Skyrocketing War Risk Insurance for Israeli Shipments Amid Conflict

War risk insurance premiums for shipments to Israel have dramatically increased, now as high as three times the rate from just a week prior, due to the ongoing conflict between Israel and Iran. This escalation, sources informed on Tuesday, has significantly raised the costs for voyages bound for Israeli ports.

Insurance underwriters are individually pricing these risks, leading to a substantial rise in the cost of shipments. According to David Smith from McGill and Partners, voyages to Israel now may incur a risk premium up to 1% of the ship's value, depending on specific circumstances such as cargo type and port of call.

With Israel heavily reliant on maritime routes for imports, the conflict has also seen consequences in port operations, with nearly 30 vessels presently anchored in Haifa Bay. Despite this, Israeli port authorities continue to operate normally, even as threats from Yemen's Houthis cast further uncertainties over the shipping lanes.

(With inputs from agencies.)