The insurance cost of shipping goods through the Red Sea has more than doubled in recent days after Yemen's Houthis attacked and sank two ships, killing at least four seafarers after months of calm, Reuters has reported, citing industry sources.
War risk premiums have risen to around 0.7% of the value of a ship, sources familiar with the matter said. The premiums were around 0.3% before the Houthis’ attacks last week on two cargo ships in the Red Sea. Some underwriters paused coverage for some voyages.
A Houthi attack on the Greek ship Eternity C on 9 July killed four of the 25 people aboard, maritime officials said. The attack followed the sinking of another Greek-operated vessel on 7 July, for which the Houthis claimed responsibility.
The Houthis attacked more than 100 ships from November 2023 to December 2024 in what the Iran-aligned group said was in solidarity with Palestinians in the Gaza war. In May, the US announced a deal to stop bombing the Houthis in return for an end to shipping attacks, though the Houthis said the deal did not include sparing Israel. Insurance industry sources said underwriters would try to avoid covering any vessel with links to Israel, even if indirect.
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