License to Bill: Iran-Israel Spat Skyrockets Shipping Insurance Costs!

Shaken Not Steered: Navigating Perilous Waters

The name's Bond James Bond and I've seen my share of international incidents. But this little spat between Israel and Iran? It's turning the high seas into a high stakes game of poker and everyone's anteing up. Marine insurers are now charging 0.2% of a ship's value to brave the Persian Gulf. A week ago it was 0.125% before the Israelis decided to give the Ayatollahs a surprise party. As Goldfinger would say "Once is happenstance. Twice is coincidence. Three times is enemy action." This is looking a lot like enemy action wouldn't you agree?

From Russia With Risk: Insurance Rates Explode

The Red Sea's not exactly a calming blue these days either. War risk insurance is up and covering ports in Israel? Well that'll cost you triple – a cool 0.7%. Even Q would be impressed with those figures. And if you're thinking of haggling forget it. Insurance quotes are now only valid for 24 hours down from 48. Apparently the market moves faster than my Aston Martin on a Swiss mountain pass. It’s a classic case of "You Only Live Twice" or in this case insure twice.

The World Is Not Enough... Insurance

Marcus Baker from Marsh McLennan (sounds like a Bond villain's alias doesn't it?) assures us that cargo is still flowing. Apparently even potential nuclear annihilation can't stop the wheels of global commerce. Though I suspect some shipowners are regretting not investing in those submersible Lotus Esprits from 'The Spy Who Loved Me'.

Live and Let Drive Clear: Avoiding the Strait of Hormuz

Speaking of regrets some captains are giving the Strait of Hormuz a wide berth. Bimco's Jakob Larsen (another potential villainous name if you ask me) reports a 'modest drop' in traffic. 'Modest' is hardly the word when you're talking about a waterway that's the world's most important oil chokepoint. It seems some people are taking "Diamonds Are Forever" a little too literally and not risking their precious cargo.

Oil Another Day: Prices and Peril

The Strait of Hormuz that sliver of sea between Iran and Oman. If it closes even for a bit you can bet your last martini that global energy prices will spike. Shipping costs will soar and supply chains will resemble a badly shaken martini – all froth and no substance. One must wonder if world domination for villains such as Blofeld begins with oil as well as nuclear weapons.

For Your Eyes Only: Averting Disaster

So what's the solution? Well that's above my pay grade. But I daresay a little diplomacy a dash of cunning and perhaps a well placed Aston Martin with a few gadgets could go a long way. After all as I always say the world is not enough. Unless of course you have the right insurance policy.