India’s freight forwarding industry is alarmed by soaring War Risk Surcharges (WRS) imposed by international shipping lines on Gulf-bound cargo. The Federation of Freight Forwarders’ Associations in India (FFFAI) has urged intervention from the Ministry of Ports, highlighting potential profiteering as exporters face increased financial strain and significant disruptions.
India is accelerating plans to establish its own Protection and Indemnity (P&I) insurance entity amid soaring marine insurance costs due to recent crises in West Asia. Rajesh Kumar Sinha announced ongoing discussions with the Department of Financial Services, highlighting the aim to create a domestic solution for maritime liability coverage.
The global marine insurance industry continues to provide war risk coverage for vessels in the Persian Gulf and Red Sea, despite rising cancellations due to Middle Eastern conflicts. The International Union of Marine Insurance confirmed that insurers are monitoring the situation closely, affecting vessel traffic and global supply chains.
Several maritime insurers have suspended war-risk coverage for vessels in the Persian Gulf and nearby waters, effective March 5, amid rising US-Israel tensions with Iran. Seven of the twelve International Group of Protection and Indemnity Clubs have announced automatic termination of this coverage, impacting crucial global shipping routes.
Amid rising tensions in West Asia, shipping companies face increasing war risk premiums, significantly impacting global maritime insurance. Insurers are reevaluating coverage due to geopolitical unrest, particularly around the Red Sea. This reassessment could disrupt global trade and drive up shipping costs, affecting various sectors and highlighting broader economic volatility.
