The logistics firm aims to mitigate rising costs and delays for cargo amid escalating regional tensions and attacks on shipping routes.
DP World has introduced war risk insurance for cargo moving through the Middle East, addressing heightened security threats in key trade lanes. The move follows recent attacks on commercial vessels in the Red Sea and Gulf of Aden, disrupting global supply chains and increasing shipping costs by up to 40% since November.
The insurance covers physical damage, loss, and delays caused by conflict-related incidents, a response to growing demand from shippers and insurers. Premiums for war risk coverage in the region have surged this year, with some routes seeing rates triple compared to 2023 levels.
Markets have reacted cautiously, with freight indices stabilizing slightly as shippers assess the new offering. Analysts note the insurance may ease short-term volatility but does not resolve underlying geopolitical risks.