Black Sea Shipping: Rising Risks and Costs

The Black Sea is a hotspot for shipping, especially for grain, oil, and other goods. But lately, it's become riskier. Insurers are now checking policies every day because of the war in Ukraine. This war is making waves, literally, as attacks on ships increase. Ships heading to Russian or Ukrainian ports need extra insurance. This isn't new, but the cost is going up. Just a few days ago, the price was lower. Now, it's between 0. 6% and 1% of the ship's value. That might not sound like much, but it adds up quickly. Russia's president has threatened to cut off Ukraine's access to the sea. This is in response to recent attacks on tankers. If things escalate, insurance costs could rise even more. Insurers might even stop covering ships in the area altogether. Turkey is trying to keep the peace. They've asked all parties to keep energy infrastructure out of the conflict. But with attacks happening near Turkish waters, the risk area might expand. Ukraine has been targeting Russian oil exports. They took responsibility for an attack on two empty tankers last week. But they denied involvement in a recent drone attack on a Russian tanker loaded with sunflower oil. Maritime security companies are warning ships to be extra careful. They recommend checking for limpet mines after visiting Russian ports. With threat levels rising, shipping companies need to stay vigilant.