One of the biggest news stories of 2026 is the conflict around the Strait of Hormuz, where a large chunk of the world’s oil passes through, along with other cargo. Part of the reason shipping stalled there was that insurance companies refused to provide marine insurance because the transit risks around Hormuz were too high.
Suddenly, a piece of paper helped keep the oil from flowing.
We’ll look at why marine insurance matters if your business involves moving cargo across long distances.
Understanding the Risks of Marine Cargo Transportation
We almost take it for granted that what we need gets to our doorsteps. Often, the only risk we know of and worry about is if the delivery person loses our package.
That’s actually also a very real risk in maritime trade, even more so given the long distances ships have to cross to bring cargo where it needs to be just in time. Changes in global and regional geopolitical conditions, a shifting world order, and economic factors have disrupted a previously secure maritime trade regime.
Here are some of the risks involved in marine cargo transportation:
- Armed conflicts near shipping lanes
- Theft and cargo accumulation risks
- Port strikes and civil unrest
- Port congestion and rerouting delays
Additionally, major shifts in trade policies add to marine cargo risks. A ship carrying your cargo leaves for a distant country today. It could get stuck somewhere in the open sea or even just before docking because of policy shifts in the destination country.
Your goods or country could be placed under sanctions, or a sudden rise in tariffs could make you unable to sell your products. At worst, your cargo could be confiscated. Either scenario imposes additional costs and losses you likely never planned for when you sent your cargo away.
How Marine Insurance Helps Manage Shipping Risks
No one wants to lose cargo or have its delivery delayed. But even in the best of times, maritime trade can be risky. If your business involves moving cargo over long distances, marine insurance provides protection from these risks even if you don’t own a ship or operate in the maritime industry.
Generally, marine insurance provides the following protections:
- Hull and machinery coverage: this is protection for the transport vehicles, especially ships, and helps with the costs of repair
- Cargo and freight coverage: this is coverage for damage to or loss of the cargo being transported and helps you deal with shifting freight charges.
- Third-party liability coverage: this is insuring you against any accidents or damages caused by your ships and/or cargo, helping you with payments and legal fees
Additionally, marine insurance is an important compliance requirement in maritime trade. Ships moving through the Strait of Hormuz didn’t stop only because of the risks common in a conflict zone. Laws in many countries and territories also require insurance for the transport of cargo. With insurers refusing to cover ships and cargo traveling through the strait, trade was disrupted.
Reliable Protection for Marine Trade
Finding the right insurance can be as tricky as navigating the challenges of a rapidly changing maritime trade environment. Thankfully, Reliable Insurance Brokers have you covered when it comes to ensuring your ships and cargo have the protection they need.
Our brokers will help you choose the coverage you need from our selection of providers and get provisions tailored to your business. We help you get:
- Cargo and Trade Protection: You can be sure that your vessels and cargo are protected from delays, damage, theft, or loss, minimizing the financial impact of such situations.
- Third-Party Liability Protection: We help cover you for compensating third parties injured or damaged by any unforeseen incidents involving your ships or cargo.
- Insurance Compliance: Many countries and territories require insurance for vessels and cargo. We help make sure you have the coverage required for compliance.
The unknown doesn’t have to catch you off guard when it comes to protecting your business. Give us a call today and let’s talk about getting you the marine insurance you need to navigate today’s murky waters of maritime trade.
Contact Information for Inquiries and Support
If you have any questions or need assistance with your insurance, feel free to reach out to us:
- Call: +63 2 8631 9285 to 86
- Mobile: +63 917 138 5120
- Email: info@reliable-insurance.ph
- Messenger: m.me/reliable.insurancebrokersph
Sources
- More Than Just Shipping (2026, July 23), Marine Insurance: An Essential Component of Modern Shipping and Trade. https://www.morethanshipping.com/marine-insurance-an-essential-component-of-modern-shipping-and-trade/
- Howden (2025, June 25), Why Marine Cargo Insurance Is Now a Strategic Advantage — Not Just a Safety Net. https://www.howdengroup.com/be-en/news-insights/why-marine-cargo-insurance-is-now-a-strategic-advantage-not-just-a-safety-net
- RD Legal Australia (2024, March 12), The Importance of Maritime Insurance: Safeguarding Your Interests. https://pdlegal.au/the-importance-of-maritime-insurance-safeguarding-your-interests/