SHIPS TRADING TO CHINA

Press, Volume XC, Issue 27442, 31 August 1954, Page 9

SHIPS TRADING TO CHINA

LLOYD’S RAISES WAR RISK RATE Lloyd’s underwriters have raised the war risk rate tor certain vessels taking goods to China from 1 per cent, to 5 per cent., says the “Manchester Guardian.” Only vessels sailing from or calling at non-Scandinavian Baltic ports or Black Sea ports are affected. There is an interesting background to the change.- The London insurance market has already met a claim of £387,000 on one Polish steamer and it may have to pay a further £416,000 on a second Polish'vessel. The ship on which a claim has been paid is the 8207-ton Praca, a tanker which it is understood was "seized" last October by a Chinese Nationalist gunboat on its voyage from Poland to Communist China. Hie other vessel is the President Gottwald which was reported captured by Chinese Nationalists in May. Cargoes of both ships have been surrendered to the nationalists. These vessels are insured against war risks (that is, “war and strikes, civil commotion, capture, and seizure”) by the State insurance company in Poland,' which reinsures 90 per cent, of its risk with Lloyd’s. It is suspected, however, that Polish crews who have no strong Communist leanings may have been giving themselves up. Lloyd's underwriters have raised the war risk on cargoes presumably to protect themselves against further surrenders of this' kind. This follows a similar increase in war risks tor hulls.