Insurance Costs News

09 Jan 2020

Mideast Tensions Create Insurance Headache for Tanker Owners

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Even as the United States and Iran appear to signal a keenness to avoid further conflict, oil and gas shipowners are bracing to pay a price for the war of words that culminated in rocket strikes in Iraq over the last week - higher insurance bills.According to industry sources, payments known as war risk premiums for tankers shuttling through the Strait of Hormuz could rise significantly, adding hundreds of thousands of dollars to shipping costs in some cases that will ultimately…

23 Dec 2019

OSVs: Rising Tide Won't Lift All Boats

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The offshore supply vessel (OSV) industry has emerged from its 2017 trough, thanks in large part to a slight shrinkage of the active fleet, a string of debt restructurings, improved cost management, and an uptick in drilling activity in a few regions. The industry is far from healthy, though, and the climb back to financial well-being will likely be long and unsteady. Not every operator will survive. And even though we‚Äôve seen some improvement from 2017 levels, leverage ratios remain sky-high, the supply of vessels far outstrips demand, and‚ÄĒmost crucially‚ÄĒthe price of oil remains volatile.

31 Oct 2019

Vessel Op Costs to Rise in 2019 and 2020

Richard Greiner, Partner, Shipping & Transport at BDO, said: “The predicted 2.5% and 2.7% increases in operating costs for 2019 and 2020 respectively compare to an average fall in actual operating costs in 2018 of 1.8% across all main ship types recorded in the recent BDO OpCost study."  (Photo: BDO)

International accountant and shipping adviser BDO said total operating costs in the shipping industry are expected to rise by 2.5% in 2019 and by 2.7% in 2020.Responses to the firm’s latest annual Future Operating Costs Survey revealed that insurance is the cost category likely to increase most significantly in both 2019 and 2020. In the case of protection and indemnity insurance, the predicted increase is 2.0% for each of the years under review, while hull and machinery insurance…

17 Jul 2019

War Risk Costs Impact UAE Bunkers, Singapore benefits

File Image: AdobeStock / © Seafarer81

Shippers trying to minimise time in the Middle East after oil tanker attacks pushed up insurance costs are scaling back purchases of marine fuels from the United Arab Emirates' (UAE) Fujairah oil hub, trade sources said.Instead, they are turning primarily to Singapore, the world's top refuelling hub, to buy marine fuels, also known as bunkers, with some diverting to smaller bunkering ports, including in India and Sri Lanka, the sources said.A tonne of 380-centistoke (cst) high…

14 Jun 2019

Ship Insurance Costs Soar After Tanker Attacks

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Insurance costs for ships sailing through the Middle East have increased by at least 10% after attacks on two tankers in the Gulf of Oman on Thursday, with the potential for costs to rise further as regional tensions escalate, ship insurers said.The attacks have already stoked concerns about reduced flows of crude oil on one of the world's key shipping routes, pushing up oil prices by as much as 4.5%.Some tanker companies have already suspended new bookings to the Middle East…

05 Oct 2018

INSIGHTS: Thomas S. Chance, Chief Executive Officer, ASV Global

Thomas S. Chance, Chief Executive Officer, ASV Global

Thomas Chance founded C & C Technologies in his home in 1992. Today C & C is a global oil field surveying and mapping company with more than 550 employees in ten offices worldwide. C & C was the first company in the world to offer autonomous underwater vehicle (AUV) survey services to the oil industry and remains a world leader in the field. In April of 2015, he sold C & C Technologies to Oceaneering International. Complementing the autonomous underwater vehicle business, Mr. Chance started Autonomous Surface Vehicles, Ltd., or ASV, in 2010.

27 Oct 2017

Ship Operating Costs to Increase for 2017 and 2018

Image: Moore Stephens UK

Vessel operating costs are expected to rise in both 2017 and 2018, according to Moore Stephens' survey. Repairs & maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are likely to rise by 2.1% in 2017 and by 2.4% in 2018.

26 Oct 2017

Vessel Operating Costs on the Rise -Moore Stephens

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Vessel operating costs are expected to rise in both 2017 and 2018, according to the latest survey by international account and shipping consultant Moore Stephens. Repairs and maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are likely to rise by 2.1 percent in 2017 and by 2.4 percent in 2018.

28 Sep 2017

Shipping Operating Costs Declining -Report

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Total annual operating costs in the shipping industry fell by an average of 1.1 percent in 2016, says international accountant and shipping consultant Moore Stephens. This compares with the 2.4 percent average fall in costs recorded for 2015. For the second successive year, all categories of expenditure were down on those for the previous 12-month period, most notably for insurance costs and stores. The findings are set out inMoore Stephens’ ship operating costs benchmarking tool OpCost 2017…

03 Aug 2017

Improved Safety and Training, Part II

© Photocreo Bednarek / Adobe Stock

Everyone responsible for safety or training in their organization is very aware that everything is changing in the maritime world. The worker demographic has shifted. Regulatory demand is rising and compliance is more complex. Fortunately, it is also the case that maritime safety and training has entered a renaissance period. New tools are available that improve training outcomes and allow organizations to assess the state of training and compliance with a level of insight not previously possible.

25 Jul 2017

Broadband Demand

(Photo: Intelsat)

Satellite-based connectivity has always played a critical role for the maritime sector. As the communications expectations of ship owners, passengers and crews continue to grow, maritime service providers are seeing a transformation in the type and quantity of applications that need to be supported at sea. The advent of VSAT broadband services is driving a shift away from traditional, low-level L-band connections that ship operators have relied upon for decades. VSAT services are preferred to respond to the demand for high-speed broadband that can support bandwidth-intensive applications.

06 Feb 2017

WFSA Ferry Safety & Technology Conference set for May

File Image (CREDIT: WFSA)

Mark your calendars- Ferry Safety & Technology Conference, May 11- May 12, in New York. The Worldwide Ferry Safety Association is now gearing up for its 2017 Ferry Safety & Technology Conference, which will be held May 11 ‚Äď 12, at the Pier A (overlooking New York harbor) in downtown Manhattan. Technology is driving change in all facets of the maritime business; in the ferry sector, which provides the primary means of transportation in certain regions of the world, new applications can have a profound impact on vessel safety, crew training, passenger experience, and operational efficiencies.

19 Oct 2016

Moore Stephens: 4th Straight Year of Operating Costs Decline

Richard Greiner (Photo: Moore Stephens)

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015. This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction in such costs. All categories of expenditure were down on those for the previous 12-month period. This suggests continued pragmatic management of costs by ship owners and operators, as well as a reduction in active trading for some owners as a result of the prolonged worldwide economic downturn.

10 Oct 2016

Merchant Ships off Yemen Bracing for More Danger

USS Mason (File photo: U.S. Navy / Rob Aylward)

Missile attacks from Yemen on Western military craft risk spilling over into nearby busy sea lanes which could disrupt oil supplies and also other vital goods passing through the tense area, shipping and insurance sources say. While shipping companies have yet to divert ships, there are growing worries that any further escalation could hinder oil supplies and potentially lead to higher insurance costs for shipments. The route is among the world's busiest and used by major shipping groups such as container line Maersk and oil tanker carriers including Norway's Frontline and Iran's NITC…

12 Jul 2016

Oil and Shipping Markets on Edge After South China Sea Ruling

File photo: Aurelie Moulin

Global oil and shipping markets reacted nervously on Tuesday after an international arbitration court ruled against Beijing's claims across large swathes of the South China Sea, fuelling geopolitical tensions in the vital waterway. A tribunal in The Hague, Netherlands, found China had breached the sovereign rights of the Philippines and had no legal basis to its historic claims in the South China Sea, a major shipping lane between Europe, the Middle East and Africa. The ruling will be seen as a victory by other regional claimants such the Philippines and Vietnam…

23 Jun 2016

Tracking Global Piracy Trends

Graph: Clarkson Research Services

Piracy has existed since the conception of shipping, and pirate attacks on vessels continue to disrupt trade, raising vessel security concerns and impacting the operation and insurance costs for ships, says Clarkson Research Services. The drivers behind piracy are wide but primarily economic and clearly, geography is also key. This month, we take a closer look at recent shifts in the regional distribution of piracy ‚Äėhot spots‚Äô. Piracy remains a prevalent concern within the shipping industry, raising issues around vessel security, disrupting trade routes and increasing ship operation costs.

20 Apr 2016

China Eyes Faster Arctic Routes Opened by Global Warming

China will encourage ships flying its flag to take the Northwest Passage via the Arctic Ocean, a route opened up by global warming, to cut travel times between the Atlantic and Pacific oceans, a state-run newspaper said on Wednesday. China is increasingly active in the polar region, becoming one of the biggest mining investors in Greenland and agreeing to a free trade deal with Iceland. Shorter shipping routes across the Arctic Ocean would save Chinese companies time and money. For example, the journey from Shanghai to Hamburg via the Arctic route is 2,800 nautical miles shorter than going by the Suez Canal. China's Maritime Safety Administration this month released a guide offering detailed route guidance from the northern coast of North America to the northern Pacific…

08 Apr 2016

ITIC to Pay Continuity Credit for 21st Year in Succession

Stuart Munro (Photo: ITIC)

For the 21st year in succession, International Transport Intermediaries Club (ITIC) is to pay a continuity credit to all those members who renew their insurance cover during the 2016 policy year, which begins on June 1, 2016. The CEO of ITIC, Stuart Munro, explains, “ITIC’s board of directors is committed to reducing insurance costs wherever possible. The ongoing worldwide economic downturn, together with fiercely competitive conditions in the shipping and transportation sector, continues to make life very difficult for our members.

23 Mar 2016

DGS Marine Announces Fixed Premium P&I Growth

David Skinner (Photo: DGS Marine)

DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I facility, announced growth figures following the completion of P&I renewals, with premium growth of 6 percent, tonnage growth of 12 percent and total vessel numbers up by 17 percent. These results mark significant further growth in DGS Marine’s fixed premium P&I business, which has reached a record high. The total number of vessels entered into the BE&O P&I facility is now over 2…

09 Mar 2016

Sixteen Tons of Beer for Brooklyn

The beer in the stowed container (Photo: Hapag-Lloyd)

In 1966 North German Lloyd (NDL) carried out Germany‚Äôs first multimodal door-to-door shipment. The customer was delighted as cargo could no longer ‚Äėget lost‚Äô on the way. An interesting, almost forgotten story from the beginning of the container era. The announcement by the American shipping company Sealand at the beginning of 1966 that they would establish a container service between the East Coast of the U.S.A. and Europe caused action at Hapag and NDL. A few short weeks later a member of the Hapag executive board‚Ķ

17 Nov 2015

Indian Ocean: No Insurance Premium Reduction Likely

Image: Protection Vessels International Ltd

In October a number of trade bodies released a joint press release to formally announce a reduction of the High Risk Area (HRA). Insurance companies have said the reduction may not result in reduced insurance costs due to the assessment of insurance risk being dependent on such a wide and varying range of factors. "The Joint War Committee's (JWC) insurance notification area has always been different from the BMP/HRA and remains separate and unchanged for now. The JWC is scheduled to meet in December and will be mindful of the roundtable actions.

17 Nov 2015

Ship Operating Costs to Rise Over Next Two Years

Drewry - total operating cost index (2000=100)(Photo: Drewry Maritime Research)

The cost of operating cargo ships is forecast to rise over the next two years after falling in 2015, according to the latest Ship Operating Costs Annual Review and Forecast 2015/16 report published by global shipping consultancy Drewry. The average decline in ship operating costs across the sectors covered in the report in 2015 was one percent, but for ships that are big consumers of lube oils, the decline in overall costs was closer to two percent. Weak freight markets have forced ship owners to trim costs…

11 Aug 2015

Piracy Still Hot in Southeast Asia -PVI

Photo: PVI

Southeast Asia is likely to see a record number of ship hijackings in 2015 as demand for illicit oil, together with a well-established black market, will continue to drive maritime attacks in the region, advises private maritime security company PVI. In the absence of a stronger law enforcement response, ship owners and operators, especially for small tankers, face increasing operational, financial and security threats, warns PVI. Singapore-flagged Joaquim became the latest victim of small tanker hijackings on August 8…