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 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Shipping Confidence Hits 2.5 Year Low

Overall confidence levels in the shipping industry fell to their lowest level for two-and-a-half years in February 2015, according to the latest Shipping Confidence

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

All American Marine Delivers Ferry to Seattle

All American Marine, Inc. (AAM) today announced the delivery of a new passenger ferry that will serve the city of Seattle.    The vessel, MV Sally Fox, was dedicated

Environmental

H2O’s Owens CrapZapper Offers More

H2O’s Owens CrapZapper marine sanitation device has dual certification to the latest IMO and USCG standards for operation anywhere in the world.   Features include low maintenance,

HEADHUNTER Marine Sewage Treatment Systems

Headhunter’s team of engineers, fabricators, and wastewater specialists work together to provide innovative and efficient sewage treatment solutions.   Offering systems in three categories; STP,

U.S. Submits Formal Plan for Paris Climate Talks

The United States on Tuesday formally submitted its climate change strategy to the United Nations, outlining domestic measures it is taking to achieve up to a 28

Salvage

USCG Rescues 9 from Canadian Tall Ship

Coast Guard search and rescue crews from Station Gloucester, Air Station Cape Cod and the Coast Guard Cutter Ocracoke rescued nine crewmembers from the Canadian

Smoke: Cruise Ship Evacuates Passengers

A number of passengers and crew members were evacuated after smoke was spotted billowing from the front section of Carnival Liberty cruise ship docked in the Dutch Caribbean nation of St Maarten.

Salvage, Wreck Removal Beset with Chronic Problems

The basic nature of maritime casualties, salvage and wreck removal has evolved rapidly over the last few years. Ships and offshore constructions have become more technologically elaborate,

Maritime Safety

WaPo: Two German CEOs Launching Own Mediterranean Rescue

The Washington Post has a story today about two German men who are launching their own rescue mission to save migrants crossing the Mediterranean.   Harald

Palfinger Chooses NAMJet Waterjets

Netherlands-based Palfinger Boats has launched the first of two Damen-designed FRSQ 1200 fast-rescue/oil response vessels.   Built in Harderwijk, Netherlands,

Japan, U.S. Look to Expand Naval Cooperation

Japanese Prime Minister Shinzo Abe's push to allow Tokyo to come to the aid of an ally under attack will pave the way for closer cooperation between U.S. and Japanese forces across Asia, a top U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3037 sec (3 req/sec)