Advice for Charterers as Legal Liabilities Grow

Tuesday, May 29, 2007
A surge in the volume of fixed premium business managed by the UK P&I Club and the proportion accounted for by time chartering has highlighted the growth and complexity of insuring these types of shipping operation. The financial results for the year ended February 20th 2007, discussed by the UK Club’s directors earlier this month (May), revealed that $65 million of the Club’s total gross premium income ($358 million) was fixed premium business----and that two-thirds of this came from time charterers. Risk is increasing, not only through aggregations of value carried on ever larger ships and increasing commodity prices but also because of significant claims inflation. Legal and regulatory changes, the approach of port authorities and court decisions have effectively meant an increase in charterers’ legal liabilities across a wide spectrum of marine incidents. These growing liabilities concern slot, space, voyage and time charterers, traditional charterers with a ship operating background, trading companies moving raw materials or finished products, and traders moving goods on a scale which requires chartering. In a serious accident, all connected parties may be involved.

Consequently, P&I clubs have been receiving a growing number of inquiries about charterers’ liabilities and more requests for protection & indemnity cover to meet possible exposure. Increasingly, charterers are looking for cover tailored to their particular situations, which integrates hull and other covers, provides pure liability protection for non-operational charters and offers pollution liability without sub-limit. These factors have prompted the UK Club to extend its cover to meet these requirements and to publish an eight-page guide on Charterers’ Liability Cover, available in newsletter or online format on www.ukpandi.com. The key charterer’s risks can be categorised as direct liability to third parties, indemnification of owners and hull damage.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Ship as Lifeboat Concept Disputed by ICV

A recent meeting at the National Transportation Safety Board in Washington, D.C. (attended by International Cruise Victims (ICV) Board representatives) discussed

BP Gulf Spill Trial Set For January

The high-stakes penalty phase of BP's trial over its role in the 2010 U.S. Gulf of Mexico oil spill will start next January, court officials said on Tuesday,

China's Seizure of Japanese Ship has Pre-WWII Roots

It all began with a pre-World War II contract between China's then "ship king" and a Japanese company to lease two Chinese freighters. When the one-year lease was up in 1937,

Navy

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

Resolve Maritime Academy to Host 'DC Olympics'

Resolve Maritime Academy informs it is to host the Damage Control (DC) Olympics as an annual event for officers and damage control crew of US Navy and US Coast

AMSEA Awarded US$33-Million Navy MSC Contract

General Dynamics American Overseas Marine LLC (AMSEA) apprises it has been awarded the USD$32.7 million contract modification to operate and maintain seven large,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0898 sec (11 req/sec)