"The most direct consequences concern the development of freight costs, repercussions for insurance premiums and other problems linked to terrorism and security risks," said Edouard Berlet, a representative of maritime transport companies.

Berlet said that since the outbreak of the Iraq conflict, insurers had been charging additional premiums of around 0.05 of a ship's value for war risk cover.

The extra premiums for ships bound for Kuwait were as high as four percent, he said.

French shipowners' association Armateurs de France meanwhile said on Thursday that the sector's growth in 2002 had beaten all expectations.

"French maritime companies' results should be good in 2002," said association president Philippe Louis-Dreyfus.

Freight volumes had increased by 10-15 percent between Asia and North America in 2002 and by 4.4 percent between Asia and Europe, after a bad year in 2001.

SPACE.WIRE