Russia is one of the leading exporters of coal in the world. About 227 mln. tonnes of coal were shipped to other countries in 2021.
As a rule, coal shipping is only insured when CIF or CIP terms are applied or sea shipping is used. The thing is that coal is the product that can only be affected by fire or sea transportation risks (like shipwrecks). Thus, if insurance is not compulsory under the terms of the foreign trade contract, it makes no sense to insure the risks of coal transportation by land.
However, should the need to insure coal transportation risks arise from compulsory delivery terms, in most cases insurance is made under the following clauses: Institute Cargo Clauses (C), or Institute Coal Clauses. The main difference between them is that the latter covers the risk of spontaneous combustion typical of coal.
What makes the insurance of this category of cargoes complicated is that insurers could set forth requirements related to the class and age of the vessel, as well as require P&I insurance policy. Coal is often transported by very old ships. So, insurers often avoid insuring such shipments.
Feel free to approach us for help in coal cargo insurance on the Russian market by e-mail: email@example.com