The global shipping market is no longer reacting to a theoretical risk. What is happening in the Middle East and the Red Sea is already affecting real operations, real voyages and real insurance decisions.
Major liner companies have already changed routes. Shipping groups including Maersk, Hapag-Lloyd and CMA CGM have suspended or reduced transits through high-risk areas near the Strait of Hormuz and the Red Sea. Many operators are now redirecting vessels around the Cape of Good Hope instead of using the Suez Canal route.
According to industry reports, around 170 containerships with a combined capacity of roughly 450,000 TEU faced delays near the Gulf region. Operators paused, waited or repositioned vessels while reassessing security conditions and insurance availability.
At the same time, the marine insurance market has tightened sharply. Major P&I and marine insurers including Gard, Skuld, NorthStandard and American Club have reduced exposure in the region. Some imposed stricter conditions, while others withdrew certain war risk cover options for voyages linked to the Gulf and Iranian waters.
The impact was immediate. Tankers and LNG carriers waited outside the Strait of Hormuz while operators secured updated insurance terms or safer transit windows. Industry estimates indicate that more than 150 vessels were delayed or anchored in the area following the latest security escalation.
War risk premiums have also increased dramatically. Insurance costs for transits through Hormuz reportedly rose from around 0.125% of vessel value to between 0.2% and 0.4% per voyage within days. For a VLCC valued at $100 million, this means several hundred thousand dollars in additional insurance costs for a single transit.
Insurers are also applying far stricter scrutiny to vessel profiles. Ships linked to Russian trade, opaque ownership structures or shadow fleet activity are facing higher premiums and more compliance checks. Underwriters are now reviewing AIS history and port calls before approving cover. They are also examining ownership transparency more closely.
The consequences are already spreading into global trade. Freight costs are rising. Container availability is tightening, while cargo delays are increasing because of rerouting decisions and insurance restrictions. Energy cargoes and reefer trades are among the sectors already feeling the pressure.
What is happening now is not simply another temporary shipping disruption. The market is entering a period where security risk, insurance pricing and commercial routing are directly shaping how global shipping operates.
* George S. Skordilis is Editor-in-Chief of geo-trends.eu.