Several shipping lines, including global giants, have resumed transiting the Suez Canal following the signing of the peace agreement in Sharm el-Sheikh, which led to improved conditions and an end to tensions in the Red Sea region.
Experts stated that a discount has been approved on operational risk insurance for ships transiting the Red Sea, though the discount does not apply to ships bound for Israel.
The French company CMA CGM announced its full resumption of transit through the Suez Canal this December, following a successful and safe trial transit through the Red Sea without any problems.
Experts weigh in
Shipping sources told Al-Masry Al-Youm that the stability of the Red Sea and Bab el-Mandeb Strait region has encouraged many international insurance companies to announce reductions in their premiums for insuring ships transiting the Red Sea.
An international maritime transport expert, Montaser al-Sukari, explained that global maritime transport insurance companies divide ship insurance into two levels: the ordinary insurance level, which is the fixed annual insurance in terms of premium value, and the second being war risk insurance, which raised the value of premiums to a high cost during the war on Gaza.
Another official, from the International Transport Workers’ Federation and head of the Maritime Officers’ Union, Al-Sayed al-Shazly al-Naggar, said that a discount rate was approved on operational risk insurance for ships passing through the Red Sea region, after Huthi attacks on passing ships ceased.
This reduction does not apply to ships heading to Israel, based on the recent meeting of the Protection and Indemnity Club (P&I Club) at its headquarters in Britain, he added.
And an expert in maritime transport economics, Ahmed al-Shami, explained that there is a positive impact of the sea route because it is an element of operating costs, noting that the maximum is six million dollars for large ships that cost $200 million, and the minimum is $1.2 million annually, which he noted is a good indicator.
Edited translation from Al-Masry Al-Youm
