🚢 US$ 1 Bn X-Press Pearl Fine Shakes Global Shipping Market

• Sri Lanka’s US$ 1 Bn court ruling for the 2021 X-Press Pearl disaster has sparked alarm among global shipping insurers. • James Bean, CEO of the London P&I Club (the insurer), called the judgment "alarming," warning it could significantly drive up global marine insurance premiums. • Impact on Sri Lanka: Sri Lanka is not a signatory to international conventions that cap ship owners’ liability. This exposes owners to unlimited claims, potentially resulting in higher insurance premiums specifically for ships docking at Sri Lankan ports. • Global Risk: Insurers fear that a surge in premiums may push some vessels toward uninsured, unregulated "shadow fleets," increasing global maritime risk. • The issue is further complicated because existing conventions do not cover plastic pellet spills, one of the major environmental impacts of the incident.