Red Sea shipping insurance rates remain stable despite tensions

Shipping insurance rates in the Red Sea are expected to remain stable following recent U.S. airstrikes on Yemen. These strikes have heightened concerns about potential attacks on vessels by the Iran-aligned Houthi movement. In January, the Houthis had announced a temporary halt to attacks on U.S. and UK-linked shipping, which briefly lowered war risk premiums. However, rates have since increased again, with some ships facing premiums up to 2% of their value. The Houthis have conducted over 100 attacks on ships since November 2023, leading to significant risks for vessels, especially those linked to the U.S. and Israel. The situation remains uncertain, with potential for further increases in insurance rates.