Red Sea disruptions hit Saudi shipping: carriers retreat as insurance costs soar

SEOUL, Aug. 27 (YPA) – An escalating crisis is impacting Saudi Arabia’s shipping sector, as global transport firms re-evaluate risks following the announced maritime blockade against Riyadh in the Bab al-Mandab Strait, according to South Korean newspaper “Seoul Economic Daily.”

Reports indicate an unprecedented surge in insurance premiums and a rise in notifications regarding ships unable to reach Saudi ports. South Korea’s Ministry of SMEs and Startups confirmed that actual logistical damage has already occurred.

Officials at South Korean shipping lines described sending or receiving vessels to and from Saudi Arabia as “nearly impossible.” Meanwhile, the head of the Korea Plastic Processing Industry Cooperatives noted that while factories can complete production, they are unable to ship goods due to a lack of available vessels.

These developments highlight growing reluctance among shipping companies and position Saudi Arabia at the center of a maritime crisis impacting global supply chains, as the Red Sea turns into a point of strategic pressure threatening international trade.

YPA