Why NMU Products & Services Claims News & Events Contact us Careers NMU / News & Events / Product news / Cargo news / War & Strikes Updates / War and Strikes Risks Updates | 16th November 2021 War and Strikes Risks Updates | 16th November 2021 9th November 2021 In Sudan, protests against the October military coup are affecting key bridges and roads as well as Khartoum’s international airport and Port Sudan. Analysists therefore assess that there is an increased risk of disruption and damage to cargo. The consequent increase in the risk score for Sudan has had the effect of changing the applicable risk level from elevated to high, meaning that an increased surcharge rate for strikes risks cover will apply with effect from 16th November 2021. Brokers are encouraged to share this update and the information below with cargo policyholders. For Cargo Insurance policies arranged by NMU, the availability of cover against War and Strikes risks is determined by Munich Re Syndicate Ltd (MRSL) by reference to the risk levels within the JCC Cargo Watch List, which are established independently by IHS Markit for the Joint Cargo Committee of Lloyd’s and the IUA (commonly known as “the JCC”). The geopolitical situation in every country and territory is continually monitored by IHS, and their risk scores are updated monthly, or more frequently if there is particular conflict, unrest or political instability. There are seven risk levels that correspond to the risk scores: Low – 0.0 to 0.7 Moderate 0.8 to 1.5 Elevated 1.6 to 2.3 High 2.4 to 3.1 Very high 3.2 to 4.3 Severe 4.4 to 6.4 Extreme 6.5 and higher The JCC Cargo Watch List was most-recently updated on 5th November 2021, with the following significant change(s): The risk score for Sudan has increased to 2.8 (high) from 2.3 (elevated). Corresponding MRSL rate changes take effect from 09:00 GMT on 16th November 2021. Cover Typically, War risks means war, civil war, rebellion, insurrection or civil strife. It also includes damage caused by derelict mines, torpedoes, bombs or other weapons of war. War risks are only covered during transit. Strikes risks means damage caused by strikers, riots or civil commotions. It also includes terrorism in the UK. If countries or territories are in the news because of events like these, then it can be considered likely that exposures will at the very least be subject to additional premium. And in particular, for those classified as “very high”, “severe” or “extreme” by IHS, the availability of War and Strikes cover should be checked in advance, as explained below. Information about risks posed worldwide can also be found at https://www.cia.gov/library/publications/resources/the-world-factbook/index.html Application For most countries and territories, NMU premiums are inclusive of MRSL’s basic rate for war and strikes risks cover, the exceptions being: Where covered, countries and territories for which the Risk Level is “elevated” or “high” may be subject to a surcharge rate typically not exceeding 0.10% and 0.15% respectively. The availability of cover (if any), the terms and conditions and the rate for countries and territories where the Risk Level is “very high”, “severe” or “extreme” is subject to change, and will only be determined at the time of shipment or the attachment of risk; notice to us of any such shipments or exposures is therefore required. The surcharge rate or the availability of cover (if any) is applied in the following way: For transits, at the time transit commences. For storage that is not in the ordinary course of transit, if insured, by reference to the most recent update to the JCC Cargo Watch List on an ongoing basis. Full details of the countries and territories within these groups can be found below. This information is valid until the next change in the JCC Cargo Watch List, which is reviewed every month, or more frequently at times of heightened tension. Risk Level = Elevated1 These countries and territories are typically subject to a surcharge rate not exceeding 0.10%: Argentina Bangladesh2 Brazil Burundi2 Congo2 10 Egypt Eritrea Georgia2 Guinea2 India8 Indonesia2 Ivory Coast Malay Peninsula14 North Korea3 Peru Russia South Korea Turkey Risk Level = High1 These countries and territories are typically subject to a surcharge rate not exceeding 0.15%: Burkina Faso2 Cameroon10 Colombia DR Congo2 11 Gulf of Aden6 Israel Kenya2 Mozambique Niger Pakistan2 South Sudan3 Sudan2 3 Ukraine Venezuela3 Risk Level = Very High, Severe or Extreme1 The availability of cover (if any), the terms and conditions and the rate for these countries and territories is subject to change, and will only be determined at the time of shipment or the attachment of risk; notice to us of any such shipments or exposures is therefore required: Afghanistan3 Central African Republic2 3 Chad Ethiopia2 Gulf of Guinea7 Iran2 3 Iraq2 3 Lebanon3 Libya3 Mali2 3 Nigeria2 Occupied Palestinian Territory12 Persian Gulf13 Saudi Arabia Somalia3 Syria3 Yemen2 3 Contact us For more information about War and Strikes or Cargo Insurance, please contact your NMU cargo specialist. Notes 1 As at 5th November 2021. 2 Legislation in these countries may prohibit the insurance of imports or exports outside them. 3 Sendings to or from these locations are not normally covered unless specifically agreed by us in writing. 4 Within 200km of land border with Ukraine plus Black Sea within territorial waters. 5 Plus Black Sea within territorial waters. 6 Gulf of Aden sea area and to 65° E off the Somali coast, bound to the north by latitude 23°30 N, and bound to the south by 12°S and in the Red Sea by 14°N. 7 Gulf of Guinea, in the sea area between 4°30’W 5°8’44.274″N and 3°6’13.966″W 2°20’12.8″N in the west, and 9°46’18.636″E 2°20’12.8″N (Cameroon-Equatorial Guinea border) in the east. 8 Assam, Bihar, Chhattisgarh, Jharkhand, Kashmir, and Nagaland. 9 North Caucasus Federal District, less Stavropol Territory. 10 Republic of Congo. 11 Formerly Zaire. 12 The Gaza Strip and the West Bank, including East Jerusalem. 13 Persian or Arabian Gulf and adjacent waters including the Gulf of Oman west of Longitude 58°E, in respect of bulk oil and petrochemical products including LNG and LPG. 14 Singapore Strait in its entirety and the South China Sea bound at 4°N to the north, 1°N to the south and 106°E to the east. 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