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Port Congestion Risk: Mitigating disruptions from tariffs to climate risks

Uncertain trade policies are worsening port congestion and accumulation risk in Asia. How can port owners mitigate risks from tariffs to climate?
Port congestion

Geopolitical unrest, conflicts, and extreme weather have caused ships to divert routes, resulting in delays and congestion at major Asian ports like Singapore.1 Furthermore, uncertainty over US tariffs has disrupted international trade, prompting manufacturers to shift stock or reroute products, affecting ports worldwide. Emerging risks due to changing business and climate landscapes require innovative risk transfer solutions to sustain port operations and profitability.

Ports in Asia have seen an increase in outbound congestion and inbound congestion in the US following news of tariff hikes.2 In addition to the growing accumulation of cargo creating bottlenecks due to trade re-routes, port infrastructure is also facing challenges from the increasing size of vessels and their vulnerability to extreme weather events.

The need for effective risk management has never been greater as port owners continue to experience evolving disruptions amid myriad challenges from geopolitical conflicts, tariffs, and climate change. 

Reassessing current risk transfer solutions and exploring innovative insurance coverage is crucial to sustaining port operations and profitability.

Port insurance designed for trade disruption risks

To help port owners minimise the impact of trade disruption risks, Marsh has partnered with Tokio Marine Kiln to offer the first of its kind in the port insurance market – Trade Disruption Insurance (TDI). 

As the first of its kind in the insurance market for ports and terminals, TDI is designed to reduce the impact on a port’s finances from disruptive events with a limit of up to US$50 million, where higher limits are available on a case-by-case basis. TDI can be a standalone product or complement existing port placements to provide wide-ranging coverage.

Marsh’s TDI covers the following (other perils may be included upon discussion):

Port congestion risk solution with ready-made capacity

To assist ports and terminals in Asia in returning to full operational capability with reduced financial impact and faster recovery times, Marsh has created a standalone port blockage insurance to cover revenue losses from third-party incidents, such as vessel sinkings, impacts causing waterway closures, and natural disasters.

Our port blockage cover comes with a ready-made capacity of US$50 million, where higher limits may be available on a case-by-case basis. The policy wording can also be customised to meet individual requirements, and the insurance can be purchased as a standalone cover or as a top-up to existing cover provided elsewhere.

What you can get from Marsh’s Port Blockage Insurance

To help you understand the differences between Trade Disruption Insurance and Port Blockage Insurance, please see the infographic below:

Why partner with Marsh to support your port risk solutions?

With over 250 port and terminal clients and as an insurance broker for more than 40% of the world’s LNG fleet, we are committed to serving our clients with data-driven solutions backed by our extensive experience and industry knowledge. We understand the risks affecting your port and strive to be an effective partner, providing you with the most relevant and cost-effective port risk solutions.

Enhance your port and terminal coverage with our innovative risk solutions

Schedule a non-obligatory call with our team of port and cargo risk specialists

1 Singapore port congestion shows global ripple impact of Red Sea attacks | Reuters

2 Navigating the 2025 Tariff Wave: Critical Actions for Manufacturers and Logistics Teams - Portcast Blog