Allianz cautions on shipping claims from Hormuz crisis

The bill for the Iran war’s four-month chokehold over the Strait of Hormuz is starting to arrive.

Allianz, the world’s largest insurer by assets, said it has already received claims tied to ships damaged during the conflict, including cases that could result in total vessel losses, Bloomberg reports.

The Munich-based firm estimated that vessels and cargo worth $125 billion remained trapped in the Gulf as of June 15, exposing container ships, bulk carriers and oil tankers to drone and missile attacks.

War-risk insurance rates surged during the conflict, with some ships paying more than $1 million per voyage to transit the Strait of Hormuz, one of the world’s busiest energy channels. Allianz said more than 40 commercial vessels were hit during the Iran war, resulting in the deaths of 14 seafarers and generating insurance claims that could include total losses of ships. 

“Clearly, loss of life and property damage – in terms of both vessels and their cargo – are the main causes to date,” said Regis Broudin, global head of marine claims at Allianz Commercial.

Meanwhile, the International Maritime Organization announced a plan on Tuesday to evacuate 11,000 seafarers stranded in the Strait of Hormuz. The operation will be carried out in coordination with Iran, Oman, the U.S. and other Gulf countries.