Shipping costs fall as Israel-Iran truce holds

Shipping costs in the Arabian Gulf have fallen over the past two days, following the ceasefire between Israel and Iran, shipping and insurance sources told Reuters on Thursday. However, they indicated that rates could rise again if tensions escalate again.

Over the past week, before the war ended, freight rates for supertankers, which can carry the equivalent of 2 million barrels of oil, more than doubled to over $60,000 per day. Shipping data, however, showed that freight rates have fallen to around $50,000 today, according to Reuters.

Regarding the cost of war risk insurance for cargoes traveling by sea through the Gulf, sources reported that it has fallen to between 0.35% and 0.45%, compared to a peak of 0.5% on Monday and levels of around 0.3% over the past few months. The specific cost of the seven-day voyage is based on the value of the vessel, and the reduction is expected to reduce additional costs by tens of thousands of dollars per day.