The expenses for war insurance on voyages through the Red Sea have more than doubled since September, according to insiders. The increased threat and costs of shipping due to Houthi attacks on vessels are leading smaller insurers to halt war coverage in the Red Sea, as per reports from Reuters.
Cost increased
The cost of insuring a ship travelling through the Red Sea has increased by over 100% since the beginning of September, prompting some insurers to pause coverage due to the growing risk of Houthi attacks on commercial vessels, revealed industry sources.
Speaking on the condition of anonymity, industry sources mentioned that additional war risk premiums, paid when ships pass through the Red Sea, had risen to as high as 2% of the vessel’s value from 0.7% at the beginning of September, especially following the attack on the Greek-operated Sounion tanker, which was engulfed in flames for several weeks.
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Source: Reuters
