipping company Komrowski Group, told at a conference on April 25.