economy
‘Huge build-up of risk’: London’s centuries-old shipping industry wrestles with Iran war
Insurers at Lloyd’s of London say cover is available at a price, while merchants view the danger level as too high
TL;DR
- Hundreds of vessels are trapped in the Gulf region due to drone and missile threats amid the escalating Middle East conflict, effectively closing the strait of Hormuz.
- Lloyd's of London continues to offer shipping insurance, but premiums have significantly increased, and shipowners are hesitant to transit the area due to safety concerns.
- The current threats, involving drones and unmanned vehicles, differ from previous risks like piracy, making mitigation by crews impossible.
- The UN's International Maritime Organization has called for a humanitarian corridor, but no timeline or guarantee of cooperation exists.
- Various solutions like naval escorts and security guarantees have been discussed but are considered potentially unrealistic or insufficient given the scale of the problem.