Shipping insurance costs jump in the Middle East

Israel and Iran Escalatialize conflicts The cost of insurance has considerably increased for ships sailing through the Red Sea and the Persian Gulf.

Marine insurers now charge 0.2% of the value of a ship for traveling in the Gulf, according to data from the largest insurance broker in the world, against 0.125% before Israel surprise attack On Iran last week.

There has also been an increase in war risk insurance rates for the Red Sea, said Marsh, while coverage relating to ports in Israel has more than turned to 0.7%.

The duration of the quotes is valid has been reduced to 24 hours from most managers, said Marsh, against 48 hours earlier.

The race to reassess maritime insurance costs reflects the deterioration of the safety environment in the Middle East, Israel and Iran continuing to exchange fresh air attacks in recent days.

The conflict between the two powers has increased the concerns of a broader conflict, many supervisors Perspective of American intervention.

“Since the situation is currently contained in the region, risks are still placed to allow traffic freight in these areas,” Marcus Baker, a global marine, freight and logistics manager at Marsh, told CNBC.

Some shipowners have recently chosen to avoid strategically important Strait of Hormuz, reaffirming a feeling of Industry malaise In the middle of the conflict.

Jakob Larsen, head of security in Bimco, who represents the world shipowners, said earlier this week that the climbing of the conflict caused concerns in the shipowner community and caused a “modest drop” to the number of ships sailing in the region.

Located between Iran and Oman, the Strait of Hormuz is a narrow navigable route which connects the Persian Gulf to the Oman Sea. It is recognized as one of the most important oil points in the world.

The incapacity of oil to cross the Hormuz Strait, even temporarily, can increase world energy prices, increase navigation costs and create significant delays.