Report
Saudi Red Sea war-risk premiums hit 3% as Bab el-Mandeb risk raises Ethiopia’s freight bill
MerejaFactual
War-risk premiums for Saudi Red Sea calls have hit 3% and rates south of Yanbu have exceeded 7%, pushing voyage insurance costs toward $3 million to $7 million as Houthi control of Bab el-Mandeb and Perim Island raises risks for Saudi-linked shipping. The higher premiums, reduced vessel availability, and Cape of Good Hope diversions are driving up freight, fuel, food, and fertilizer costs for Ethiopia, which depends on the Djibouti corridor for about 96.7% of its seaborne trade.
