Insurance Costs News

Iran's use of a swarm of small, fast boats to seize two container ships near the Strait of Hormuz could undermine suggestions U.S. forces have disabled its naval threat and reveals the challenges facing reopening one of the world's most important oil export routes.U.S. President Donald Trump on Monday acknowledged that while Iran’s conventional navy had been largely destroyed, its "fast-attack ships" had not been considered much of a threat.He said any such vessels coming near a U.S.

Oil prices jumped more than 6% in early Monday trading on fears that the ceasefire between the United States and Iran could collapse after the U.S. seized an Iranian cargo ship and traffic through the Strait of Hormuz remained largely halted.Brent crude futures LCOc1 advanced $5.51, or 6.1%, to $95.89 a barrel by 0752 GMT and U.S. West Texas Intermediate CLc1 was up $5.46, or 6.5%, at $89.31.Both contracts tumbled by 9% on Friday, their largest daily declines since April 18, after…

The U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, President Donald Trump said on Tuesday, adding he had ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.The move marks one of the administration’s most aggressive steps yet to attempt to contain soaring energy prices amid escalating conflict in the Middle East that has raised risks to shipping through key waterways.Global crude prices have spiked since Israeli and U.S.

President Donald Trump will review a set of policy options on Tuesday aimed at controlling energy prices during the escalating Middle East conflict, including a proposal for the U.S. government to help oil tankers in the region obtain insurance, two sources said.Global crude prices have spiked since Israeli and U.S. forces began striking Iran over the weekend, leading to fighting that has interrupted Middle East oil tanker shipments.Treasury Secretary Scott Bessent and Energy…

The diplomatic route in Iran is now exhausted, as last night the United States and Israel attacked Iran, sharply escalating security risks for commercial shipping in the Persian Gulf and adjacent waters, prompting immediate operational and insurance repercussions across the global maritime sector.According to Jakob Larsen, Chief Safety & Security Officer at BIMCO, the attacks “dramatically increase the security risk to ships operating in the Persian Gulf and adjacent waters,” particularly for vessels with business ties to U.S.

Greece has warned its shipping fleet to review their security measures when sailing to Russian Black Sea ports after drone attacks on two Greek-operated tankers this week, according to shipping ministry advisories.Drones struck two oil tankers on Tuesday, including one chartered by U.S.

Three Greek-managed oil tankers were hit by unidentified drones in the Black Sea on Tuesday as they were on their way to load crude at a terminal on Russia's coast, sources told Reuters.The attacks come as Kazakhstan's oil production, most of which is exported via the terminal, cratered in early January.It was not immediately clear who was behind Tuesday's strikes. Ukraine did not immediately comment. The Caspian Pipeline Consortium, which operates the terminal where the tankers were due to take on board cargoes…

Delays for oil tankers passing through the Turkish Straits have climbed to about 12 days for a round trip to the Black Sea, up from about seven days last week, as winter storms, heightened security risks and shorter daylight hours snarl traffic, traders said and Riverlake data in LSEG showed.The congestion, which last exceeded 12 days in February, is being compounded by intensified security checks following recent attacks on tankers carrying Russian oil and strikes on port infrastructure in Novorossiysk…

Ukrainian sea drones on Wednesday hit and disabled a tanker involved in trading Russian oil as it sailed through Ukraine's exclusive economic zone in the Black Sea to the Russian port of Novorossiysk, a Ukrainian official said.The attack is the third sea drone strike in two weeks on vessels part of Russia's so-called "shadow fleet" - unregulated ships which Kyiv says are helping Moscow export large quantities of oil and fund its war in Ukraine despite Western sanctions.War insurance costs for ships sailing to the Black Sea have spiked…

War insurance costs for ships sailing to the Black Sea have spiked again, with insurers reviewing policies daily as the conflict in Ukraine spills into sea lanes, five shipping and insurance sources said on Thursday.The Black Sea is crucial for the shipment of grain, oil and oil products. Its waters are shared by Bulgaria, Georgia, Romania and Turkey, as well as Russia and Ukraine.Turkey's Foreign Minister Hakan Fidan said on Wednesday that attacks on Russia-linked tankers in…

IntroductionThe increase in geopolitical tensions in the Middle East recently resulted in Iran threatening to close the strategically vital Strait of Hormuz (the “Strait”) to international shipping. Inevitably, this led to considerable concern over the impact that the closure of the Strait (or attacks on vessels passing through the Strait) would have on the flow of goods and energy products, as well as the potential disruption to international markets that would drive up prices.The Strait holds geographical importance as one of the world’s most important choke points.

U.S. and Israeli attacks on Iran and Tehran's reprisals have doubled the price of insuring shipments to the Middle East and the Gulf in the last week, insurance sources said on Monday.War risk insurance premiums for shipments to the Middle East Gulf have jumped to 0.5% from around 0.2-0.3% a week ago, as risks grow to the critical Strait of Hormuz, the sources said.The cost of a seven-day voyage is based on the value of the ship and the increase will add tens of thousands of dollars each day in additional costs.While underwriters typically price risk and rates individually…

War risk insurance premiums for shipments to Israel are as much as three times higher than a week ago as the war between Israel and Iran entered its fifth day, industry sources said on Tuesday.The cost of a seven-day voyage to Israeli ports was quoted between 0.7% and 1.0% of the value of a ship, versus around 0.2% a week ago, they said.War risk premiums to Israel are still below a peak of over 2% in November 2023 that were quoted after a Hamas attack on Israel killed 1,200 people and triggered the Israeli invasion of Gaza.Individual underwriters will price risk and rates differently…

Union members at General Dynamics Electric Boat unit voted to authorize a strike, the United Auto Workers said on Tuesday.The move comes amid an ongoing labor dispute post the expiration of the members' contract on April 4 at Electric Boat, a part of the defense contractor's marine systems segment, which assembles nuclear-powered submarines for the U.S.

The United States will evaluate demands made by Russia after Moscow had agreed "in principle" to a U.S.-brokered ceasefire with Ukraine in the Black Sea to allow safe navigation, U.S. Secretary of State Marco Rubio said on Wednesday.The U.S. announced separate Black Sea agreements with Ukraine and Russia on Tuesday - following talks in Saudi Arabia - to ensure safe navigation, stop attacks, and prevent the use of commercial vessels for military purposes.Russia invaded Ukraine in February 2022. U.S.

Russia said on Tuesday the U.S. had agreed to help it lift restrictions on food, fertilizer and shipping companies in exchange for agreeing to a maritime security deal in the Black Sea.The United States further said it had also agreed with Russia and Ukraine to implement a ban on military strikes on each other's energy installations.If implemented, the deals would represent the clearest progress yet towards a wider ceasefire that Washington sees as a stepping stone towards peace…

The ever-worsening geopolitical situation is creating unprecedented challenges for the shipping sector and wider supply chain.An expanding shadow fleet, openly undertaking illegal Ship-To-Ship (STS) transfers of Russian oil and Liquified Natural Gas (LNG), has compounded the longer-standing dark shipping problem that has emerged as a result of illegal activity (people, arms, drugs, contraband and fish smuggling), which not only threatens national security, but also the safety of vessels and heightens concerns regarding environmental disaster and supply chain disruption.In response…

Secretary-General Arsenio Dominguez has highlighted several areas high on the agenda of the International Maritime Organization (IMO), as it embarks on a busy work schedule for 2025.Speaking at a news conference on 14 January 2025, Mr. Dominguez said that IMO’s 176 Member States continue to work together to find solutions to global challenges impacting the maritime sector.Dark fleetHe addressed rising concerns with the “dark fleet” or “shadow fleet” evading compliance with safety or environmental regulations, avoiding insurance costs or engaging in other illegal activities.Mr.

Ukraine has asked the International Maritime Organization to send a monitoring mission to ports in the southern Odesa region amid intensified Russian attacks, Foreign Minister Andrii Sybiha said on Wednesday.In recent weeks, Russian troops have ramped up missile strikes on Ukraine's southern port infrastructure and damaged a total of four foreign-flagged civilian vessels since Oct. 6."Amid increased Russian terror, Ukraine has officially appealed to the International Maritime Organization to immediately send an international monitoring mission to the ports…

A series of Russian missile strikes on Ukrainian Black Sea port infrastructure and commercial vessels has led to a jump in insurance costs and forced some shipowners to cancel bookings, insurance sources and a broker said on Thursday.Russian ballistic missiles attacked the port infrastructure of Ukraine's southern Odesa region on Wednesday, becoming the third such attack in the past four days."Russia is deliberately intensifying its attacks on the port infrastructure of the Ukrainian south.

On a warm spring night in Athens, shortly before midnight, a senior executive at a Greek shipping company noticed an unusual email had landed in his personal inbox.The message, which was also sent to the manager's business email address, warned that one of the company's vessels travelling through the Red Sea was at risk of being attacked by Yemen's Iranian-backed Houthi militia.The Greek-managed ship had violated a Houthi-imposed transit ban by docking at an Israeli port and would be "directly targeted by the Yemeni Armed Forces in any area they deem appropriate…

The cost of insuring a ship through the Red Sea has more than doubled since the start of September and some underwriters are pausing cover as the risk of attack from Yemen's Houthis on commercial vessels increases, industry sources said.The Iran-backed Houthis first launched aerial drone and missile strikes on the waterway in November. They say they are acting in solidarity with Palestinians under assault in Israel's war on Gaza. In more than 70 attacks, the Houthis have sunk two vessels…

The state of Great Lakes port infrastructure is one of the biggest issues facing the U.S. and Canadian maritime industries. According to the America Great Lakes Ports Association, “Due to years of inadequate funding, the U.S. Army Corps of Engineers has been unable to maintain Great Lakes navigation infrastructure. Over the next five years Great Lakes navigation channels will require $540 million of dredging to maintain authorized channel dimensions. Breakwaters and other federal…