Chinese Ships Get Cheaper Insurance to Navigate Red Sea

Chinese-owned merchant ships are getting hefty discounts on their insurance when sailing through the Red Sea, another sign of how Houthi attacks in the area are punishing the commercial interests of vessels with ties to the west.

The militants began going after Israeli-linked vessels back in mid-November, before widening their targets to include US and UK ships last month when the two nations bombed Yemen in effort to quell the attacks. The incidents have led to a multi-tiered insurance market in which underwriters differentiate between the carriers they cover.

Ship signals ‘CHINA OWNER’ near Yemen.

Source: Bloomberg

While the overall picture is mixed, some Chinese-linked vessels are ...