Client War Risk Exposure Brief for Cargo Routes
A carrier war risk surcharge protects the vessel. It does not insure the cargo.
This brief helps cargo owners and forwarders explain war risk exposure on routes touching Joint War Committee listed areas. It is written for Malaysia and Singapore shipments moving through or near the Strait of Hormuz, Persian Gulf, Gulf of Oman, Red Sea, Bab-el-Mandeb, and Black Sea corridors, as of May 2026.
Does a hull war risk surcharge insure cargo?
No. A carrier hull war risk surcharge is charged to recover the carrier's vessel insurance cost. Cargo war risk is a separate cargo placement, usually under Institute War Clauses (Cargo) CL385.
| Element | Hull war risk surcharge | Cargo war risk cover |
|---|---|---|
| Insured party | Carrier or vessel owner | Cargo owner |
| Protected property | The vessel | The cargo |
| Typical clause reference | Hull war risk wording | Institute War Clauses (Cargo) CL385 |
| Client action | Understand the freight surcharge | Confirm cargo war cover, subject to policy terms and conditions |
Who should download the war risk brief?
Cargo owners, exporters, importers, and forwarders should download it when a shipment from Malaysia or Singapore routes through a JWC-listed corridor or when a freight invoice includes a war risk surcharge.
What does the brief reference?
The brief references Joint War Committee listed areas as of May 2026, Institute War Clauses (Cargo) CL385, Institute Strikes Clauses (Cargo) CL386, Institute Cargo Clauses (A) 1/1/09, and Incoterms 2020 insurance responsibility checks.
Frequently asked questions
What is CL385?
CL385 is the Institute War Clauses (Cargo) wording. It is separate from CL386, which is the Institute Strikes Clauses (Cargo) wording.
Should every JWC route be referred?
Any route touching a listed area should trigger a cargo war risk check. Whether cover is available, automatic, or separately rated depends on insurer appetite and the policy wording.
Is the JWC list fixed?
No. Listed areas and insurer positions change. This brief is dated May 2026 and should be checked against the current JWC position before a placement decision.
Download the brief, map the route, and confirm cargo war cover before the shipment enters a listed corridor.
