Tanker Insurance Costs Surge Tenfold Amid Insecurity in the Strait of Hormuz
According to Sedaye Sama News Agency, citing OilPrice, more than 150 days after the outbreak of military tensions in the region, the repercussions for the strategic Strait of Hormuz and global energy trade continue, while maritime traffic in the Persian Gulf has declined significantly.
The report states that growing security risks in the Strait of Hormuz have driven insurance premiums for oil tankers and commercial vessels to increase by as much as tenfold compared with pre-crisis levels. Under normal conditions, war-risk insurance premiums averaged around 0.25% of a vessel’s value, but they have now risen to between 3% and 10% of the ship’s total value.
For example, the insurance cost for a $100 million oil tanker has increased from $250,000 to between $3 million and $10 million. For a $250 million tanker, premiums have jumped from $625,000 to between $7.5 million and $25 million.
In addition, some tanker owners are demanding separate risk premiums for voyages to the Persian Gulf, adding hundreds of thousands to several million dollars to the cost of each trip.
At the same time, tanker freight rates on major Persian Gulf routes have nearly doubled due to the reduced number of available vessels and longer waiting times, significantly increasing the cost of oil exports from the region.
Source: Mehr News Agency
