war risk surcharges applied by shipping companies between July–August 2006 and cost the economy over US$1 million a day
Avraham Hirchson, Israel’s Minister of Finance, decided last week to appoint a special task force to study the issue of war risk surcharges applied by shipping companies between July – August 2006 and which cost the economy over US$1 million a day.
Carrier groupings announced last July war risk surcharges of up to US$300 per TEU, to help defray massive war risk insurance hikes apparently imposed by marine insurers.
The task force will be headed by Accountant General, Dr. Yaron Zelikha who had been requested by the Minister to submit proposals in order to prevent similar economic damage in the future.
Zelikha had been requested to submit his proposals within 60 days.
Gad Schaefer, Israel Shippers' Council chairman expressed his satisfaction from the decision. Schaefer noted that despite requests put forwards by the ISC no previous governments showed any interest in the war risk issue.
The fact that the present government took the initiative to study the issue shows that the present government understands the damaging economic effects of the surcharge.