Albay Lawmaker Urges Close Monitoring of Shipping Insurance Premiums
Albay 2nd district Rep. Joey Salceda is urging the Maritime Industry Authority (Marina) and the Department of Trade and Industry (DTI) to closely watch the shipping insurance premiums. This call comes amid concerns over the ongoing conflict between Israel and Iran. Salceda emphasized the importance of tracking these costs since they directly affect the country’s critical imports.
“The Maritime Industry Authority and the Department of Trade and Industry should monitor shipping insurance trends carefully,” Salceda said. He also suggested that if premium surcharges increase, the government should consider stepping in to support vital shipments.
Potential Impact on Freight and Insurance Costs
The conflict could lead to higher marine insurance premiums. Salceda explained that if global insurers classify Gulf shipping routes as war risk zones, freight rates on oil and food cargo may rise significantly. “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,” the outgoing congressman noted.
Even shipments to the Philippines that do not pass directly through the Gulf could face higher costs. This is due to adjustments in global reinsurance policies affecting landed costs.
Strategic Planning Urged for Possible Strait of Hormuz Closure
Reports over the weekend indicated that Iran might consider closing the Strait of Hormuz, which serves as the only marine passage into the Persian Gulf. This development could severely disrupt global shipping and trade.
Salceda called on Marina and DTI to factor this risk into their operational plans. He recommended that they propose budget allocations for monitoring and responding to any changes caused by the conflict. “The Maritime Industry Authority and the Department of Trade and Industry should account for this in their operational planning and propose budget lines for monitoring and response,” he stressed.
For more news and updates on shipping insurance premiums, visit Filipinokami.com.