Lloyd's of London insurer Ascot has stated that the cargo insurance facility providing cover for shipments via Ukraine's grain export corridor will continue next year with no rate increases.

The CFTS portal reported this, citing the Latifundist publication.

According to the publication, ships entering the three Ukrainian ports participating in the Black Sea Grain Initiative, which established a humanitarian maritime corridor to allow ships to export grain and other foodstuffs from Ukraine, are usually required by their banks to have various insurance policies in place, including hull and cargo war cover, which is renewed every seven days.

War and other insurance rates are generally expected to rise sharply across the board next year because of the conflict, natural catastrophes, and high inflation, the publication wrote.

"The ‘AsOne’ Black Sea facility will continue unabated with no planned increases to rating", Chris McGill, head of cargo at Lloyd's of London insurer Ascot, is quoted as saying.

According to the publication, aviation and marine war insurers are concerned that reinsurers - who insure the insurers - will exclude the whole Ukraine, Russia, and Belarus region when reinsurance contracts come up for renewal on 1 January.

But McGill said the cargo facility was set up in such a way that the insurers on the program share the risk, without the need for reinsurance.