Insurance Premium on Ships Bound for Berbera Increases

Berbera Port run by Emirates-owned DP World saw a decrease in the number of ships carrying consumer goods since the Red Sea tension erupted followed by a controversial maritime Memorandum of Understanding between Somaliland Administration and Ethiopia.

Hargeisa (PP News Desk)— Merchants who import goods to Somaliland have voiced concerns about the increase in insurance policies  on ships carrying goods to Berbera following the controversial maritime Memorandum of Understanding signed by the President of Somaliland Muse Bihi Abdi and Prime Minister of Ethiopia Abiy Ahmed on 1 January 2024.

The geopolitical tension in the Red Sea has been accentuated by the tension between Somalia and Ethiopia over the MoU that the Federal Government of Somalia deems to be a violation of the territorial integrity of Federal Republic of Somalia.

The increase in the shipping insurance premiums affecting Somali businesses in the North comes in the wake of fears about diplomatic fall-out if Ethiopia captures the Northern Somali coastal districts in Awdal, an action that could lead to maritime embargo on the Northern Somali coastal districts ruled by Somaliland Administration.

“Somaliland politically weaponised its littoral districts in the vain of hope of gaining a diplomatic recognition from Ethiopia, but Addis Ababa is seeking a different pretext to occupy Zelia to claim it is fighting Islamic terrorists” said a political analyst in Hargeisa who prefers to be quoted on the condition of anonymity.

It is unclear if a similar increase in shipping insurance premium could affect ships bound for Bosaaso, Mogadishu and Kismaayo Ports.

© Puntland Post, 2024