SEA OF JAPAN INSURANCE COSTS MAY HAVE TO RISE

The cost of insurance for cargo and vessels passing through the Sea of Japan could increase dramatically if the London market’s Joint War Committee designates North Korea and seas nearby to be areas at special risk from war or terrorism, claims today’s Nikkei Net Interactive . North Korea fired missiles over the Sea of Japan in July and conducted an underground nuclear test earlier this month. The article claimed that, if North Korea and its vicinity was designated an especial war risk, Japanese insurers would be likely to increase their premiums for marine transit in the area. Lloyd’s List also reported that Aegis Defence Services believed that the level of threat from North Korea had increased in recent weeks. The Joint War Committee will meet in the near future, and North Korea is almost certain to be on the agenda. However, the country has a low exposure to international shipping. Areas where marine risk could increase include the Yellow Sea, East Sea and Great China Sea.