War Risk Premium, Route Diversion & Voyage Cost Impact Tool

War Risk AP • Hull Value • JWC / Listed-Area Exposure • Route Diversion • Extra Sea Days • Bunker Burn • Canal / Tolls • Crew Bonus • K&R • Security • Carbon • Charter Recovery

War Risk Premium, Route Diversion & Voyage Cost Impact Tool

Compare the commercial cost of transiting a war-risk route with diverting around it. Simple mode weighs an entered additional war-risk premium against extra distance, fuel and vessel time. Advanced mode compares multiple route scenarios with route-specific insurance, K&R, crew bonus, security, canal/tolls, port costs, delay, carbon exposure and user-entered charter/freight recovery.

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Fast direct-vs-diversion screen: 10 inputs.War-risk premium rates are not universal market tariffs. Enter the current broker/underwriter quote and charge basis. The direct-route fixed-cost field can hold crew bonus, K&R, security, extra port costs or similar voyage-specific costs excluding the AP itself.

InsuranceAdditional war-risk premium

DiversionExtra days, fuel & time cost

Break-evenAP rate where route economics cross

Direct War-Risk Route vs Diversion

Insured hull valueMillion currency units used for AP calculation.

Additional war-risk premium rate% of insured hull value per quoted charge unit.

Premium charge unitsNumber of quoted AP periods/transits/charge units applicable to this voyage.

Direct-route distancenautical miles.

Diversion distancenautical miles.

Average sea speedknots.

Sea fuel consumptiontonnes/day.

Bunker priceCurrency/tonne.

Vessel time value / dayHire, TCE opportunity cost or agreed daily time value.

Direct-route extra fixed risk costsMillion. Crew bonus, K&R, security and similar costs excluding the AP.

Vessel / Commercial Basis

Insured hull valueMillion currency units.

Vessel time value / dayHire/TCE/opportunity cost.

CO₂ factortCO₂ per tonne fuel. Enter the appropriate fuel factor.

Carbon priceCurrency/tCO₂. Set 0 if not relevant.

Reference routeUsed for route deltas and break-even calculations.

Route Scenario Register

Each route can have its own distance, speed, fuel burn, bunker price, delay, canal/toll cost, war-risk AP, K&R/additional insurance, crew bonus, security cost, other voyage cost, carbon-cost applicability and contractual recovery. “Recovery / extra freight” is user-entered because charter allocation depends on the actual clause and commercial agreement.

Use	Route	Distance nm	Speed kn	Sea fuel t/day	Bunker / t	Delay days	Canal / tolls M	Port / other M	War AP % hull	AP units	K&R / addl. ins. M	Crew bonus M	Security M	Carbon allocation %	Recovery / extra freight M

Route / Contract / Insurance Checks

Current war-risk quote obtainedAP rate, charge period/unit, hull value basis, discounts and reporting requirements are confirmed with broker/underwriter. Current listed / excluded areas checkedJWC, policy notice, insurer/reinsurer exclusions and any buy-back requirements are reviewed for the actual route. Charter war-risk clause reviewedCONWARTIME/VOYWAR or bespoke wording, reimbursement, crew bonus and route-change economics are checked. Alternative route operationally feasibleWeather, draft, bunkering, canal restrictions, security and port/terminal windows have been checked. Crew employment / bonus exposure confirmedAny contractual war-zone bonus or additional wages are included only where actually applicable. K&R / security / reporting requirements confirmedAdditional insurance, guards, routing, UKMTO or other reporting/security costs are reflected where applicable. Canal / toll / port costs verifiedRoute-specific tolls, discounts, rebates, agency and port costs use current voyage estimates. Schedule / cargo consequences reviewedDelivery window, laycan, demurrage, customer impact and commercial value of delay are reviewed separately from pure route cost.

Decision boundary: this tool compares commercial cost, not navigational safety or legal entitlement. A lower modeled route cost never overrides the Master/Owner’s safety judgment, insurer requirements, government/flag guidance, company security procedures, charterparty rights or voyage-specific intelligence. War-risk markets and listed areas can change rapidly; use current broker and security information.

Technical basis: additional war-risk premiums are individually negotiated rather than set by a Joint War Committee tariff. Modern BIMCO CONWARTIME/VOYWAR clauses address insurance costs, crew bonuses, dangerous-area routing and voyage economics, but actual cost allocation depends on the charter wording. The model therefore keeps AP rate, insurance/security costs and contractual recovery user-entered. Carbon cost is optional and uses a user-entered route allocation percentage.

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