Howden has launched a cargo war risk facility specifically designed to protect vessels from drone and missile strikes by Yemeni-based militia groups in the Red Sea.

Howden’s cargo war facility offers up to US$50m of coverage per insured vessel, and the largest limit quoted so far is US$150m per vessel.

It is understood to be the first dedicated insurance coverage of its kind to protect cargo vessels within an active conflict zone, which encompasses the Bab al Mandab Strait, the Red Sea, and the Indian Ocean.

Ellis Morley, associate director, Cargo and Commodities, Howden, said: “The conflict in the Red Sea has presented a significant obstacle to clients with operations in the region. Vessels are seeking protection as they navigate this security hotspot, and we have worked with specialist marine underwriters to launch this facility, protecting cargo in the region up to a limit of US$150m per vessel. We are harnessing Howden’s collective expertise to offer a clear path forward and helping to find solutions to global supply chain pressures.”

Howden has bound policies across four continents in the first month since the launch of its new insurance product. This creates a corridor for shipments to pass through the Red Sea and Suez Canal, avoiding a longer journey around the Cape of Good Hope, which is understood to add two weeks and 70% higher emissions to a typical voyage from the Far East to Europe.

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