War Risk Updates Your Clients Need to See

If your clients ship through the Strait of Hormuz, the Persian Gulf, or the Red Sea, their standard cargo insurance does not cover war. The surcharge your shipping line is charging them is for the carrier's war risk, not theirs. Two separate exposures. Most of your clients only know about one.

This brief gives forwarders the current corridor picture as of May 2026, the structural split between the carrier's Hull War Risk Surcharge and the cargo owner's own war risk cover under Institute War Clauses (Cargo) CL385 dated 01.01.2009, and the conversation to have with affected clients before the next shipment leaves.

Key Facts: Cargo War Risk for Forwarder Client Conversations (as of May 2026)

Which corridors does the Joint War Committee currently list? As of May 2026, the Joint War Committee at the Lloyd's Market Association lists the Persian Gulf and Gulf of Oman (including the Strait of Hormuz), the Red Sea south of 18°N including Bab-el-Mandeb, and the Black Sea, with newly listed countries Bahrain, Djibouti, Kuwait, Oman, and Qatar. The most recent circular is JWLA-033 dated 3 March 2026.

What is the structural difference between the carrier's Hull War Risk Surcharge and the cargo owner's war risk cover? The Hull War Risk Surcharge is the carrier's own war risk premium for the vessel, passed to the cargo owner as an invoice line item or freight uplift; the cargo owner's war risk cover is a separate placement under Institute War Clauses (Cargo) CL385 that protects the cargo itself. Two separate insurers, two separate premiums, two separate cancellation regimes.

What is the cancellation provision on cargo war risk under CL385? Institute War Clauses (Cargo) CL385 dated 01.01.2009 carries a 7 days written notice cancellation by the insurer, and in-transit voyages are typically unaffected by such notice, subject to policy terms and conditions. Hull war risk under ITC-Hulls runs to a 48 hours automatic termination on certain triggers; the two mechanics are not the same.

What ICC (A) 2009 clause excludes war? Institute Cargo Clauses (A) 1/1/09 Clause 6 excludes war risks; Clause 7 excludes strikes risks. War cover is reinstated separately under CL385 dated 01.01.2009 and strikes cover under Institute Strikes Clauses (Cargo) CL386 dated 01.01.2009.

When does a transhipment voyage trigger war risk implications even if the named ports look safe? When the vessel passes through a listed sub-area without calling, the war Additional Premium follows the actual route taken, not the booked port pair. Singapore-transhipped cargo onward to a Middle East port can pick up war Additional Premium from the carrier and from the cargo policy independently.

For the war exclusion explained, see cargo insurance war exclusion. For the clause set, see Institute War Clauses (Cargo) CL385. For the corridor view, see Strait of Hormuz cargo insurance 2026.

The current corridor picture (as of May 2026)

The Joint War Committee published JWLA-033 on 3 March 2026, expanding the Listed Areas across the Persian Gulf and Gulf of Oman (including the Strait of Hormuz), the Red Sea south of 18°N, and adding Bahrain, Djibouti, Kuwait, Oman, and Qatar as listed countries. The Black Sea remains listed from earlier circulars. As of May 2026, any client whose vessel transits these waters or calls at these ports is in a Listed Area, and both the carrier and the cargo insurer are pricing war Additional Premium against the route.

For ongoing programmes affected by the listings, Marine Cargo Open Cover with a war risk endorsement is the structure that holds; for one-off shipments, Single Shipment Marine Cargo Insurance with war risk added by endorsement is the alternative, both subject to policy terms and conditions. Some clients will tell you their carrier has already charged a war risk surcharge on the invoice and assume they are covered. They are not.

Partner with Voyage on Client Cargo Insurance

Voyage works with Malaysian and Singaporean freight forwarders as the referral specialist for marine cargo placements done in the client's name, and as the placement partner for the forwarder's own Freight Forwarders Liability Insurance. WhatsApp +60 19 990 2450 or use the contact form to start the conversation.

The two-policy split: carrier Hull WRS and the client's cargo war risk

This is the single most common point of client confusion. The carrier's Hull War Risk Surcharge is a war Additional Premium on the carrier's own Hull War Risk policy: the carrier pays the premium and passes it to the cargo owner as a freight line item or invoice surcharge. The cover protects the vessel; it does not pay anything to the cargo owner if the cargo is lost to a war peril.

The cargo owner's war risk cover is bought separately and added to the base cargo policy under Institute War Clauses (Cargo) CL385 dated 01.01.2009. The cover responds to physical loss or damage to the cargo arising from war, strikes (under CL386), and related perils, subject to policy terms and conditions.

If your client is being charged a Hull War Risk Surcharge by the carrier, that is normal market practice when the vessel transits a Listed Area; it does not mean the cargo is covered. See Marine Cargo Open Cover with a war risk endorsement for ongoing programmes, or Single Shipment Marine Cargo Insurance with war risk added by endorsement for one-off shipments.

Common forwarder mistakes when explaining this to clients

Three patterns come up in client conversations and each is worth pre-empting. First, telling the client "the surcharge covers it" without distinguishing whose cover the surcharge belongs to. The carrier's surcharge belongs to the carrier; the cargo owner's exposure is uninsured unless they have CL385 in force on their own cargo policy.

Second, assuming the client's existing cargo policy includes war as a default extension. Many open covers do incorporate war and strikes as automatic extensions, but many do not, and some incorporate them only on specified routes or trades. Knowing which is in force on the client's placement matters before the next vessel transits the corridor.

Third, conflating the freight forwarder's own liability cover with the client's cargo cover. Freight Forwarders Liability Insurance protects the forwarder against negligence claims arising from forwarding services; it does not insure the client's cargo against war perils. For more on the distinction, see why your freight forwarder is not your insurer.

The conversation to have with affected clients now

The best time to have this conversation is before the next shipment books, before the next Letter of Credit opens, and before the next attack or surcharge spike makes the conversation reactive rather than advisory. Open it in writing, not on the phone: a short email naming the route, the current listings as of May 2026, and the two-policy split gives the client something to read, share with their finance director, and act on.

Frame it as advisory, not commercial. You are not selling cargo insurance; you are alerting the client to a current exposure that affects their next shipment. Where the client says they already have it placed, ask them to confirm whether war is itemised on the certificate or bundled into the cargo premium. A bundled rate is harder to read at a moment like May or June 2026 because the war component cannot be unbundled and re-tendered.

The four questions to ask, in writing, on the client's existing placement:

1. Does your current cargo policy include war cover under Institute War Clauses (Cargo) CL385 dated 01.01.2009 as an automatic extension, or does it require specific endorsement per voyage or route?
2. Is the war Additional Premium itemised separately on the certificate or bundled into the cargo rate?
3. What is the cancellation provision on the war cover (typically 7 days written notice under CL385)?
4. For your next shipment touching the Persian Gulf, the Strait of Hormuz, the Red Sea south of 18°N, or any of the listed countries (Bahrain, Djibouti, Kuwait, Oman, Qatar), has the war cover been confirmed in force for the actual route, not just the booked port pair?

For the corridor-specific exposure for Malaysian exporters, see Hormuz crisis for Malaysian exporters; for the mechanics, see war risk surcharges explained; for the Middle East corridor cargo owner view, see war risk surcharges for Middle East cargo in 2026. For trading-house industry context, see Commodities & Trading Houses Cargo Insurance; for the forwarder's own placement reference, see Freight Forwarders & Logistics Insurance.

The Client War Risk Exposure Brief is the one-page PDF designed to attach to that email: co-brandable with your firm's logo alongside Voyage's, carrying the current JWC listed areas, the WRS-versus-cargo-war-risk split, and the Voyage referral close. The current edition references JWLA-033 dated 3 March 2026 and the May 2026 corridor picture.

Frequently Asked Questions

Does the carrier's war risk surcharge mean my client's cargo is insured against war?

No. The carrier's Hull War Risk Surcharge is the carrier's own war risk premium for the vessel; it is passed to the cargo owner as a freight surcharge but does not insure the cargo. The cargo owner's war cover is a separate placement under Institute War Clauses (Cargo) CL385 dated 01.01.2009.

What is the cancellation notice on cargo war risk cover?

Cargo war risk cover under CL385 dated 01.01.2009 runs to a 7 days written notice cancellation by the insurer, and in-transit voyages are typically unaffected by such notice, subject to policy terms and conditions. Hull war risk runs to a 48 hours automatic termination on certain triggers under ITC-Hulls war wording; the two mechanics are structurally different.

Does ICC (A) 2009 cover war if no separate CL385 cover is in place?

No. Institute Cargo Clauses (A) 1/1/09 Clause 6 excludes war risks; Clause 7 excludes strikes risks. Cover for these perils requires separate placement under Institute War Clauses (Cargo) CL385 and Institute Strikes Clauses (Cargo) CL386, both dated 01.01.2009, subject to policy terms and conditions.

Can the freight forwarder arrange the client's cargo war cover directly?

The forwarder is not the cargo owner's insurer and should not present itself as such; the cargo cover must be placed in the cargo owner's name with a licensed broker or specialist insurer. The forwarder's value here is to surface the exposure, share the brief, and refer the client to a specialist.

What if my client already has open cover with war included?

Confirm whether war is included as an automatic extension under CL385 or whether it must be added per voyage or per route, and confirm the war Additional Premium is itemised separately rather than bundled into the cargo rate. Itemised cover is easier to read at moments like May or June 2026; bundled rates are harder to unbundle for re-tender, subject to policy terms and conditions.

Voyage Conclusion

The forwarder who sends the client a war risk update before the next surcharge spike or the next attack becomes the trusted advisor, not just the logistics coordinator. The corridor is live as of May 2026, the two-policy split is the single most worth-correcting point of client confusion, and the email-with-brief-attached is a thirty-second action that pays back across the client relationship for years.

Voyage updates the Client War Risk Exposure Brief quarterly or when the JWC listings change materially. Download it, co-brand it with your forwarding firm's logo, and share it with affected clients. For your own freight forwarder's placement reference, see Freight Forwarders Liability Insurance; for your clients shipping through the corridor, see Marine Cargo Open Cover and Marine Cargo Insurance with Institute War Clauses (Cargo) CL385 reinstated, subject to policy terms and conditions. As of May 2026, the corridor remains listed and the surcharge environment remains elevated.

Download the Client War Risk Exposure Brief

Co-brandable one-page PDF for forwarders to share with clients whose routes touch the JWC-listed corridor. Pair it with the Hormuz / Red Sea Cargo War Risk Briefing for the current month's full corridor picture. Forwarders and brokers partnering with Voyage: WhatsApp +60 19 990 2450 or use the contact form. Free, no signup wall.

Related guides: cargo insurance war exclusion, Institute War Clauses (Cargo) CL385, Strait of Hormuz cargo insurance 2026, war risk surcharges explained, Hormuz crisis for Malaysian exporters.

Disclaimer: This article provides general guidance on cargo war risk and the forwarder-to-client conversation as of May 2026. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction. The Joint War Committee Listed Areas are updated regularly, and the position described here may have changed; verify the current JWC circular before any client briefing.

Always review your specific policy wording and consult a qualified insurance or legal professional before making coverage decisions.