Cost of Insurance for Merchant Ships Sailing to Black Sea Ports Spirals Out of Control
Written by Black Hot Fire Network on April 11, 2022
The cost of insuring merchant ships sailing to ports in the Black Sea has spiraled out of control, becoming a huge potential impediment to the movement of Russian cargoes from the region.
Underwriters are charging as much as 10% of the value of a ship’s hull — basically the vessel’s worth as an asset — for what is called additional war-risk premium, according to four people involved in the market. Some are simply quoting to cover at prices that they know will be refused. There was almost zero cost prior to the war.
