Is your client’s cargo programme fit for today’s volatile trade routes
Cargo & Stock Throughput

Is your client’s cargo programme fit for today’s volatile trade routes?

Nicolas  Juge
Nicolas Juge 03 December 2025
Nicolas  Juge
Nicolas Juge 03 December 2025
Is your client’s cargo programme fit for today’s volatile trade routes?

Global trade has always carried risk. But in today’s environment – where geopolitical tensions, armed conflict, and political unrest overlap with supply chain challenges – traditional approaches to insuring cargo are no longer enough.

That’s why our team takes a holistic approach – building a plan that sees our clients cargo risks from every angle.  

We look at clients’ cargo, war, and political risks together 

In the past, it was common to treat marine cargo risks, land-based war risks, and political violence as separate categories. But reality has changed. Shipments can face threats in port, at sea, in storage, and even in the digital sphere – often from the same conflict or incident.

Clients need holistic cover that follows their goods wherever exposures arise. That means solutions that span cargo, war, strikes, riots, civil commotion (SRCC), political violence, and confiscation, all the way from the moment they acquire an insurable interest until that interest ends.

Sometimes the solution is straightforward (end-to-end cargo + war + political violence and terrorism). And sometimes it’s more sophisticated – blending market appetite with risk layering strategies. In every case, the goal is the same: prevent coverage failures before they happen.

Market snapshots 2024–2025: Why a holistic cargo strategy matters

1.    Cargo insurance and stock throughput (STP)

The cargo market is stable but cautious after several hard years. Capacity is generally sufficient, particularly at Lloyd’s and among major international insurers, though underwriters are selective in areas like commodities, storage, and war risks.

  • STP policies remain the preferred choice for global clients with complex logistics –  combining transit and storage risks into one seamless cover.
  • Underwriter scrutiny multiplies – placing more emphasis on loss history, stock accumulation data, NatCat exposures, and quality of storage facilities. 
  • Geopolitical exposures (Red Sea, Black Sea, HRA countries) are a key focus – underwriters demand real-time vessel tracking and proactive routing compliance.

2.    Cargo war 

The current geopolitical context is highly volatile, and the associated risk landscape is constantly evolving. Any insurance solution has to adapt and can’t claim to offer absolute certainty.

The appetite of the (re)insurance markets for war and political risks – particularly in high-risk territories – is both limited and highly sensitive to international developments. Available coverage and pricing are changing all the time – often unpredictably. 

  • War risk premiums are increasingly priced per voyage – based on real-time routing, vessel flag and age, and political or military activity.
  • Demand for cover is strong across high-risk routes – including the Red Sea, Black Sea, Persian Gulf, and Gulf of Guinea.
  • Brokers need to help clients review inland transit and storage accumulations – these may fall under extended war definitions.

3.    Political violence and terrorism (PVT)

The European PVT market has evolved significantly in recent years – mainly due to geopolitical dynamics, growing urbanisation, and the increasing prevalence of targeted attacks and civil unrest.

  • Coverage is getting broader – coverage now extends beyond terrorism to include broader political violence risks such as strikes, riots, civil commotion, and malicious damage.
  • Hybrid threats (physical + digital) are a growing focus – with the rise of cyberattacks linked to political motives, insurers have started including cyberterrorism into their offerings.
  • Insurers continue to invest in tech to price exposures more accurately – geospatial analysis and predictive modelling can help better assess risks in urban areas.
  • Reinsurance capacity is expanding to handle larger potential losses – particularly in politically sensitive regions.
  • ESG is a big factor for underwriting decisions – areas with politically or socially sensitive issues ongoing can be hard to place. 

How we can help you and your clients

The takeaway is clear: cargo risks are no longer neatly segmented. Exposures cut across categories, markets are more selective, and pricing can shift overnight.

Our Cargo team helps clients navigate this complexity by:

  • Designing holistic programmes that close gaps and follow exposures end-to-end. 
  • Applying market insight to help anticipate shifts in appetite and pricing.
  • Using our global experts and deeply connected culture to connect clients with the right expertise, whatever the challenge.

Get In Touch

Nicolas Juge

Nicolas Juge

Senior Director - Cargo + 33 7 88 83 18 62 [email protected] Read more

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