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Incident

ENGINE: War-risk premium soars to 0.75-1% as the Red Sea attacks enter third month

Heightened insurance rates can actually make the Cape of Good Hope routing more cost effective for carriers relative to the Suez Canal despite the higher bunker fuel costs, says Flexport.

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RESIZED Chris Pagan

War-risk insurance premium has now climbed to 0.75-1% of the vessel’s value, according to US-based supply logistics firm Flexport reports.

According to Flexport, shipowners will now have to pay roughly $1-2.5 million for war-risk insurance cover, depending on vessel age, size and type.

In addition to the soaring annual premium, shipowners will also have to pay an additional premium if they want to transit via the Red Sea. It is because several Protection and Indemnity (P&I) clubs have expanded their additional premium zones across the Indian Ocean, Gulf of Aden and Southern Red Sea.

“The heightened insurance rates can actually make the Cape of Good Hope routing more cost effective for carriers relative to the Suez Canal despite the higher fuel costs,” Flexport writes.

Major container lines avoid Red Sea as attacks enter third month

Yemen’s Houthi rebel group started attacking commercial ships in the southern Red Sea and the Bab al-Mandeb Strait between Yemen and Africa on 19 November 2023.

Since December, over 26 vessels have faced missile strikes, near misses or threats from the Houthis, according to marine risk management firm Ambrey. This includes vessels owned by major shipping companies, including A.P. Moller-Maersk, Mediterranean Shipping Company (MSC) and CMA CGM.

Several shipping companies, including MSC, Maersk, Hapag-Lloyd, Wan Hai Lines, Ocean Network Express (ONE), HMM, Evergreen and Yang Ming, have rerouted their vessels via the longer Cape of Good Hope route to avoid these attacks.

As of 18 January, 549 container ships have been diverted or are planning to reroute via the Cape of Good Hope instead of the Suez Canal route to avoid Red Sea attacks, Flexport says.

Meanwhile, Bloomberg reported that “some ship insurers are starting to avoid covering US and UK merchant ships against war risks when they navigate the southern Red Sea,” citing Marcus Baker, global head of marine and cargo at Marsh. This could result in US and UK-based commercial shipping companies also rerouting through The Cape of Good Hope in the near future.

By Konica Bhatt

 

Source: ENGINE
Photo credit: Chris Pagan on Unsplash
Published: 23 January, 2024

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Incident

Rotterdam port explosion kills one, injures six at petroleum storage facility

Blast occurred during maintenance work at a petroleum storage facility, with authorities investigating the cause and no immediate indication of sabotage, according to Reuters report.

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MarineTraffic / Rolf Bridde

An explosion at a petroleum storage facility in the Port of Rotterdam, Europe’s largest port, killed one person and injured six others on Thursday (13 August), Reuters reported.

The blast occurred at around 11.30 am local time. Gunvor, which operates oil product storage tanks at the site, said the incident took place while maintenance work was being carried out on one of its storage tanks.

Police said there was no immediate evidence of sabotage, although all possibilities remained under consideration.

Gunvor added it was cooperating with the authorities. 

 

Photo credit: MarineTraffic / Rolf Bridde
Published: 17 August, 2026

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Environment

Indonesia to expedite removal of sunken Malaysia-flagged tanker “Silver Sincere”

Vessel sank while carrying about 1,000 mt of waste oil on 12 January 2025; the wreck was discovered in March 2025 and was found to have drifted about 13 nautical miles from its original sinking site.

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Indonesia to expedite removal of sunken Malaysia-flagged tanker “Silver Sincere”

Indonesia’s Coordinating Ministry for Political and Security Affairs on Tuesday (14 July) held a cross-agency coordination meeting to expedite efforts in handling the Malaysian-flagged tanker Silver Sincere that sank off Bintan Regency, Riau Islands.

The vessel sank while carrying about 1,000 metric tonnes (mt) of waste oil on 12 January 2025. 

According to authorities, the ship sank within Indonesian waters. After several surveys, the wreck was finally discovered in March 2025 and it was found to have shifted approximately 13 nautical miles from the initial sinking location.

The meeting was aimed to align cross-ministerial and institutional measures to expedite the handling of the Silver Sincere wreck while minimising risks to shipping safety, the marine environment, and national interests.

Deputy for Coordination of State Defense and National Unity Purwito Hadi Wardhono emphasised that the handling of the impact of the Silver Sincere sinking was the first case to be comprehensively coordinated, serving as a model for handling foreign vessels sinking within Indonesian jurisdiction.

Through this cross-sectoral coordination, the government will establish a clear and measurable framework that can serve as a reference for resolving similar cases in the future, while minimising state losses due to environmental pollution, damage to underwater ecosystems and infrastructure, and disruption to shipping lanes.

“The most important thing is to immediately stop and prevent the negative impacts of this ship sinking,” Purwito said.

“Therefore, a coordinating role is crucial, as maritime security governance involves various ministries and institutions with varying authorities, allowing for faster, more integrated, and more effective response,” he said. 

He added that the Silver Sincere was a Malaysian-flagged vessel that sank within Indonesian jurisdiction, and therefore, all handling processes must comply with the provisions of Indonesian laws and regulations.

In the meeting, Prof. Eko Ganis Sukoharsono, representing the SAE Energy Consulting Team, presented the results of an analysis based on 14 observation periods using Sentinel-1 Synthetic Aperture Radar (SAR) satellite imagery. 

The analysis results showed strong indications of a waste oil spill that has resulted in marine pollution, damage to the seabed due to shifting shipwrecks, disruption of coastal ecosystems and fishing grounds, and potentially threatening the livelihoods of fishing communities around the Riau Islands. 

Purwito added these findings further emphasise the importance of accelerating the removal of the shipwrecks to prevent widespread environmental impacts, maintain shipping safety, and avoid the potential for greater state losses.

The meeting brought together representatives of related ministries and institutions including the Ministry of Foreign Affairs, Ministry of Defense, Ministry of Transportation, Ministry of Maritime Affairs and Fisheries, Ministry of Environment, Attorney General’s Office.  

Related: MPA: Malaysia-registered tanker “Silver Sincere” sinks off Pedra Branca

 

Photo credit: MarineTraffic / Julian T
Published: 20 July, 2026

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Incident

Port of Antwerp-Bruges restores partial shipping operations after acid leak

Port authority said a container of hydrofluoric acid was damaged and began leaking aboard the cargo vessel “Mia Summer II” at the Deurganck Dock on 14 July.

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Port of Antwerp-Bruges

The Port of Antwerp-Bruges on Wednesday (15 July) said shipping operations are permitted throughout the port area on the left bank in the port after an acid leak from a damaged cargo vessel disrupted operations. 

In a notice on its website, the port authority said a container of hydrofluoric acid (HF or hydrogen fluoride) was damaged and began leaking aboard the cargo vessel Mia Summer II at the Deurganck Dock on 14 July. 

Several workers became unwell as a result. They received immediate medical care and were evacuated to various hospitals.

The municipal emergency response phase was activated with emergency services responding in large numbers, carried out air quality measurements, and implemented measures to bring the situation safely under control.

Shipping traffic was suspended temporarily in the affected area.

On 15 July, the port authority said all terminals, except for MPET’s, were permitted to resume operations.

Specialist teams are on standby to remove the container from the vessel.

 

Photo credit: Port of Antwerp Bruges
Published: 16 July, 2026

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