Hormuz Marine Insurance Rises to 10%
The cost of insuring passages through the Strait of Hormuz has risen due to escalating hostilities, with war risk insurance premiums reaching between 8% and 10% of the vessel's value. Some insurance companies have ceased issuing new policies and have warned ship owners to delay their voyages. This coincides with attacks against commercial ships and reports of explosions on tankers, as well as increased insurance costs for vessels crossing the Red Sea following the Houthi-imposed maritime ban on Saudi Arabia. To mitigate these risks, shipping companies are offering substantial incentives, including up to 60 days' worth of salaries; some are even offering additional wages equivalent to six months for crossing the strait. Despite these offers, some sailors refuse to voyage under dangerous conditions. Meanwhile, maritime traffic has significantly decreased amid rising insurance premiums and increased incidents of attacks on ships.
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