Property damage and business interruption

4.11, piracy

India: Indian shipping firms are losing hundreds of thousands of dollars every month as fears of piracy in the Gulf of Aden hold up ships and delay consignments. Around 20 foreign ships, including the India-bound chemical tanker Stolt Valor, with 18 Indian crew members, are being held by Somali pirates in the region. The Japanese-owned merchant vessel was hijacked by Somali pirates in September in the Gulf of Aden. Indian vessels are losing $450,000 a month on cost overruns and delays in meeting deadlines, while crew members are reluctant to sail in the Gulf of Aden, one of the world’s most important sea trade routes. Around $100bn of India’s sea trade passes through the Gulf of Aden, according to the Indian National Ship Owners Association (INSA), which had a series of meetings with government officials recently. Last month, India sent a warship to guard its merchant ships from pirates, but the ship had to turn back due to a technical glitch. An Indian Navy spokesman said a replacement ship would patrol the area, but ship owners did not think it was enough to instil confidence.