Insurers Marsh and Tokio Marine Kiln (TMK) have announced the launch of an insurance facility for ports and terminals which provides “cover against business interruption arising from trade disruption.”

According to the companies, the cover is global in scope and offers a capacity of up to US$ 50m for business interruption losses associated with trade disruption, such as the impact of geopolitical events and weather-related incidents.

“Over the last two years, the ongoing crisis in the Red Sea, the conflict in Ukraine, and tensions in the Taiwan Straits have disrupted trade globally. Vessels are being diverted or opting to take new routes to avoid conflict zones and ensure safe passage. In the first few months of 2024, trade through the Suez Canal alone dropped by over 50%, affecting ports reliant on this vital artery. The collapse of the Francis Scott Key Bridge in Baltimore in March 2024 also brought significant disruption to global trade,” Marsh and TMK explained.

“Traditional insurance solutions for port, terminal and other cargo-handling insureds only cover business interruption caused by physical damage to the ports themselves or where there is a physical barrier to access, meaning that ports have been left increasingly exposed with few solutions available to mitigate their financial losses to events outside of their control,” the insurers added.

Marsh and TMK further claim that through the offering, ports can secure additional cover should certain wider events beyond their control lead to ships being diverted away from or refusing to sail to their facilities. “The facility also provides additional cover for ports impacted by blockages whether by sea or land, increasingly volatile weather events, or more severe hurricane and typhoon seasons which have increased the risk of trade disruption from blocked access to ports.”

The recent announcement follows the launch of Marsh’s US$ 50m port blockage insurance facility, which provides clients with cover for loss of revenue caused by third-party accidents such as a vessel sinking in a channel, a vessel impact resulting in a waterway closure, or a natural catastrophe.

Insurers Marsh and Tokio Marine Kiln (TMK) have announced the launch of an insurance facility for ports and terminals which provides “cover against business interruption arising from trade disruption.”

According to the companies, the cover is global in scope and offers a capacity of up to US$ 50m for business interruption losses associated with trade disruption, such as the impact of geopolitical events and weather-related incidents.

“Over the last two years, the ongoing crisis in the Red Sea, the conflict in Ukraine, and tensions in the Taiwan Straits have disrupted trade globally. Vessels are being diverted or opting to take new routes to avoid conflict zones and ensure safe passage. In the first few months of 2024, trade through the Suez Canal alone dropped by over 50%, affecting ports reliant on this vital artery. The collapse of the Francis Scott Key Bridge in Baltimore in March 2024 also brought significant disruption to global trade,” Marsh and TMK explained.

“Traditional insurance solutions for port, terminal and other cargo-handling insureds only cover business interruption caused by physical damage to the ports themselves or where there is a physical barrier to access, meaning that ports have been left increasingly exposed with few solutions available to mitigate their financial losses to events outside of their control,” the insurers added.

Marsh and TMK further claim that through the offering, ports can secure additional cover should certain wider events beyond their control lead to ships being diverted away from or refusing to sail to their facilities. “The facility also provides additional cover for ports impacted by blockages whether by sea or land, increasingly volatile weather events, or more severe hurricane and typhoon seasons which have increased the risk of trade disruption from blocked access to ports.”

The recent announcement follows the launch of Marsh’s US$ 50m port blockage insurance facility, which provides clients with cover for loss of revenue caused by third-party accidents such as a vessel sinking in a channel, a vessel impact resulting in a waterway closure, or a natural catastrophe.