London's marine insurance market has widened the area in the Black Sea it deems as high risk as the Ukraine-Russia conflict escalates, according to an advisory issued this week.
The Black Sea is a vital route for shipments of grain, crude oil and refined products. Its waters are shared by Russia and Ukraine as well as Bulgaria, Georgia, Romania and Turkey.
Russia and Ukraine have stepped up attacks on each other's commercial shipping in the past two months, in an escalation of their war, now in its fifth year.
The Joint War Committee (JWC) comprises syndicate members from the Lloyd's Market Association and representatives from the London insurance company market and its guidance influences underwriters' considerations over insurance premiums.
"This week, the JWC has expanded the Black Sea reporting requirements to the whole of the Black Sea area. The coastal waters of Russia and Ukraine were already listed," Neil Roberts, head of marine and aviation at the LMA and secretary of the Joint War Committee, said on Thursday in a note accompanying the advisory.
"However, voyages within the territorial waters of adjacent countries still do not require notification."
War risk premiums, which are adding hundreds of thousands of dollars in additional costs for every seven-day voyage, have surged in recent weeks as dozens of ships have been attacked in the Black Sea.
(Reuters)