Ascot, Marsh insure grain ship from Ukraine's Black Sea ports

Ascot

23/08/2022 24:00

By Noor Zainab Hussain
    Aug 23 (Reuters) - Broker Marsh  MMC.N  and Lloyd's of
London  SOLYD.UL  insurer Ascot said on Tuesday they have
provided coverage for a vessel carrying grain and food products
from Ukraine's Black Sea ports under its new marine cargo and
war insurance facility.
    Launched last month, it provides coverage up to $50 million
for Ukrainian vital food supplies being shipped through safe
corridors established by the newly signed Black Sea Treaty.
    The cover adds a big protection to the deal between Moscow
and Kyiv at the end of July, which was brokered by the United
Nations and Turkey and resulted in unblocking three Black Sea
ports.  urn:newsml:reuters.com:*:nL1N2ZW026
    The total number of vessels that have left Ukraine's Black
Sea ports under the deal touched 27, with two more ships leaving
Ukraine's Chornomorsk port on Aug. 20, according to Turkey's
Defence Ministry.  urn:newsml:reuters.com:*:nL1N2ZW026
    "Cargo and war insurance will play a pivotal role in the
broader resumption of grain and other vital food exports from
Ukraine's Black Sea ports," David Roe, Head of UK Cargo, Marsh,
said.
    Grain shipments from Ukraine since the war with Russia have
been hampered as its Black Sea ports, a vital route for
shipments, were closed, driving up food prices and prompting
fears of shortages in Africa and the Middle East.
    Until this facility was launched, insurers were willing to
cover grain moving out of Black Sea ports only with
international navy escorts and a strategy to deal with sea
mines. 
    However, the cost of coverage for such war-exposed business
are not cheap. Premiums to go into the broader Black Sea area
have risen sharply to as much as 5% of the value of the ship
from 0.025% before the invasion.
   Marsh and Ascot said they would extend the facility to
clients of Lloyd's of London registered brokers.
    

 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Arun
Koyyur)
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