Global insurers halt coverage for Israeli ships amid Houthi attacks in the Red Sea, says Israeli daily

Jerusalem (Quds News Network) – Global insurance companies have ceased coverage for Israeli ships in the aftermath of recent attacks by Yemen’s Houthi movement targeting Israeli and Israeli-bound ships in the Red Sea, according to Israeli newspaper Globes.

This decision leaves Israeli ships with two challenging options: navigating around Africa through the Cape of Good Hope, adding at least two extra weeks and increased expenses to their journey, or utilizing feed ports in the eastern Mediterranean, where goods would be unloaded and reloaded onto ships headed for Israeli ports.

According to Globes, international insurance coverage for Israeli, American, and British ships sailing in the Red Sea has been suspended, as indicated by the specialized shipping networks CNN and Lloyd’s List, cited by the Hebrew publication.

Insurance premiums for ships in the Red Sea have seen a significant spike, jumping from 0.01% of the cargo value to 1% in early December. This means that a container ship carrying $100 million worth of goods would now need to pay an additional million dollars for shipping insurance through the Red Sea.

Marcus Baker, the global president of maritime, shipping, and logistics services at Marsh, a subsidiary of Marsh McLennan, stated to CNN that the insurance market is notably tightening for ships owned or affiliated with the United States, the United Kingdom, or Israel traveling through the Red Sea.

While Patricia Kern, Head of Insurance at Brieze Insurance, claimed unawareness of insurance companies officially withdrawing coverage for sailing through the Red Sea, she anticipates higher premiums, particularly amid indications of the failure of efforts to deter Houthi attacks.

Among major Western shipping companies that continued sailing in the Red Sea, CGM, accompanied by French warships, succumbed to pressure this week and redirected a container ship’s route around the Cape of Good Hope.

Kern emphasized that avoiding the Red Sea route remains the best course of action, but she noted that rerouting around the Cape of Good Hope, adding 8 to 10 days to sailing times, also poses a problem. She added, “The longer goods stay at sea, the greater the risk they face.”

Many maritime shipping companies continue to avoid the Red Sea due to concerns about potential harm from Houthi threats to Israeli ships or those carrying Israeli goods.

The Houthi movement has been attacking Israeli ships in the Red Sea in a show of solidarity with Gaza, which has been under a relentless Israeli war of genocide since October last year.