Club Warns News

Clandestine migration has been a problem for the transport sector across Europe for some time now. While more stringent border crossing checks have been imposed due to the current COVID-19 crisis, the risk to operators is not diminished. Furthermore, as the restrictions on movement begin to ease migration activity could be set to escalate warns international freight insurer TT Club.The smuggling of people has become a major issue in certain parts of the world. Political imperatives in target countries have led to stricter immigration restrictions and increased government action.

The Swedish Club warns that vessel operators should always look to the long term, when specifying the type of engines to be installed across the fleet. Latest statistics from the Club show that vessels propelled by medium/high speed engines have a claims frequency 2.5 times higher than slow speed engines, with an average claims cost of close to USD 650,000. Main Engine Damage, the latest loss prevention report from The Swedish Club, sheds light on an expensive category of damage that is all too frequent. Statistically a vessel will suffer between one and two incidences of main engine damage during its life time. Considering the costly consequences for ship owners and their hull insurers, it is important to identify the main causes of this damage and examine how these can be prevented.

The London P&I Club says it continues to see cases of injuries and fatalities associated with entry into enclosed onboard spaces, including cargo holds on bulk carriers where atmospheres have not been treated as potentially dangerous. In a recent case, two shore staff were permitted by the ship’s crew to enter the cargo hold of a bulk carrier via the usual means of access. But, due to an atmosphere which did not have sufficient oxygen to support life, one member of the shore staff died, along with a crewman who made an attempt to rescue them without following proper emergency procedures. London Club Loss Prevention Manager Carl Durow says…

The SOLAS amendment coming into force on 1st July 2016 requires, as a condition for loading a packed container onto a ship for export, that the container has a verified gross mass (‘VGM’). As from 1st July 2016, it would be a violation of SOLAS to load a packed container onto a ship if the ship operator and marine terminal operator do not have the VGM of the container. All 163 Signatory States to SOLAS will need to implement this SOLAS amendment through their national legislation. With the entry into force date just over two months away, some terminals and shippers still seem unprepared or even unaware of this SOLAS amendment. Unless practical steps have been or are being taken to address the requirements brought in by this amendment…

There is no question that the era of "Big Data" -- and all that those two words encompass -- will be transformational in the maritime market for the coming generation. There is no stopping the data trend, and today's generation demands it from a social aspect and needs it to be efficient in business operation. While the upside to big data has been recorded often, the North P&I Club has warned its members that despite the enormous benefits of digital technology on and around ships, there may also be some downsides.

As the political and humanitarian situation in Calais continues to unfold, the specialist freight transport insurer, TT Club provides a perspective on the implications for the freight and haulage industry and steps which operators can take to avoid heavy penalties from being caught carrying illegal immigrants. While focused on the current situation in Calais, the precautionary measures recommended are generally relevant. The problem of illegal immigrants entering Western Europe has been a geopolitical issue for several years. Thus far in 2015 it is widely reported that there have been in excess of 37,000 attempts by immigrants to cross from France to England, the vast majority via Calais.

Speaking during Baltic Transport Week in Gdansk this week Andrew Huxley, Development Director at freight transport insurance specialist TT Club, warned port and terminal operators to be aware of the reputational damage that can be a serious consequence of uninsured incidents resulting from avoidable risks. It is estimated that for every unit cost incurred in insurance claims it can cost between eight and thirty-six times that amount in direct and indirect uninsured losses for the business involved*.

The North P&I club has warned its members to check their new ships very carefully before accepting delivery. The club said in the latest issue of its loss prevention newsletter Signals that it has become aware of several of instances of potentially dangerous poor construction in the newbuilding market. The club reports that ships are being delivered with cargo hold access ladders, platforms and their cages constructed and secured to the bulkheads only by tack welds, rather than being fully welded. “When subject to a load or any other applied stress, such as vessel movement, the tack welds have failed and resulted in an unsafe access to and from the cargo hold. In addition to accidents North warns that defects can also result in costly delays and port state control problems.

The London P&I Club said the timetable for the mandatory implementation of ECDIS (Electronic Chart Display and Information System) is advancing and that owners must take account of the potential risks involved in replacing more traditional means of voyage planning and monitoring with advanced technology. In the latest issue of its StopLoss Bulletin, the club notes, “Ineffective use of any electronic navigational aid can lead to marine accidents. A causative factor in a number of recent grounding accidents is the incorrect operation of ECDIS.

The American P&I Club warns again that stowaways continue to hide in the ship's rudder stock recess. The P&I Club advise its members that stowaways wait in port areas until after dark and then swim to the rudder stock, climbing it and hiding inside the recess. Having gained access to an external area of the vessel, they cannot then be easily found by the ship’s crew. It has been observed that most of these vessels come from Africa in ballast and, for that reason, the rudder stock recess stays above water. However, as the vessel rolls and pitches, the stowaways are exposed to the sea. Members are advised to take all necessary measures as part of the Ship Security Plan (SSP) in accordance with the International Ship and Port Security (ISPS) Code compliance requirements.

THE London P&I Club has warned that shipowners face a significant increase in exposure to claims and fines levied against them in jurisdictions which suffer from a combination of high interest rates and a reputation for protracted legal proceedings. In the latest issue of its StopLoss Bulletin, the club notes, “Brazil provides a good example of such a jurisdiction. The prevailing interest rate is in the region of 12 per cent per annum, in addition to which the courts apply a further variable uplift to take into account the effects of inflation, which can be as much as 6 per cent.

The UK P&I Club has chosen to focus its latest Legal Briefing publication on the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, adopted by the IMO in 2004. Implementation of the Convention is now probably just two years away and ship owners and managers are coming under increasing pressure as they struggle to be ready in time. Over the past 20 to 30 years, the consequences of Invasive Alien Species (IAS) travelling around the globe in ships’ ballast water have become increasingly apparent.

The London P&I Club said a recent casualty involving a containership serves as a timely reminder of the consequences of failing to check navigation charts for information about corrections that need to be applied to satellite-derived positions. In the latest issue of its StopLoss Bulletin, the Club refers to an incident in which a containership grounded as a result of total reliance on GPS, coupled with a failure to recognise that a significant correction had to be applied to GPS positions before they were plotted on the chart. During a coastal passage, the ship ran aground after a navigating officer commenced a significant alteration of course about half a mile before he reached the intended alter-course position.

GT North of England P&I club has warned its shipowner members to protect themselves from the increasing risk of claims for charterers’ unpaid bunkers. The advice comes in the latest issue of the club’s loss-prevention newsletter Signals. According to Mark Robinson of the club’s freight, demurrage and defence department, “The recent downturn in the shipping markets and the world economy has unfortunately led to some charterers going out of business. North said that even though the obligation to provide and pay for fuel under a time charterer rests with the defaulting charterer, and that the owner is not a party to the bunker supply contract, owners and their ships are vulnerable to action in many jurisdictions.

The club says one of the most common reasons for guarantees being avoided is that they have not been signed by the guarantor or someone lawfully authorized by the guarantor. There must also be consideration for a guarantee to be legally binding. Usually this is a promise by the owner to enter into the charterparty, but if the guarantee is given after concluding the charterparty the consideration is past and no longer valid. Guarantors may also avoid their obligations if they have not seen the full and final terms of the charterparty before signing the guarantee, or if they have not consented in writing to any subsequent amendments. Finally…

Ship owners, operators and their P&I clubs face ever-increasing claims over the next few years, according to the 45 million GT North of England P&I club. Growth in the freight market, a raft of new and revised liability conventions and weakness of the dollar are exposing the industry to greater financial risk and continuing hikes in P&I insurance. According to joint managing director Rodney Eccleston, “Both the value and number of cargo claims have soared in recent months due to unprecedented freight rates, sometimes exceeding cargo values, and because ships and crews are working flat out. The A-rated club says P&I claims values are also increasing due to weakness of the US dollar, which has fallen substantially against most major currencies recently.

The North of England P&I club says that unfamiliar tasks imposed on ships' crews are leading to more personal-injury accidents occurring on board. In the latest issue of its loss-prevention newsletter 'Signals', the 50 million GT club says that additional duties - particularly those on deck - are being carried out by inadequately trained crewmembers from places such as the galley and the engine room. 'We have experienced a number of recent cases in which members of both the catering and the engineering departments have been working on deck, only to suffer serious accidents with tragic consequences,' says the club's loss prevention executive Tony Baker.

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The London P&I Club has warned its members to be particularly vigilant while their vessels are in the port of Antwerp, following recent reports of a spate of robberies. Although Antwerp port and police officials claim that reports of the robberies have been greatly exaggerated, they are currently monitoring the harbor area at regular nightly intervals. In the latest edition of its StopLoss Bulletin, the London Club notes that there have been about fifteen prosecutions for theft on board ships at Antwerp in the past twelve months. The Club urges masters and crew to take special care not to unwittingly provide opportunities to would-be thieves…