Cargo War Cover Procurement Brief for Listed-Risk Corridors

CL385 cargo war cancels on 7 days. Standard hull war commonly cancels on 48 hours. Bind one without confirming the other and you can be on the water with cover that already lapsed.

Cargo war and strikes cover behaves very differently from hull war cover, and binding only one of CL385 or CL386 leaves the other exposure uninsured. This brief frames the seven questions every cargo owner should put to the underwriter in writing before binding, with a quote-ready intake form sized for trade lanes through the Strait of Hormuz, Red Sea, Bab-el-Mandeb, Black Sea, and other JWC listed corridors out of Port Klang, Tanjung Pelepas, Singapore, and Penang.

What you get inside

Seven pre-binding questions, a quick reference panel, a quote-ready intake form, and a cover specification checklist.

• Seven pre-binding questions: clause attachment (CL385 and CL386), deductible per conveyance, hot zones excluded, premium calculation basis, attachment and detachment, cancellation rights, and in-flight cargo treatment.
• A quick reference panel covering Institute War Clauses (Cargo) CL385 dated 01.01.2009 and Institute Strikes Clauses (Cargo) CL386 dated 01.01.2009, the standard 7-day cancellation provision under CL385, the commonly 48-hour hull war cancellation, and the Joint War Committee at Lloyd's as the source of JWLA listed area circulars.
• A quote-ready intake form covering shipment details (route, sailing window, vessel, B/L, transit duration) and cargo details (commodity, HS code, packaging, weight, sum insured, single shipment or open cover endorsement).
• A cover specification checklist with seven tick items so your broker has the spec in writing before they go to market.
• A decision card mapping three procurement uses: brief your existing broker, request a quote from Voyage, or compare multiple quotes against the seven-question framework.

How CL385 differs from CL386

Two separate clause sets, two separate exposures. Both should attach for listed-risk corridors.

Who this is for

Built for cargo owners, traders, and exporters in Malaysia, Singapore, and ASEAN with shipments routing through Joint War Committee listed areas, including the Strait of Hormuz, the Red Sea, Bab-el-Mandeb, and the Black Sea. The brief assumes commercial maturity and a working familiarity with Incoterms, ICC clauses, and the difference between cargo war cover and hull war cover.

What this brief references

All coverage statements are subject to policy terms and conditions. The brief draws on Institute War Clauses (Cargo) CL385 dated 01.01.2009 (Lloyd's Market Association / Joint Cargo Committee), Institute Strikes Clauses (Cargo) CL386 dated 01.01.2009, Institute Cargo Clauses (A) 2009 Clause 8 transit cover, and Joint War Committee JWLA listed area circulars current at the time of cover.

Frequently asked questions

What is the difference between Institute War Clauses and Institute Strikes Clauses?

The Institute War Clauses (Cargo) (CL385 dated 01.01.2009) cover cargo war perils. The Institute Strikes Clauses (Cargo) (CL386 dated 01.01.2009) cover Strikes, riots, and civil commotion. They are separate exposures and both should attach for any listed-risk corridor.

What are JWC listed areas?

The Joint War Committee at Lloyd's publishes circulars (the JWLA series) listing geographic areas with elevated war and related perils risk. Underwriters reference current JWC listed areas when pricing and accepting cargo war risk. The list is updated as conditions change.

Does cargo war cover apply during inland transit?

Cargo war cover attachment and detachment depend on the policy wording, with the war and strikes clauses interacting with the ICC (A) Clause 8 transit clause. Inland transit cover is not automatic; confirm the wording covers loading and discharge points, plus inland legs where required.

What happens to in-flight cargo if cargo war cover is cancelled mid-voyage?

The 7-day cancellation under CL385 ends new cover on shipments not yet shipped, but in-flight cargo is typically run off to destination. This run-off should be stated in the policy, not assumed. Confirm the run-off provision in writing before binding.

Download the brief, send the intake form to your broker or to Voyage, and expect a schedule that addresses each of the seven questions in writing.