Jun 15, 2019, 6:14 PM

Ship insurance costs soar after tanker incidents: report

Ship insurance costs soar after tanker incidents: report

TEHRAN, Jun. 15 (MNA) – Insurance costs for ships sailing through the Middle East have increased by at least 10% after attacks on two tankers in the Sea of Oman on Thursday, with the potential for costs to rise further as regional tensions escalate, ship insurers said.

The attacks have already stoked concerns about reduced flows of crude oil on one of the world's key shipping routes, pushing up oil prices by as much as 4.5%.

Freight rates for supertankers transporting oil from the Persian Gulf to Asia were already close to a two-month high on Thursday at nearly $13,000 a day, up nearly $2,000 from Wednesday, Reuters reported.

Every ship needs various forms of insurance, including annual war-risk cover as well as an additional 'breach' premium when entering high-risk areas. These separate premiums are calculated according to the value of the ship, or hull, for a seven-day period.

On Thursday morning, two oil tankers – one sailing under a Panama flag and owned by Japan and another bearing the Marshall Islands’ ensign owned by Norwegian Frontline – were hit by yet unspecified accidents in the Sea of Oman. Iranian rescuers rushed to the assistance, transferring all of their 44 crew members to Iran's southern shores.

MA/FNA13980325000240

News ID 146448

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