Higher war risk cover for cargo ships likely to boost freight rates

Cargo ships transiting the Indian Ocean will have to pay higher premiums for war risk covers as marine insurers are expanding the exclusion zone for such policies because of widening pirate attacks in recent weeks.
This could potentially raise shipping costs into and out of India as the expansion would bring the entire ocean under the exclusion zone, and with underwriters demanding additional premiums from shipowners to provide war risk covers in excluded areas.
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Source: Livemint