High costs and piracy keep ocean carriers away

Other than the cost of fuel, premium cost for vessels passing through the Suez canal has also increased tenfold, not to mention the colossal sums of money demanded by pirates as ransom if the vessels are hijacked.

These challenges have come at a time when the global economy is in a downturn, leading to high number of cold or hot ship lay ups hitting 10 per cent globally. Experts say, at least five per cent of ships in operation are expected to be laid up by the end of the year.

Locally, already a section of shipping lines, led by cruise ships have raised a red flag over he government unilateral introduction of value added tax on all marine services. that came into effect on 12th this month.