Photo: AFP/Anadolu Agency/Fareed Kotb
Eurasia
09/03/2024 11:21
Since Nov. 19, the Iran-backed Houthis have been carrying out attacks on commercial ships in the Red Sea they suspect are linked to Israel or heading to its ports, which they say are in support of the Gaza Strip, which has been at war since Oct. 7, 2023, Asharq Al-Awsat reported.
According to the International Monetary Fund, shipping of containers across the Red Sea has fallen by almost 30 percent in one year. Before the conflict, 12 to 15 percent of global trade passed through the region, according to EU figures.
Merchant ships should have 3 types of insurance: hull insurance, cargo insurance, and finally "protection and compensation" insurance, which includes unlimited coverage for damage to third parties.
However, the cost of insuring ships and cargo against conflict-related risks has "risen a lot" under the conditions in the Red Sea region, according to Frédéric Donneville, managing director of Garex Group, which specializes in insuring conflict-related risks, who confirmed that this was done in a manner "proportionate to the threats", according to AFP.
Claire Ammonik, general manager of Ascoma International Insurance, noted that insurance rates "have risen 5-10-fold, whether to guarantee ships or goods crossing the Red Sea."