Insurer Ascot pauses writing new cover for Ukrainian shipments

“From today we are pausing on quoting new shipments until we better understand the situation,” Ascot head of cargo Chris McGill told Reuters. “Insurance that has already been issued still stands.”

Ascot and the insurance broking giant Marsh launched a facility for grain traders in late July of this year to provide up to $50 million in cargo cover for every voyage. Reuters noted that the cargo facility has been used by a ‘significant proportion’ of the shipments to date.

“Any shipments that were quoted last week are valid for seven days. However, we had seen a drop off in submissions last week,” McGill said. “It’s new shipments coming to the market since the news that will need consideration.”

Reuters highlighted that international officials have expressed concerns that Moscow might reimpose a blockade on Ukrainian grain, after Russia stated on Saturday that it was suspending its role in the UN-backed programme that escorts cargo ships through the Black Sea.