Strike Club Weighs in on Port Strikes

MarineLink.com
Friday, October 18, 2013

The news this week that a longshoremen’s strike had effectively stopped cargo operations at the port of Baltimore, a major hub for foreign car imports into the U.S., underlines a new warning by The Strike Club. Strikes by stevedores continue to dominate the list of perils causing delays, reports the mutual insurer after a recent analysis of its claims files.

In the 2012-2013 policy year, they accounted for 16.8%, followed by collision (14.4%), closure of port or sealane (13.6%), and strikes by port workers (also 13.6%). Total net claims for the year were $16.8m, with mutual claims accounting for $12.0m net.

A somewhat similar picture emerges from a review of the five-year period 2008-2013: closure of port or sealane (17.2%), collision (15.1%), strikes by stevedores (13.6%) and by port workers (10.9%).

Significantly, delays caused by machinery damage are rising, being at 10.5% for the five-year period.

Several major terminal/port operators have confirmed recently that increasing labor costs are driving port automation forward, the club states, which can only lead to continuing labor unrest and the specter of more widespread strike actions.

South America is a particular black spot, and in the last year a large number of strikes there affected numerous ships entered in the club, generating claims totaling $4.8m. A strike involving one section of the workforce can quickly spread to others in the transport chain. For example, Argentinian ports were hit by strikes involving boat clerks, customs, dock workers, farmers, seamen, shore personnel, truck drivers and general labor unions.

Chile suffered another bad year for trade disruptions, with some strikes of short duration now being accepted as the norm: strikes by stevedores and port workers, as well as
political and civil unrest, all contributed to significant loss of time.

The club has reiterated that operators are increasingly exposed to financial losses caused by delay to their vessels; their exposure will be governed by whether they are charterer or owner, and the contractual basis on which the vessel is operated. Class I and II cover applies to shore-related events, and Class III to ship-related events.

Now in its 56th year of operation, The Strike Club, with a BBB+ rating, is the acknowledged market leader for insuring marine trade delays. It has a global presence with its membership spanning 47 countries across all continents.

It has had a risk management program in place since 2008. Among other things this involves the maintenance of a comprehensive risk register in which all material risks are identified, and their probability of occurring and their potential impact on the club assessed.

Bill Milligan, chief executive of S.C. Management, explains that a partial evaluation of the risk management parameters is carried out three times a year, with a full review and analysis presented to the audit committee on an annual basis. “This is one of a number of initiatives we are undertaking to improve and hone our services to members,” he said.

“In spite of signs of an economic recovery, trading conditions remain extremely challenging for the shipping industry, and the consensus of opinion is that a lasting improvement will not move into sight for many trades until 2015.

“Against this background, delays of any kind are an anathema on owners and charterers, and indeed for all those engaged in the transport chain from discharge of cargo onwards.

“In the meantime, ship operators can avail themselves of financial protection against unexpected delays on the basis of mutuality but with additional fixed-premium bolt-ons for war risks, loss of earnings and bespoke delay risks.”

Mr. Milligan added, “Over the years, the club has flourished by sticking to its original aim of being in partnership with ship operators in good times and bad. It does this by offering at modest cost and very low deductibles a range of insurance options with flexibility at the core.”
 

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

People & Company News

Missing Person Rescued Near Brackettville

On July 31, Border Patrol Search Trauma and Rescue (BORSTAR) agents and CBP Office of Air and Marine rescued a man who was reported missing the previous morning.

Ross is Fleet Manager, Heidmar

Heidmar announced the promotion of Duncan Ross to Fleet Manager. Duncan joined Heidmar’s London office in 2012 as vessel manager.  Prior to joining Heidmar,

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

Ports

Hapag-Lloyd Adds Halmstad to Rotation

As one of the top global carriers Hapag-Lloyd offers a comprehensive service network and will add port of Halmstad, Sweden to the Nordic Short Sea Network. As

BBC Chartering Opens Vietnam Office

BBC Chartering announces the opening of a new representative office in Ho Chi Minh City, Vietnam, starting August 1st breakbulk, and general cargo transportation

Fratelli Neri Orders Damen Tug

One of the largest Italian tug owners, Fratelli Neri S.p.A, ordered its first Damen tug, an ASD 3212, on 21 July 2015.   The vessel will be the first ASD tug

News

Missing Person Rescued Near Brackettville

On July 31, Border Patrol Search Trauma and Rescue (BORSTAR) agents and CBP Office of Air and Marine rescued a man who was reported missing the previous morning.

Ross is Fleet Manager, Heidmar

Heidmar announced the promotion of Duncan Ross to Fleet Manager. Duncan joined Heidmar’s London office in 2012 as vessel manager.  Prior to joining Heidmar,

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

Insurance

AEU Presents Safety Awards

The American Equity Underwriters, Inc. (AEU) presented its 2014 Safety Awards at the annual American Longshore Mutual Association, Ltd. (ALMA) Conference on July 19, 2015, in Key Biscayne, Fla.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair
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: 0.1928 sec (5 req/sec)