Insurer: Cost of stowaways rising as numbers fall

The cost of stowaways on ships has doubled in the past decade, costing international shipping industry more than $20 million per year, the U.K. Protection and Indemnity Club estimates.

The U.K. Club said it has found the cost of stowaways is rising even as their numbers decrease. The largest marine mutual insurance company said it was involved in around 120 stowaway cases in 2007, costing more than $2 million. However, the number of stowaways on vessels it insures has fallen since 1998-2003, when they were consistently between 350 and 400.

Meanwhile, the average cost of a claim has climbed from less than $6,000 in 2000 to about $14,500 in 2007, the U.K. Club said. The impact on individual ship owners was likely to be greater, given rising deductibles and the non-reporting of small and quickly solved cases

The club said it was not aware of any central record of the number stowaways found each year on ships. But based on the U.K. Club's 17 percent share of the P&I business, and its mixture of ship types and routes that reflects the world fleet, the total number of stowaways last year might be in the range of 700 per year.

Where are stowaways found: During the 1998-2007 period, South Africa topped the list of countries in which U.K. Club stowaway cases were uncovered with 190. Other countries where the U.K. Club found many stowaways include: Ivory Coast (169), Senegal (165), Argentina (106) and the United States (105). Italy, Cameroon, Ghana, Nigeria, Spain and Gabon saw from 50 to 80 cases.

The main regions for stowaways coming onboard vessels are China, West Africa and East Africa.

The U.K. Club said it recently held a meeting with NYK Line and officials in China from the ports of Guangzhou, Shenzhen, Xiamen, Shekou and Shanghai to discuss the issue.

NYK wants to raise awareness of stowaway problems among its shore-based and terminal operators in China and of the preventive measures available to reduce the number of incidents.

The club said most stowaways are fleeing poverty, looking for improved way of life and hope to reach North America and northern Europe.

Roll-on/roll-off and multi-cargo vessels have proved the most popular vehicles for stowaways over the 10-year period, accounting for 31 percent of cases. They were followed by bulk carriers (23 percent) and containerships and general cargo vessels (both 16 percent).

Source: American Shipper