Tanker and Gas Carrier Insurance Costs Ease Slightly

By
Mfame Editor
-
38

  • Hull Insurance Discounts Offset P&I Hike.
  • Ship Insurance Costs Hold Steady Year-on-Year.
  • VLCC and Suezmax Insurance Premiums Dip Marginally.

The overall insurance costs for various types of vessels have stayed pretty steady compared to last year. However, tankers and gas carriers have experienced a slight dip in premiums over the last three months, according to the Baltic Investor Indices (BII), reports Lloyd’s List.

P&I Increases Offset by Hull Insurance Discounts

Even though P&I rates have gone up by 5% to 7.5% during the February 2025 renewal, hull underwriters seem to be providing some notable discounts. This strategy appears to be aimed at keeping their market share as the market capacity continues to grow.

The recent hull renewals on January 1st and April 1st have been described as some of the most favourable for shipowners in recent years, supporting brokers’ assertions of competitive pricing in the hull insurance market.

Baltic Exchange Data Tracks Daily Insurance Costs

The Baltic Exchange gathers daily information on insurance costs as part of its Baltic Investor Indices subscription service, which keeps an eye on ship operating expenses. When we talk about “insurance expenses,” we’re looking at a variety of components, such as:

  1. Hull & machinery (H&M), which includes disbursements and freight interest insurance
  2. Coverage for war and strike risks
  3. P&I insurance, which protects against cargo issues, crew liabilities, third-party claims, stowaways, pollution, damage, and wreck removal
  4. Freight, demurrage, and defence (FD&D) coverage
  5. Incidents covered by the Baltic standard deductible
  6. Management fees associated with handling insurance

Tanker Insurance Premiums Experience a Slight Drop

  1. For VLCCs, the daily insurance cost over the three months leading up to July 17 was $976, reflecting a 1.6% decrease from $983 the previous year. The annual cost stands at $352,955.
  2. For Suezmax vessels, the daily cost is $633, down 3% from $653, with an annual cost of $231,045.
  3. Aframax vessels saw a daily cost of $594, which is nearly unchanged from $598, leading to an annual cost of $216,810.

Bulk Carrier Insurance Costs See a Small Increase

For Capesize vessels, the daily cost is now $714, up from $693, resulting in an annual cost of $260,610. For Panamax vessels, the daily cost is $518, a slight increase from $516, with an annual cost of $189,070.

Gas Carrier Insurance Prices Hold Steady

LNG carriers have a daily cost of $1,063, which is a slight decrease. LPG carriers maintain a daily cost of $560, remaining unchanged.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Lloyd’s List