The cost Maersk faces by resuming shipments in Red Sea

Conflicts in the Red Sea are ongoing, causing major grief for shipments through an area of the world that is responsible for 10% of global trade. Maersk (MAERSK-A.CO, MAERSK-B.CO) is geared up to resume transit through the area, in conjunction with US led multinational Naval operations. Salvatore Mercogliano, Campbell University Department of History Chair, joins Yahoo Finance to give insight into the efforts and costs associated with resuming trade through that area. Mercogliano explains one of the costs Maersk has to deal with is with war risk insurance: "The war risk insurance had climbed dramatically, it went from 0.02% of the entire value of the cargo of the ship to 0.7% and we are talking about ships that are loaded with billions of dollars, it's one of the reasons why container ships did the diversion because their cargoes are some much more valuable than what you get in a traditional tanker." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.