‘No Connection To Israel’ Clause For Ships Taking Red Sea Route
Insurance underwriters are asking clients to sign guarantee contracts having no connection with either Israel or to the US, amid rising insurance premiums for merchant vessels passing through Red Sea trade route.
On November 19, 2023 Houthis hijacked a commercial ship in the Red Sea and since then, they have attacked more than dozen other with drones, missiles and speed boats. Attacks by the Iran backed Houthis militia, on commercial ships traversing the Red Sea and Bab-al Mandeb strait—which is home to a vital link for international shipping and accounts for between 12 and 15 per cent of global trade and about 20 per cent of container trade, according to United Nations —have roughly doubled shipping costs.
Ships that are owned, operated, or flown by Israel, or that are sailing toward Israeli ports, are allegedly the targets of the Houthis. Nonetheless, a large number of the attacked vessels are un to Israel, according to reports.
In order to avoid the Suez Canal, ships are taking the longer route around the Cape of Good Hope in South Africa which adds both time and the cost. Ships passage through Red Sea necessitates expensive war risk insurance offered by brokers to mitigate loss from potential Houthi attacks.
How the Houthis altered the shipping map of #WestAsia. From NYT. pic.twitter.com/P1710LHYJR
— Stanly Johny (@johnstanly) January 23, 2024
The heightened risk is attributed by insurers to Israel”s armed campaign against the Palestinians in Gaza. Underwriters want to protect themselves from covering any vessels connected to the ongoing geopolitical conflicts that underlie the attacks, so they are asking clients to attest that they have no connections to Israel and its Western allies.
The warships have already taken precautions in the past. By indicating that there are no connections to Israel, the Automatic Identification System (AIS), a navigation safety feature, allowed cargo ships pass safely.
It should be noted that Yemeni militia group has not targeted Chinese ships; neither are ships belonging to nations that oppose Israel”s attack in Gaza.
