War insurance soars by 700%

Globally well-known insurance companies such as Lloyds decided to increase war insurance premiums by 700% for vessels calling in Iraq. The Korea Shipper’s Council revealed that one grain vessel bound for UMM QASR in Iraq has a 3.5% war risk insurance premium compared to 0.5-0.6% before the war.
The vessel is worth around 20 million dollars and now a single 7 days sailing will cost it between 100 thousand and 700 thousand dollars. Currently there are about 10 vessels from the US, Australia and Canada sailing toward the Gulf with relief supplies.
Experts are expecting that war risk insurance for commercial vessels will go as high as the 5% levels seen during the Gulf War in 1991 if there are any attacks on vessels.