Shipping Industry Facing “Deepwater Horizon moment”

press release
Thursday, January 12, 2012
Andrew Chamberlain, partner in Holman Fenwick Willan’s Admiralty and Crisis Management team.

The shipping industry has been warned by a leading maritime lawyer that it may soon face its “Deepwater Horizon moment” in the event of a mega containership casualty.

 
Speaking at a Maritime London lunchtime function yesterday (11 January), Holman Fenwick Willan partner Andrew Chamberlain said that the consequences of a serious incident involving one of the larger containerships “may well result in a complete change in the accepted liability regimes and even the traditionally accepted insurance arrangements for such large vessels.” 
 

Recent high profile container ship casualties have involved relatively small vessels capable of carrying up to 4688 containers (MSC Napoli).  The Rena, which is currently breaking up off the coast of New Zealand, has a capacity of 3352 containers. By comparison, the largest vessels sailing today are carrying over 15000 boxes. 
 

He told the audience of salvors, insurers, shipowners and other maritime professionals that in the event of the loss of the largest class of containership, the epic scale of the incident would mean that the salvage industry would struggle to deal with the removal of the containers and wreckage. He warned that the salvage industry had limited and ageing resources, was increasingly risk averse and today consisted of only around four or five companies with a genuine global capability. 
 

He noted that the legal environment for dealing with these types of incidents was becoming increasingly demanding with rising claims, disproportionately high clean-up costs and the near impossibility of disposing or recycling of a wreck thanks to the restrictive legal regime now imposed by the 1996 Protocol to the London Dumping Convention and the OSPAR Convention, combined with the absence of suitable recycling facilities.

 

He added: “The industry is facing the perfect storm. We have a global recession, high cargo values (relative to ship values), ever larger and untested ships, environmental concerns and increasing public and government awareness of the impact of shipping incidents. Since the Napoli in 2007 any marine casualty is much more likely to be on the front page of every newspaper.”

 

Copies of Andrew's presentation are available on request from Tania Phayre at tania.phayre@hfw.com
 

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

People & Company News

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Miami Tugboat Oil Spill: Coast Guard Respond

The US Coast Guard says that its crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami, following a leak discovered aboard the 95-foot tugboat 'Neptune'.

Environmental

Miami Tugboat Oil Spill: Coast Guard Respond

The US Coast Guard says that its crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami, following a leak discovered aboard the 95-foot tugboat 'Neptune'.

Shipowners to Become Liable for Costs of Wreck Removal

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,

CA Port Seeks Public Feedback on Expansion

The Port of San Diego apprises it is to host separate open house events for the public to provide feedback on its long-range vision and 'Integrated Port Master Plan Update' process.

Salvage

Search Resumes in S. Korean Ferry Disaster

Poor weather conditions may hamper effort; Mystery surrounds capsize of ship; Nearly 280 people still missing, many of them teenagers South Korean coastguards

Hundreds Unaccounted for in S.Korea Ferry Disaster

For the parents of the many teenagers still missing after the Sewol ferry capsized off the coast of South Korea, the wait for news - good or bad - is almost unbearable.

Update: Spill Response Continues in Miami

U.S. Coast Guard crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami Wednesday, following a leak discovered aboard the 95-foot tug Neptune Tuesday night.

Maritime Safety

Shipowners to Become Liable for Costs of Wreck Removal

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,

Coast Guard Pacific Area Command Changeover

The US Coast Guard informs that Rear Adm. Charles W. Ray will relieve Vice Adm. Paul F. Zukunft  (US Coast Guard Commander designate) as Commander, Coast Guard

KVH Precision Sensors for Geodetics' Inertial Navigation Systems

 KVH Industries entered into a strategic partnership with Geodetics Inc., a leader in the development of real-time, high-precision position and navigation solutions.

 
 
Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1587 sec (6 req/sec)