Machinery Insurance Policy News

Greece's Star Bulk Carriers Corp. Star Bulk Carriers Corp. announce that their Star Polaris sustained main engine failure while sailing from the port of Dangjin, South Korea. The ship is currently docked in South Korea where it is undergoing repairs, which are expected to be completed in approximately four months. As a result, Star Polaris has been declared off hire by its charterers. Subject to the completion of an investigation into the cause of the engine failure, the Company will seek to recover the cost of the repairs and damages related to the vessel being off hire under the Warranty of Quality provided by the shipyard where it was constructed, and the Company's Hull and Machinery insurance policy, if applicable.

Star Bulk Carriers Corp. (Nasdaq: SBLK) announced that one of its vessels, the STAR POLARIS, sustained bottom damage when entering the port of Eregli, Turkey. Following a survey of the damages, the vessel proceeded for permanent repairs to Daewoo Mangalia shipyard in Romania. The repairs are expected to be completed in approximately thirty days. As a result of the incident, the vessel has been declared off hire by its charterers.  The Company has commenced an investigation into the circumstances of the incident and has reserved its rights relating to the unsafeness of the port. The Company expects the cost of the repairs to be covered by the vessel’s hull and machinery insurance policy, subject to the applicable terms.

Seaspan Corporation (NYSE:SSW) announced the financial results for the three and six months ended June 30, 2010. Gerry Wang, Chief Executive Officer of Seaspan, stated, "During the second quarter, Seaspan achieved high utilization for its modern fleet and posted strong operating results while further expanding its contracted revenue streams. We took delivery of six newbuildings, four of which were delivered ahead of schedule, highlighting increased demand during the quarter. All six vessels commenced long-term time charters with top liner companies as planned. In addition, we capitalized on an attractive market opportunity by acquiring a 4250 TEU newbuilding, our first acquisition since late 2007.

GlobalSantaFe provided a preliminary estimate for the expected start of operations for its four offshore drilling rigs damaged by Hurricane Katrina. Most of the damage to the company's four semisubmersible rigs was to their mooring systems. Three of these rigs, the GSF Arctic I, GSF Development Driller II and GSF Celtic Sea, are projected to begin normal operations in the U.S. Gulf of Mexico during the fourth quarter of 2005. The GSF Development Driller I, which also sustained water damage to some of its thruster control systems, is projected to start work in the first half of 2006 due to longer delivery times for critical replacement parts. All of the damaged rigs are covered under a hull and machinery insurance policy with a combined deductible of $10 million for this event.