Freight charges and insurance premiums for shipping vessels navigating on global routes are anticipated to surge amid escalating tensions between Iran and Israel. The heightened threat level poses a significant risk for ships destined for Western European countries and the US. Industry experts project that freight rates have already climbed by approximately $100 per container for vessels transiting the Red Sea due to disruptions and capacity limitations.
The war risk insurance premium, previously at 0.05%, has spiked to between 0.75% and 1% of the insured value of the vessel in response to the increased regional risks associated with Houthi activity. Industry insiders warn that these elevated premiums could see further increases. In response to the current situation, major shipping companies like AP Moller-Maersk have announced peak season surcharges on certain routes, indicating space constraints and higher fares across the industry.
While recent incidents of cargo shipments have been charged around $2,000 per container to Europe and $3,600 to the US, shipping lines are adjusting operations to account for the evolving situation and potential disruptions. The ongoing tensions between Iran and Israel have necessitated companies to reconsider route options and security measures to mitigate risks.
