Cargo Insurance – War Risk Exclusion
Dear Valued Client
We have received information regarding cargo insurance coverage that we want to bring to your attention.
Due to recent geopolitical evolutions and particularly escalation in certain countries or regions such as Red Sea, Gulf of Aden and Yemen. Shipex was informed that cargo insurers cancelled coverage of: War Strikes Riots and Civil Commotions (WSRCC) for shipments passing the area. This cancellation affects shipments that touch countries or regions rated as ‘Severe’ or ‘Extreme’ according to the 'Risk Scale' of the 'Joint Cargo Committee Global Cargo Watch List' (JCC GCWL).
You can review the JCC GCWL on their website: https://watchlists.ihsmarkit.com/watchlists-viewer. Please note that following the outbreak of war in Feb '22, Ukraine and Russia were already excluded from coverage. Now, all other locations marked as ‘Severe’ or ‘Extreme’ are newly excluded.
However, we believe that most insurers will consider reinstating the WSRCC cover with specific conditions. The terms of reinstatement will be discussed based on the actual risk profile of the shipments.
The marine insurance market is well aware of the challenges, especially regarding shipments passing through the Suez Canal, where the situation is often volatile and unpredictable. Rest assured, Shipex alongside its insurance broker are committed to negotiating a pragmatic and constructive approach with insurers to reinstate coverage and avoid uncertainties.
Should you have any questions or comments regarding this topic, do not hesitate to contact your Shipex representative.
The Shipex team