War Cover Is Available for Ships Crossing Hormuz, Broker Says

Article content(Bloomberg) — The London insurance market is willing and able to cover vessels looking to transit the Strait of Hormuz, according to broker Arthur J. Gallagher & Co. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe cover includes ships that plan to remain in the Persian Gulf, as well as those that are looking to enter or exit the area via the Strait of Hormuz, said Angus Blayney, marine divisional director at Gallagher. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“Over the last few days Gallagher found marine war risk solutions for numerous existing clients and has also supported new assureds in finding cover where their current broker has been unable to access it,” Blayney said, without providing details of the insurance. “This availability applies to both vessels which are currently in the Persian Gulf and not planning to exit the region, plus those that are looking to travel enter or exit the area via the Strait of Hormuz.”Article contentArticle contentThe ability to purchase insurance for Hormuz suggests that the biggest reason ships aren’t navigating the waterway is not because they can’t get cover, but rather because shipowners and their crews deem the risk of passage through the middle of a warzone to be too great. Several vessels have been attacked since the war began, including one on Thursday. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentInsurance rates have increased from “levels that owners and charterers will be used to,” Blayney said in an emailed statement, adding that costs will vary depending on the vessel type, cargo and routing.Article contentThe issue of insuring ships through Hormuz has drawn the attention of the White House, with vessel traffic through Hormuz essentially halted. Oil stockpiles are starting to back up in producer countries, choking off energy exports from across the Persian Gulf. Article contentPresident Trump posted on social media this week that the US will provide insurance guarantees and naval escorts to ensure safe passage. While insurance might help, shipowners and their crews will nevertheless still be nervous about transiting the vital waterway until hostilities cease. Article contentBrokers Marsh and Aon Plc, meanwhile, are among firms holding talks with the US government as part of President Trump’s pledged plan to help insure tankers navigating the Strait of Hormuz, Bloomberg News reported Wednesday.Article contentIn a separate statement Thursday, Lloyd’s said it’s engaging constructively with the US International Development Finance Corporation and stakeholders to ensure the market continues to provide “solutions that support shipowners, protect crews and sustain global trade during periods of heightened geopolitical risk.” Article content—With assistance from Alex Longley.Article contentTrending Bank of Canada governor warns of growing risks to financial stability Economy Listings crater 18% in February as sellers beat a hasty retreat: TRREB report Real Estate Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Garry Marr: Why your house is still costing you, even if you've paid it off Personal Finance Legal fight over propane terminal clouds Canada's energy export push Energy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada governor warns of growing risks to financial stability Economy Listings crater 18% in February as sellers beat a hasty retreat: TRREB report Real Estate Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Garry Marr: Why your house is still costing you, even if you've paid it off Personal Finance Legal fight over propane terminal clouds Canada's energy export push Energy