The price of insurance for merchant ships in the Black Sea has tripled over the past month and, according to international brokers, is likely to continue rising, ProAgro Group reports.
While in early November, insurance rates for military risks were around 0.25–0.3% of the ship’s value, this week they have already reached 0.5–0.75%, and for voyages involving Russian ports and ships, premiums are as high as 1%.
The most dramatic increase in insurance costs has been for oil tankers and bulk carriers transporting bulk cargo, particularly grain. The reason for this jump was Ukraine’s attacks on ports and ships of the Russian shadow fleet, which significantly increased the risks for shipping in the region.
The increase in insurance costs directly affects the cost of transportation and may affect prices on world markets, as the Black Sea remains a key route for the export of grain, oil, and petroleum products.
Earlier it was reported that the Black Sea freight market is entering the second half of November with stable rates.
