Dear Valued Customer, 

Attacks on container ships by Houthi Rebels continue to occur in the Red Sea. The group is attacking cargo vessels by launching missiles and armed drones and deploying small armed boats. Many experts believe these attacks will remain a significant problem for the foreseeable future.

These attacks have forced all carriers, which normally use this route to bring freight from the Far East through the Suez Canal to Europe, the Mediterranean and U.S. East Coast, to divert their vessels around the Cape of Good Hope. Unfortunately, while these diversions take the vessels away from Houthi attacks, they now travel through even more risky environments, which can see cargo either damaged, lost, or stolen.

As a result of these diversions away from the Red Sea, vessels will be travelling through pirate infested waters on both the West and East Coast of Africa, namely the Horn of Africa and the Gulf of Guinea. Additionally, vessels travelling around the Cape of Good Hope will now endure rougher waters, very strong currents, and much higher winds due to the convergence of both the Atlantic and Indian Oceans, creating optimal conditions for a cargo overboard incident.

We believe it is critical that you understand the risks in our current environment. As a result, in order to minimize or even negate these current risks, we highly encourage anyone who typically ships their cargo through the Suez Canal to immediately contact one of our insurance experts about purchasing cargo insurance, as this can ensure that your investment is protected as it travels through this new route.

In the meantime, please feel free to reach out to one of our advisors if you have any questions about the security of your European, Mediterranean, and U.S. East Coast bound cargo as it is shipped through potentially dangerous waters. 

Thank you!

Sincerely yours, 

OEC Group