Thai Shipping Company Gets $10.98 Million War-Risk Payout After Mayuree Naree Attack In Hormuz
Our take
The recent $10.98 million war-risk payout to the Thai shipping company following the attack on the *Mayuree Naree* highlights a concerning escalation of maritime risk in the Strait of Hormuz and surrounding waters. The incident, involving projectiles impacting the vessel shortly after transiting the strait, underscores the precariousness of commercial shipping routes in a region increasingly defined by geopolitical tensions. This event, coupled with the grounding of the [Sanctioned Oil Tanker Carrying 1 Million Barrels Of Oil Sinks Off Oman], points to a broader instability impacting maritime trade and insurance costs. The escalating situation is further exemplified by the US deployment of warships to enforce a naval blockade, as detailed in [US Deploys More Than 20 Warships Across Middle East To Enforce Iran Naval Blockade], creating a complex and volatile operational environment for vessels navigating the area.
The financial ramifications of such attacks are significant, extending beyond the immediate payout to encompass increased insurance premiums, potential cargo delays, and heightened security costs for shipping companies operating in the region. War-risk insurance, already a substantial expense, is likely to see further increases, impacting global supply chains and potentially contributing to inflationary pressures. Beyond the financial considerations, the attack raises serious questions about the safety and security of seafarers, who face escalating risks in a region prone to conflict and instability. The incident serves as a stark reminder of the vulnerability of maritime infrastructure and the need for robust international cooperation to ensure the safe passage of vessels through vital waterways. While isolated incidents like the [Fire Breaks Out In Engine Room Aboard Car Carrier Off Costa Rica] demonstrate the inherent risks of maritime operations, the Hormuz situation presents a unique and escalating threat tied directly to geopolitical conflict.
The broader significance of this event lies in its potential to disrupt global trade flows and exacerbate existing supply chain vulnerabilities. The Strait of Hormuz is a critical chokepoint for global oil and gas shipments, and any disruption to traffic through the strait can have significant economic consequences. The increasing frequency of incidents, whether deliberate attacks or accidental encounters, necessitates a reassessment of maritime security strategies and a proactive approach to risk mitigation. The reliance on reactive measures, such as post-incident insurance payouts, is insufficient to address the underlying systemic risks. A more comprehensive approach involving enhanced intelligence gathering, improved maritime domain awareness, and strengthened international collaboration is essential to safeguard the safety and security of maritime trade.
Looking ahead, the situation in the Hormuz region demands close monitoring. The interplay of geopolitical tensions, sanctions enforcement, and naval deployments creates a complex and unpredictable environment. The question becomes: will this incident trigger a wider escalation of hostilities, leading to further attacks on commercial shipping, or will diplomatic efforts succeed in de-escalating the situation and restoring stability to the region? The capacity of international actors to enforce maritime security and protect commercial vessels will be a critical factor in determining the future of trade through this vital waterway.
Thai shipping company Precious Shipping has received $10.98 million in war-risk insurance payments after its bulk carrier Mayuree Naree was attacked in the Strait of Hormuz in March.
The Thai-flagged Mayuree Naree, IMO 9323649, was hit by two projectiles on March 11 shortly after crossing the Strait of Hormuz while sailing from Dubai Anchorage to Deendayal Port in Gujarat. The attack caused a fire and damaged the ship’s engine room.
There were 23 crew members on board. Twenty were rescued, while three crew members who were believed to have been trapped in the engine room were later confirmed dead. The surviving crew were evacuated to Oman and later repatriated to Thailand.
Precious Shipping said in its second-quarter newsletter that the $10.98 million payment covered the loss of the vessel and statutory compensation for the crew. The company said it incurred $1.26 million in expenses related to the incident.
Vessel insured for $9.5 million
During an earnings call on Aug. 7, Precious Shipping said the insurance payout included the vessel’s full insured value of $9.5 million, along with other reimbursements.
These included compensation paid by the company to the families of the three crew members who died, as well as expenses and contractual payments related to the 20 crew members who were rescued and returned to Thailand.
The war-risk insurers are now seeking to sell the Mayuree Naree on an “as-is-where-is” basis. Any proceeds from the sale will go to the insurers.
The vessel later ran aground off Iran’s Qeshm Island on March 27 and has remained there. It was declared a constructive total loss.
Three surviving crew members take legal action
The insurance settlement has not ended the dispute over the attack.
Three of the surviving crew members, Panithi Tumkaew, Noppadon Wongsuvan and Suradech Manpuen, filed a lawsuit on July 10 at Bangkok’s Central Labour Court.
The case names Precious Shipping, its affiliated companies Precious Flowers and Great Circle Shipping Agency, and the vessel’s captain, Sathaporn Hoksee.
The former crew members allege that the companies were negligent in ordering the ship to transit the Strait of Hormuz during the conflict.
Precious Shipping said in a statement issued on July 10 that it had “consistently acted in compliance with applicable laws, contractual obligations, and internationally accepted maritime practices”.
The company said it was defending the claim and did not expect it to affect its financial statements for the period ended June 30.
Of the 20 surviving crew members, 17 had returned to work, while the three others were pursuing legal action against the company and “certain parties”.
India condemned the attack
The Mayuree Naree was attacked after leaving the Dubai Anchorage for India’s Deendayal Port.
The two projectiles were of unknown origin. The resulting fire damaged the engine room, where three crew members were believed to have been trapped.
India’s Ministry of External Affairs condemned the attack and attacks on commercial shipping during the conflict in the Gulf.
MEA spokesperson Randhir Jaiswal said in an X post at the time that Indian citizens had already lost their lives in attacks during an earlier phase of the conflict. He also said the intensity and lethality of attacks appeared to be increasing.
Hatthaya Naree remains in the Gulf
Another Precious Shipping bulk carrier, Hatthaya Naree, is still in the Gulf because of the security situation around the Strait of Hormuz.
The vessel was returned from its previous charter at Hamriyah in the United Arab Emirates in early March. It was fixed on a new charter on June 24 but has not yet left the Gulf.
“However, due to the continuing security situation in the Strait of Hormuz, the vessel remains in the region pending safe onward transit,” Precious Shipping said.
References: The Week, Seatrade Maritime
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