KUALA LUMPUR, April 13 — Escalated tension in the Middle East with the latest Israel-linked container ship seized by Iran’s Islamic Revolutionary Guard Corps (IRGC) earlier today could result in supply chain disruption and higher insurance premiums, said shipping associations.
Shipping Association Malaysia chairman Ooi Lean Hin said the current geopolitical tension in the Middle East has increased the risk of navigation in the global shipping ecosystem, which is now extended to the Gulf, apart from the Red Sea.
“The safety of shipping navigation is at great risk in the region. War risk insurance premiums will increase, and supply chain disruptions will escalate, leading to an increase in shipping costs for the region,” he told Bernama.
Reference : https://www.malaymail.com/news/malaysia/2024/04/13/escalating-tension-in-middle-east-could-result-in-supply-chain-disruption-higher-insurance-premiums-for-shipping-say-malaysia-industry-associations/128696