Insurance Companies – Strikes and War Risks for Cargo in the Red Sea

Dear All,

Starting from October 7th, and following the ongoing Houthi threat to vessels and cargo, most major shipping companies have opted not to route cargo ships traveling between the East and Israel (and back) through the Red Sea and the Suez Canal. Instead, they are now taking the alternative route around the Cape of Good Hope.

Given the current circumstances and in accordance with the terms and conditions of the policy, insurance companies are issuing a cancellation notice regarding WSRCC (War, Strikes, Riots, and Civil Commotions) risks in the regions listed below. The cancellation will take effect on Monday, July 22nd, 2024, at 00:00 Israel time.

For your convenience, please find the English version of the notice and a map detailing the areas affected by the cancellation.

After the cancellation goes into effect, customers who for any reason have a special need to ship cargo through these dangerous areas and insure against war and strike risks are requested to contact us individually for an appropriate solution, depending on the current threat level, the type of goods, and specific circumstances.

Given the current circumstances, and in accordance with the terms and conditions of the policy, we hereby issue notice of cancellation in respect of WSRCC (War, Strikes, Riots, and Civil Commotions) risks in the below-listed areas. The cancellation will come into force on Monday, July 22nd, 2024, at 00:00 Israeli time.

**Indian Ocean, Gulf of Aden, and Southern Red Sea**

The waters enclosed by the following boundaries:

a) On the northwest, by the Red Sea, south of Latitude 18° N

b) On the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E

c) On the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E

d) And on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E, excepting coastal waters of adjoining territories up to 12 nautical miles offshore unless otherwise provided.

*Listed areas: the latest JWLA (number 32) can be downloaded here: Joint War (lmalloyds.com) (https://www.lmalloyds.com/lma/jointwar)

Sincerely,
AllCargo Logistics Services

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