Additional war risk premium
AWRP
Meaning
Additional war risk premium (AWRP) is the extra insurance cost charged for each call to, or transit through, an area listed as high risk by war underwriters.
Also written as War risk premium, Breach premium
Additional war risk premium explained
AWRP is quoted as a percentage of the ship's insured value per transit, so for a large modern tanker it can run into hundreds of thousands of dollars for a single Red Sea passage. Charters usually make it payable by the charterer when the risk arises from the charterer's orders.
Related terms
War risks clause
A war risks clause sets out what the owner may do, and who pays extra costs, if the voyage is exposed to war, piracy, terrorism or similar dangers.
JWC listed areas
JWC listed areas are the sea areas the London market's Joint War Committee considers high risk for war, piracy or terrorism, triggering extra premiums.
Overage
Overage is the extra cargo insurance premium charged when a ship is older than an underwriter's age limit, usually 15 or 20 years.