Ukrainian authorities and marine insurance broker Miller have collaborated to create a new marine coverage facility for Ukraine’s grain experts using the country’s sea corridor.
In July, Russia backed out of a UN-supported deal to allow Ukraine’s grain exports to sail from three ports.
Since Russia’s withdrawal from the deal, Kyiv has created what it refers to as a new temporary humanitarian corridor for the purpose of sidestepping the stoppage Russia has put in place. Recently, two ships have sailed from Chornomorsk, a Ukrainian port, using that channel. That said, being able to secure marine insurance for the journey has been critical.
Miller, a broker based in London, has announced that it is working with Clearwater Dynamics (CWD), a maritime technology company, to create a war risks coverage facility for grains shipments by way of three ports including Odesa, Pivdennyi, and Chornomorsk.
The marine insurance established through Miller includes both cargo and hull coverage for ships.
That said, Miller has not publicly announced the name of the underwriters taking part in this facility and the coverage it provides.
“This is a commercial facility and the underwriters involved will settle all losses,” said a spokesperson from Miller. “The three main grain export ports are the areas to be covered. But onwards voyage outside the Black Sea can also be built into coverage,” they added, pointing out that the policy was awaiting formal enquiries.
The marine insurance facility will be using technology from CWD to allow ship tracking and real-time monitoring of a vessel while it is in port and as it in transit until it makes its way out of the high-risk area, explained Miller.
Ukraine’s farm minister Mykola Solsky recently spoke on Ukrainian TV, saying that the first ships that traveled from the ports through the zone “were very expensive”, but the cost of freight had dropped.
“An insurance market for the greater Odesa area has already emerged. There is a trend,” said Solsky.
Recently, Russia hit port infrastructure and grain storage facilities in Ukraine by way of an overnight drone strike, said Ukrainian officials.
