War risk insurance companies raised insurance premiums on American, British, and Israeli ships crossing the Red Sea by up to 50%. Houthi attacks since November have slowed trade between Asia and Europe and alarmed major powers.
Many companies have resorted to rerouting ships to circle around South Africa, although some ships are still crossing Red Sea. “The ships that have encountered problems so far are almost all linked, in some way, to Israeli, American or British ownership,” said Marcus Baker, global head of marine and shipping services at Marsh Insurance.