Houthi forces targeted Saudi tankers ENCELIA and LAYLA, raising war risk premiums in the Red Sea to 3%. Crew of ENCELIA safe; LAYLA's status unconfirmed.
ENCELIA hit, confirmation awaited for LAYLA: War risk premium in the Red Sea has risen to 3%
The Houthis announced that they targeted the Saudi-owned tankers ENCELIA and LAYLA with missiles and drones. Saudi authorities confirmed that a fire broke out at the bow of ENCELIA, while reporting that all crew members are safe. The attack on LAYLA has not yet been confirmed by independent sources. Following the attacks, the war risk insurance premium for some voyages has risen to as much as 3% of the ship's value.
Attacks on commercial vessels in the Red Sea have once again placed energy transportation at the center of concern.
The Houthis in Yemen stated that they attacked two oil tankers named ENCELIA and LAYLA belonging to Saudi Arabia with ballistic missiles, cruise missiles, and drones. The official news agency of Saudi Arabia reported that a fire broke out at the bow of ENCELIA, but that all crew members are safe. It was noted that the vessel was secured and measures to protect the surrounding marine environment were implemented.
A maritime security source reported that ENCELIA made a VHF distress call indicating it had been hit by a missile in the outer port area of Jizan. The UK Maritime Trade Operations Center also announced that they received reports of a tanker burning in the same area due to an impact from an unknown object.
While the attack on ENCELIA has been confirmed by various sources, the claim regarding the attack on LAYLA has not yet been independently verified. Reuters also stated that it could not confirm the attack on LAYLA. Therefore, rather than definitively stating that both vessels were hit, it is necessary to refer to the confirmed attack on ENCELIA and the Houthi claim regarding LAYLA.
Insurance costs in the southern Red Sea have skyrocketed.
Following the attacks, the war risk premiums applied to southern Red Sea voyages have more than doubled for some shipowners.
Indicator premiums, which were approximately 0.3% of the ship's value last week, rose above 1% on July 23. For some vessels calling at Saudi ports close to Yemen, such as Jizan and Al Shuqaiq, prices were quoted as high as 3%. It was reported that the rates for the northern ports of Jeddah and Yanbu remained at about 0.1%.
Assuming a ship's value is $100 million, a 3% premium could mean an insurance cost of $3 million for a single risk period. Industry sources speaking to Reuters noted that even small changes in rates can add hundreds of thousands of dollars to the cost of a seven-day voyage.
Following Houthi threats, at least five tankers have changed their routes, two of which are heading towards the Suez Canal. In contrast, two Chinese-linked supertankers loading a total of approximately 4 million barrels of Saudi oil from Yanbu managed to pass through the Bab el-Mandeb Strait.
Every new attack in the Red Sea also concerns Turkey. The increased risk along the Suez-Red Sea route reflects on freight rates, insurance costs, and delivery times between Asia and Turkey and Europe. A missile reaches its target in seconds; the bill, however, circulates among bills of lading for months.
Source: SeaNews Türkiye
