War insurers recommend a temporary suspension of the Hormuz route
Some war insurers have advised shipowners to temporarily suspend voyages on the Strait of Hormuz route. As Hormuz is a major corridor for crude oil and cargo, an immediate impact on shipping plans and insurance premiums is expected.
Some war insurers have advised shipowners to temporarily suspend operations on routes passing through the Strait of Hormuz. Because the Strait of Hormuz is one of the world's major shipping routes, it could have an immediate impact on shipping schedules and insurance terms.
The recommendation came in the wake of recent attacks in the Gulf. It is said to apply to some shipowners and vessels, and not to be an industrywide policy.
War insurance is insurance that separately covers losses caused by conflict or attacks. When such insurers recommend suspending operations, shipowners are prompted to consider rerouting or holding voyages.
Shipowners may choose alternative routes or receive additional conditions when renewing insurance. It is reported that some shipowners are already reviewing route adjustments and schedule changes.
This recommendation is directly linked to tanker and bulk carrier freight rates, port congestion, and movements in related insurance premiums. Shipping delays and rising transportation costs could affect the expenses of export and import companies.
7As of 8the recommendation is reported to have been made at the level of some insurers. Depending on how the situation develops, shipping operations and the insurance market may respond differently.
Sources: Reuters
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