War risk insurance rates edge up after surge in Red Sea ship attacks

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War risk insurance premiums have edged up for Red Sea voyages after three vessels were attacked in the area and fears grow over worsening perils for commercial shipping, maritime and insurance sources have said, Reuters reports.

Yemen’s Iran-backed Houthi group claimed drone and missile attacks on what it said were two Israeli vessels in the area.

“It has now become clear the Houthis will attack anything at sea with links to Israel or Israelis, regardless of how feeble the links may be, and regardless of the potential for collateral damage to non-Israelis, for example, crew members,” Jakob Larsen, head of maritime safety & security with shipping association BIMCO, told Reuters.

Israeli military spokesperson Rear Admiral Daniel Hagari said the two ships cited by the Houthis had no connection to Israel. US Central Command said the three vessels were connected to 14 separate nations.

“Faced with a threat from military formations such as the Houthis, merchant ships rely on protection from naval units,” he said. “There is little a merchant ship can do to protect itself against weapons of conflict. Re-routing away from the area is a valid consideration, especially for ships at heightened risk.”

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