Insurers are reassessing war risk policies, leading to higher premiums for ships ..
London: Iranian forces' threat to ships in the crucial Strait of Hormuz has driv ..
Sunday, March 29, 2026
Ship insurers juggle war risks for perilous Gulf route Read more at: https://infra.economictimes.indiatimes.com/news/ports-shipping/ship-insurers-juggle-war-risks-for-perilous-gulf-route/129876270?utm_source=top_news&utm_medium=sectionListing
The overlooked gaps in war-risk cargo coverage
Not all risks are automatically included in standard marine cargo insurance policies
STRAITJACKETED. Marine insurance typically does not cover the cost of rerouting a ship during a conflict | Photo Credit: STRINGER
The impact of the ongoing war in West Asia is being felt across the world. Beyond geopolitics and energy markets, the repercussions are being felt in boardrooms, export houses and logistics companies. Over the past few weeks, there has been a noticeable shift in behaviour among exporters and importers. Insurance policies that were filed away are now being reopened. Clauses that were once assumed standard are now being finely studied.
The question many are asking is simple: Are we really covered if things escalate further? And for many, the answer is not as straightforward as they had thought earlier.
The biggest misconception is around “all-risk” policies.
Hapag Lloyd incurring $50 million in extra costs per week, 25,000 shipments impacted due to West Asia war, says CEO
Hapag Lloyd, which is the world’s fifth largest container shipping company, signed letter of intent with Indian government to set up a ship recycling unit and invest in Vadhavan port
The conflict has also impacted over 25,000 shipments, significant chunk of which were from or enroute India, Jansen said at a MOU signing ceremony in Mumbai. | Photo Credit: MOHAMED ABD EL GHANY
Hapag Lloyd is incurring additional cost of $ 40-50 million per week due to ongoing conflict in West Asia, Rolf Habben Jansen, CEO of Hapag Lloyd said on Thursday.
The conflict has also impacted over 25,000 shipments, significant chunk of which were from or enroute India, Jansen said at a MOU signing ceremony in Mumbai.
Hapag Lloyd, which is the world’s fifth largest container shipping company, signed letter of intent with Indian government to set up a ship recycling unit and invest in Vadhavan port. Additionally the company also announced its intent to reflag upto four vessels in India.
JNPA cuts stranded containers to half; Sonowal conducts review
Over the past 20 days, about 16,000 TEUs were dispatched from the port to destinations in the Middle East
Customs authorities at Jawaharlal Nehru Customs House (JNCH) now allow “Brought to Terminal” (BTT) movement of export cargo even without an Export General Manifest (EGM), with minimal inspections and waived charges (file photo) | Photo Credit: ABEER KHAN
The Jawaharlal Nehru Port in Maharashtra has successfully reduced stranded containers to half, even as global shipping dynamics remain affected by the ongoing West Asia war. The progress follows a review and consultation meeting chaired by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal on Thursday, which brought together key stakeholders, including shipping lines, terminal operators, and trade bodies to discuss continuity, resilience, and strategic adaptation in maritime operations.
Over the past 20 days, about 16,000 TEUs were dispatched from the port to destinations in the Middle East, while around 1,700 TEUs returned to local terminals. The number of vessels at anchorage has been reduced from nine to four, while the port is currently operating at around 50 per cent of its container storage capacity, the Jawaharlal Nehru Port Authority (JNPA) said in an official release.
“During this period, the number of vessels at anchorage has significantly reduced from nine to four, indicating improved vessel clearance and operational efficiency. As of March 18, there are approximately 25,000 TEUs of transshipment containers unloaded for temporary storage at the port. The number of stranded containers at JNPA has come down from around 5,000 TEUs on March 1 to nearly 2,500 TEUs of export containers, while perishable/reefer cargo has reduced from 2,000 TEUs to around 800 TEUs as of March 16,” JNPA added
NMPA announces measures for cargo affected by West Asia crisis
Ground rent waivers, emergency handling and added storage capacity offered
NMPA will accommodate all additional stranded cargo and facilitate emergency discharge for vessels transiting to West Asia. | Photo Credit: FAKRUDDIN H
New Mangalore Port Authority (NMPA) has announced several measures to mitigate the hardships faced by port users due to ongoing geopolitical disturbances in West Asia.
In a trade notice dated March 17, NMPA announced measures such as facility to store stranded containers in the terminal’s container yards / port storage area till the cargo is shipped out. NMPA and the terminal operator are in constant consultation with Customs authorities to facilitate storage of laden containers from other ports destined to West Asia, as temporary transshipment cargo at NMPA terminal.
The trade notice said that NMPA has sufficient storage capacity to provide additional space for terminal, export-import, and transit cargo
Marine insurance’s added cost of war
Premiums for marine hull and cargo coverage zoom after attacks on ships in the Strait of Hormuz
India’s general insurance sector is feeling the heat of the ongoing US-Israel war with Iran, with the conflict spilling over to multiple countries in West Asia.
Shipping activity in the Strait of Hormuz — a vital corridor — has been disrupted and oil shipments remain largely blocked after several tankers were damaged by Iranian strikes. The attacks on ships traversing the Strait of Hormuz has led to a spike in war-risk insurance premiums for marine hull and cargo, as also claims risk. The available insurance capacity has tightened.
Insurance companies have been reassessing marine risk coverage case by case, factoring in vessel routing, ports involved and reinsurer positions.
Trump says several countries will send warships to keep Strait of Hormuz open
While he did not confirm which nations had agreed, Trump expressed hope that countries such as China, France, Japan, South Korea and Britain would send naval vessels
U.S. President Donald Trump looks on before boarding Air Force One for travel to Florida, at Joint Base Andrews, Maryland, U.S., March 13, 2026. | Photo Credit: KEVIN LAMARQUEU.S. President Donald Trump said on Saturday that many countries would send warships to keep the Strait of Hormuz open for shipping, but did not provide details on which countries would do so.
“Many Countries, especially those who are affected by Iran’s attempted closure of the Hormuz Strait, will be sending War Ships, in conjunction with the United States of America, to keep the Strait open and safe,” Trump wrote in a post on Truth Social.
Trump said he hoped that China, France, Japan, South Korea, United Kingdom and others would send ships to the area.
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