Shipping Insurance Premiums Face Scrutiny Amid Conflict
Albay 2nd district Rep. Joey Salceda urges the Maritime Industry Authority (Marina) and the Department of Trade and Industry (DTI) to monitor closely the shipping insurance premiums amid the ongoing Israel-Iran conflict. The rising tension has raised concerns over potential increases in shipping insurance premiums, which could impact critical imports.
Salceda emphasized that the Maritime Industry Authority and the Department of Trade and Industry must track changes in shipping insurance premiums carefully. He stressed the need to evaluate if premium surcharges require government intervention to support essential goods.
Potential Impact on Freight and Marine Insurance
The conflict’s effects might lead to higher marine insurance premiums. Salceda explained, “Marine insurance premiums may also rise. If global insurers designate Gulf routes as war risk zones, freight rates on oil and food cargo may increase.” This could translate into higher costs for shipments passing through or near the Gulf region.
Furthermore, even shipments to the Philippines not passing directly through the Gulf might face increased landed costs. This is due to global reinsurance adjustments affecting the broader shipping industry. Salceda pointed out these indirect effects could still raise the prices of imported goods.
Strategic Planning and Budgeting Needed
Reports over the weekend indicated that Iran is considering closing the Strait of Hormuz, the sole marine passage to the Persian Gulf. This development could disrupt global shipping routes and further complicate insurance and freight costs.
Salceda urged the Maritime Industry Authority and the Department of Trade and Industry to factor in these risks in their operational plans. He also recommended proposing budget allocations specifically for monitoring and responding to these emerging challenges.
The proactive approach aims to mitigate the impact on the Philippine economy, particularly on vital imports that rely on maritime transport.
For more news and updates on shipping insurance premiums, visit Filipinokami.com.