Exclusive | Middle East Maritime Warfare Insurance Rates Finalized, Oil Tanker Daily Rent Near $800,000, Weekly Jumped 4 Times

WealthCoffee · 2026-03-06T15:02:31+00:00

The shipping war risk premium rate for the Strait of Hormuz has risen to 1% of the vessel's replacement value, with renewal frequency occurring every 7 days, a significant increase from the pre-war rate of 0.25%. Despite preliminary solutions, it remains to be seen when shipping companies will resume passage.

WealthCoffee

2026-03-06 15:02:31

Abstract generation in progress

[Caixin] One of the factors affecting the resumption of navigation through the Strait of Hormuz—the shipping war insurance premium—has a preliminary solution; however, whether shipping companies dare to pass through and when they will start navigating the war zone remains to be seen.

According to Caixin on March 6, several shipping companies have learned that international insurance companies have renewed new war risk insurance contracts for ships entering the Persian Gulf and the Strait of Hormuz. The war risk premium is 1% of the vessel’s replacement value, and it is renewed every 7 days. Before the conflict, the war risk premium in the Persian Gulf was only 0.25%.

The new war risk insurance premium may surge tenfold

“A bit too expensive. If you estimate the congestion at the Persian Gulf ports later, considering the 7-day renewal rule, the insurance cost for one oil shipment could be 2% or 3%,” said a shipping industry insider. “Insurance companies will offer different no-claims bonus (NCB) rewards on top of the base rate for each company. For example, if your claims history is good, your NCB could be adjusted to 0.8%, which is like an 80% discount.”

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