War risk insurance rates for ships passing through the Black Sea have risen following recent attacks on two oil tankers headed for a Russian port. The incidents, involving Ukrainian naval drones, have made insurers and charterers rethink risks and prepare for possible further disruptions.
Insurers now charge about 0.5% of a vessel’s value for a typical week-long trip to Ukrainian ports, up from 0.4% just over a week ago. Trips to Russian Black Sea ports, which usually cost more to insure, are now priced between 0.65% and 0.8%, higher than the 0.6% rates from last week.
The attacks mark a shift in risk, as they could be the start of a longer campaign targeting Russian energy shipments. The two tankers hit were under Western sanctions and sailing empty toward Novorossiysk, a major Russian oil export hub, when struck. Ukrainian officials say the ships were attacked with limpet-type explosives, a tactic seen before but not officially linked to Ukraine.
For insurers and brokers, these events underline the changing and sensitive nature of the Black Sea as a risk zone. According to Munro Anderson, head of operations at Vessel Protect, the attacks appear to be part of a strategy by Ukraine to cut into Moscow’s energy revenues. This has led underwriters to rethink the chances of further attacks and their potential impact.
For shipowners and brokers, higher insurance costs add pressure to an already tough market around the Black Sea. They must consider paying more for cover or choosing different routes or schedules, which could affect shipping rates and supply chains.
Though insurance options still exist, the market is watching closely to see if risks escalate further. This could mean even higher premiums, stricter policy terms, or less willingness from specialized insurers to cover the region. The situation remains fluid as the conflict continues to influence shipping and insurance dynamics in the area.