Lloyd’s List: Ships Linked to Israel, the U.S., and the U.K. Face Difficulties in Securing War Risk Insurance Due to Houthi Attacks
NYN | Reports and analyses
The British newspaper “Lloyd’s List,” specializing in maritime shipping affairs, has reported that ships linked to Israel, the United States, and the United Kingdom are facing increasing difficulties in securing war risk insurance due to being targeted by the Sanaa government forces (Houthis).
In a report published on Friday, the newspaper stated that “ships associated with the United Kingdom, the United States, or Israel have been forced to pay higher premiums for insurance due to ongoing Houthi attacks on these vessels.”
The report, citing insurance companies, added that crossing the Red Sea has become “impossible” for ships with connections to the United States, Britain, or Israel.
The report explained that insurance companies have suffered losses due to damage to several ships, such as “Rubymar,” “True Confidence,” and “Totor,” as a result of Houthi attacks.
However, the report noted that insurance companies have not adhered to altruistic standards but have financially benefited significantly from the increased premiums for unexpected risks since the beginning of Houthi attacks last November. It mentioned that these companies have seen windfall profits reaching nine figures in U.S. dollars through these premiums.
The report confirmed that “ships associated with the United Kingdom, the United States, or Israel have been forced to pay higher premiums for insurance and that insurance may not be available at all for these ships, at least not at economically acceptable rates for operators.”
The report also highlighted that “Operation Poseidon Archer,” the U.S. and British operation against Yemen, which has cost hundreds of millions of dollars over the past few months, “has done little to suppress the Houthis’ ability to launch drone and missile attacks against commercial ships,” adding that “the logic of continuing this operation is open to debate.”
The challenges faced by ships linked to Israel, the United States, and the United Kingdom in obtaining insurance confirm the narrative presented by the Sanaa government forces regarding the categories of vessels at risk.
A previous report by Reuters indicated that war risk insurance premiums for ships considered at risk of targeting by the Sanaa government forces had risen significantly after the attack and burning of the tanker “Sonion.” Premiums increased from 0.4% to 0.75% of the ship’s value, while insurance premiums for other ships not facing similar risks remained at lower levels.
The increase in insurance costs has led to a rise in shipping costs to the United States, Britain, and Israel, with shipping rates to these three destinations quadrupling since the start of the Sanaa government forces’ attacks. The significant delays caused by the need for targeted ships to divert and sail around the Cape of Good Hope also contribute to disruptions in trade between these countries.
