Mar. 12 at 4:06 PM
Headline: President Trumpâs plans to sell insurance for ships
dig deeper..
US-centric plan runs counter to market realities
Maritime war risks policies are sold mostly out of Lloydâs of London, w/ foreign insurers covering foreign ships & cargo
Trump Admin didn't know that US not part of this ecosystem
US officials called London insurers/brokers, trying to figure out how the market operates & asked for confidential data on Lloydâs market - they said no
Trump Admin adapted to offer
$20B reinsurance via
$CB but reinsurance will be limited to ships that meet certain criteria - that criterion is not specified
Note: Lloydâs is open for business & insurance is available (rates jump from 0.25% of cargo to 2%)
Shippers say they are more concerned about crew safety than cargo or ship
Essentially, "America First" insurance plan only covers the ship & nothing else - not cargo or crew
New VLCC cost:
$110M-
$130M
Note: Navy has yet to escort any ships - says the Strait is a kill-box
$USO $BOAT $UNG $DBA