The cost of insuring vessels that transit Ukraine's shipping corridor in the Black Sea has surged significantly following an escalation in Russian attacks on key ports. As of October 10, 2024, insurance coverage has risen to over 1% of a ship's value, up from approximately 0.75% the previous week, according to market sources who requested anonymity.
For instance, insuring a $50 million ship now incurs an additional $125,000 per voyage due to these heightened risks. This increase reflects the growing instability in the region and its impact on global shipping operations.
The rising insurance costs may have broader implications for international trade, potentially leading to increased shipping fees and disruptions in supply chains, as companies reassess their risks in navigating the Black Sea. The ongoing conflict continues to affect maritime security and economic conditions in the area.
Source: Bloomberg, October 10, 2024