Red Sea: From Soaring Insurance Premiums to Exclusion of Israel-Linked Ships from Insurers’ Lists

According to SeaNews, quoting Reuters, shipping insurance costs for transiting the Red Sea have surged significantly following recent attacks by Yemen’s Houthis on two vessels linked to Israel, which resulted in the sinking of both ships.

Insurance industry sources reported that war risk premiums for transiting the Red Sea have risen in recent days from around 0.3% of a vessel’s value to approximately 0.7%, with some quotes even reaching 1%. This translates into several hundred thousand dollars in additional costs for each voyage.

Following the sinking of the Greek ship Eternity C and another vessel targeted in recent days, some insurance companies have halted coverage for ships that are in any way linked to Israel or have refused to provide insurance policies for them.