Higher insurance rates for shipowners operating in Russian ports

Rising tensions between Russia and Ukraine have prompted certain insurers to increase their rates for shipowners operating in Russian Black Sea ports.

The "war risk" premium, added to the usual insurance premiums for ship coverage, went up from 1% of the cargo cost to around 1.2%.

This increase brings the overall policy rate up by 200 000 USD to almost one million USD. These figures apply to each trip made by a Suezmax tanker, capable of carrying between 120 000 and 200 000 tons, to India.

According to insurers, this rise mainly affects cargoes carrying Russian oil and refined products.

Following the failure of the grain export agreement between the two countries in July this year, military action in Russian and Ukrainian ports has intensified. Attacks have recently been reported in Russian ports. These have had no impact on oil shipments, but insurers believe the risk is likely to increase.