Latest news with #MarcusBaker
Bloomberg
11-07-2025
- Business
- Bloomberg
Red Sea Insurance Premium Spikes as Houthi Risks Return
The cost of insuring commercial ships that sail past Yemen's Houthi militants surged after the rebels sank two ships and killed sailors this week, underscoring how the attacks have revived risk in the crucial waterway. Shipowners now have to pay about 1% of a ship's value if they want to pass through the Red Sea, said Marcus Baker, global head of marine cargo and logistics at Marsh McLennan, the world's largest insurance broker. That's up from 0.2% to 0.3% in recent months, a period when there had been a lull in attacks.
Yemen Online
24-06-2025
- Business
- Yemen Online
Insurance Costs for Ships in Strait of Hormuz Rise Over 60%
Insurance prices for ships travelling through the Strait of Hormuz have jumped more than 60% since the start of the war between Israel and Iran as the conflict threatens shipping in a key chokepoint for crude oil, the Financial Times newspaper wrote on Wednesday. As of this week, the cost of hull and machinery insurance for ships passing through the strait — a narrow waterway between Iran and Oman, connecting the Gulf to the Arabian Sea — as well as the wider Gulf area had risen from 0.125% of the value of the ship to about 0.2%, according to the world's largest insurance broker Marsh McLennan. This pushes the cost of cover for a $100 million ship from $125,000 to $200,000. Hull and machinery insurance covers damage to the ship itself, as opposed to cargo or third-party liability. 'We've not yet seen a missile fired at a ship in the Arabian Gulf, so what it represents is the market saying, look, there's definitely a heightened level of concern about the safety of shipping in the region,' Marcus Baker, global head of marine and cargo insurance at Marsh McLennan, told the Financial Times. Prices could rise further, he added. Ships trying to pass through the strait face a range of dangers, from electronic interference to attacks by the Iran-backed Houthi group and the threat of further escalation by Israel and Iran, said brokers and insurers. On Monday there was a collision between two oil tankers near the Strait of Hormuz. While the cause of the crash has not yet been publicized, one ship had transmitted atypical signals about its position, raising concerns about electronic interference. Baker said insurers were also worried that Houthi militants could widen their attacks, damaging more ships than the US, UK and Israeli-flagged vessels they have generally been targeting. The market is 'concerned about every vessel' travelling through the area because of Houthi attacks, Baker said. Some insurers could stop offering cover because of the risks, he added, but others might see any pullback as an opportunity. 'War itself, as an insurance product, tends to you lose everything or make a fortune. And many fortunes have been made by underwriters prepared to take a risk,' he said.
See - Sada Elbalad
18-06-2025
- Business
- See - Sada Elbalad
Strait of Hormuz Vessel Insurance Rates Jump 60% over Rising Geopolitical Risks
Taarek Refaat Insurance premiums for vessels transiting the Strait of Hormuz have surged more than 60% in recent days, as rising geopolitical tensions between Iran and Israel cast a shadow over one of the world's most vital oil shipping lanes. According to a report by the Financial Times, hull and machinery insurance—which covers physical damage to ships—has jumped from 0.125% to around 0.2% of a vessel's value since the start of the conflict. For a ship valued at $100 million, this equates to a rise from $125,000 to $200,000 in insurance costs per passage, based on data from Marsh McLennan, the world's largest insurance brokerage. The Strait of Hormuz, a narrow maritime corridor between Iran and Oman, is a strategic chokepoint through which about a fifth of global oil supply flows. The increase in insurance premiums underscores mounting fears of disruption, despite no direct attacks on commercial vessels being reported so far in the Gulf. 'We haven't seen a missile fired at a ship in the Arabian Gulf yet, so this is a signal from the market of growing concern,' said Marcus Baker, global head of marine and cargo insurance at Marsh McLennan. 'Prices could rise further.' Concerns are being driven not only by the threat of missile strikes but also by electronic interference, Houthi rebel activity, and the potential for direct U.S. or Israeli military involvement in the region. On Monday, two oil tankers collided near the Strait, and one was found to be transmitting unusual location signals, fueling suspicions of GPS spoofing or jamming. Insurers are increasingly wary of the Houthis, a Yemeni militant group backed by Iran, possibly expanding their attacks to target U.S., U.K., and Israeli-flagged vessels more aggressively. While some insurance providers may consider withdrawing coverage, others are prepared to assume the risk, Baker noted. 'War itself, as an insurance product, tends to be… lose everything or make a fortune. Many insurers have made significant fortunes willing to take the risk.' Although cargo insurance—which covers goods like crude oil—has yet to rise as sharply, brokers expect those rates to climb soon as well, especially if shipping disruptions continue or the conflict escalates. In parallel, analysts at Nomura are warning that ongoing trade tensions, especially between the U.S. and Asian economies, will keep tariffs elevated, particularly in the context of U.S.-China rivalry, further complicating the global trade landscape. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
Yahoo
18-06-2025
- Business
- Yahoo
War Premiums Explode: Oil Tankers Face 60% Surge to Cross World's Most Dangerous Waterway
Insurance costs are rising fast for oil tankers passing through the Strait of Hormuzone of the world's most critical energy chokepoints. According to Marsh McLennan, war risk premiums for hull and machinery insurance have jumped from 0.125% to roughly 0.2% of ship value since the Israel-Iran conflict escalated. For a $100 million vessel, that's a jump from $125,000 to $200,000. The higher price reflects rising concern among underwriters that a broader regional escalationor even a single high-profile incidentcould disrupt the already fragile Gulf shipping lanes. Shipowners aren't just facing abstract risks. This week, two tankers collided near the Strait, with at least one vessel reportedly transmitting erratic signals, fueling speculation about potential electronic interference. Meanwhile, insurers are increasingly uneasy that Houthi forces may expand their attack scope beyond just U.S., U.K., or Israeli-affiliated vessels. Marcus Baker, global head of marine and cargo at Marsh, said that while no missiles have hit ships in the Gulf so far, the industry is pricing in a far more volatile backdrop. With the war insurance market on edge, rates could rise further in the weeks ahead. Some insurers may pull back entirely. Others might lean in, betting on outsized gains in a high-risk, high-reward environment. War itself, as an insurance product, tends to be either you lose everything or make a fortune, Baker noted. That dynamicuncertainty mixed with profit potentialis exactly what keeps investors alert. For companies exposed to shipping or energy, including Tesla (NASDAQ:TSLA), which relies on stable supply chains, risks in the Strait could become a meaningful cost variable. As the conflict simmers, the market is recalibrating what it costs to move oil through one of the most strategically sensitive stretches of water on the planet. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
War Premiums Explode: Oil Tankers Face 60% Surge to Cross World's Most Dangerous Waterway
Insurance costs are rising fast for oil tankers passing through the Strait of Hormuzone of the world's most critical energy chokepoints. According to Marsh McLennan, war risk premiums for hull and machinery insurance have jumped from 0.125% to roughly 0.2% of ship value since the Israel-Iran conflict escalated. For a $100 million vessel, that's a jump from $125,000 to $200,000. The higher price reflects rising concern among underwriters that a broader regional escalationor even a single high-profile incidentcould disrupt the already fragile Gulf shipping lanes. Shipowners aren't just facing abstract risks. This week, two tankers collided near the Strait, with at least one vessel reportedly transmitting erratic signals, fueling speculation about potential electronic interference. Meanwhile, insurers are increasingly uneasy that Houthi forces may expand their attack scope beyond just U.S., U.K., or Israeli-affiliated vessels. Marcus Baker, global head of marine and cargo at Marsh, said that while no missiles have hit ships in the Gulf so far, the industry is pricing in a far more volatile backdrop. With the war insurance market on edge, rates could rise further in the weeks ahead. Some insurers may pull back entirely. Others might lean in, betting on outsized gains in a high-risk, high-reward environment. War itself, as an insurance product, tends to be either you lose everything or make a fortune, Baker noted. That dynamicuncertainty mixed with profit potentialis exactly what keeps investors alert. For companies exposed to shipping or energy, including Tesla (NASDAQ:TSLA), which relies on stable supply chains, risks in the Strait could become a meaningful cost variable. As the conflict simmers, the market is recalibrating what it costs to move oil through one of the most strategically sensitive stretches of water on the planet. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
