DP World launches cargo war risk insurance for Middle East trade routes

Dubai: Dubai-based logistics company DP World has launched a cargo war risk insurance product covering the full movement of goods across Middle East trade routes, aiming to address rising costs and gaps in conventional insurance coverage amid heightened regional instability.

The company said on Thursday the new offering provides continuous coverage across ocean and air freight, port storage and inland transportation, replacing the fragmented structure of traditional war risk insurance policies that typically cover only one segment of a shipment’s journey.

The programme will be available to companies trading in or through the Middle East, including routes across the Arabian Gulf, Red Sea and connected inland corridors.

“This is about solving a real, immediate problem for global trade,” Yuvraj Narayan, Group Chief Executive Officer of DP World, said in a statement. “Supply chains don’t stop at the port or the shoreline, and neither should insurance.”

War risk spike

War risk insurance premiums for cargo shipments through parts of the Middle East have increased sharply over the past two years as shipping companies and cargo owners contend with attacks on vessels, regional conflict and disruptions to key maritime routes.

DP World said its insurance product covers physical loss or damage linked to war-related risks, including armed conflict, civil unrest, seizure and derelict weapons. Valid claims would be settled with no deductible, the company said.

The company added that it had secured pricing more competitive than standard war risk premiums by leveraging relationships across global insurance markets.

$400m per shipment

Coverage limits include up to $400 million per shipment and up to $1 million per inland movement. The programme also includes automatic port storage cover for up to 14 days.

DP World said the policy can be structured as full end-to-end coverage or as standalone protection for ocean, air or inland transport.

The company gave an example of cargo arriving from Asia into Jebel Ali port, stored temporarily before customs clearance and then transported inland by truck.

Under traditional policies, insurance coverage would often end once cargo is discharged from a vessel, leaving gaps during storage and inland delivery, it said.

The launch expands DP World’s role beyond ports and terminals into supply chain risk management and logistics services, as the company seeks to broaden its integrated logistics offering.