Tokio Marine Kiln and Marsh have launched a new insurance facility for ports and terminals.

Available to Marsh clients, the standalone cover is global in scope and offers capacity up to US$50m for BI losses associated with trade disruption, such as the impact of geopolitical events and weather-related incidents.

The ongoing crisis in the Red Sea, conflict in Ukraine, and tensions in the Taiwan Straits continue to disrupt trade globally. Vessels are being diverted or opting to take new routes to avoid conflict zones and ensure safe passage. In the first few months of 2024, trade through the Suez Canal alone dropped by over 50%, affecting ports reliant on this vital artery. The collapse of the Francis Scott Key Bridge in Baltimore in March 2024 also brought significant disruption to global trade.

Louise Nevill, CEO of UK marine at Marsh Specialty, said: “Business interruption events stemming from geopolitics, trade disruption and weather-related incidents are increasing in their frequency and severity around the world, which is resulting in debilitating consequences for businesses involved in international trade. This new facility offers our port and terminal clients a rapidly available layer of cover to protect their operations and facilitate an expeditious resumption of normal operations when these events occur.”

Ed Parker, head of special risks at Tokio Marine Kiln, added: “Recent geopolitical turmoil has exposed a clear gap in the standard cover available to ports and other cargo facilities. The threat posed by conflict has rendered many established routes impassable. Trade has been disrupted globally and the financial impact on many operators has been immense. This is compounded by the ever-present threat from blockages, with recent events in the Suez Canal and the collapse of the Francis Scott Key Bridge in Baltimore emphasising the scale of the potential impacts of these events beyond the control of port operators front of mind."


Image courtesy: Port of Dover

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