Home NewsMaritime Tanker owners face high insurance prices due to the tension in the Middle East.

Tanker owners face high insurance prices due to the tension in the Middle East.

by Bunkerist
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Although the US and Iran seemed to have given a signal to prevent conflict, Tanker shipowners are preparing to make large payments to insurance companies due to tensions last week.

According to sources, premiums known as the war risk premium applied to tankers passing through the Strait of Hormuz may increase significantly and reflect as an additional cost item to the transportation cost.

Approximately 20% of the world’s crude oil supply and a quarter of the liquefied natural gas (LNG) supply is transported by tankers passing through the Strait of Hormuz. The fact that the strait of Hormuz is closed by a decision taken by Iran as a result of geopolitical, economic and political reasons in the region causes the fossil fuel prices to skyrocket.

Saudi Arabia in the region is the world’s largest crude oil exporter, and Qatar is the largest LNG exporter. If these countries cannot export products, a great chain reaction occurs and it is not limited to the shortage of oil alone. In this case, all the countries of the world and all sectors are damaged.

Maritime Industry want to worry less about extra costs, saying that current freight prices include potential risks, risks are included in current pricing, and prices will not change unless there is a new unusual attack.

 

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