Insurance for Ukrainian grain shipments cut after Russian suspension – source

LONDON (Reuters) – Insurers are no longer offering new cargo insurance for shipments from Ukraine through the UN-backed secure corridor after Russia stopped participating, industry sources said. an industry source said on Tuesday.

An export deal agreed by Russia and Ukraine and brokered by Turkey and the United Nations in July was aimed at alleviating the world hunger crisis caused by Moscow’s invasion of Ukraine and previous blockades of Ukrainian ports.

Shipments have moved out of Ukraine since the Moscow announcement on Saturday, but insurers are grappling with a changing risk environment and increased uncertainty, sources said.

“It is imperative that ships already in the grain corridor are not collateral damage and are allowed to travel safely,” said Guy Platten, secretary-general of the International Shipping Association on Tuesday.

“Furthermore, the safety of seafarers must remain a top priority and all parties must be considerate of crew members who may be stranded on board or in port due to factors beyond their control. .”

Vessels entering the three ports that are part of the agreement are typically required by banks to take out various insurance policies, including hull and cargo war insurance, which is renewed every seven days.

Lloyd’s of London insurer Ascot said Monday it was suspending insurance coverage for new shipments. Since then, sources say other Lloyd’s underwriters have followed suit.

Chris McGill, Ascott’s chief cargo officer, told Reuters on Tuesday that “cargoes posted yesterday are likely to struggle to get press coverage.”

“We are trying to gather as much information as possible from multiple sources in order to create a meaningful and appropriate solution for all parties involved.”

Norwegian war risk insurer Gard said it is focused on doing what it can to support its clients “in turbulent times”.

Three industry sources said the indicative rate for hull warfare compensation rose from about 1% on Monday to 1.5% from half the ship’s value on Tuesday, adding that compensation is unlikely to be offered at this time.

“Underwriters will keep in mind that they do not want to increase their exposure in the current situation. Hull insurers can provide quotes, but nothing is moving,” another source said. Told.

According to ICS analysis, there are still 65 ships stranded in Ukraine, including other ports not part of the initiative and 346 seafarers.

Delegates from Ukraine, Turkey and the United Nations have agreed not to plan the movement of ships through the grain corridor on Nov. 2, the initiative’s joint coordination center said Tuesday.

Reporting by Jonathan Saul and Carolyn Cohn.Editing by Josie Kao

Our criteria: Thomson Reuters Trust Principles.

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