War risk insurance premiums for shipments to Israel are as much as three times higher than a week ago as the war between Israel and Iran entered its fifth day, industry sources said on Tuesday.
The cost of a seven-day voyage to Israeli ports was quoted between 0.7% and 1.0% of the value of a ship, versus around 0.2% a week ago, they said.
War risk premiums to Israel are still below a peak of over 2% in November 2023 that were quoted after a Hamas attack on Israel killed 1,200 people and triggered the Israeli invasion of Gaza.
Individual underwriters will price risk and rates differently, but this will add tens of thousands of dollars of extra daily costs for every voyage.
“Calls specifically to Israel are very much on a case-by-case basis with rates increased to anywhere up to 1% for a 7-day call, dependent on what cargo, ownership and port,” David Smith, head of marine with insurance broker McGill and Partners, told Reuters.
Israel relies on sea lanes for much of its imports which are shipped to gateways that include the Mediterranean ports of Ashdod, which is close to Gaza in the south, and Haifa in the north, as well as the Red Sea port of Eilat.
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