Travelers’ Post

There is a reason for why the world's maritime industry operates the way it does. Safety, Insurability, Maritime Domain Awareness, and so very many other reasons. The ghosts ships are just as much of a danger to our Industry as the nations who fund them are to the safety and stability of our world. #ghostfleet #imo #safetyatsea #insurance #maritimeindustry #shipsandshipping #intheni

It’s not just that Miami beachfront property or Sonoma vineyard that’s becoming uninsurable. Political risk providers are galloping out of China commitments as fast as possible, says Elisabeth Braw: “Of the 60 or so insurers that offer political-risk insurance, only four or five are still offering it for China, the insurance executive noted. Policies still being offered likely wouldn’t exceed $50 million coverage, down from around $2 billion a few years ago. Most large companies with operations in China have assets far above $50 million…. Some companies planning to keep their Chinese operations going may already have political-risk insurance that lasts for another few years. Others may try to self-insure, though that means taking on risks that even insurers consider too large. The rest face having to leave the country.” It’s long been borderline impossible to keep both Chinese and Western consumers happy with your branding and values statements, but now financial and legal drivers all suggest decoupling too. What this will do to the effectiveness of the supply chain oversight efforts driving much of this tension is anyone’s guess. #china #politicalrisk https://lnkd.in/eEKynxkv

Russia’s shadow fleet of uninsured and strangely equipped oil tankers has taken to loitering in the waters of Sweden, NATO’s newest member state. A severe storm broke a small Russian oil tanker in two off the Ukrainian port of Kerch on Sunday, spilling up to 2,000 tonnes of fuel oil in what a Russian official said was an "environmental disaster". The same storm in the Black Sea and Azov Sea also sank four freighters, three carrying sulphur and one with a cargo of scrap metal. The frequent presence of the Kremlin’s sanctions-dodging vessels off the coast of Gotland, where they perform dangerous ship-to-ship transfers of oil, is a clear provocation, not to mention a looming threat to marine life. Now the Swedish Navy reports that shadow vessels in the waters of Sweden’s exclusive economic zone don’t just conduct their regular business: they’re also equipped with communications gear that is in no way needed by standard merchant vessels. The Russian shadow fleet appears to simultaneously be a spy fleet. This collection of ships — c. 1,400 vessels worldwide — may operate in the shadows, but its activities are growing – especially in the Baltic Sea. The fleet transports pretty much anything asked of them, and in the past two years that has meant a lot of Russian oil, because Russia wants to keep exporting above the Western-imposed price cap.

In part six of our series on the impact of the Russia-Ukraine conflict on #insurance & the #insuranceindustry, Associate Anastasiya Menshikova and Partners Justin Pfeiffer, Andrew Pidgirsky and Jane Luxton discuss #Russian government-backed #airline Aeroflot’s plans to purchase more detained planes from foreign lessors. These proceeds could offset #damages the leasing companies are seeking to recover in consolidated cases pending at the #UK High Court. Read the full #ClientAlert on our website. #InsuranceLaw #InternationalLaw #TradeLaw #Sanctions #InternationalTrade #InternationalRelations #Ukraine

So IF we sanction #Russian shadowfleet, would it be considered #escalation? "Officially, the shadow fleet doesn’t exist. These rickety, uninsured vessels, running oil from #Russia to #China, #India, and others, live off-book as they cruise the world’s oceans to dodge sanctions." "The shadow vessels travel through the waters of countries that have no oil dealings with Russia but foot the bill each time one of these vessels has an accident in their waters. Last month, the shadow oil tanker Andromeda Star, which is, as is normal for shadow vessels, managed by an obscure firm and was sold to undisclosed buyers at the end of 2023, hit a cargo vessel just off the coast of #Denmark." "Ordinarily, the tanker’s insurance would have covered the incident. But because the Andromeda Star is a shadow vessel, it lacked the Western insurance that is the industry standard. Instead, it is insured by a mysterious Russian outfit that’s unlikely to pay out a single krone." "Denmark’s taxpayers may never recover the money the authorities spent attending to the incident. Fortunately, the Andromeda Star had its accident while traveling to Russia, its tanks empty." "The Russian ships are there to conduct ship-to-ship (STS) transfers, the highly hazardous business of transferring #oil from one vessel to another." "The Swedish public broadcaster SVT has tracked vessels sailing from the Russian port of Primorsk and the Ust-Luga fuel terminal to the waters off eastern Gotland, where they meet up with another tanker, the Zircone." "Indeed, as I argued in January, Russia could instruct shadow vessels to deliberately cause harm—a cheap and easy way of hurting #NATO member states. (It doesn’t help that the Zircone belongs to the Latvian company Fastbunkering, which is itself owned by an Estonian firm.)" #Maritime #Sanctions #internationalrelations https://lnkd.in/gHFWwx9S

Just released my newest article: 'Navigating Lesser-Known EU Sanctions: A Focus Beyond Asset Freeze'. In my latest piece, I delve into the critical impact of lesser-known EU sanctions, including arms export restrictions and insurance and reinsurance coverage implications, on the insurance industry. I also provide practical examples for how insurers can comply with these sanctions. By complying with EU sanctions, businesses can help promote international peace and security, uphold human rights, and prevent the spread of weapons of mass destruction. Read the full article here: https://lnkd.in/ekPZFR6i #EU #SanctionsCompliance #InsuranceIndustry #financialcrime

Political risk and economical uncertainty in our globalized world drives demand for political risk insurances. Very interesting arcticle by our political risks experts on the development which was caused by the Russian & Ukrainian war.

Are policymakers really considering enforcing the light touch attestation approach with acts of war? It is increasingly dumfounding to hear "grasping-at-straws" efforts to hang on to a price cap when it is so very clear that Russia's blatant workaround to keep oil flowing is performing very well. Living in Denmark I have no faith that Russian insurance would actually pay if there were a spill, but are policymakers trying to achieve an impact on Russia's war capabilities or are they trying to save face with contradictory policies that seek to just make compliance more confusing in the hope that does the trick? There are many sanctions tools available to make Russia's revenue generation from energy more complicated and difficult, but they require actually targeting Russia's trade and revenues and the perpetual search for the perfect "goldilocks" solution will not change that fact. Compliance professionals, be prepared for more contradiction and confusion ahead as the G7+ make the rules for compliance even murkier! #sanctions #oil #Russia #russiaukrainewar #denmark #nordics

Questioning Western Profiteering Amid Red Sea Turmoil: Houthi Attacks on Tankers Costing East Africa The recent surge of Houthi rebel attacks on tankers in the Red Sea has ignited suspicions regarding Western interests profiteering from the region's turmoil, ultimately burdening East Africa with escalated costs and security risks. This escalation of tensions, coupled with the economic repercussions for East Africa, prompts critical scrutiny of broader geopolitical motives. The Red Sea serves as a vital maritime route for global trade, yet recent Houthi attacks have disrupted shipping lanes, prompting Western military deployments under the guise of safeguarding international interests. However, some speculate these actions may serve as pretext for Western intervention, potentially exacerbating regional instability. East Africa, reliant on maritime trade routes for economic sustenance, bears the brunt of Red Sea turmoil. Heightened security concerns and increased insurance costs for vessels passing through the region translate into elevated expenses for East African businesses and consumers. Such disruptions threaten economic growth and compound existing socioeconomic challenges. Geopolitical interests loom large amidst the chaos. The Red Sea's strategic importance attracts competing regional and global powers, leading to Western military initiatives that may exploit regional instability for strategic gain. Amidst escalating tensions, calls for accountability and diplomatic resolutions intensify. Rather than exacerbating instability, stakeholders must prioritize dialogue and cooperation to address the root causes of conflict, ensuring the long-term stability and prosperity of the Red Sea and its surrounding areas The recent surge in Houthi attacks on tankers in the Red Sea raises questions about Western motives and the economic toll on East Africa. As suspicions of profiteering emerge, diplomatic solutions and conflict resolution become imperative to mitigate the economic and security challenges facing East Africa and the wider Red Sea region.

The recent meeting between Russian President Vladimir Putin and North Korean leader Kim Jong-un primarily focused on cooperation between their countries and the potential supply of North Korean weapons to Russia. Held at the Vostochny cosmodrome, the meeting did not directly address the war in Ukraine, but Kim Jong-un unequivocally expressed support for Russia's actions, emphasizing the fight against imperialism. While specifics about weapon supplies were not disclosed, it's suggested that North Korean weapons might aid Russia in the conflict, though they aren't expected to bring a strategic shift. However, concerns arise about the limitations of North Korea's production capabilities and the potential risk of reselling technology provided by Russia. #Russia #NorthKorea #Ukraine🌐