Insurance rates in the Black Sea have tripled: ship owners fear Russian strikes on exports from Ukraine

Shipowners are bracing for higher insurance costs amid the risk of new Russian attacks on Ukrainian export infrastructure.

Shipowners operating in the Black Sea are expressing concern about possible Russian attacks on ships carrying Ukrainian grain and ammonia, according to the Financial Times.

Against this backdrop, insurance companies are already seeing a threefold increase in the cost of war risk policies for ships entering the Black Sea. According to Marcus Baker, head of marine and cargo at Marsh, in early November insurance cost 0.25–0.3% of the ship’s value, while last week it was already 0.5–0.75%.

The biggest price increase has affected Russian tankers and bulk carriers carrying grain cargo. However, the increase in tariffs is affecting the entire region, including the waters of Ukraine, Georgia and Turkey.

“Russia is likely to escalate against Ukraine, so we are likely to see further rate hikes in the region,” Baker said.

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