The war in Iraq has pushed shipping rates to their highest level in years, according to a leading broker.
Broker Heath Lambert said in today's FT.com that the war in Iraq had raised insurance costs for large vessels docking in the Gulf by millions of dollars, as underwriters raised premiums on routes near the war-zone.
Heath Lambert marine insurance managing director Nigel Brunning said premiums for ships going to the Gulf were now quoted at war-risk rates of up to 5%. This is over 4% higher than the normal industry standard rate of 0.05%.
Brunning said this rise equated to an annual premium of about $750,000 on a vessel worth about $15m, 100 times more expensive than the premium for a tanker moving between Britain and Europe which would be about $7,500 (£4,700) a year.
He said: "Premiums always go up in wartime."
