Steamship Mutual Amends Red Sea High Risk Areas for Charterers and Non-Pooled Covers
Key Takeaways
- •Steamship Mutual issued a 72-hour cancellation notice on 14 August 2026 affecting Charterers P&I, Damage to Hull, and Non-Pooled policies due to the Red Sea situation.
- •Coverage will be reinstated on 16 August 2026 with newly defined High Risk Areas spanning the Indian Ocean, Gulf of Aden, and Red Sea.
- •The designated high risk boundaries exclude coastal waters of adjoining territories up to 12 nautical miles offshore, with limited exceptions including the Bab el-Mandeb Traffic Separation Scheme.
- •Members with vessels in or entering the affected areas can obtain buyback terms from their underwriters to reinstate coverage for additional premium based on factors such as vessel type, cargo, and trading pattern.
- •Multiple International Group of P&I Clubs and war risk underwriters have issued comparable Red Sea risk amendments since late 2023, reflecting the elevated threat environment in the region.
Steamship Mutual Amends Red Sea High Risk Areas for Charterers and Non-Pooled Covers
Marine Insurance P&I Club News — 14 August 2026
Citing the ongoing situation in the Red Sea, the Directors of Steamship Mutual have exercised their authority under the Club's Rules to issue a 72-hour notice of cancellation affecting all Charterers P&I and Damage to Hull policies, as well as all Owned and Chartered Non-Pooled policies, including Fixed Premium Owned P&I entries.
Cover will be reinstated effective 00:00 GMT on Sunday, 16 August 2026, incorporating newly defined Red Sea High Risk Areas covering the Indian Ocean, Gulf of Aden, and Red Sea.
The use of 72-hour cancellation notices is a standard mechanism available to P&I clubs under their rules, enabling them to restructure geographic risk exposure when operating conditions shift. Since late 2023, multiple International Group of P&I Clubs and war risk underwriters have issued comparable amendments reflecting the elevated threat environment in the region.
Newly Defined High Risk Area Boundaries
The designated waters are enclosed by the following boundaries:
- Northwest: the Red Sea, south of Latitude 25°30'N
- Northeast: from the Yemen border at 16°38.5'N, 53°6.5'E to high seas point 14°55'N, 53°50'E
- East: a line from high seas point 14°55'N, 53°50'E to high seas point 10°48'N, 60°15'E, thence to high seas point 6°45'S, 48°45'E
- Southwest: from the Somalia border at 1°40'S, 41°34'E to high seas point 6°45'S, 48°45'E
These boundaries exclude coastal waters of adjoining territories (save for the Bab el-Mandeb Traffic Separation Scheme, Yemen, and the Red Sea coast of Saudi Arabia) up to 12 nautical miles offshore, unless otherwise provided.
Terms Unchanged; Buyback Available
All other terms and conditions remain unamended. Members whose vessels are in or entering these areas are advised to contact their Underwriters to obtain terms and conditions for a buyback of this exclusion.
Buyback arrangements allow members to purchase reinstatement of cover for designated high risk waters in exchange for additional premium. The specific terms depend on factors such as vessel type, cargo, and trading pattern.
Source: Steamship Mutual
