Ship Insurers Seek Assurances On Ukraine Grain Corridor

Insurers will be willing to cover ships that sail via a proposed corridor to transport grains from Ukraine if arrangements are made for international navy escorts and a strategy to deal with sea mines and brokers.

Ukraine, Turkey, Russia, and the UN may sign a deal later this week, aimed at resuming the shipping of grains across the Black Sea from Ukraine.

Ports in Ukraine have been closed since Russia invaded it in February, which Moscow continues to refer to as a “special military operation,” with many marine insurers based in the Lloyd’s of London as well as the broader commercial insurance market of London waiting for further assurances given the losses associated with each vessel.

Insurance for vessels would be possible if a sensible solution could be offered, reported Rory Colacicchi, a partner at McGill and Partners, an insurance broker.

Ukraine Grain Corridor
Image for representation purpose only

An acceptable and appropriate escort would be provided by joint Russian and Ukrainian ships, the UN, or a neutral power like Turkey, the insurance sources added.

An aide to mine sweeping may be the use of satellite technology to detect locations of the mines, reported a marine war insurer.

The insurer further added that countries like the US, France, and Britain might have such advanced technology.

The initial issue is that more than 80 vessels are stuck in Ukraine. Sources mentioned that several of those are loaded with cargoes, including grains, which need to get out before new vessels can go in.

A second UK-based broker said that his company had collaborated to get an “insurance framework” for a vessel keen to go into Ukraine to get the grains out once a corridor is activated.

The client is currently on standby to visit from a humanitarian point of view.

Additional premiums levied to reach the broader Black Sea areas have lowered, indicating greater confidence to offer insurance since February 2022, per industry sources.

The additional premiums paid to go into the waters of the Black Sea have dropped to 2% of the ship’s value from 5% after the invasion, reports Marcus Baker, the global head of marine at broker Marsh.

References: Nasdaq, US News

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Do you have info to share with us ? Suggest a correction

About Author

Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

Subscribe To Our Newsletters

By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.

Web Stories

Leave a Reply

Your email address will not be published. Required fields are marked *