Red Sea Navigation Faces Uncertainty as Insurance Firms Refuse Coverage for Key Routes

 

Red Sea Navigation Faces Uncertainty as Insurance Firms Refuse Coverage for Key Routes

In response to recent military actions carried out by the US, particularly in its attacks on Yemen, and the decision to extend support to Israel and vessels heading to occupied Palestine in the Red Sea, there has been a notable development reported by Yemen's Al Masirah news network.

The measures taken by insurance companies have been described as both crucial and exceptional in light of the current geopolitical situation. The reports highlight the significance of these actions, stating that discontinuing insurance coverage for Israeli ships would have profound implications, forcing them to consider alternative routes.

One such option involves navigating around Africa via the Cape of Good Hope, situated southwest of South Africa. However, this choice would inevitably extend the sailing time by at least two weeks, incurring additional costs for the eastward journey.

The alternative option presented is the utilization of logistic ports in the Eastern Mediterranean. Under this scenario, goods would be unloaded and subsequently reloaded onto ships linked to Israel. This strategic shift emphasizes the far-reaching consequences of the insurance companies' decisions.

Adding to the complexity of the situation, a Zionist newspaper has reported that Israeli companies are set to implement price hikes on select food products, ranging from 7% to 15%, starting from the upcoming month. Furthermore, maritime transportation costs to occupied Palestine have surged from $1,500 to $7,200, resulting in a doubling of transportation duration from 35-40 days to 65-80 days, as revealed by the same newspaper.

Earlier revelations from international sources, including Bloomberg and CNN, have shed light on insurance companies refusing to cover risks for American and British ships navigating the Red Sea. The increased threats stem from the military actions undertaken by the US and Britain against Yemen.

Sana'a, in response, has consistently emphasized its commitment to ensuring the security of navigation in the Red Sea for all ships, with the exception of Israeli and American vessels or those destined for the occupied ports in Palestine. This commitment comes with a clear warning to Washington against the militarization of the Red Sea, especially following the announcement of a maritime "alliance" aimed at protecting Israel.

It is worth noting that the Israeli regime initiated a war on Gaza on October 7, triggered by a surprise operation by the Palestinian Resistance into the occupied territories. The operation was a response to the ceaseless atrocities committed by the Israeli regime against the Palestinian people. The geopolitical shifts and economic repercussions discussed underline the profound impact of recent events on various aspects of international trade and relations.