00:00And it's so interesting because, like you say, that there is some pricing there and you don't sound to me
00:05that you're too concerned in many respects.
00:08So is cover available and how costly is it?
00:12Yeah. So, I mean, what we saw weekend before last, as the action hit, notices of cancellation were given by
00:22the market to most of the ships that were up in that area and were thinking about trading in there.
00:27And the reason they do that is that they have, under the terms and conditions of the policy, the opportunity
00:33to re-rate the risk depending upon the risk environment that they're actually seeing at that time.
00:38And that's exactly what happened. So to give you some context, before the activities in the region prior to last
00:46weekend, the rates were between 0.25% and 0.5% to go up to the Persian Gulf.
00:53And that is on the value of the ship. So a VLCC at $100 million, a 10-year-old VLCC,
00:59that's between quarter of a million and half a million dollars per voyage up into that region.
01:04What we're now seeing are rates anywhere up to 3% and possibly beyond, albeit a significant increase.
01:14But I think when you look at the overall sort of cost of the voyage, if you like, the value
01:20of oil, as we've just discussed, could be $100, $150 a barrel.
01:24Well, $150 a barrel is not out of line by the sounds of it.
01:28So when you've got a VLCC carrying 2 million barrels, that's a lot of cargo, a lot of valuable cargo.
01:34So the increase in insurance costs is a relatively small part of that overall cost.
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