TT Club: Key risk considerations for operations in the Middle East
TT Club has issued guidance on the complex and rapidly changing risks facing ports and terminals amid ongoing conflict in parts of the Middle East.
According to TT Club operators may encounter significant contractual, operational, safety, and liability challenges arising from war-related incidents affecting vessels, cargo, and infrastructure. As liability is generally governed by Terminal Service Agreements (TSAs) or Standard Trading Conditions (STCs) rather than international convention, operators are advised to review force majeure and war-risk provisions carefully, alongside insurance policies, particularly war-risk exclusions affecting property damage, equipment, and business interruption.
In response to the situation, TT Club has issued guidance to support operators in identifying key risk considerations and maintaining operational resilience during this period of uncertainty. Key points for consideration include:
- Review and, where necessary, strengthen contractual protections in TSAs, STCs, concession, and lease agreements, with particular focus on war-risk and force majeure provisions.
- Avoid offering firm guarantees or inflexible service delivery commitments during periods that may be affected by rapidly evolving geopolitical developments.
- Do not assume recoverability of losses arising from war related events; review insurance arrangements carefully, including exclusions relating to property damage, handling equipment and business interruption
- Prepare for increased security requirements under the ISPS Code, including potential access restrictions, operational disruption, and compliance obligations.
- Be alert to the operational and liability implications of port of refuge requests and ensure legal advisers are engaged early in the negotiation process.
- Ensure vessels calling at the port carry adequate P&I insurance with reputable international insurers.
- Maintain clear records of mitigation measures, costs incurred, and communications to support recovery and claims handling.
- Where significant cargo accumulation is anticipated, Members should reassess storage layouts, segregation practices, and security and fire prevention measures.
- Ensure compliance with guidance and directives issued by local authorities in relation to security, access restrictions, and working conditions.
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