Black Sea Shipping: Rising Risks and Costs
The Black Sea is a crucial hub for shipping, particularly for grain, oil, and other goods. However, the region has become increasingly perilous due to the ongoing war in Ukraine.
Insurance Costs Skyrocket
Insurers are now reviewing policies daily as attacks on ships surge. Vessels heading to Russian or Ukrainian ports require additional insurance, and costs are climbing.
- Just days ago, premiums were lower.
- Now, they range from 0.6% to 1% of the ship's value.
- While this may seem minor, it quickly adds up for shipping companies.
Escalating Tensions
Russia's president has threatened to block Ukraine's sea access in retaliation for recent attacks on tankers. If tensions worsen:
- Insurance costs could surge further.
- Insurers may stop covering ships in the area entirely.
Turkey's Role in Mediation
Turkey is attempting to maintain peace by urging all parties to keep energy infrastructure out of the conflict. However, with attacks occurring near Turkish waters, the risk zone may expand.
Ukraine's Targeting of Russian Oil Exports
Ukraine has claimed responsibility for an attack on two empty tankers last week but denied involvement in a recent drone strike on a Russian tanker carrying sunflower oil.
Heightened Security Measures
Maritime security firms are warning ships to exercise extreme caution, particularly after visiting Russian ports. They recommend checking for limpet mines.
With threat levels rising, shipping companies must remain vigilant to navigate these dangerous waters.
