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Types Of Insurance

Coming your way, a 3% rise in Operating Costs

(Photo: Alex Sergienko)

A new survey from Moore Stephens finds that vessel operating costs are expected to rise by more than 3% in both 2013 and 2014. While this news should not be unexpected it is nevertheless bad news for ship owners that continue to struggle with low freight rates and over capacity across several oceangoing sectors. In total the survey examined 10 main cost areas, summarized in charts one and two. Crew expenses, broken in two categories as ‘wages’ and ‘other’ by far dominated the cause of cost escalation, accounted for a 4.5% rise in 2013 and a projected 4.7% rise in 2014. “Crew costs, as always, emerged as a major concern for respondents, which is no surprise given the potential budgetary implications of the entry into force of MLC 2006 and the increasing involvement of both international and regional bodies in the oversight of crew competence and its effect on safety,” said Richard Greiner, Moore Stephens shipping partner. Running neck-and-neck though were cost increases due to rising insurance costs, with P&I insurance expected to escalate 2.4% in 2013 and by 2.5% in 2014, and hull & machinery insurance projected to increases 2.0% and 2.3%, respectively. Expenditure on spares is expected to increase by 2.1% and 2.3% in 2013 and 2014 respectively, while respondents anticipate a 2.2% increase in the cost of lubricants in both years under review.  The cost of stores is expected to increase by 1.9% and 2


Must-Haves for Vessel Repair Contracts

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By Fred B. Goldsmith From MarineNews August 2010 My last column addressed critical clauses in vessel charters. Since this issue of MarineNews is focused on vessel construction and repair, this column will focus on some, but due to space limitations, not all, critical clauses in vessel repair contracts. Work to be Performed Vessel repairs are usually an expensive proposition. The vessel must be taken out of service and thus is not generating income while being repaired


Mitsui Marine, Sumitomo To Merge By April 2002

Sumitomo Marine & Fire Insurance and Mitsui Marine & Fire Insurance agreed to merge by April 1, 2002, in a move that would create Japan's largest non-life insurer. With combined assets of $51.7 billion, the merged company will outstrip current industry leader Tokio Marine & Fire Insurance, whose assets stand at $48.5 billion. Analysts say the merger will accelerate consolidation in the sector, where competition is intensifying, due mainly to the deregulation of insurance premiums in July 1998


Builders Risk Policy Serves as Inland Marine Insurance

The US Court of Appeals for the Seventh Circuit ruled that, under Michigan law, a builders risk insurance policy is a form of inland marine insurance and is controlled by the statute of limitations applicable thereto. For our purposes, the decision is probably most interesting in its historical analysis of the insurance industry and the division of casualty insurance into two large groups: fire insurance and marine insurance


Report of First Drop in Ship Operating Costs Since 2002

International accountant and shipping consultant Moore Stephens reports an average fall of 2.0 per cent in total annual operating costs in OpCost 2010, its unique ship operating costs benchmarking tool. This is the first time since 2002 that OpCost has revealed a fall in total operating costs, which compares with the 15.8 per cent average increase recorded in OpCost 2009. All cost categories were down this time, except for crew costs


Understanding the Ups and Downs of Insurance

 Rich DeSimone is President of XL Group’s North America Marine business.  XL Group plc’s (NYSE: XL) insurance companies offer property, casualty, professional and specialty insurance products globally. w: http://www.xlgroup.com

Business is cyclical, and nowhere is there more evidence of its cyclical nature than in the insurance market, characterized by ups and downs in insurance premiums, coverages and profitability. By most accounts, the current insurance market has been one of the most competitive in recent memory.  With intense price-cutting and expanding coverages, these conditions are typical of a “soft” market which is very much a buyers’ market


Admiralty Law Firm’s Insurance Rescinded

In an unpublished decision, the U.S. Court of Appeals for the Sixth Circuit ruled that an insurance company could rescind the professional liability insurance of an admiralty law firm for material misrepresentation in the application. The law firm (noted for filing asbestos claims against ship owners, among other things) indicated in its application that none of its lawyers knew of any circumstances that could result in a professional liability claim


Sumitomo And Mitsui Finalize Merger Conditions

Sumitomo Marine & Fire Insurance Co. and Mitsui Marine & Fire Insurance Co. on Tuesday announced terms under which they will merge next October, creating Japan's largest non-life insurer with assets of 5.7 trillion yen ($51.6 billion). In a joint statement, the companies said 1.09 Mitsui Marine shares will be allocated for one Sumitomo Marine share. The merged entity will be named Mitsui Sumitomo Insurance Co. with Mitsui Marine president Takeo Iguchi and Sumitomo Marine president


Oversight Hearing on Terrorism Risk Insurance Program

The Senate Committee on Banking, Housing, and Urban Affairs conducted an oversight hearing on the terrorism risk insurance program. The Honorable Brian Roseboro, Under Secretary for Domestic Finance of the Treasury Department, testified about implementation of the program. He acknowledged that there has been little “up take” of terrorism insurance, but declined to speculate on the reason. Mr. Richard Hillman, General Accounting Office (GAO)


LIG Marine Managers 2011 CMIP Seminars

LIG Marine Managers’ sister company, LIG Educational & Consulting Services, in conjunction with the International Institute for Marine Insurance Studies, announced the 2011 CMIP Seminar Schedule for those individuals working towards earning the Certified Marine Insurance Professional (CMIP) Designation.    The designation is designed for agents, brokers, CSRs, Insurance Company Personnel, Underwriters or other insurance industry professionals who wish to expand their


60 MacGregor Cranes Ordered for Chinese-built Bulkers

Range of MacGregor cranes from well-proven electro-hydraulic versions to highly-efficient low-energy new-generation VFD electric cranes.

MacGregor, part of Cargotec, has won a run of orders for bulk versions of its cargo handling cranes from five Chinese shipyards. The cranes are destined for 15 bulk carriers for various owners. The orders were booked in the first quarter 2014 order intake and include:


TT Club Signs Partnership in The Philippines

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Specialist transport insurance provider, TT Club has appointed a network partner in The Philippines.  Del Rosario Pandiphil Inc. becomes the seventh such partner that the international logistics and freight handling insurer has in the Asia-Pacific region


Wreck-Removal Convention to Enter into Force

Photo courtesy IMO

Shipowner liability on the horizon as Denmark ratifies international instrument The Nairobi International Convention on the Removal Wrecks will enter into force on April 14, 2015 following the deposit, on April 14, 2014, of an instrument of ratification by Denmark


Shipowners to Become Liable for Costs of Wreck Removal

Wreck image courtesy of IMO

Shipowner liability is on the horizon as the Nairobi International Convention on the Removal Wrecks will enter into force on 14 April 2015 following the deposit, on 14 April 2014, of an instrument of ratification by Denmark, with the International Maritime Organization (IMO).


Transferring Risk for Long-term Success

Business owners put their companies at risk when a new project gets under way. With even the best advance preparation, things can still go wrong, with the potential for injury, property damage and financial loss lurking in the background. If you are the project owner who is hiring multiple


Shipowners' Club P&I Offers MLC 2006 Wage Insurance

Ian Ferns: Photo courtesy of Shipowners Club

In response to specific market demand for insurance cover not formerly available, the Shipowners’ Club has launched a policy for its high net worth super yacht client base to indemnify them against Seafarers Unpaid Wages Following Abandonment (SUWFA).


North P&I, Sunderland Merge to Form North Group

North of England P&I Association (North) and Sunderland Marine Mutual Insurance Company Limited (SMMI) merged to form the North Group on Friday 28 February 2014 following approval by the Bank of England’s Prudential Regulatory Authority and other U.K. and overseas regulators


Know thy Contracts, and the Liability Accompanying Them

‘No man is an island.’ Today, the interconnectivity of business can drive opportunity, but those same interactions can significantly affect us and our businesses. Today’s marine businesses have to manage and prepare for the actions of “the other guy” as much as they


Trojan Marinex BWT System Earns IMO Type Approval

Photo: Trojan Marinex

Trojan Technologies announced that the Trojan Marinex Ballast Water Treatment (BWT) product suite has obtained International Maritime Organization (IMO) Type Approval from Det Norske Veritas (DNV) on behalf of the Norwegian Maritime Directorate.


Denmark Updates Insurance Claims Requirements

Ships without P&I insurance for maritime claims must inform the Danish Maritime Authority about their insurance Danish ships with a gross tonnage of or above 300 without a Certificate of Entry in a P&I Club from the international group of P&I clubs must inform the Danish Maritime


TT Club Strengthens Middle East Presence

Julien Horn

Specialist freight transport insurance provider TT Club said it is reinforcing its presence in Dubai with a move which aims to support the Club’s existing claims team in the UAE and underlines the insurer’s commitment to what is a dynamic region and provides an additional service level


ASRY, ABB Industries Sign Agreement

ASRY signs ABB pact: (L to R) Magdy Mustafa, Nils Kristian Berge, John Fyfe

ABB Industries to open new workshop in ASRY, providing certified turbocharger expertise, global warranties, and onsite access to worldwide network Ship and rig repair specialist ASRY reports that it has signed a co-operation agreement with ABB Industries (LLC), Dubai


IMCO Purchases NAUTIS ECDIS

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A classroom of NAUTIS Desktop Trainers and a NAUTIS Instructor Station was purchased by the International Maritime College Oman (IMCO). The simulators allow the IMCO to add certified ECDIS Model course 1.27 training to its curriculum. The classroom was delivered and installed by VSTEP engineers at


Energy Industry Needs Insurance Against Cyber Attacks

Energy companies have no insurance against major cyber attacks, reinsurance broker Willis said on Tuesday, likening the threat to a "time bomb" that could cost the industry billions of dollars. Willis highlighted the industry's vulnerability to cyber threats in its annual review of


TT Club Pinpoints Risks for Logistics Operators

Phillip Emmanuel

The overwhelming majority of insurance claims analysed by TT Club have showed that costly damages and loss, as well as serious bodily injury can be prevented or significantly minimised by sensible and concerted risk management efforts. Speaking at this week’s TOC Container Supply Chain


 
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