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Thursday, March 28, 2024
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Liability News

27 Mar 2024

Recruiter to Cooperate in Deal with Workers Suing Major US Shipbuilders

© Joseph Creamer / Adobe Stock

A maritime industry recruiter has agreed to work with plaintiffs and share worker compensation data in a lawsuit accusing major U.S. shipbuilders of limiting employee mobility, marking the first settlement in the case.Attorneys for a proposed class of engineers and architects suing General Dynamics, Huntington Ingalls Industries and other companies disclosed the settlement with Faststream Recruitment on Tuesday in Alexandria, Virginia federal court.The October lawsuit said the shipbuilders violated U.S.

27 Mar 2024

Insurers Brace for Multibillion Dollar Losses After Baltimore Ship Tragedy

(Photo: Baltimore County Police Department)

Baltimore's Francis Scott Key Bridge collapse could cost insurers several billions of dollars in claims, sources say, but it is too early to calculate the likely full financial losses of the tragedy that has shuttered one of the busiest ports in the United States.Six peopleare still missing after a collision with a Singapore-flagged container ship destroyed the landmark bridge on Tuesday, forcing the closure of the Port of Baltimore.With little clarity on when the port would re-open, insurers and analysts are now assessing the likely losses borne by underwriters across several product lines in

06 Mar 2024

Russia Oil Fleet Shifts Away from Liberia, Marshall Island Flags Amid US Sanctions Crackdown

© evannovostro / Adobe Stock

Dozens of oil tankers used by Russia have stopped sailing under the Liberian and Marshall Islands flags in recent weeks after the United States ramped up sanctions enforcement on ships linked to those registries, according to shipping data and interviews with industry and government officials.The shift reflects the close relationship between the U.S. and the flag administration companies of Liberia and the Marshall Islands, which are headquartered not in their home countries, but in Virginia, just miles from Washington D.C. and within the jurisdiction of U.S.

04 Mar 2024

War Insurers Shrug off Rubymar Sinking in Red Sea, Rates Stable

On March 2 at approximately 2:15 a.m. (Sanaa time), Rubymar, a Belize-flagged, UK-owned bulk carrier, sank in the Red Sea after being struck by an Iranian-backed Houthi anti-ship ballistic missile on Feb. 18. The ship had been slowly taking on water since the attack. (Photo: U.S. Central Command)

The cost of war risk insurance through the Red Sea remained stable on Monday despite the sinking of the Rubymar cargo ship as underwriters had already factored in the casualty after it was first hit by a missile last month, industry sources said.The cost of insuring a seven-day voyage through the Red Sea has risen by hundreds of thousands of dollars since Yemen's Iran-aligned Houthis began attacking shipping in the area in November in a show of solidarity with Palestinians in…

01 Mar 2024

Ukraine Expands Ship War Insurance with Marsh & Lloyd's to Iron Ore, Steel

© glebzter / Adobe Stock

Insurance broker Marsh and Lloyd's of London underwriters have expanded a marine war insurance program backed by Ukraine from grain shipments to all non-military cargo, such as iron ore and steel, Marsh said on Friday.Marsh, Lloyd's and Ukrainian state banks launched an initial program in November to cut the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, following Russia's invasion of Ukraine two years ago."Expanding insurance to cover ships carrying all non-military cargo is extremely important for Ukraine…

07 Feb 2024

UK Supreme Court Piracy Ruling Gives Guidance on War Risk Provisions in Charterparties

The tanker was released from pirate control in August 2011. (File photo: EUNAVFOR)

In a well-timed decision given the current situation in the Red Sea and Gulf of Aden, the UK Supreme Court recently handed down judgment in Herculito Maritime Ltd v Gunvor International BV [2024] UKSC 2, a decision that arose from seizure of a ship by Somali pirates.Key factsThe vessel MT Polar was chartered to carry a cargo of fuel oil from St Petersburg to Singapore. The most direct route would be via the Suez Canal and Gulf of Aden.The Gulf of Aden was within the “high risk area” for piracy when the charter was agreed.

12 Dec 2023

US Issues Sweeping Sanctions Targeting Russia Over Ukraine War

© Alexey Bakharev / Adobe Stock

The United States on Tuesday imposed sanctions on hundreds of people and entities, including in China, Turkey and the United Arab Emirates, as it targets Russia's sanctions evasion, future energy capabilities, banks and its metals and mining sector.The U.S. Treasury and State departments targeted more than 250 individuals and entities in Washington's latest action attempting to crack down on Russia and its evasion of sanctions imposed by the U.S. and its allies over the war in…

15 Nov 2023

Marsh, Lloyd's, Ukraine Launch War Risk Ship Insurance to Cut Grain Costs

© glebzter / Adobe Stock

Insurance broker Marsh MMC.N, Lloyd's of London insurers and Ukrainian state banks have launched a programme to cut the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, Marsh said on Wednesday.Kyiv launched a "humanitarian corridor" in August for ships bound for Africa and Asia to circumvent a de facto blockade in the Black Sea after Russia quit a United Nations-brokered deal that had guaranteed Kyiv's seaborne exports during the war.Lloyd's of London insurers will underwrite the programme…

18 Sep 2023

Marine Insurance Market is “Strength and Stability in Turbulent Seas”

President Frédéric Denèfle (source  IUMI)

Opening this week’s International Union of Marine Insurance (IUMI) annual conference in Edinburgh, Scotland, President Frédéric Denèfle explained the conference theme of “strength and stability in turbulent seas” saying it is essentially “business as usual” for marine underwriters.“As marine underwriters, we are used to managing an array of casualties and losses onboard a variety of vessels and in ports and other shoreside facilities. Dealing with the fall-out from natural catastrophes such as earthquakes and weather events are also workaday issues.

16 Aug 2023

To Fight Sexual Assault and Harassment, Vessel Owners and Operators Must Comply with Heightened Reporting Requirements

© NAN / Adobe Stock

In response to increased awareness of the prevalence of sexual assault and sexual harassment (SASH) in the maritime industry — and following a widely reported account by a U.S. Merchant Marine Academy cadet of sexual assault aboard a U.S.-flagged ship during her Sea Year training — Congress enacted into law the Safer Seas Act (SSA) in December 2022.Intended as a direct effort to prevent and punish SASH, the SSA, among other provisions:Requires the U.S. Coast Guard (USCG) to revoke the license…

28 Jul 2023

Ocean Shippers Playing Catch Up to Electric Vehicle Fire Risk

Freemantle Highway car carrier burning off the Dutch coast - Credit: Dutch Coast Guard

Electric vehicles are crisscrossing the globe to reach their eager buyers, but the battery technology involved in the zero- emission automobiles is exposing under-prepared maritime shippers to the risk of hard-to-control fires, industry, insurance, and emergency response officials said.That risk has been put under the spotlight by the burning car carrier [Freemantle Highway] drifting off the Dutch coast. The Dutch coastguard said the fire's cause was unknown, but Dutch broadcaster…

11 Jul 2023

MEPC 80: Action Taken on Range of Environmental Regulations

Source: IMO

The IMO’s MEPC 80 session adopted the 2023 IMO Strategy on Reduction of GHG Emissions from Ships and advanced other environmental initiatives.The revised IMO GHG Strategy includes an enhanced common ambition to reach net-zero GHG emissions from international shipping close to 2050, a commitment to ensure an uptake of alternative zero and near-zero GHG fuels by 2030, as well as indicative check-points for 2030 and 2040:1. to reduce the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008; and2.

19 Jun 2023

IMO to Review GHG Strategy and More at MEPC 80

MEPC 79 (Source: IMO)

The IMO’s Marine Environment Protection Committee (MEPC) - 80th session will meet at IMO Headquarters in London from July 3-7, and amongst key agenda items, the MEPC 80 session is expected to adopt an upgraded IMO greenhouse gas strategy.The revised IMO GHG Strategy will contain concrete greenhouse gas reduction targets for the sector and is expected to outline a range of technical and economic measures. Negotiations have been ongoing and will continue during the Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 15)…

12 Jun 2023

Recognizing and Meeting the Challenges of Autonomous Vessels

Recognizing and Meeting the Challenges of Autonomous Vessels

Uncrewed surface vessels (USVs), automated vessels, maritime autonomous surface ships (MASS), remote controlled vessels, and the employment of artificial intelligence and smart marine technology to navigate and operate civilian and military vessels have created a lively debate over utilizing and regulating such technology. Recent articles addressing artificial intelligence (AI) have questioned the value of experience and intuition versus computed logic based upon data and logarithmic differentiations.

06 Jun 2023

UAE Tightening Insurance Cover for Ships Flying Its Flag

© Pawinee / Adobe Stock

The United Arab Emirates is tightening insurance requirements for vessels registered under its flag, according to a government advisory, amid growing concerns over ships sailing without top tier cover in the event of an oil spill.Ships typically have protection and indemnity (P&I) insurance which covers liability claims including environmental damage and injury.

25 May 2023

Lloyd's Register Drops Ships of Top Indian Carrier of Russian Oil

© komi$ar / Adobe Stock

Lloyd's Register has told India's Gatik Ship Management, which has become a major carrier of Russian oil since the Ukraine war, that it will withdraw certification of 21 of its vessels by June 3, the maritime services company told Reuters.It is the latest setback for Gatik, which was also been forced to find new flags for 36 of its ships after they were deflagged by the St. Kitts & Nevis International Ship Registry."Lloyd's Register is committed to facilitating compliance with sanctions regulations on the trading of Russian oil," it said in an email to Reuters.

28 Feb 2023

Salvors Recover Sunken Tug in Alaska

(Photo: U.S. Coast Guard)

Salvage workers have recovered a partially submerged tugboat at the National Guard Dock in Gastineau Channel, near Juneau, Alaska.the 107-foot tugboat Tagish was secured on the beach nearby on February 19, the U.S. Coast Guard said.Melino’s Marine Services, the contracted salvage company, successfully removed the vessel with its barge and crane system.Contractors dewatered and defueled the vessel prior to dismantling it and placing the sections on a barge for final disposal out-of-state.“The cooperative efforts from federal…

10 Feb 2023

Salvors to Remove Partially Sunk Tug in Alaska

Tug vessel Tagish is partially submerged at the National Guard Dock in the vicinity of the Alaska Marine Lines yard in the Gastineau Channel, Juneau, Alaska, December 29, 2022. Coast Guard Sector Juneau crew members and contractors are responding the incident. (Photo: U.S. Coast Guard Sector Juneau)

Removal operations for a tug partially submerged at the National Guard Dock in Gastineau Channel, near Juneau, Alaska, are scheduled, weather pending, to be conducted this week and into the weekend, the U.S. Coast Guard said.Melino’s Marine Services, the contracted salvage company, plans to remove the vessel utilizing a barge and crane system that are currently enroute from Bellingham, Wash.The operation is expected to take multiple days pending weather conditions. Once the vessel is removed…

06 Jan 2023

Black Sea Shipping Rates Soar 20% as Reinsurers Cut Cover

Lifting cargo cranes, ships and grain dryer in Sea Port of Odessa, Black Sea, Ukraine. Copyright Oleksandra/AdobeStock

Costs for hiring ships to transport commodities from the Black Sea have risen by more than a fifth since the start of the year, reflecting higher war risk insurance rates, industry sources said.The Black Sea is crucial for the shipment of grain, oil and oil products. Its waters are shared by Bulgaria, Georgia, Romania and Turkey, as well as Russia and Ukraine. Since Jan. 1, when policies are renewed, reinsurers that provide financial protection for insurance companies have added exclusions for ships and planes for Belarus…

01 Jan 2023

US Judge Orders Norwegian Cruise Line to Pay $110 Million for Use of Cuba Port

© IanDewarPhotography / Adobe Stock

Norwegian Cruise Line must pay $110 million in damages for use of a port that Cuba's government confiscated in 1960, a U.S. judge ruled on Friday, a milestone for Cuban-Americans seeking compensation for Cold-War era asset seizures.The decision by U.S. District Judge Beth Bloom in Miami follows her March ruling that the use of the Havana Cruise Port Terminal constituted trafficking in confiscated property owned by the plaintiff, Delaware-registered Havana Docks Corp."Judgment is entered in favor of Plaintiff Havana Docks Corporation and against Norwegian Cruise Line Holdings…

29 Dec 2022

Ship Insurers to Cancel War Cover for Russia, Ukraine

© Evgeny / Adobe Stock

Ship insurers said they are cancelling war risk cover across Russia, Ukraine and Belarus, following an exit from the region by reinsurers in the face of steep losses.Reinsurers, who insure the insurers, typically renew their 12-month contracts with insurance clients on Jan. 1, giving them the first opportunity to scale back exposure since the war in Ukraine started, after being hit this year by losses related to the conflict and from Hurricane Ian in Florida.P&I (protection and indemnity) clubs American…

13 Dec 2022

Turkey Strikes Deal on New Crude Tanker Insurance Regulations

©momentscatcher/AdobeStock

Turkey welcomed an agreement reached with its counterparts on Tuesday that allows the continuation of a new regulation requiring crude oil tankers to present an insurance confirmation letter before transiting Turkish straits.The Turkish measures, which came into effect on Dec. 1, require vessels to provide proof of insurance for the duration of transit through the Bosphorus or when calling at Turkish ports.The regulation has caused shipping delays, with up to 20 tankers waiting at the same time in the Black Sea last week, as they worked to present the necessary documents.

29 Dec 2022

How Will Japan Resolve Shipping Insurance for Russian LNG imports?

Credit: Evgeny
/AdobeStock

Japan, the world's top liquefied natural gas (LNG) importer, is facing its latest challenge in securing vital gas supplies from Russia after Western reinsurers said they would halt marine war insurance for ships travelling in Russian waters from Jan. 1.Having joined other G7 countries in imposing sweeping sanctions on Moscow for the invasion of Ukraine, Japan has been reducing its reliance on Russian oil and coal, but it continues to buy Russian LNG amid elevated prices in a tight…