The cost of insuring ships against military risks passing through the Black Sea is decreasing
Ukraine’s active recovery of shipments through the alternative sea corridor of the Black Sea is gradually reducing the cost of ship insurance. Spike Brokers experts noted this trend.
The cost of insuring a ship against military risks and damage is gradually decreasing, but still makes up to 2% of the ship’s value. Cargo insurance against military risks is up to 4% of the declared value.
The bulk of shipments from the Black Sea ports are currently made up of leftovers in warehouses since the termination of the previous grain corridor.
The market rates of transportation by water transport from the port of Izmail as of October 11 were:
- Constanta, Romania – 40-45 euros (1-3 thousand tons)
- Eastern Italy – $65-70 (4-6 thousand tons)
- Greece – $55-57 (3-4 thousand tons)
When transporting from the port of Chornomorsk, the indicated rates are as follows:
- Spain – $60-65 (25-35 thousand tons)
- Spain – $50-55 (55-65 thousand tons)
The limited supply of the fleet for sea transportation keeps the rates high, they are overvalued to $40-45 relative to the possible value without military risks.