Club Rules News

If you’ve been working in the marine insurance industry lately, you will have heard about “blockchain” at some point; it is the electronic, distributed ledger, notoriously known for enabling the use of cryptocurrencies such as Bitcoin and Ether. But the blockchain technology’s utility goes beyond cryptocurrencies, potentially offering creative ways to solve other real-world problems. Within blockchain ledgers, the use of ‘smart’ contracts essentially converts contractual obligations into lines of computer protocols, which facilitate, verify, or enforce its performance.

Entry into force of the Maritime Labour Convention, 2006 (MLC) Circular 10/13: International Group P&I clubs clarify financial aspects. Members are referred to the previous circular issued in March this year on the Maritime Labour Convention (MLC). The imminent entry into force of the MLC has brought the Convention and its requirements on shipowners into focus and in particular the financial security requirements established in the Convention. By way of clarification and for Members’ guidance, the financial security requirements on shipowners set out below will become effective with the entry into force of the MLC on 20 August 2013.

Of 578 vessels visited by the UK P&I Club’s ship inspectors during 2002, the great majority were up to standard. Some 281 ships (48.5 per cent) were given high ratings, incurring no formal comments at all on their condition or operations. Some 283 (49 percent) received some comments and suggestions for improvement, mostly on service and maintenance, and on safety standards. Only 14 vessels---five general cargo ships, four bulk carriers and five container ships---required full condition surveys under the Club Rules. This was just 2.5 per cent of the total inspected. One has since been scrapped, three remain in breach of the Rules with repairs not completed within the time specified, four have been fully cleared, one cleared provisionally and five remain under survey.