US and UK shipping face soaring Red Sea insurance premiums
Posted on February 12, 2024 |
Asia and Europe's trade is slowing down due to Houthis attacks since November and worrying powerful countries.
The Houthis are supporting Palestinians as Israel's military actions in Gaza continue.
Some companies are choosing to send ships around southern Africa instead of through the Red Sea because of the attacks.
Ships connected to the US, UK, or Israel now have to pay much more for insurance due to the increased risk.
A UK-based tanker owned by Trafigura was hit by a missile, causing a fire onboard.
The cost of insurance for Red Sea voyages has gone up, now around 1% of the ship's value.
The Houthis seem to be allowing ships from Russia, China, and Iran to pass safely, which helps reassure businesses from those countries.
