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Officials have said that a reduction in shipping insurance costs are expected after a recent decision to reduce the size of the High Risk Area for Somalian piracy, reported Platts.
The Baltic and International Maritime Council have sent an advisory to reduce the eastern limit and southern limits of the high-risk area "All other things being equal, a reduced HRA should first and foremost reduce insurance cost for the operators as most other protective measures are advised to be upheld," a BIMCO official said.