According to Reuters, war risk insurance premiums for Red Sea voyages have increased after multiple vessels were attacked in the area.
The attacks are part of a series in Middle Eastern waters since the conflict between Israel and Hamas began in October. The London insurance market has designated the southern Red Sea as a high-risk area, leading to increased war risk premiums, Reuters notes.
Shipping companies are also considering alternative routes, and some have rerouted ships away from the Red Sea, adding journey times and costs, Reuters adds.
Furthermore, average daily rates for super-tankers have reportedly risen, reflecting the heightened risks in the region. Generally, the situation in the Red Sea has industry stakeholders holding their breaths in anticipation of what’s to come next.
Just this week, three vessels were targeted by the Houthis, raising serious concern for the state of shipping in the area and for individuals involved in it.
