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.

"Russia deliberately intensifies its attacks on port infrastructure in the Ukrainian South." These attacks are designed to lower our export potential, said Oleksiy Kulba, deputy prime minister of Ukraine.

He said that Russia had carried out 60 attacks in the last three months on ports, which resulted in the destruction and damage of nearly 300 port infrastructures, 177 vehicles, and 22 civilian vessels.

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 the value the vessel. This is a significant increase from the 0.7% of the value the vessel was at the beginning of September.

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. About 85% Ukrainian food exports leave Ukraine through 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 bombings 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 the possibility of attacks on transport. (Additional reporting by Yuliia Dysa; editing by Philippa Fletcher, Alexandra Hudson)

(source: Reuters)