Reports stated this adding the risks associated with shipping through the crucial artery of global trade, extending up to the Suez Canal, have escalated as the conflicts shifted focus to US-Houthi missile attacks.

Given the increased risk, standard war-coverage premium of 0.05 per cent has been increased by reinsurers to an additional rate of 0.175 per cent, resulting in a total of 0.225 per cent increase.

According to the local insurers, this elevated rate of 0.225 per cent applies to ships navigating the Red Sea, Gulf of Aden, Indian Ocean boundaries, and the Persian/Arabian Gulf of Oman.

Meanwhile, speaking to the media, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Shahidullah Azim, expressed concerns over the rising insurance costs, predicting potential pressure on apparel prices as buyers may seek reductions to offset additional expenses.

Fibre2Fashion News Desk (DR)