Suez Traffic Is Back, So Why Are War Risk Premiums Still High? With David McKie, Preston Turnbull

More container ships are heading back through the Red Sea and the Suez Canal, but does that mean the waters are any safer? Not according to the London insurance market. Freight Buyers’ Club host Mike King caught up with David McKie, partner at Preston Turnbull LLP and a specialist in shipping and maritime insurance law, at the Cyprus Shipping News event in London on 13 October 2026. They discussed how war risk insurers actually assess danger, and what that means for the costs that end up being passed down the supply chain to cargo owners. David explains the difference between hull and machinery cover and war risk insurance, and how the Joint War Committee in London decides which waters count as high risk. That covers the Black Sea, the Strait of Hormuz and Bab el-Mandeb, along with what happened to premiums once the Hormuz crisis kicked off in early 2026. He also sets out what would need to change before shipowners, and ultimately their customers, start paying less. For context, at the time of recording the Joint War Committee had not relaxed its view of the Red Sea at all. In July 2026 it pushed its high-risk zone further north along the Saudi coast, and in September 2026 it extended its Black Sea listing to cover almost the entire basin. So more transits through Suez reflected carriers choosing to pay the premium, not insurers deciding the risk had gone away. The Freight Buyers’ Club, hosted by award-winning freight journalist Mike King, brings together the people shaping freight procurement and supply chains. Subscribe for more conversations like this one.