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Warning of ice threat to ships

MARINE insurance practitioners are monitoring the break-up of the Antarctic ice shelf amid fears it could pose a threat to shipping lanes, writes Peta Miller, London. At present the icebergs are too far south to affect shipping, but this could change.

Stephen Sullivan, a marine group director at brokerage Miller Insurance, said: "The two ice shelves are a considerable distance away from major shipping routes to have any significant effect to commercial shipping.

"Latest reports state that the Larsen B shelf has now shattered into a sea of icebergs and if these bergs were to subsequently drift northwards into the recognised shipping lanes, then shipping could be endangered.

"It would be very premature for worldwide hull insurers to take any action right now, but if any bergs did become a potential hazard to shipping, then underwriters could conceivably look to modify the current institute warranties limits and impose a combination of additional premiums and additional ice deductibles.

"However, modern-day ships are equipped with state-of-the-art navigation systems that are capable of tracking the location of icebergs to within metres of their actual position. Also, there are numerous satellites that can provide data relating to the movement of these shelves and bergs and therefore predict potential hazards," he continued.

In yesterday’s Insurance Day, an expert from Benfield’s Hazard Research Centre quashed speculation that the breakaway of the Larsen B ice shelf, which has been compared in size to the island of Cyprus, meant that the Antarctic’s entire western ice sheet is about to cave in and spark catastrophic rises in sea level.
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