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Red Sea ship insurance prices jump as Houthis resume attacks

Sunday’s assault by the group was the first since December, prompting concerns about an escalation

The cost of insuring vessels passing through the Red Sea has surged since Houthi militants resumed attacks on commercial vessels, threatening to disrupt global trade, according to the world’s largest insurance broker.

Premiums charged for war risks in the stretch of water between Africa and Asia rose to as much as 1 per cent of the overall value of a ship by Tuesday, from a maximum 0.4 per cent before Sunday’s attack on a Greek-owned cargo ship.

Marcus Baker, head of marine and cargo for Marsh McLennan, said this meant the cost of cover for a $100mn vessel had increased from about $300,000 per voyage to as much as $1mn.

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