Black Sea high-risk zone expanded by marine insurers

The London marine insurance market has expanded the high-risk area designation to include the entire Black Sea. This decision follows an escalation in the Ukraine-Russia conflict, which has entered its fifth year, marked by increased attacks on commercial shipping over the last two months.

The Joint War Committee (JWC), which includes members from the Lloyd's Market Association, issued the advisory to update reporting requirements. While the coastal waters of Russia and Ukraine were previously listed, the new mandate covers the whole Black Sea area, though voyages within the territorial waters of adjacent countries do not yet require notification.

The Black Sea serves as a critical corridor for the shipment of grain, crude oil, and refined products. The escalation has led to a surge in war risk premiums, which are currently adding hundreds of thousands of dollars in costs to every seven-day voyage.