News / Ocean premiums rocket as insurers back away from Red Sea risk

Photo: © Roman Motizov | Dreamstime.com

In addition to soaring ocean rates and shipment delays from the Red Sea crisis, exporters and importers are grappling with another major trade challenge: insurance cover. 

According to industry sources, most insurance companies are no longer willing to cover cargo sent on voyages transiting the Red Sea route, as they want to ward off the risk of high-value claims from cargo owners. 

Sources also noted that insurers have even pulled back policies already in place for shipments passing through high-risk areas, ...