Industries Transport & Logistics Ecclesia Group

War in the Middle East – Implications for Carriers, Freight Forwarders, and Shippers

It must be explicitly emphasized that, given the current turmoil, only a general overview can be provided – the situation may change on a daily basis! Particular attention should be paid to the future reactions of Iran’s allies and to whether ground forces will become involved in military action. Please also note that violating sanctions regulations within an insurance contract may jeopardize insurance coverage. Up to date information can be found on the websites of your country’s foreign and economic ministries.

It should also be pointed out that damages caused by acts of war or similar events are generally excluded from insurance coverage (a possible reinstatement of coverage is discussed below). The same applies to damages resulting from confiscation, seizure, or other interventions by authorities.

Carrier’s Liability Policies / CMR

The armed conflicts in the Middle East are well known. Therefore, if road transport to, from, or through Iran is carried out after the start of the war, referring to an unavoidable event under Article 17(2) of the CMR (exemption from the carrier’s liability) is no longer possible for damages connected to the conflict.

Particularly in transit traffic through potentially affected regions, there is also a risk that, in the event of damage, clients will accuse the carrier of qualified fault pursuant to Article 29 CMR (meaning unlimited liability). Therefore, alternative routes should be considered or – even better – a specific route should be agreed with the client, with explicit reference to the associated risks.

It also cannot be ruled out that Iranian truck drivers may resign on short notice in order to return to their families or participate in hostilities – such an event can also no longer be regarded as unavoidable.

For transports to the Middle East, delays – or worse, transport disruptions – must be expected. This must be taken into account during planning and acceptance of transport orders.

A long‑term consequence of any war is poverty and hardship, which can lead to more frequent attacks on moving or parked trucks. In this context, it should be remembered that cargo security is of utmost priority from the perspective of carrier liability. Therefore, carriers should – if stops or parking cannot be completely avoided – use secured parking areas and invest in cargo compartment security.

Cargo Insurance

Here too, insurers can be expected to decline claims for war‑related damages; in the AÖTB, for example, such an exclusion is defined in Article 6. Although this exclusion can be reinstated via a separate war clause for sea and air transport (against an additional premium), most insurers have already withdrawn this option due to the current situation and no longer allow such coverage extensions. Should you have a specific interest, please contact your advisor at Lutz Assekuranz.

Comprehensive (CASCO) Insurance

Unfortunately, insurers also exclude damages here that are caused by confiscation, seizure, or other governmental interventions, as well as damages linked to riots, civil commotion, and acts of war.

For specific questions, our team is of course – as always – at your disposal.