Shipping rates have surged by 20 percent to 30 percent amid escalating geopolitical tensions, according to Jakob Larsen, chief safety and security officer at BIMCO, one of the largest shipowners’ associations.

Insurance premiums for vessels transiting the Strait of Hormuz have increased over a seven-day period due to heightened concerns about geopolitical tensions, he told CNBC Arabia. 

While shipping operations through the Strait remain largely unaffected for now, Larsen warned that vessel traffic could decline if the conflict escalates.

The daily shipping cost per vessel currently stands at $25,000, the report stated.

Larsen expects insurance premiums to rise tenfold compared to the total value of the vessel based on past geopolitical crisis scenarios.

Many ship operators have opted to limit the number of voyages through the region and are taking precautionary measures to safeguard their vessels against potential attacks, he added.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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