Ships backed up in Black Sea lanes as Russia warning shots raise tensions

Merchant ships remained backed up in lanes around the Black Sea as ports struggled to clear backlogs amid growing unease among insurers and shipping companies a day after a Russian warship fired warning shots at a cargo vessel.

Russia said its Vasily Bykov patrol ship on Sunday fired on the Palau-flagged Sukru Okan vessel after the ship’s captain failed to respond to a request to halt for an inspection.

After an inspection, the vessel continued its journey towards the Ukrainian port of Izmail along the Danube river, Russia said. Kviv on Monday condemned what it called “provocative” Russian actions and called for decisive countermeasures by the international community.

Insurance industry sources said rates for additional war risk premiums remained stable on Monday, although there was a possibility of a rise if a ship was damaged or sunk.

The cost of a Black Sea war risk premium, which is typically renewed every seven days and is in addition to annual insurance expenses, was estimated at tens of thousands of dollars per ship for the voyage.

via Reuters