Insurance costs in the Black Sea tripled after attacks on Russia’s “shadow fleet”

The cost of insuring ships in the Black Sea continues to rise amid attacks on tankers by the Russian “shadow fleet.”

This is reported by “Ekonomichna Pravda” with reference to the Financial Times.

According to insurance brokers, prices for insurance against military risks have increased from 0.25-0.3% of the cost of the ship in early November to 0.5-0.75% in early December. In fact, this is a 250% increase in price.

Marcus Baker, head of the maritime transportation department at brokerage Marsh, noted that the largest price increases were recorded in the areas of the Black Sea adjacent to Russia, as well as near Ukraine, Georgia and Turkey.

Baker noted that Russia will escalate the situation in Ukraine, so the increase in rates in the region is likely to continue.

According to market participants, the rates for tankers and bulk carriers associated with the Russian Federation have increased most sharply. Maritime security experts say such incidents are making shipowners worry that even vessels engaged in legal trade could be targeted.

USM previously reported that the Ukrainian Navy responded to Turkey’s concerns over the attack on Russian tankers.

Read also: New risks in the Black Sea: how the market reacted to the attack on tankers operating with sanctioned oil