Escalating charterparty disputes amid the Red Sea crisis

Prokopios Krikris, LMAA supporting member, provides some practical observations on the Red Sea crisis

The Gulf of Aden has long been recognised as a "high-risk area" (HRA) for marine insurance due to its history of pirate attacks and vessel seizures for ransom. While there was a period when vessels could transit the Gulf without incurring additional war risk insurance premiums, this changed following a series of Houthi attacks in November and December 2023. These incidents have significantly impacted commercial shipping operations, influencing parties' rights and liabilities under various contractual frameworks.