Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Freedom Bunker
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Escalating Red Sea Attacks Drive Up Vessel Insurance Costs

% of readers think this story is Fact. Add your two cents.


Escalating Red Sea Attacks Drive Up Vessel Insurance Costs

Iran-backed Houthi rebels have been intensifying missile and drone attacks, targeting commercial vessels in the southern Red Sea, critical Bab el-Mandeb chokepoint, and the Gulf of Aden. The rebels have even threatened to extend their reach to the Mediterranean Sea. The recent sinking of the Tutor dry-bulk carrier by a kamikaze drone boat marks a significant escalation. The ongoing turmoil has sent containerized freight costs soaring, along with insurance costs back on the rise.

Bloomberg spoke with two individuals familiar with the maritime insurance market. They said the price of covering a commercial vessel for transit has jumped from .3% to .4% of the ship’s total value to .6%. In other words, a vessel worth $50 million must pay upwards of $300k of insurance for one sail.

“The rate is nevertheless slightly below a peak reached earlier this year when attacks ramped up,” Bloomberg said. But if Houthi attacks persist through summer, the rate will likely increase further. 

The sinking of the commodity-hauling bulk carrier this week by a drone boat was a real eye-opener for the shipping community and commodity industry as President Biden’s Operation Prosperity Guardian fails to counter endless Houthi attacks on commercial ships in the critical shipping lane.

It was also the first time a ship was sunk by a drone boat in this muti-month campaign by Houthis.

“It’s another indicator that the Houthis are stepping up their attacks on those vessels that were warned not to pass through the Red Sea,” Dirk Siebels, a senior analyst at Risk Intelligence, said of the drone boat attack on Tutor, who Bloomberg quoted. 

Considering Houthis are mainly targeting Western-linked vessels, not all insurance costs have soared. Bloomberg said Chinese vessels continue to receive significant discounts. 

In addition to the rising insurance costs, the diversion of vessels from the Red Sea around the Cape of Good Hope is causing containerized shipping costs to skyrocket.


Source: Bloomberg

This shift is straining the world’s containerized capacity, leading to a significant increase in shipping costs for 40-foot containers. Logjams are also forming at some of the world’s top ports, including the Port of Singapore.

Samuel Cranny-Evans, an associate fellow at RUSI, a London-based think tank, warned drone boats “can be difficult to intercept.” 

That said, increasing insurance premiums and freight costs contribute to the sticky inflation story. Thanks, Iran, which is just causing turmoil on the maritime lane via its proxy group, Houthis. 

“Iran is defeating US deterrence and counterstrike in the Red Sea. The stage is set for a similar fight in the Gulf,” David Asher, a senior fellow at Hudson Institute, stated, as war risks are only rising. 

Tyler Durden Thu, 06/20/2024 – 20:40

Read More…


Source: https://freedombunker.com/2024/06/20/escalating-red-sea-attacks-drive-up-vessel-insurance-costs/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Lion’s Mane Mushroom Nootropic

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.


Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.


Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.


Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.


Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.