According to Air Cargo News, DP World has launched a “first-of-its-kind” cargo war risk insurance solution covering all transport modes, offering up to $400 million in coverage per shipment and $1 million per inland movement. The policy, introduced on 7 May 2026, addresses growing disruptions in Middle East trade corridors due to ongoing conflict, where traditional insurance has become fragmented, costly, and often unavailable.
Comprehensive Coverage Across Transport Modes
The new insurance program provides continuous protection across the entire supply chain—spanning ocean and air transit, port storage, and inland delivery—unlike conventional policies that typically cover only a single leg of the journey. According to the source, DP World emphasized that this solution “closes critical gaps left by conventional insurance policies.” The coverage includes physical loss or damage caused by war-related risks such as conflict, civil unrest, seizure, and derelict weapons. All valid claims are settled with zero deductible, a notable feature for shippers operating in high-risk zones.
Competitive Pricing and Scale-Driven Access
By leveraging its global scale and established relationships across insurance markets, DP World secured pricing that is “significantly more competitive than standard war risk premiums,” according to the report. The insurance is available to all companies trading in or through the Middle East, with specific focus on key trade corridors including the Arabian Gulf, the Red Sea, and surrounding inland routes. The program offers multiple options, including end-to-end protection, standalone ocean, air, or land transit policies, and automatic port storage coverage for up to 14 days.
“This is about solving a real, immediate problem for global trade,” said Yuvraj Narayan, group chief executive, DP World. “Supply chains don’t stop at the port or the shoreline, and neither should insurance. For the first time, cargo owners can access a single policy that protects goods across the entire journey, even in high-risk environments, helping keep trade moving when it matters most.”
Impact of Regional Disruptions on Air and Sea Freight
Air cargo operations have experienced significant disruption since the latest outbreak of conflict in the Middle East at the end of February 2026, while ocean shipping has had to navigate the closure of the Strait of Hormuz since 2 March 2026. These developments have reversed recovery trends in air cargo, according to recent industry data cited in the report. As a result, demand for resilient insurance solutions has grown rapidly, particularly for firms relying on multimodal transport through volatile regions.
Insurance Features and Market Differentiation
- Up to $400 million in coverage per shipment
- $1 million per inland movement
- Zero deductible on all valid claims
- Automatic port storage cover for up to 14 days
- Available for ocean, air, and land transport modes
According to the report, the program is designed to maintain supply chain continuity in high-risk environments. It marks a shift from fragmented, single-leg insurance models to integrated, end-to-end protection. The solution is particularly relevant in the context of escalating geopolitical tensions in the Middle East and the increasing vulnerability of trade routes such as the Red Sea and the Strait of Hormuz.
Source: Air Cargo News
Compiled from international media by the SCI.AI editorial team.
