Lloyd’s of London broker Ascot and insurer Marsh have written their first insurance policy for a ship carrying Ukrainian grain out of the country’s Black Sea ports following the signing of Russia and Ukraine’s safe passage deal last month.
The shipping insurance policy is set to reinforce the UN brokered deal to reopen Ukraine’s seaports and guarantee safe passage of ships carrying Ukrainian grain through the Black Sea.
The policy comes after Marsh and Lloyd’s of London broker Ascot launched their Marine Cargo and War facility in July, to provide coverage of up to $50m (£42m) for ships carrying food shipments out of Ukraine’s ports.
The facility’s launch sits in line with efforts to restart grain exports from Ukraine’s ports after food prices surged to near-record highs in the early months of the war.
With Russia and Ukraine supplying around 30 per cent of the world’s wheat and more than 70 of global sunflower oil, the closure of the Black Sea shipping route raised the prospect of widespread food shortages.
Global food prices have however fallen this summer, following record exports of grain out of Russia and the signing of the Black Sea exports deal.
The cost of securing coverage for ships travelling through the Black Sea has surged since the start of the war in Ukraine, to sums equivalent to 10 per cent of the value of the ships themselves, Bloomberg reported in April
David Roe, Head of UK Cargo, Marsh, said: “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.”
Marsh and Ascot said they will also extend the facility to other Lloyd’s of London brokers with a view to supporting “international efforts” to ensure “Ukrainian grain reaches the world’s most vulnerable people”.