Ascot Insurance and broker Marsh have placed the first cargo war risk cover for humanitarian food shipments from Ukraine under a newly arranged policy.
The insurance deal comes as there is a marked increase this week in the size — and improvement of the age profile — of ships heading to pick up food exports from Ukraine’s Black Sea dry bulk terminals.
Ascot and Marsh, which launched the $50m cargo cover earlier this month, have not named the ship involved in the first placement.
Other unnamed Lloyd’s of London underwriters have joined the Ascot-led cover.
“Cargo and war insurance will play a pivotal role in the broader resumption of grain and other vital food exports from Ukraine’s Black Sea ports,” said Marsh head of cargo David Roe.
The facility has now been opened to other Lloyd’s of London brokers to market. “By making the facility available to the clients of Lloyd’s of London registered brokers, it is our hope that we can all work together to support international efforts and help ensure Ukrainian grain reaches the world’s most vulnerable people during this terrible time of conflict,” said Roe.
There has also been a significant increase in the size and value, and improvement in the age profile, of vessels heading for the Ukraine which will increase demand for first-rate insurance cover.
Last week TradeWinds reported the average size of vessels heading for Ukraine was 15,000-dwt, with an average age of 20.1 years old, and an average market value of $6.5m.
Establshed players
This week the first panamax bulkers have been fixed for Ukraine humanitarian cargoes as more established players bring larger ships into the trade.
The 71,000-dwt Seaeagle (built 1998), operated by Eastern Mediterranean Shipping, is heading for the Illichivisk Grain Terminal. The 76,000-dwt Ascanios (built 2004), controlled by Greece’s Grehel Ship Management, is heading for the TIS Fertilizer Terminal.
Several supramax vessels have also been fixed including the 56,800-dwt SSI Invincible II which, at 10 years old, is the youngest vessel to be fixed for the trade so far.
“Since its launch, we have seen significant demand for the product from a number of clients and brokers. It’s great that this mission-driven initiative is open and able to meet that demand for all who may need it,” said Ascot head of cargo Chris McGill.
