War risk insurance for shipping in the Persian Gulf and Red Sea remains available, but insurers are tightening control as they reassess exposure in a rapidly changing market.
International Union of Marine Insurance said war cover is still available on a single-voyage basis where navigation is authorised by governments and flag states. In a statement released on 5 March, the association said insurers will continue to review both their ability and willingness to provide that cover.
The group also said some insurers are serving Notices of Cancellation so they can reassess risk and restore cover on adjusted terms. It said such notices do not necessarily mean the cover has ended. At the same time, several marine insurers said they would cancel war risk cover for ships operating in Iran, Iranian waters including coastal waters up to 12 nautical miles offshore, and the Persian/Arabian Gulf and adjacent waters. According to notices dated 1 March, those cancellations take effect from 5 March.
IUMI said the situation remains fluid, with some vessels trapped in the Persian Gulf and many operators rerouting ships away from high-risk areas. It also warned that insurers are monitoring the impact on vessel concentrations at nearby ports and on ships and crews taking longer sea routes.
Short-term supply chain disruption is a likely outcome, according to IUMI. That view matches contingency measures introduced by major container lines for cargo already in transit to and from the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain, Iraq, including Umm Qasr, Oman, and Yemen. Carriers said schedule disruption may include changes to port calls and transit times, waiting in safe waters, cargo delays, and diversions to contingency ports.
The update came as shipping through the Strait of Hormuz slowed sharply after missile and drone attacks on merchant vessels and the widening conflict involving the United States, Israel, and Iran. Windward said the strait remained effectively closed, with only five vessel crossings recorded on 4 March.
Data from Windward showed that crossings through the Strait of Hormuz remained far below recent levels. Bab el-Mandeb traffic rose sharply above trend, while Suez Canal activity fell to 23 crossings, below the seven-day average. Traffic around the Cape of Good Hope remained elevated, pointing to continued rerouting of global trade.
On 4 March, only five vessel crossings were recorded in the Strait of Hormuz, with four inbound and one outbound, unchanged from the previous day and well below the seven-day average of 27. The vessels included one general cargo ship and four classified as other or unknown types.
Cape of Good Hope traffic reached 87 vessel transits on 4 March, including 35 eastbound and 52 westbound movements. That was broadly in line with the seven-day average of about 75. Bulk carriers and container vessels made up the largest share, followed by LPG carriers, crude tankers, and general cargo vessels.
Suez Canal traffic moved lower, with 23 crossings recorded on 4 March, including 22 inbound and one outbound. That was 53% below the previous day and well under the seven-day average of 38. Container vessels and tankers accounted for a large share of movements, alongside bulk carriers and other specialised vessel classes.
Bab el-Mandeb traffic rose to 21 crossings on 4 March, including 15 inbound movements toward the Red Sea and six outbound transits toward the Arabian Sea. That was 950% above the previous day and far higher than the seven-day average of fewer than three. Bulk carriers represented the largest share, followed by general cargo vessels. Seven others were classified as other or unknown, including container vessels, tanker variants, and unclassified vessel types.
IUMI also said its members mainly provide property insurance covering hull, machinery, and cargo, while liability cover is usually provided by Protection and Indemnity Clubs, many of which operate under the International Group of P&I Clubs.
