Oil Shippers Boost Security after Attacks on Tankers in Gulf

(AP) Aya Batrawy - A series of attacks on oil tankers near the Persian Gulf has raised fears over the safety of one of Asia's most vital energy trade routes. Some of the 2,000 companies operating ships in the region are ordering their vessels to transit the Strait of Hormuz only during daylight hours and at high speed. Immediately after last week's attacks, freight rates for operators in the Gulf rose 10-20% as the region was declared a "Listed Area," meaning it faces enhanced risk. Insurance premiums are also expected to rise 10-15%. If the situation deteriorates further, ship owners might consider having armed guards onboard. This is already the case for many vessels transiting the Gulf of Aden, where piracy is a major concern.


2019-06-21 00:00:00

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