The winds of war return, but the government considers canceling ship insurance

The Ministry of Finance is considering discontinuing the government cargo insurance for ships, which expires on November 30, amid rising security tensions in the Middle East. The insurance, created by the ministry in March, was intended to compensate for war damage to cargo. Expert Elad Bershan warns of a significant insurance gap for importers.

The winds of war in the Middle East are heating up again, but on November 30, the government cargo insurance for ships, created by the Ministry of Finance in March, will expire. The insurance was meant to compensate for war damage to cargo carried on vessels, at a time when cargo ships are returning to sail through the Red Sea. Just last week, a container ship serving Zim was attacked and sunk in the Black Sea. Meanwhile, shipping traffic in the Strait of Hormuz suffered a severe blow from the Iranian blockade, and Houthi rebels are imposing a siege on Saudi Arabia. The Ministry of Finance stated that the extension of the program is reviewed monthly, based on the volume of policies and the security situation. Expert Elad Bershan warns of a significant insurance gap, as importers may discover that the safety net they relied on is no longer in effect.