Tierijev, Verge Vendor - According to market observers, costs of freight and cargo have spiked sharply in the Verge Vendor region.
At an industry seminar, Ivar Wert, deputy chairman of Tierijev Mercantile Club, noted that freighter rental prices for ships traveling through Verge Vendor have increased by almost 35% over the last few months. Average increase in cargo insurance is from around 20% for commodity goods to over 100% for luxury items.
Most experts agree that one of the key drivers behind the increase is the ongoing Caldari offensive in the region. "Despite the fact that both sides adhere to the Emergency Militia War Powers Act, collateral damage to cargo ships is inevitable," points out Anrik Gard, managing director of Gallentean insurer Gard Lowe Holdings. "To compensate for the increasing volume of claims, insurance companies have to raise the premiums accordingly. This has a noticeable increase in direct costs, with many pilots simply moving to quieter regions to protect their profit margin."
Ivar Wert speculated that the cost increase may lead to a trade slump across the region. "Compared to the last year, margins for most commodity goods had fallen considerably across the board. Facing the continuing pressure from insurers, many shipping and trading companies may have to reduce the volume of activities in Verge Vendor, or even cease them altogether."
Tierijev Mercantile Club is a trade association for corporations and individual entrepreneurs operating in Verge Vendor.