Troubled waters…
Insurers are preparing to raise premiums for merchant ships transiting the Red Sea due to the rise in attacks on shipping.
By Marc Allen, Maritime Direct UK.
Ship insurers are set to increase premiums for ships transiting the Red Sea, reports Reuters. A series of incidents have affected vessels in Saudi waters and analysts say more attacks are likely.
The recent US decision to class the Iran-aligned Houthi movement as a terrorist organisation has stoked tensions in the region and The U.S. Maritime Administration warned seafarers last week that “heightened military activity and increased political tensions in this region continue to pose serious threats to commercial vessels.”
Saudi Arabia said that the tanker that exploded in Jeddah port last month was hit by an explosive-laden boat, and that attack was preceded by a separate incident when a tanker was damaged by an explosion.
All ships are required to carry cover, including annual war-risk and additional “breach” premiums when entering high-risk areas. Breach rates have seen an increase of 0.015 per cent of total insurance costs from about 0.012 per cent in late December. According to market estimates, this equates to tens of thousands of dollars for a seven-day voyage.
