Marine insurers continue to support trade in the Red Sea and Black Sea, says IUMI
At its annual winter meeting in London, the International Union of Marine Insurance (IUMI), confirmed that the global marine insurance market is continuing to support trade in the Red Sea and the Ukraine/Black Sea area.
Since the cessation of the Ukraine grain corridor in September 2023, some 10 million MT of grain has been lifted from Ukrainian ports using international tonnage insured by marine underwriters. Insurance coverage facilitated the export of most of the Ukrainian grain harvest abroad, according to IUMI's release.
In the Red Sea, the insurance market is providing hull and cargo products at affordable prices and vessel owners are able to obtain the cover they require. The impact on Suez Canal transits and global supply chains are significant but this has not affected the ability of the marine insurance market to provide adequate cover – both for Red Sea/Suez Canal transits or for the longer route around the Cape of Good Hope.
IUMI also reported on restricted movement through the Panama Canal due to low water levels causing a restriction on a vessel’s maximum draught from 50 feet to 44 feet. This has reduced daily transits to around 24 vessels from a norm of 34-36 vessels. Sailings are expected to decrease further to 18 vessels later this month. The result is longer transit times as vessels are re-routed - but voyages have been further compromised by events in the Red Sea. The convergence of these two crises comes in advance of the export surge around the lunar new year shutdowns in Asia. Expected consequences may include a shortage of delivered goods, containers out of position, gridlock at freight handling terminals and congestion at ports.
IUMI’s report on the global marine insurance market along with discussion and debate on the pressing issues of the day will be featured at its annual conference to be held in Berlin 15-18 September 2024.
The International Union of Marine Insurance e.V. (IUMI) is a non-profit association established for the purpose of protecting, safeguarding and advancing insurers‘ interests in marine and all types of transport insurance. It also provides an essential forum to discuss and exchange ideas, information and statistics of common interest for marine underwriters and in exchange with other marine professionals. IUMI currently represents 42 national and marine market insurance and reinsurance associations.
