Additional war risk premium pushes up freight rates for oil refiners.

• Position: Brief article

India's oil refiners sourcing crude from conflict-prone West Asia, are facing freight increases of as much as $300,000 per day, after global marine insurers imposed an additional war risk premium of 0.35 per cent to 0.40 per cent of the value of the ship, for every transit through the Strait of Hormuz - the world's busiest oil shipping lane - in the wake of recent attacks on oil tankers. The freight rates for an Arabian Gulf to India run for a modern Suezmaz tanker or a very large gas carrier (VLGC) have gone up by $150,000 to $300,000 per day because of the additional war risk premium on the ship's hull and machinery levied by underwriters, an executive with an Indian shipping company said.

The extra...