DP World has introduced a groundbreaking cargo war risk insurance solution designed to help businesses manage disruptions along Middle Eastern trade routes, where traditional insurance has become fragmented, expensive, and often unavailable.
This innovative solution provides continuous coverage across the entire supply chain, from ocean or air transit through port storage to inland delivery. It closes critical gaps left by conventional insurance policies, which typically cover only individual legs of the journey. By leveraging its scale and relationships in global insurance markets, DP World has also secured pricing that is significantly more competitive than standard war risk premiums.
“This initiative addresses a real and immediate problem for global trade,” said Yuvraj Narayan, Group CEO of DP World. “Supply chains don’t stop at the port or shoreline, and neither should insurance. For the first time, cargo owners can access a single policy that protects their goods throughout the entire journey, even in high-risk environments, ensuring that trade continues when it matters most.”
The solution covers physical loss or damage caused by war-related risks, including conflict, civil unrest, seizure, and derelict weapons, with all valid claims processed with zero deductible.
This program is available to all companies trading in or through the Middle East and is designed to maintain supply chain continuity across key trade corridors, including the Arabian Gulf, the Red Sea, and surrounding inland routes. The program offers a range of options, including:
– End-to-end protection from ocean or air transit to inland delivery.
– Standalone ocean, air, or land transit policies.
– Automatic port storage coverage for up to 14 days.
– High coverage limits, including up to $400 million per shipment and $1 million per inland movement.
This flexibility enables cargo owners to adapt quickly to changing routes and operational realities.
**How It Works: Example Shipment from Asia to the Middle East**
In this example, cargo travels by sea to Jebel Ali, where it is stored at the port for several days before clearance, and then transported by truck to its final inland destination.
With traditional insurance: Coverage typically applies only during ocean transit, leaving gaps during port storage and inland transport.
With DP World’s solution: A single policy provides continuous protection across the entire journey, from entry into the war risk zone to final delivery.
**Why This Matters:**
– Traditional cargo insurance often excludes war risk or requires separate coverage.
– Coverage frequently ends at discharge, leaving gaps during port handling and inland transport.
– Carriers do not cover war-related losses, as these fall outside their liability.
DP World’s solution addresses these issues with continuous, end-to-end protection.
This solution builds on DP World’s integrated logistics capabilities and its strong relationships in global insurance markets. By combining operational expertise with financial risk solutions, DP World is extending its role beyond ports and terminals, becoming an end-to-end supply chain partner that supports customers even in the most challenging environments.
