US EditionRed Sea Shipping Insurance Costs Surge After Deadly Houthi Strikes: Report
YEMEN, JUL 10 – War risk premiums for Red Sea shipping have doubled after Houthi attacks sank multiple ships and killed at least four seafarers, raising costs by hundreds of thousands per shipment, sources said.
- Following recent Houthi attacks, war risk premiums in the Red Sea doubled from 0.3% to 0.7%, significantly increasing insurance costs for shipping.
- The surge in attacks results from revived mid-2024 Houthi targeting policies aimed at vessels with Israeli links, as the group rejected a U.S. deal excluding Israel from protection.
- Houthi attacks caused war risk premiums to double from 0.3% to 0.7%, with industry estimates showing a seven-day ship insurance cost rising from $300,000 to $1 million, highlighting escalating risks.
- Following the spike in war risk premiums, shipping costs have more than doubled, causing a sharp decline in Red Sea traffic and impacting global supply chains.
- In the longer term, insurers’ boycott persists, prompting ships to reroute around the Cape of Good Hope, as risks remain elevated and attacks continue, experts say.
15 Articles
15 Articles
Red Sea shipping insurance doubles after deadly Houthi attacks
Insurance costs for Red Sea shipping have more than doubled following Yemen's Houthis' deadly attacks that sank two vessels and killed at least four seafarers, breaking months of relative calm in the crucial waterway.
Red Sea Shipping Costs Soar Amid Renewed Houthi Attacks
Insurance costs for shipping through the Red Sea have surged due to recent Houthi militant attacks, notably sinking two ships. This region, vital for oil and commodities, has seen decreased traffic and increased war risk premiums. Underwriters are hesitant to cover ships with Israeli connections.
Red Sea vessel insurance rates spike amid renewed Houthi attacks - Times Kuwait
Insurance premiums for commercial vessels navigating the Red Sea have surged once again as Houthi attacks on ships linked to Israel intensify. The latest incidents involved bombings that killed and injured multiple sailors, prompting alarm across global shipping and insurance sectors. According to Marco Baker, global head of marine and logistics at Marsh McLennan, ship owners must now pay around 1% of a vessel’s value to insure Red Sea transits.…
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