Insurance Claim News

State-owned Bangladesh Shipping Corp is seeking $22.4 million from its insurer for a cargo ship hit by a missile in March, government officials with knowledge of the talks said, in the first major marine insurance claim from the conflict in Ukraine.The UN's shipping agency said last week it would create a safe maritime corridor for merchant ships and crews stuck in the Black Sea and Sea of Azov, although shipping industry sources expect progress to be slow. Projectiles have hit four other vessels in recent days with one sunk.Insurance premiums have soared by over 100% for voyages to the region since the war started. Insurers are watching…

This article will focus on conflicts of laws stemming from the EU Blocking Statute and U.S. antiboycott law, both of which are intended to prevent parties from complying with a disfavored sanctions regime. The article will highlight some of the inherent conflicts in dealing with multiple conflicting sanctions regimes. It follows our comprehensive summary of sanctions and shipping, which covered several of the issues herein in some detail.Antiboycott law: in generalAntiboycott law is essentially the inverse of sanctions law.

Companies, lenders, and their auditors worldwide need vessel appraisals that can be relied upon when put into legal documents. As the offshore energy support markets awaken, this is more important now, than ever.While a great deal of shipping finance is done at a 10,000' level, with bond deals and equity swaps, the value of the assets found on ground level are still very important. There are taxation issues, insured value, public reporting, and allocation of purchase price, where the value of individual vessels is important.

Ships which do not meet cuts to the amount of sulphur they can burn in their engines risk being declared "unseaworthy", the International Maritime Organization (IMO) said on Thursday. Shippers and refiner are not sure how they will comply with rules finalized last year which require ships worldwide to cut sulphur emissions from 3.5 to 0.5 percent by 2020. The IMO said there would be no delays or exceptions to the coming rules, whether or not the industry takes the steps it needs to comply, and warned that all parties face consequences if they do not play their part. Edmund Hughes, head of air pollution and energy efficiency with the IMO, said that vessels owners are taking a huge risk if they choose not to comply with the rules.

International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the first nine months of 2015 posting revenues from port operations of US$792.0 million, an increase of two percent over the US$779.2 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$339.5 million, four percent higher than the US$326.1 million generated in the first nine months of 2014, and net income attributable to equity holders of US$136.2 million, up 0.3% over the US$135.7 million earned in the same period last year. Diluted earnings per share for the period was one percent lower at US$0.0550 from US$0.0556 in 2014.

Norwegian Energy Company ASA announces that it has reached an agreement with its joint venture partners in Denmark with respect to its forfeited licences and related abandonment liabilities. Noreco has terminated its joint venture and its participation in the Nini and Cecile oilfields (the “Licences”). According to provisions in the respective joint operating agreements, Noreco has forfeited and transferred its participating interests in the Licences to the Partners on a pro-rata basis. In addition, the settlement for claims on defaulted cash calls and capping of the abandonment liability includes a cash consideration of NOK 60 million, and an 18.2 per cent working interest in the Lulita field.

Insurance underwriters of diversified maritime exposures see a wide variety of approaches taken by vessel operators to manage human error to control risk. They have found through experience that the majority of hull and liability claims can be traced to a breakdown in preparedness and decision-making. Maritime operators that set a high bar and build well-constructed methods of managing the human element of risk – and those that monitor it closely – can save significantly on insurance costs due to lower frequency and severity of claim activity. Managing the human factor is the most difficult of all risk management processes. We are all fallible and prone to error.

Brisbane-based shipbuilders Aluminium Boats Australia Pty Ltd has been placed into voluntary administration after a shipyard fire in August has set the company toward financial instability. The fire, which occurred at the company’s Hemmant dockyard 11 weeks ago, started on board a Royal Australian Navy patrol boat undergoing maintenance at the yard, and subsequently destroyed the vessel. Though an investigation into the cause of the fire is continuing, and an insurance claim has been lodged, the builder said the incident has made voluntary administration necessary.

As a maritime business owner, your day-to-day focus is on managing and growing your business. Understandably, thinking about and understanding the nuances of your insurance coverage is not likely to be among your top priorities. However, what if the unthinkable happens and your docks and piers are seriously damaged? A review of the damage with your insurance claim adjuster will likely lead to discussions of “coinsurance percentage,” “coinsurance penalty” and “insured to value.” While these aren’t terms you’ll use very often, it’s important to understand how coinsurance works, especially since a misunderstanding can impact how much you receive on an insurance claim versus how much you anticipated receiving.

Huntington Ingalls Industries' Ingalls Shipbuilding division has honored six teams and three individuals with "President's Awards for Excellence" for their outstanding and innovative work on shipbuilding projects. "We build some of the most complex, technologically advanced products in the world," said Ingalls Shipbuilding President Irwin F. Edenzon. "We need men and women who are innovative and engaged in their work. Each year, Ingalls presents the President's Award for Excellence to shipbuilders for their outstanding contributions in the areas of innovation and technology…

Royal Boskalis Westminster N.V. (Boskalis) reports an increased revenue of EUR 3.5 billion in 2013 (2012: EUR 3.1 billion). Net profit rose sharply to EUR 366 million (2012: EUR 249 million), partly due to a number of extraordinary items amounting to EUR 97 million post tax. Boskalis intends to distribute a dividend of EUR 1.24 per share and intends to start a three-year share buyback program. EBITDA also reached a record high level of EUR 800 million (2012: EUR 567 million) and EBIT was EUR 466 million (2012: EUR 336 million).

What’s the problem? On one side the owner has an obligation to follow the charterer’s slow-steaming instructions under the charterparty yet on the other the owner has the usually implied obligation under the Bill of Lading to proceed with due dispatch. Due dispatch means the most direct route at the fastest speed. There is legal authority that an unreasonable delay is a deviation. A deviation in this respect is a departure from the contractually agreed voyage that deprives the carrier of the defences and rights of limitation that are usually available under The Hague or Hague Visby Rules.

Royal Boskalis Westminster N.V. (Boskalis) raises its 2013 net profit outlook to at least EUR 360-million. Boskalis says it has concluded an exceptionally good third quarter. Revenue, adjusted for the sale of the 40% stake in Archirodon, and earnings were higher than in the first and second quarter of 2013 against stable market conditions. The order book increased compared to the end of the first half of the year and adjusted for the sale of the 40% stake in Archirodon, to EUR 4.3 billion.

Jones Act and LHWCA employers must protect Medicare’s interest or pay the price. It may be boring, but it is important. Read and heed. Attention maritime entities that employ Jones Act Seamen covered by liability insurance, including self-insurance, or land based employees covered by no-fault insurance or any workers’ compensation act:  you MUST protect Medicare interests. These plans are also known as Non-Group Health Plans (NGHP). Failure could mean a fine of $1,000.00 per day per claim or liable to reimburse Medicare for payments made to a claimant.

In a year where globally we are seeing more natural disasters, including earthquakes in New Zealand and Chile, floods in Australia, and a tsunami in Japan, an important question for businesses relying on goods and services from suppliers in countries across the world arises:  how do we prepare ourselves and our businesses for the next potential catastrophe? The events of this year serve as a reminder that a business can face the unexpected at any time, whether it is a widespread disaster that affects thousands of people or a single local incident that makes normal operations impossible. By working closely with your insurance agent ahead of time, you can make sure you have the proper coverage, a strong contingency plan, and a good understanding of what to do if you suffer a loss.

Kirby Corporation (NYSE:KEX) announced net earnings for the second quarter ended June 30, 2009 of $33.7 million, or $.63 per share, compared with net earnings of $40.3 million, or $.74 per share, for the 2008 second quarter. Kirby's published 2009 second quarter guidance range was $.52 to $.62 per share. Consolidated revenues for the 2009 second quarter were $272.7 million compared with $348.3 million reported for the 2008 second quarter. Joe Pyne, Kirby's President and Chief Executive Officer, commented, "The decline in our marine transportation and diesel engine services demand reflects a difficult economic environment. Our 2009 first quarter actions focused on early retirements, staff reductions, cost reductions and efficiency initiatives.

When heavy ships are maneuvered in rough waters with a small crew, or oil tankers are escorted through narrow confined channels, the strength and reliability of a tug boat's towline is paramount to safety and efficiency. Tugboats require ship-assist ropes that are extraordinarily strong, yet light enough for a crew of only a few to handle. Tugboat operators around the world have found a solution: Plasma ropes manufactured from Honeywell's Spectra fiber. Made by the Puget Sound Rope Corp. with a unique, patented 12 x 12 braided construction, these are some of the world's strongest synthetic ropes for their weight and are so light, they float. "Puget Sound's 12 x 12 construction method has proved to be a remarkable innovation," said Joel Altus, Foss Maritime's supervisor of vessel rigging.

Speaking at the Panama Maritime VI World Conference, Dan Negron, vice president at Through Transport Mutual Services (Americas), stated that port operators face significant liability risk unless they are properly advised by specialist insurers and are in possession of a bespoke port and terminals policy. The devastation caused to New York in the September 11 terrorist attacks has inevitably led to repercussions in the insurance markets. Reports from market analysts contain the sobering conclusion that reinsurance capacity will diminish significantly in the foreseeable future. Consequently, many weaker insurers will either restrict their coverages, or will consolidate with others in order to maintain their capacity.

Hercules Offshore Inc. a provider of shallow-water drilling and lift boat services to the oil and natural gas exploration and production industry, announced financial results for its third quarter, reporting increased profit from higher revenues. The Houston, Texas-based company reported third net income of $29.7 million or $0.90 per share, compared to $10.1 million or $0.41 per share in the third quarter of 2005. Quarterly revenues grew to $97.2 million from $42.2 million in the corresponding quarter prior year. During the third quarter revenues from Domestic Contract Drilling Services were $46.4 million, compared to revenues of $28.2 million in the third quarter of 2005. International Contract Drilling Services revenues were $7.9 million in the third quarter of 2006.

ENSCO International Incorporated reported a net loss of $10.7 million ($0.07 per diluted share) on revenues of $206.8 million for the three months ended December 31, 2002, compared to net income of $29.9 million ($0.22 per diluted share) on revenues of $179.1 million for the three months ended December 31, 2001. Included in the fourth quarter results is a $46.1 million non-cash after tax charge ($0.31 per diluted share) for impairment of the Company's Venezuela assets and operations due to the ongoing political and economic uncertainty in Venezuela and the resulting virtual shutdown of industry activity. Excluding this impairment charge, the Company's net income for the quarter ended December 31, 2002, was $35.4 million ($0.24 per diluted share).

Horizon Offshore, Inc. reported net income for the quarter ended September 30, 2002, of $1.8 million, which compares to a net income of $2.8 million for the third quarter of 2001. For the third quarter of 2002, the company reported gross profit of $11.6 million, or 17.9 percent, on contract revenues of $65.0 million, compared with gross profit of $7.7 million, or 12.6 percent, on contract revenues of $61.0 million in the third quarter of 2001. Horizon also reported net income for the nine months ended September 30, 2002, of $4.8 million, or $0.19 per share-diluted. This compares with net income of $10.8 million, or $0.47 per share-diluted before an extraordinary charge of $0.6 million net of tax for the nine months ended September 30, 2001.