Black Sea voyage insurance may become more expensive after war-risk zone expansion

The Joint War Committee (JWC) has expanded its list of high war-risk areas to cover almost the entire Black Sea. The updated JWLA-035 list now includes nearly all of the sea, excluding the territorial waters of Turkey, Georgia, Bulgaria and Romania. According to market participants, the new conditions are expected to take effect from September 19.

Inclusion in the Listed Areas does not mean a ban on shipping, but insurers may require separate war-risk cover and an additional insurance premium. The cost will be assessed individually depending on the vessel, route and current risk evaluation.

The JWC decision is important for the marine insurance market associated with Lloyd’s and the International Underwriting Association. Shipowners are already receiving relevant notifications from P&I clubs regarding updated conditions for Black Sea voyages.

Market participants expect the expanded war-risk zone to increase insurance costs for voyages through the Black Sea. Higher premiums could be partly reflected in freight rates, particularly for routes involving calls at regional ports.

For grain and vegetable oil exports, this means additional logistics pressure. If war-risk premiums continue to rise, the cost of delivering agricultural commodities could also increase, affecting the competitiveness of Black Sea supplies on international markets.

Tags: Black Sea region, insurance, war