The Joint War Committee (JWC) has expanded its list of areas exposed to heightened war risk to cover almost the entire Black Sea. The new conditions are expected to take effect from 19 September. This was reported by USM.
According to the updated JWLA-035 list dated 16 September, the Listed Areas are set to include virtually the entire Black Sea, with the exception of the territorial waters of Turkey, Georgia, Bulgaria and Romania. Shipowners are already receiving relevant notifications from P&I clubs.
The JWC designates areas of heightened risk for the marine insurance markets of Lloyd’s and the International Underwriting Association.
The inclusion of an area in the Listed Areas does not constitute a ban on navigation. However, insurers may require separate war-risk cover and an additional insurance premium for voyages through such areas.
The amount of the additional premium will depend on the vessel, route, insurer and current risk assessment.
Market participants expect the expansion of the risk area to increase the cost of insuring voyages through the Black Sea and potentially affect freight rates.
