Vessel War Risk Insurance Under Title XII of the Merchant Marine Act, 1936

This memorandum approves the Department of Defense to procure war risk insurance from the Secretary of Transportation for vessels chartered by DoD entering Haitian territorial waters, where commercial insurers had excluded coverage due to war risk trading warranties. The approval is effective for 60 days and requires the Secretary of Transportation to notify all operators immediately.

Federal Register 59 FR 52395

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Impact dates

Dec 6, 1994
60-day authorization for war risk insurance procurement expires

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Shipping & logistics Defense primes

Mechanisms

Subsidy / incentiveProcurement

Role pressure

MixedDomestic producer — US-flag vessel operators gain potential government-backed insurance coverage for high-risk Haiti operations, but only under DoD charter arrangements
AdverseImporter — Commercial shippers without DoD contracts remain excluded from war risk coverage in Haitian waters, facing market exclusion or prohibitive premiums

Geographies

US OTHER

Exposure dates

1994-12-06 — 60-day authorization for war risk insurance procurement expires

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

BABoeingLNGCheniere EnergyGDGeneral DynamicsLMTLockheed MartinMATXMatsonNOCNorthrop GrummanRTXRTX

Confidence: high · Policy alerts

Key directives

Approve procurement of war risk insurance by DoD from Secretary of Transportation for vessels under DoD charter/contract entering Haitian territorial waters excluded by commercial war risk trading warranties
Authorization contingent on Secretary of Defense determination of necessity
Secretary of Transportation directed to bring approval to immediate attention of all operators

Who is ordered

Timeline

Immediate

Approval takes effect for DoD to procure war risk insurance
Secretary of Transportation must notify all operators immediately

Near term (90d)

60-day authorization window for insurance procurement expires around December 6, 1994

Long term

—

Risks & tensions

Limited 60-day window creates operational uncertainty if Haiti mission extends
Relies on Secretary of Defense discretionary determination of 'necessity' without defined criteria
Commercial war risk exclusions suggest elevated maritime security environment near Haiti