Shipping Insurance For Red Sea Transit Soars After Mounting Attacks
- London insurers increase amount of Red Sea designated as risky
- With ships diverting and trade slowed, inflation threat mounts
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The cost of insuring vessels that will transit the Red Sea jumped again this week after mounting attacks in the region forced some ships to avoid the vital waterway, underscoring the need to secure an area that’s pivotal to global trade.
Cover has now surged to about 0.5% of the value of a ship’s hull, according to three people involved in the market. That’s a sharp increase from earlier this month, when costs were about 0.1% to 0.2% of the hull value.