War‑risk transit premiums jump to roughly 2–6% as shipping through Hormuz grinds to a halt

Shipping through the Strait of Hormuz was still largely frozen on April 21, with Reuters reporting that only three ships passed through the waterway in the previous 24 hours. (usnews.com) The insurance bill for any owner willing to try has surged with the danger. Bloomberg reported on March 17 that war-risk cover had jumped to about 5% of a ship’s value, enough to cost roughly $5 million on a $100 million tanker. (insurancejournal.com) That is far above the fractions of a percentage point seen in calmer periods, and above the roughly 0.25% Gulf war-risk level cited by S&P Global before the fighting broke out. S&P Global said some ships not even planning to breach the strait were already being quoted up to 1% for seven days in the Gulf. (spglobal.com) War insurance is the add-on that covers damage from missiles, mines, seizures and other conflict losses that normal marine policies exclude. Marketplace reported that insurers can cancel standard war terms within 24 hours to seven days once a route is declared high risk, then reprice passage case by case. (marketplace.org) The result has been a market where cover still exists, but only at prices many owners will not accept. Lloyd’s List reported on March 11 that safer vessels could still get through at 1% of hull value or less, while high-risk ships were being quoted 7.5% and potentially 10% or more. (lloydslist.com) On a hypothetical very large crude carrier worth $138 million and linked to U.S. interests, Lloyd’s List said the insurance quote could land between $10 million and $14 million for a single Hormuz voyage. The publication said vessels with perceived American, British or Israeli links were being treated as top targets. (lloydslist.com) The shipping freeze is not just an insurance story. The Lloyd’s Market Association said on March 23 that war cover remained available in the Lloyd’s and London company market, and that reduced traffic reflected masters and owners judging the risk to crews and ships as too high. (lmalloyds.com) That statement put numbers on the strain: about 20,000 crew were affected, at least 11 people had been killed, and ships were running down bunkers and stores while salvage and refuge options remained uncertain. The same statement said 88% of surveyed market participants still had appetite to underwrite international hull war risks. (lmalloyds.com) The broader trade hit is already visible in the traffic data. United Nations Trade and Development said daily ship transits through Hormuz fell from an average of 129 in February to 6 in March, a drop of about 95%. (unctad.org) The White House tried to counter that spiral early in the crisis. CNBC reported on March 3 that President Donald Trump ordered the U.S. to provide risk insurance for Gulf maritime trade and said the Navy would escort tankers through the strait if necessary, while Bloomberg later reported a $20 billion U.S. reinsurance plan. (cnbc.com) (insurancejournal.com) Even with that support, owners still have to decide whether a voyage is worth the chance of a missile strike, seizure or crew casualty. In Hormuz, the market is still posting a price for passage — and many shipowners are still declining to pay it. (insurancejournal.com) (lmalloyds.com)