Maritime war risk premium in the Middle East could rise if the Israel-Iran conflict escalates, after the latest Israeli attacks.
The extra war risk premium is around 0.05% to 0.07% of a ship’s hull and machinery value for spending 7 days in the Persian Gulf and has remained unchanged for the last 18 months.
According to a charterer, naphtha importers in North Asia are paying 50,000 dollars per voyage from the Persian Gulf because of the region’s designation as a high-risk area by a consortium of maritime insurers for the last 6 years.
The HRA designation came after several attacks on oil tankers in the region, with one notable case being the LR2 tanker Front Altair in June 2019.
However, insurers also provide discounts for owners with large fleets, either by allowing crossings longer than 7 days or by combining the transit periods of two or more vessels in the same fleet to lower costs.
A VLCC broker said that, discounts or no discounts,
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