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War underwriters have raised the premiums they charge to U.S., British and Israeli firms by as high as 50% for ships transiting the Red Sea and some providers are avoiding such business due to...
War risk insurance companies raised insurance premiums on American, British, and Israeli ships crossing the Red Sea by up to 50%. Houthi attacks since November have slowed trade between Asia and Europe and alarmed major powers. Many companies have resorted to rerouting ships to circle around South Africa, although some ships are still crossing Red Sea. “The ships that have encountered problems so far are almost all linked, in some way, to Israeli, American or British ownership,” said Marcus Baker, global head of marine and shipping services at Marsh Insurance.
International clothing retailers and brands are still choosing seaways, instead of air, to carry goods from Bangladesh to Europe although the rerouting of ships away from the Red Sea has increased the freight charge by more than 30 percent and added 15 days to the sailing time.
Marine war risk premiums have soared around fiftyfold since before the war, to as high as 1% of the value of the ship, although about 0.7% appears to be more common.
Insurance companies have stopped providing coverage for Israeli, US and UK ships sailing on the Red Sea, CNN and Loadstar have reported.