DP World has launched a cargo war-risk insurance product for shipments moving through the Middle East, with cover spanning sea and air transit, port storage and inland transport.
Cover applies to physical loss or damage caused by war-related risks, including armed conflict, civil unrest, seizure and derelict weapons. Coverage limits are set at up to $400 million per shipment and $1 million per inland movement. Valid claims are settled with no deductible. Port storage is automatically covered for up to 14 days, subject to the ordinary course of transit.
DP World cites the example of cargo arriving by sea at Jebel Ali, held at the port for several days for clearance, and then trucked inland to its destination. Under standard arrangements, only the ocean leg may be insured against war risk.
Standard cargo insurance typically excludes war risk, and carriers do not cover war-related losses under their liability terms. That leaves cargo exposed during port dwell time and onward road movements, both of which can run through corridors still classed as war-risk zones.
The Strait of Hormuz is no longer simply a question of whether ships can pass. Recent reporting cited by Trans.INFO points to a new Iranian transit authority, vessel declaration requirements, clearance codes and controlled corridors through the waterway.
Tankers are still moving, but some are doing so with tracking signals switched off, while operators face both physical security risks and possible compliance exposure linked to any Iranian clearance or payment system.
The new cover sits alongside existing all-risk cargo policies. DP World says certificates and premium collection can be linked to freight charges through a single platform.
