Advertise your business here! 🚀

Denmark Sets Aside $1 Billion To Insure Its Ships During War Or Crisis

port-and-ship

May 02, 2025

Marine Insight

Denmark has announced a big plan to support its shipping industry in case of potential conflicts.

The government plans to set aside nearly $1 billion to insure Danish cargo ships if private insurance companies stop offering coverage during dangerous situations.

On May 1, the Danish government announced that it would activate a special public insurance agency called the War Insurance Institute.

This agency will offer insurance when regular companies back out due to war or crisis. It will have access to a 6 billion-krone loan fund to help pay for any damage claims.

The Business Minister said that rising global tensions, especially in Europe, have pushed the country to be ready for worst-case scenarios. He said that it is better to be prepared ahead of time.

Denmark is a major player in global shipping. By the end of 2023, its merchant fleet was worth over 135 billion kroner (about $20 billion).

It’s also home to AP Moller Maersk, the world’s second-largest container shipping company, which runs more than 700 ships and handles around 17% of global container trade.

The new insurance plan is meant to act like a safety net- a backup incase war or political chaos makes it impossible to get regular insurance. The government stated that this is not a reaction to a specific event, but a smart move to stay ready.

This plan comes at a time when cargo ships are facing more threats in places like the Red Sea and the Gulf of Aden. Insurance costs for those areas have jumped, with war risk premiums going up 10 times in some regions.

Security reports show a 43% increase in attacks or incidents involving cargo ships over the past 18 months.

The Danish government plans to bring the bill to Parliament later in 2025, and if it’s approved, the system could start in early 2026.

Other shipping nations, like Singapore and Greece, are also exploring ways to team up with the private sector to cover insurance gaps during wartime.

Reference: Bloomberg

Disclaimer : The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Do you have info to share with us ? Suggest a correction

Share Your Insights!

Publish your articles, reach a global audience, and make an impact.

Related News You might want to check out

Maritime Gateway

India’S Exports Reach All-Time High Of $824.9 Billion In Fy25India’s exports rose 6.01% year-on-year to an all-time high of $824.9 billion in 2024-25, propelled by a 13.6% on-year rise in services exports to a record $387.5 billion, showed the Reserve Bank of India’s (RBI) final services trade data released. March alone saw services exports surge 18.6% on-year to $35.6 billion, reflecting continued global demand for India’s IT, business, financial, and travel-related services. The merchandise segment also contributed to the overall rise, with non-petroleum goods exports reaching a new peak of $374.1 billion in 2024-25, up 6% from $352.9 billion a year ago. This is the highest annual figure for India’s non-petroleum merchandise shipments, offering some reassurance when traditional goods exports have been under pressure from tightening global demand and geopolitical disruptions. This sharp rise in exports, which stood at $778.1 billion in 2023-24, comes when India is actively working to expand its trade footprint via bilateral and multilateral agreements, and is positioning itself as a resilient, service-driven exports economy amid shifting global supply chains. India is attempting to consolidate its global trade presence through ongoing free trade agreement negotiations, particularly with the European Union and the UK, and amid efforts to mitigate the impact of retaliatory tariffs introduced by the US. Experts see the performance as an indication of India’s growing competitiveness in high-value services and diversified goods sectors. While petroleum and other commodity-linked exports remained relatively subdued due to volatile global prices, the continued expansion in digitally driven services and value-added manufacturing suggests a structural shift in India’s exports composition. The RBI numbers are likely to boost policymakers’ efforts to promote trade-led growth as part of India’s broader 2047 development vision. Meanwhile, India’s trade surplus with the US jumped 16.6% in 2024-25, ballooning to $41.18 billion from $35.32 billion a year ago, even as US President Donald Trump prepared to hike US tariffs in protest. According to 15 April commerce ministry data, Indian goods exports to the US rose by 11.6%, from $77.52 billion in 2023-24 to $86.51 billion in 2024-25. Imports from the US also rose, but just 7.42%, from $42.20 billion to $45.33 billion. Globally, India’s trade deficit widened sharply to $21.54 billion in March, rising from a three-year low of $14.05 billion in February. Merchandise exports for the fiscal year stood at $437.42 billion, marginally higher than the $437.07 billion recorded a year ago, while imports stood at $720.24 billion, up from $678.21 billion in 2023-24, showed the commerce ministry data. March’s goods exports stood at $41.97 billion and imports at $63.51 billion, compared with $36.91 billion of exports and $50.96 billion of imports in February.