- 7-Day Voyages to Israeli Ports Now Cost Up to 1% of Ship Value.
- Haifa Refinery Shutdown Follows Iranian Strike.
- Haifa Port Operations Continue Despite Conflict.
War risk insurance premiums for shipments heading to Israel have surged threefold compared to just last week, as the conflict between Israel and Iran has now entered its fifth day, according to industry insiders on Tuesday, reports Reuters.
Insurance Rates Climb to 1% for 7-Day Voyages
Currently, the cost for a seven-day voyage to Israeli ports is being quoted at between 0.7% and 1.0% of a ship’s value, a significant jump from around 0.2% just a week ago. While these rates are still below the 2% peak seen after the Hamas attack in November 2023, this increase translates to tens of thousands of dollars in extra daily expenses for shipowners.
“Calls specifically to Israel are very much on a case-by-case basis with rates increased to anywhere up to 1% for a 7-day call, dependent on what cargo, ownership and port,” said David Smith, head of marine with insurance broker McGill and Partners.
Key Israeli Ports Are Facing Increased Risks
Israel’s dependence on maritime trade is still strong, even with the rising dangers. The main entry points for imports are:
- Ashdod, located near Gaza in the south
- Haifa, up north
- Eilat, by the Red Sea
On June 16, Bazan Group, which is Israel’s largest refinery operator, had to shut down its oil refinery in Haifa after an Iranian strike caused damage to its power station.
Vessel Traffic Around Haifa and Port Conditions
Nearly 30 vessels, mostly general cargo ships, were anchored in Haifa Bay, according to data from MarineTraffic. “All port terminals in Haifa were operating normally and remained fully operational,” said an Israeli source involved in Haifa’s port industry.
A growing number of shipping companies are becoming more cautious about navigating Israeli waters, largely due to increasing security concerns and the rising costs of insurance.
Houthi Threats Add to Regional Uncertainty
The Iran-backed Houthi rebels in Yemen have been vocal about their threats against vessels linked to Israel. While they recently agreed to a ceasefire for ships associated with the U.S. and UK in the Red Sea, their aggressive stance toward Israel remains unchanged.
In March, the Houthis declared: “A maritime blockade” on Haifa port in response to Israel’s ongoing conflict in Gaza.
Even with the risks, port operations have remained steady.
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Source: Reuters
