Reuters Reveals Surge in Insurance Costs for At-Risk Ships in the Red Sea After “Sounion” Tanker Incident

NYN | Reports and analyses

On Wednesday, Reuters reported that insurance costs for ships at risk of being targeted in the Red Sea have nearly doubled following the attack by Sana’a government forces on the Greek oil tanker “Sounion,” which was linked to Israeli ports.

The agency cited sources in the insurance sector stating that “additional war risk insurance premiums for ships sailing through the Red Sea have risen to 0.75% of the vessel’s value, compared to 0.4% before the attack, although they had reached 1% in February.”

The sources added that “the recent increase in costs could amount to hundreds of thousands of dollars per voyage through the region.” Meanwhile, insurance rates for China-owned vessels have reportedly decreased by up to 50% since February, indicating a lower insurance cost for ships that are not considered targets by Sana’a government forces, due to their lack of ties to Israel and their non-American or British ownership.

Thus, the rise in insurance prices is primarily concentrated on ships at risk of being targeted by Sana’a forces, including Israeli and Israel-linked vessels, as well as American, British, and other ships associated with companies dealing with Israeli ports.

Reuters also noted that some insurance companies have stopped providing coverage for ships in the region due to the potential risks, such as the sinking of the “Sounion” tanker.

The agency further reported that the “Sounion” tanker was still burning on Wednesday, and the vessel’s operator, “Delta Tankers,” confirmed that they were doing everything possible to move the ship and its cargo, but for security reasons, they could not provide further details.

Additionally, Reuters quoted a “Houthi source” as saying that “the ship is burning, and there will be no leakage or pollution in the sea.”

Earlier, the European Union’s “ASPIDES” military mission confirmed that there was no oil leakage from the tanker, noting that the fire has continued to burn on the ship since August 23 in the Red Sea.

On Wednesday evening, Mohammed Abdulsalam, head of Sana’a’s negotiating delegation and official spokesperson for the Ansar Allah (Houthi) movement, announced permission to tow the Greek oil tanker “Sounion,” which was targeted and set ablaze in the Red Sea last week.

In a statement posted on his “X” platform account, Abdulsalam said, “After communication with several international parties, particularly Europeans, we have allowed them to tow the burning oil tanker Sounion.”

He added, “We affirm that the burning of the Sounion oil tanker is an example of Yemen’s seriousness in targeting any vessel that violates the Yemeni ban, which prohibits the passage of any ship to the ports of occupied Palestine, to exert pressure on the Zionist entity to stop its aggression against Gaza.”

Abdulsalam also emphasized that “all shipping companies associated with the Zionist enemy must understand that their vessels will remain vulnerable to Yemeni strikes wherever the Yemeni armed forces can reach them, until the aggression stops and the siege on Gaza is lifted.”

It is worth noting that Sana’a government forces announced last Thursday that they targeted the “Sounion” tanker due to the ship’s owner’s violation of the ban on entering occupied Palestinian ports, and the following day, they released footage showing the tanker burning in the Red Sea.

مشاهد لإحراق القوات البحرية اليمنية السفينة اليونانية SOUNION في البحر الأحمر والتي قامت الشركة المالكة لها بانتهاك قرار حظر الدخول إلى موانئ فسلطين المحتلة pic.twitter.com/7h34dJiz2U

— الإعلام الحربي اليمني (@MMY1444) August 23, 2024