A missile attack on the Norwegian-controlled tanker off the coast of Yemen is set to trigger further hikes in war risk rates in the Red Sea.
The 20,000-dwt Strinda (built 2006) is entered with Oslo-based Norwegian war risk mutual DNK, but the fallout from the attack is likely to be felt right across the commercial marine insurance market.
The attack came as the Joint War Committee (JWC) is set to meet this week for its regular quarterly meeting.
The JWC, which represents the London insurance market, does not set rates but identifies listed areas of high risk to shipping where additional premium is paid.
All eyes will be on the meeting to see if the JWC takes any action to widen its listed area in response to the latest attack.
Brokers suggest that commercial insurance rates in the region could hit 0.25% following the Strinda incident.
A major claim is not expected to result from the damage to the ship, which was caused by what is thought to have been an anti-ship cruise missile.
The ship is safe and heading for a safe port under escort. Its crew were unharmed and were able to put out the fire.
Underwriters are concerned that the Strinda incident could signal the start of indiscriminate attacks against shipping by the Houthi group.
The Yemeni-based outfit, which is behind a series of attacks on shipping, had said they would only attack Israeli-linked vessels or ships heading for Israeli ports.
The Strinda has no connections with Israel. It is controlled by Norway’s J Ludwig Mowinckels Rederi and was heading for Italy, with cargo loaded in Malaysia.
This incident completely changes the picture
War risk underwriter
There is some suggestion that it might have mistakenly been listed as heading for the Israeli port of Ashdod, which led to the attack.
“This incident completely changes the picture,” said one war risk underwriter. “Ships without any connection with Israel are either mistakenly or deliberately being targeted, and that means any ship in the area is at risk.”
