The cost of insuring ships passing through the Red Sea has risen sharply after the resumption of attacks by the Houthis, the Financial Times writes, citing data from Marsh McLennan, the world’s largest insurance broker. According to the company, insurance premiums for risks reached 1% of the value of the ship against a maximum of 0.4% before the attack on the Greek cargo ship Magic Seas on July 6.As a result, the insurance of the ship worth $100 million rose from $300 thousand to about $1 million per voyage, said Marcus Baker of Marsh McLennan.The attack on the Magic Seas, owned by Greek Stem Shipping, was the first since December last year. The ship caught fire and sank in an attack using small arms and rocket-propelled grenades, as well as unmanned boats packed with explosives. Another Greek vessel, the Eternity C, was attacked on Monday, killing three crew members. The Houthis have not yet claimed responsibility for the second attack.Baker warned of further increases in insurance rates if transit through the Red Sea continues. The region remains critical to global trade, and escalation threatens to spike oil prices and disrupt supplies.
