Insurance Marketplace Realities 2024 Spring Update – Marine cargo

Rate predictions: Marine cargo

	Trend	Range
Marine cargo		Flat to +5%

Global supply chain challenges

• Container ship Dali: Supply chain disruption is yet to be determined in the wake of the incident involving the Container Ship Dali and the Francis Scott Key Bridge at the Port of Baltimore. We expect that East Coast ports will need to accommodate increased volumes leading to potential delay and further stress to the supply chain.
• Red Sea and surrounding region:
  • Some insurers have issued notice of cancellation for War/SR&CC and placing a specific region outlined by latitudes/longitudes “On Application.”
  • The increased transit time to bypass the Suez Canal and pass through the Cape of Good Hope creates stress on the global supply chain, such as increased costs, transit time, return of empty containers to origin and inherent risks of these longer voyages.
• Panama Canal: There continues to be reduced capacity of vessels transiting the Panama Canal due to recent water shortages.

Stock throughput considerations

• Stock throughput program structures continue to be explored as an alternative to the traditional property placement addressing static inventory.
• Working together with a property team often yields most favorable outcomes on pricing and overall insuring conditions.
• Benefits may include reduced deductibles, increased available limits including catastrophic perils, and premium savings.

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).