Insurance rates in the ports of Greater Odessa decreased to 0.35-0.4%

The availability of underwriters with the capacity to insure military cargo in Ukrainian territorial waters remains limited, but sufficient to meet current demand. Since maritime exports through the ports of Greater Odessa resumed in 2022, insurance has played a crucial role in supporting trade. Notably, military cargo risk insurance rates have dropped significantly from an initial 4-5% to 0.35–0.4% of cargo value today.

Cargo insurance is now divided into two main categories: standard All Risks (ICC A, GAFTA/FOSFA) and military-specific EWRI coverage. Standard insurance rates have remained relatively unaffected by the war, except during early 2022 when traffic shifted to the Danube ports. Back then, older, poorly maintained vessels lacking key certifications led to higher premiums. With the modernization of fleets calling at Greater Odessa, this issue has largely disappeared.

In contrast, military cargo insurance rates are directly linked to regional security. Events such as missile and drone strikes, rising mine threats, or damaged vessels can cause temporary rate spikes, as seen during heavy attacks in September–October 2024. Despite such fluctuations, the overall trend has been a steady decrease in premiums.

When insuring military cargo, cargo owners must assess the insurer’s credibility, reinsurance structure, policy terms, coverage duration in high-risk areas, and the conditions for activating or withdrawing coverage. Real-world cases, such as the compensation for damage to the Shui Spirit container ship, underscore the importance of reliable insurance.

Looking ahead, rates are expected to hold at 0.35–0.4%, with potential reductions to 0.25–0.3% especially if a truce or lasting regional stability is achieved.