Financial Times FT.com

Piracy set to escalate shipping costs

By Robert Wright in London

Published: November 19 2008 18:44 | Last updated: November 19 2008 18:44

The increase in piracy off the coast of Somalia looks likely to impose millions of dollars in extra shipping costs as shipowners charge their customers for the cost of diverting vessels to avoid the danger area.

Shipowners’ insurance bills also look set to increase sharply as a result of the problem, and the past week’s escalation of the threat to shipping.

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