Financial Times: Major Insurance Companies Exclude Saudi-Linked Ships from Red Sea Risk Coverage

The Financial Times revealed that a number of the largest ship insurance companies in the Lloyd’s of London market are excluding Saudi-linked ships from Red Sea risk coverage.

Special Follow-ups – Al-Khabar Al-Yemeni:

The newspaper stated in its report that “major ship insurance companies in the Lloyd’s market, including Ascot and Navium, have informed brokers that they are excluding ships linked to Saudi Arabia and Saudi ports from war risk coverage in the Red Sea, with existing policies being canceled.”

According to the newspaper, the decision came following the recent attacks carried out by Sana’a forces targeting Saudi ships, threatening to raise insurance costs or disrupt oil export flows through Yanbu port.

This step comes as Saudi oil exports face increasing challenges due to the naval blockade imposed by Yemen on Saudi navigation in the Red Sea and Bab al-Mandab, which has made ships carrying Saudi oil vulnerable to targeting, and has also led to a significant increase in voyage times and shipping costs.

Economic reports indicate that using alternative routes adds about a month to the arrival time of shipments to Asian markets and raises the cost of a single voyage by millions of dollars, given the limited logistical alternatives available to Riyadh.