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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Cautious Optimism on Pacific NorthWest LNG Report

Canadian Environmental Assessment Agency (CEAA)  has ruled that Pacific NorthWest LNG’s project in British Columbia would likely harm harbour porpoises and contribute to climate change,

UPS Oposes CP-NS Merger

UPS, one of North America’s largest intermodal shippers, has told federal regulators that it is against Canadian Pacific Railway's (CP's) proposed acquisition of Norfolk Southern Corp.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Navy

Libyan Navy Seizes Foreign Tanker

Libyan naval forces have seized a Sierra Leone-flagged oil tanker on suspicion of illegally entering Libyan waters in an attempt to smuggle gasoline, authorities said on Saturday.

Berlin film "Fire at Sea" shows Horror of Refugee Crossings

* Movie highlights tragedy of migrant crisis * Filmed mainly on Italian island of Lampedusa * Interleaves lives of islanders with refugees * Film competing for

DARPA All Set To Launch Submarine Hunting Drone

The Defense Advanced Research Projects Agency (DARPA) will launch in April a sleek, 132-foot warship from Portland, OR, testing its abilities over a succeeding period of 18 months.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators 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: 0.0675 sec (15 req/sec)