LNG

Sept 22 – Marine cargo insurance premiums are on a falling trend, though 2025 premiums rose 6.9% last year to $24.2 billion largely due to the depreciation of the US dollar against European currencies. ”Overall the cargo market softened in 2025 rather than correcting, and that pattern has continued into 2026,” Mike Brews, chair of the Union of Marine Insurance’s (IUMI) cargo committee said in Rotterdam today.

Shippers have to deal with additional capacity and increased competition, which has softened the market somewhat. “More positively, the claims environment has remained favourable and this is reflected in the loss ratios,” Brews pointed out.

Security costs rather than freight fundamentals are increasingly determining LNG shipping economics. Owners face "between 6 and 10 million dollars for every single shipment" before vessels enter the Strait of Hormuz, simply to secure additional insurance cover, said Tom Beney, Senior Vice President of Ocean Freight at StoneX.

Tehran will reopen the Strait of Hormuz immediately after the US and Iran signed a memorandum to end the conflict in Versailles late on June 17 – earlier than planned. Oil and gas prices fell sharply on the news, and LNG benchmarks trimmed the geopolitical risk premium that has buoyed them since the conflict intensified.

The Strait of Hormuz, a critical chokepoint for roughly 20% of global LNG supply, will reopen to shipping on Friday, June 19, after the US and Iran formally sign a peace deal to end the war, US President Donald Trump confirmed. Brent crude futures fell 4.1% in early trading on Monday on the news.

The UK government is rescinding its $1.15 billion financial backing for the Mozambique LNG project, citing increased risks, while the Netherlands withdrew $1.1 billion in insurance support. The decisions deal a blow to TotalEnergies efforts to restart construction on the $20 billion project.

The insurance risk of Arctic LNG carriers, fitted with Azipod propulsion units and worth around $400 million, may not have been properly calculated, UK-based marine insurer Marsh warned.