Black Sea Conflict Drives Up War Risk Insurance Costs | Mariner News
The ongoing conflict in the Black Sea is causing a significant surge in war risk insurance costs, profoundly impacting global shipping operations. Recent Russian and Ukrainian strikes on maritime targets have escalated risks, making it increasingly expensive for shipowners to operate in the region. These rising insurance premiums are now a major deterrent for vessel traffic, adding hundreds of thousands of dollars to voyages, with some rates reaching one percent of a hull’s value for port calls in Ukrainian or Russian waters.
Escalating Premiums and Their Impact
The intensification of hostilities, particularly around strategic ports like Odesa and Novorossiysk, keeps insurers on high alert. Industry reports indicate that insurance contracts are being reviewed daily, with fresh attacks leading to rapid rate adjustments. For instance, a single Suezmax voyage requiring war risk cover could now incur an $800,000 premium. This volatile environment forces shipowners to reconsider routes and operational viability, placing immense financial strain on maritime logistics and trade.
Targeting Tankers and Maritime Security
Recent incidents, such as Ukrainian drone strikes on two Greek-owned tankers near the Caspian Pipeline Consortium terminal, highlight the heightened dangers. While these compliant vessels sustained minor damage and reported no injuries, the attacks underscore the evolving nature of maritime threats in the Black Sea. Such events complicate crude oil transport and raise concerns about the safety of global shipping, urging stakeholders to adapt to an increasingly unpredictable security landscape.
