Discussions highlighted the significance of the Strait of Hormuz, through which approximately 23% of global crude oil and 22% of LNG flows, and the resulting impact of geopolitical instability on shipping activity, vessel routing and cargo movement. Participants heard how increased vessel delays, “dark shipping” practices, rerouting around Southern Africa, and disruptions to container services are creating new operational challenges across supply chains.

The session explored how delays, cargo deterioration, contract performance issues and force majeure provisions may affect insureds differently depending on cargo type and contractual arrangements. Emphasis was placed on understanding the interaction between contracts of sale, carriage and insurance, particularly where different legal systems apply.

Presenters also examined the operation of Institute Cargo Clauses and War Risk Cover, noting that while war risks may be insured under separate clauses, delay-related losses remain generally excluded, even where caused by an insured event. The importance of policy wording, prompt notification to insurers and careful assessment of proximate cause in claims handling was strongly emphasised.

The session reinforced a broader message for the industry: in a rapidly changing geopolitical environment, effective risk management depends not only on insurance cover, but also on understanding contractual obligations, maintaining communication between stakeholders and responding early to emerging exposures.

AMUSA continues to provide educational forums aimed at strengthening technical knowledge and supporting informed decision-making across the marine insurance sector.