Yemen Monitor/Agencies:
London (Reuters) – Sources in the maritime shipping industry said that shipping costs through the Red Sea are expected to remain high after the US carried out additional airstrikes on Yemen on Monday, increasing concerns over potential new attacks on vessels by the Iran-aligned Yemeni Houthi group.
In response to the Iran-backed group’s threat to international navigation, Washington launched a wave of airstrikes on Saturday.
In January, the Houthis announced they would halt attacks on ships linked to the US and the UK, coinciding with a ceasefire between Israel and the Palestinian Hamas movement in Gaza.
For a brief period after the January announcement, war risk insurance dropped to around 0.5% of a ship’s value, after exceeding 0.7% in December. However, it surged again in February to 0.7% for some vessels.
Industry sources indicated that insurance rates for certain ships linked to the U.S. and the U.K. have reached 2% in recent weeks for those still willing to navigate through the waterway.
On Monday, sources noted that rates are likely to remain stable or potentially increase in the coming days.
On Sunday, Houthi leader Abdul-Malik al-Houthi stated that the group would target U.S. ships in the Red Sea as long as the US continues its attacks on Yemen.
