The granting of war cover for the Persian Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states, according to the International Union of Marine Insurance (IUMI).
In the current fast-paced situation, IUMI said insurers will regularly re-examine their ability and willingness to that provide cover.
In a media statement released March 5, IUMI explained that war cover remains available for owners and operators wishing to take it.
IUMI emphasized that – in circumstances such as these, some insurers will serve a Notice of Cancellation in relation to the cover their assureds have in place.
“This is to enable the insurer to reassess the risk and then reinstate the cover at adjusted terms. It is important to recognise that a Notice of Cancellation does not, necessarily, end the cover,” the association said.
Several marine insurers have revealed they will cancel war risk coverage for ships operating in Iran and Persian/Arabian Gulf.
They said their cancellations will take effect from March 5, according to notices dated March 1 on their websites.
War risk cover will be excluded in Iran and Iranian waters including coastal waters up to 12 nautical miles offshore, as well as the Persian/Arabian Gulf and adjacent waters, according to the notices.
IUMI warned that the situation remains fluid with a number of vessels being trapped in the Persian Gulf and many operators re-routing their vessels to avoid the high-risk areas.
“Insurers will be mindful of the impact this might have on accumulations at nearby ports as well as on the vessels and crews as they navigate longer sea routes,” IUMI said.
IUMI warned that supply chain disruption in the short term is a likely outcome of the current situation. That assessment aligns with signals already emerging from container lines who have implemented contingency procedures for shipments that are already in transit to and from the countries of United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain, Iraq (including Umm Qasr), Oman and Yemen.
“We are likely to see disruptions to supply chains in the short-term, as a result,” IUMI said.
Major container lines warn now that schedule disruptions may occur including changes to port calls and transit times, vessels may remain in safe waters until it is possible to proceed safely, cargo may experience delays until normal operations can safely resume, while vessels may deviate to contingency ports depending on operational and security considerations.
Insurers are also monitoring the situation in the Middle East and, in particular, the safety and free passage of shipping in the Persian Gulf and Red Sea.
“It should be noted that IUMI members (in the main) provide property insurance (hull, machinery and cargo) whereas liability insurance is usually covered by Protection & Indemnity Clubs, many of whom operate under the umbrella of the International Group of P&I Clubs,” the statement of IUMI reads.
The update comes as shipping through the Strait of Hormuz has slowed dramatically following missile and drone attacks on merchant vessels and the widening conflict involving the United States, Israel, and Iran.
The Strait of Hormuz remained effectively closed, Maritime AI™ company Windward warned, with only five vessel crossings recorded on March 4.
Windward’s data showed that Bab el-Mandeb traffic surged, sitting above recent averages. Suez Canal activity dropped to 23 crossings, falling below trend levels, while Cape of Good Hope diversions remained elevated, confirming continued rerouting of global trade.
Specifically, crossings through the Strait of Hormuz remained extremely limited on March 4 following the closure declared by Iran’s Revolutionary Guards. Only five vessel crossings were recorded (four inbound and one outbound), representing no change compared to the previous day and remaining far below the 7-day average of 27 crossings. The vessels observed included one general cargo vessel and four vessels categorized as other or unknown types.
Traffic around the Cape of Good Hope remained elevated on March 4, reinforcing the sustained shift in global shipping patterns away from Gulf transit routes. A total of 87 vessel transits were recorded, including 35 eastbound and 52 westbound movements. This volume sits broadly in line with the 7-day average of roughly 75 transits. Bulk carriers and container vessels accounted for the largest share of movements, followed by LPG carriers, crude tankers, and general cargo vessels.
Suez Canal activity moved in the opposite direction. A total of 23 crossings were recorded on March 4, according to Windward data, with 22 inbound and one outbound, representing a 53% drop compared to the previous day and well below the 7-day average of 38 crossings. Container vessels and tanker traffic accounted for a large share of movements, alongside bulk carriers and a range of specialized vessel classes.
Traffic through Bab el-Mandeb increased sharply on March 4. A total of 21 crossings were recorded, including 15 inbound movements toward the Red Sea and six outbound transits toward the Arabian Sea. This represents a 950% increase compared to the previous day and sits far above the 7-day average of fewer than three crossings. Bulk carriers accounted for the largest share of transits, followed by general cargo vessels. Seven additional vessels were categorized as other or unknown, including container vessels, tanker variants, and unclassified vessel types.
