DP World has launched a first-of-its-kind cargo war risk insurance solution to help businesses navigate disruption across Middle East trade lanes, where traditional insurance has become fragmented, costly and often unavailable.
The Dubai-based ports and logistics giant said the initiative is designed to help customers maintain supply chain continuity amid growing security concerns across key maritime routes, including the Arabian Gulf, the Red Sea, and inland transport corridors linked to the Strait of Hormuz.
The company said the cover gives end-to-end protection for cargo against physical loss or damage linked to conflict, civil unrest, seizure and other war-related risks.
Under the program, cargo owners can obtain continuous insurance coverage across the full logistics chain, including ocean freight, air cargo, port storage, and inland delivery. DP World said the offering closes gaps left by conventional war risk policies, which typically insure only a single stage of transport.
The move reflects mounting pressure on the shipping sector as insurers sharply increase premiums for vessels operating in high-risk waters across the Gulf region.
Some marine insurers have already withdrawn or restricted war risk cover in parts of the Middle East following escalating attacks and regional military tensions.
“This is about solving a real, immediate problem for global trade,” DP World Group Chief Executive Yuvraj Narayan said in a statement announcing the launch. “Supply chains don’t stop at the port or the shoreline, and neither should insurance.”
The company said the insurance solution is available to businesses trading in or through the Middle East and includes coverage limits of up to US$400 million per shipment, alongside automatic port storage protection for up to 14 days.
Shipping markets have experienced increasing disruption in recent months as tensions around the Strait of Hormuz and Red Sea shipping lanes intensified. Higher insurance costs, vessel rerouting, and cargo delays have pushed up freight rates and added pressure to global supply chains.
DP World said the new insurance platform forms part of its broader strategy to expand integrated logistics services beyond traditional port operations as companies seek more resilient supply chain solutions in volatile trading environments.
Read More: Shipping Through Conflict - The Mounting Cost of War on Middle East Logistics