Insurance sources and a broker reported on Thursday that a series of Russian missile attacks on Ukrainian Black Sea port infrastructure, as well as commercial vessels, has caused a spike in insurance rates and forced some shipowners cancel bookings.

On Wednesday, Russian ballistic missiles struck the port infrastructure in Ukraine's southern Odesa Region. This was the third attack of this kind within the last four days.

Dmytro Plenchuk, spokesman for the Ukrainian Navy, said: "They have intensified recent attempts to target port infrastructure. This is a proven fact."

On Monday, a Russian missile struck a Palau flagged vessel in Odesa's port, and on Sunday another Russian missile damaged an civilian Saint Kitts-and-Nevis flagged vessel that was loaded with corn at the port of Pivdennyi.

Marine insurers list Ukraine as a high risk area and require an additional premium for war risks every week. A war policy is also required for vessels.

Insurance sources reported on Thursday that war premiums have risen by around 30% in the last week, to just under 1% of a vessel's value from 0.7% at the beginning of September. This would mean an extra cost of hundreds of thousands.

Ambrey, a British maritime security firm, said that vessels calling on Ukraine faced a "heightened risk" of being directly attacked by Russian forces.

Ambrey said that "Vessels visiting Russian Black Sea ports also face a higher risk of damage to their physical integrity."

Ukraine is one of the world's largest grain producers. Before the Russian invasion in 2022, Ukraine exported 6 million tons per month through the Black Sea. 85% of Ukrainian exports leave Ukraine via its Black Sea ports.

Brokers said that recent attacks may affect trade.

An Ukrainian broker said, "Our clients have told us that some shipowners are cancelling their vessels and citing bombing as the reason."

Officials in Ukraine said that they did not see any significant increases in insurance rates.

"Foreign ships continue to operate in the ports of our country." The farm ministry's press service said in a written statement that they continue to monitor the situation.

UAC, a major local farmers' union, said that the increased attacks and defaults by Russia against ships transporting agricultural products into Odesa ports are complicating logistics for export and increasing freight costs.

Denys Marthuk, UAC's deputy director, said that companies must consider potential attacks on transport. (Editing by Philippa Fletcher; additional reporting by Yuliia Dyesa)

(source: Reuters)