Red Sea Disruptions: Legal and Practical Considerations for Yachting and Commercial Shipping

Why It Matters

Nearly 15% of global seaborne trade passes through the Red Sea, including vital oil and LNG flows. Missile and drone attacks, hijacking attempts, and other hostile acts by Houthi forces have forced many vessels to reroute via the Cape of Good Hope—adding weeks to voyages, with significant cost and logistical disruption.

While much focus is on container ships and tankers, yachts transiting the region are not immune. Long-range passages, deliveries, and repositioning voyages for charters in the Indian and Pacific Oceans often pass through these waters. For yachts, the stakes are particularly high: more limited crew resources and defensive capabilities, combined with lower freeboard, create heightened exposure to both safety risks and financial liabilities.

Practical Considerations

Risk Management

Owners and managers should ensure compliance with BMP5 guidance (Best Management Practices to Deter Piracy and Enhance Maritime Security)—including voyage-specific risk assessments, liaison with naval forces, security protocols, and consideration of armed security teams. However, BMP5 was not originally designed for drone and missile threats. Operators should supplement this with real-time guidance from UKMTO (UK Maritime Trade Operations) and relevant naval coordination centers, highlighting the need for enhanced vigilance and specialised support services.

Insurance & War Risk Premiums

War risk underwriters have expanded high-risk zones in the Red Sea based on Joint War Committee (JWC) designations, which can change rapidly. This has driven up premiums significantly. Yacht operators should confirm cover, assess how additional premiums are allocated under contracts, monitor JWC updates, and consider whether certain voyages remain commercially viable.

Voyage Planning & Crewing

Extended detours around the Cape of Good Hope significantly impact time, fuel, crewing schedules, and charter commitments. Managers must weigh safety against commercial pressure, ensuring crew welfare and contractual obligations are balanced.

Flag State and Port State Considerations

The Red Sea crisis has prompted flag states to issue specific guidance that vessel operators must consider. Many major flags, including those commonly used by yachts such as the Red Ensign Group, Cayman Islands, and Malta, have published advisories regarding Red Sea transits. Compliance with flag state requirements is not optional and may include mandatory reporting before entering designated zones, adherence to specific routing or security measures, and post-transit debriefing.

From a port state control perspective, vessels arriving significantly delayed or deviating from declared routes may face enhanced scrutiny. Operators should maintain comprehensive documentation demonstrating that deviations were necessary for safety reasons and conducted in accordance with flag state guidance. This is particularly important for yachts, where port state inspectors may be less familiar with commercial charter operations and the associated contractual pressures.

Additionally, flag administrations typically require formal notification when vessels transit high-risk areas. Failure to comply with these reporting obligations can result in flag state sanctions and may compromise insurance coverage if an incident occurs. For yacht managers operating multiple vessels under different flags, maintaining awareness of varying requirements across registries is essential.

Crew Welfare and Employment Law

From my experience at sea, I can attest that crew safety and welfare must be the paramount consideration, yet this creates complex legal questions that deserve careful attention. Under the Maritime Labour Convention 2006 (MLC 2006), seafarers have fundamental rights to a safe working environment. When a vessel is ordered to transit a war risk zone, crew members may have legitimate concerns about their safety, and in extreme cases, may have grounds to refuse to sail.

The legal framework here is nuanced. While crew cannot simply refuse any assignment they perceive as risky, there is a recognized right to refuse work that poses an imminent and serious danger to life or health. Masters and operators must document risk assessments, communicate threats transparently, and ensure that crew consent is informed rather than coerced. For yacht crew, who often work under different employment structures than merchant seafarers, these protections may vary depending on jurisdiction and contract terms.

Insurance considerations extend beyond the vessel itself. Operators should verify that crew insurance adequately covers war risk zones, including personal accident cover, medical evacuation from conflict areas, and kidnap and ransom (K&R) insurance. Many standard crew insurance policies exclude or limit coverage in designated war risk zones unless additional premiums are paid. The question of who bears this cost—owner, manager, or charterer—should be contractually clear before the voyage commences.

Equally important is the psychological impact of transiting high-threat environments. Crew members who experience near-miss incidents, witness attacks on other vessels, or serve extended periods under heightened alert may suffer lasting trauma. Forward-thinking operators are beginning to include mental health support and post-incident counseling as part of their crew welfare programs. Beyond the moral imperative, failure to address psychological harm may expose operators to employment claims and damage crew retention in an already challenging recruitment environment.

Finally, if a vessel must divert to an unplanned port due to security threats, operators must be mindful of MLC 2006 provisions regarding abandonment. Crew cannot be left stranded without wages, repatriation arrangements, or adequate support. This is particularly relevant for yachts whose charter schedules may create pressure to leave crew in non-standard locations.

Legal Considerations

For both ships and yachts, contracts define rights and liabilities:

Charterparties

BIMCO's CONWARTIME 2013 and VOYWAR 2013 clauses allow owners to avoid unsafe areas if there is a "real likelihood" of danger. Proper documentation and notices are essential.

Carriage of Goods

Merchants may have limited recourse if rerouting delays or damages cargo, given Hague-Visby "reasonable deviation" protections—though courts will scrutinize whether the rerouting was genuinely necessary and the chosen route was reasonable under the circumstances.

Yacht Charters

Where private or commercial yachts are under charter, deviation or delay can trigger disputes unless clauses specifically allow for rerouting due to war risks. While some operators use standard forms like MYBA, many modern yacht charters employ heavily customized contracts with varying provisions. Owners and managers should seek legal review of their specific agreements to confirm rights and obligations regarding war risk diversions.

Salvage and General Average

One of the most financially consequential yet often overlooked aspects of Red Sea transits involves salvage and general average (GA). If a vessel is attacked and sustains damage requiring emergency assistance, salvage operations in a war zone command extraordinary fees due to the heightened risk to salvors. Under maritime law, salvage awards are calculated based on factors including the degree of danger, and operations in active conflict zones can result in awards reaching significant percentages of the vessel's value.

General average is equally significant. If a master must take extraordinary measures to preserve the vessel and its interests from peril—such as jettisoning equipment, incurring emergency port costs, or sustaining damage while evading an attack—a general average situation may be declared. Under the York-Antwerp Rules, which govern most commercial shipping contracts, all parties with an interest in the voyage (vessel owners, cargo interests, and potentially charterers) must contribute proportionally to these losses.

For yachts, general average scenarios create particular complications. Unlike commercial vessels carrying multiple cargo interests, yachts may have owners, charterers, and stored personal effects onboard. Determining which parties bear GA contributions can be contentious, especially if charter contracts do not explicitly address war risk scenarios. Furthermore, before a vessel or its contents can be released from a port following a GA declaration, security (typically a cash deposit or letter of guarantee) must be posted—a process that can take weeks and create significant cash flow challenges.

Owners and charterers should verify that their insurance includes GA coverage and understand the claims process. Insurers may require average adjusters to be appointed, adding another layer of complexity and cost. For yacht managers coordinating emergency responses, having pre-established relationships with specialist average adjusters who understand yachting operations can significantly expedite resolution.

Perhaps most critically, both commercial vessels and yachts should maintain meticulous contemporaneous records of any extraordinary expenses or actions taken during an incident. Without proper documentation, recovering GA contributions or salvage costs becomes substantially more difficult, and disputes with insurers or other parties are more likely to arise.

Communication and Cyber Security in High-Risk Zones

Modern maritime security increasingly intersects with cyber threats, and the Red Sea situation highlights vulnerabilities that extend beyond physical attacks. Vessels transiting high-risk areas face difficult decisions about electronic systems that, while essential for navigation and safety, may also increase vulnerability to targeting.

AIS Dilemma

AIS (Automatic Identification System) presents a particular dilemma. While AIS is mandatory under SOLAS for most vessels and provides crucial collision avoidance and traffic management benefits, it also broadcasts a vessel's identity, position, course, and speed—information potentially valuable to hostile actors. Some vessels have chosen to disable AIS when transiting the highest-risk portions of the Red Sea, a practice sometimes referred to as "going dark." However, this creates legal complications. Deliberately disabling mandatory safety equipment may violate flag state requirements, potentially voiding insurance, and creates new collision risks, particularly in congested waterways. If operators choose this route, they must document the decision carefully, ensure alternative means of traffic awareness (such as enhanced radar watch), and coordinate with naval forces who may otherwise view a non-transmitting vessel with suspicion.

ECDIS and GPS Vulnerabilities

ECDIS (Electronic Chart Display and Information System) and other bridge systems connected to satellite communications also present cyber vulnerabilities. Threat actors have demonstrated capability to spoof GPS signals, potentially misleading vessels about their true position. Operators should ensure that traditional navigation methods remain viable as backups and that crew are trained to recognize and respond to potential GPS anomalies. For yachts with highly integrated systems where navigation, entertainment, and communications may share networks, the attack surface can be particularly broad.

Communication Protocols and Data Protection

Communication protocols in high-risk zones require special consideration. When reporting positions to naval coordination centers or engaging with coalition maritime forces, vessels necessarily share sensitive operational information. Under GDPR and equivalent data protection regimes, particularly relevant for EU-flagged yachts or those carrying EU nationals, questions arise about the lawful basis for sharing personal data (including crew details) with military entities. While safety and legal obligation grounds typically justify such sharing, operators should ensure their privacy policies contemplate these disclosures and that crew are informed.

Finally, cyber hygiene becomes critical when vessels may need to use unfamiliar communication channels or shore-based internet in emergency ports. Phishing attempts targeting maritime operations have increased, with attackers exploiting the heightened stress of security situations. Simple measures—ensuring all systems are patched, using VPNs for communications, restricting personal device access to ship networks, and training crew to recognize social engineering attempts—can significantly reduce risk.

For yacht operations, where owners and guests may expect seamless connectivity and real-time updates, balancing security concerns with service expectations requires clear communication. Setting expectations about potential communication restrictions in high-risk areas before a charter commences helps avoid disputes if connectivity must be limited for security reasons.

Key Takeaways

• Evidence & Notice: Collect contemporaneous records and issue clear notices if rerouting or alternative ports are necessary.
• Contractual Clarity: Ensure yacht charter agreements address war risks and deviation rights—generic clauses may be insufficient.
• Insurance Alignment: Confirm war risk and P&I cover is adequate for high-risk zones and monitor JWC designations actively. Verify crew coverage and GA provisions.
• Crew Safety First: Balance commercial expectations with the overriding duty to protect crew and vessel. Ensure informed consent and provide appropriate support.
• Flag State Compliance: Maintain awareness of and comply with flag state advisories and reporting requirements for high-risk transits.
• Cyber Vigilance: Assess electronic systems vulnerabilities and ensure crew are trained on heightened cyber threats in conflict zones.
• Industry Collaboration: Whether in shipping or yachting, proactive communication with counterparties and insurers is critical to mitigating disputes.

Final Thought

The Red Sea crisis underscores a reality common to both commercial shipping and yachting: legal frameworks and operational realities are inseparable at sea. For yacht owners and operators, the challenge is not only ensuring safety, but also navigating the contractual and insurance complexities that come with global voyaging. Having stood countless bridge watches in challenging circumstances, I understand the weight of these decisions. The intersection of my operational experience and legal training reinforces a simple truth: in uncertain waters, foresight, planning, and cooperation are key.