Shibhaljazeera Net | Red Sea | Shipping
Reuters has confirmed that insurance premiums for Red Sea voyages have doubled since the beginning of September, as attacks by the Sana’a government forces supporting Gaza on vessels linked to the U.S. and U.K. or those visiting Israeli ports have increased the risks and shipping costs.
In a report published on Thursday, the agency noted that insurance companies had temporarily stopped providing coverage for vessels crossing the Red Sea due to the escalating risks.
Additionally, Reuters confirmed that the cost of insuring ships passing through the Red Sea has more than doubled, with war risk surcharges now reaching 2% of the vessel’s value, up from 0.7% at the start of September, following the attack on the Greek tanker “Sounion,” which remained ablaze for weeks.
The report cited Louise Neville, CEO of “Marsh,” a U.K.-based company specializing in shipping, cargo, and logistics, saying: “We are currently seeing surcharges of up to 2% of the vessel’s value for a single voyage across the Red Sea, amid fluctuating appetite from insurance companies.”
The report also quoted David Smith, head of shipping at insurance company “McGill & Partners,” who said: “Many small insurance companies are no longer willing to cover war risks in the Red Sea. This is the first time I have seen insurance companies simply say no.”
Sources in the insurance industry explained that some coverage is available, but the costs are rising. An insurance source added: “Insurance companies have become more cautious and selective, and vessels that are likely targets for attack are now struggling to find coverage.”
The report also mentioned that the “Sounion” tanker, which was attacked on August 21 while carrying about one million barrels of crude oil, was towed without any oil spill, according to the European Maritime Safety Agency’s report on Monday.
According to Reuters, no claims have been made so far for the “Sounion,” which is valued at $80 million, according to three sources. A war insurance policy for the vessel was provided by a consortium led by the “Britt” insurance company, which also included “Antaris,” “IQ,” “Hamilton,” “Westfield,” and “Aspen.”
Finally, the agency reported that “Aspen” and “Britt,” a unit of Canadian insurer “Fairfax,” declined to comment. The companies “Antaris,” “IQ,” “Hamilton,” and “Westfield” did not respond to requests for comment.
Source: Reuters