Oil vessel transit costs through the Strait of Hormuz have escalated significantly after the Iran war, led by a sharp climb in additional war risk premiums and cargo insurance costs, an executive from Emirates National Oil Company (ENOC) said, Reuters reports.
Cargo insurance is now a considerable percentage of the value of the cargo being shipped, according to ENOC director Paul Bradshaw.
“I have seen anywhere up to five, six per cent. So that could be another $10 million on your cargo insurance,” Bradshaw told the APPEC conference.
Apart from this, there is also a much higher additional war risk premium for transits.
