Insurance companies increase insurance premiums for tankers using Russian ports

Insurance companies have informed shipping companies that they will increase the “war risk” premium received from tankers using Russia’s Black Sea ports.

After Russia invaded Ukraine in February last year, the war risk premium was added to tanker insurance.

The war risk premium, which represented 1% of the previously insured cargo, increased from 1.02 percent to 1.25 percent, according to four trade sources.

Following Russia’s withdrawal from the Black Sea Grain Corridor agreement last month, there has been increased military activity in both Russia’s and Ukraine’s Black Sea sovereignties.

THERE WERE MANY ATTACKS

In recent weeks there have been numerous attacks on Russian Black Sea ports. Business sources said that there has been no attack on Russia’s oil terminals so far, but the risk has increased.

The increased premiums mean the cost of insurance for each 120,000 to 200,000 ton Suezmax tanker carrying oil from Russia to India will rise by $200,000 to nearly $1 million. (Reuters)