Geopolitical instability is reshaping the risks facing maritime businesses, making proactive planning for trade disruptions, sanctions, and shifting global routes increasingly critical. In a new article published by MarineLink, Galloway Johnson Tompkins Burr & Smith maritime attorneys Jason Waguespack and Fraser Mitchell examine how businesses and insurers can prepare for an increasingly complex global operating environment.
Their article focuses on two significant areas of exposure: disruptions at the world’s major maritime chokepoints and rapidly evolving international sanctions regimes.
As Waguespack and Mitchell explain, “Because maritime chokepoints are not a new phenomenon, risk management should center on proactive planning rather than reactive measures.”
The authors discuss how maritime businesses can assess their dependence on critical routes, evaluate the potential operational and financial consequences of disruptions, revisit contractual protections, and build contingency planning into their broader risk-management strategies. They also address the need for maritime companies and insurers to continually monitor sanctions and coordinate across legal, operational, underwriting, coverage, and claims teams.
“Each company must assess its operational capacity, strategic alternatives, growth plans, risk tolerance, and ability to absorb higher costs or supply disruptions,” Waguespack and Mitchell write.
