Insurers Seek to Exclude US, UK Ships From Red Sea Coverage

Published on 1/17/2024
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Cargo Ship
Source: Insurance Journal

Some ship insurers are starting to avoid covering US and UK merchant ships against war risks when they navigate the southern Red Sea, another sign of blowback since the two nations’ airstrikes on Yemen last week.

Houthi militants have stepped up attacks on commercial ships in the past few days, making good on a threat to respond to airstrikes that the US and UK carried out on Friday. They’ve struck two commodity carriers with missiles since Monday, although both were able to continue their voyages.

As a result, underwriters are seeking exclusions for vessels with links to the US, UK and Israel when issuing cover for trips through the area, according to Marcus Baker, global head of marine and cargo at Marsh. It essentially means they won’t provide insurance.