International Transport Intermediaries Club News

The International Transport Intermediaries Club (ITIC) has highlighted the importance of robust vessel design reviews and related insurance coverage throughout the construction process following a recent dispute between a naval architect, a shipowner and a shipyard regarding a vessel’s operational performance post-delivery.The vessel, a 24-metre catamaran servicing the offshore oil and gas industry, faced considerable operational limitations. This was attributed to unexpected vibration issues in the vessel's rudders…

International Transport Intermediaries Club (ITIC) has urged ship brokers and managers to check the terms of their charterparty agreements closely before signing, in order to avoid costly mistakes further down the line.By way of illustration, ITIC cites the case of the manager of a tanker entering West African waters who believed that the terms of a charterparty provided that armed guards were to be appointed at the charterer’s expense. The manager duly appointed the guards for the voyage at a cost of $ 170,000, but the charterer refused to pay the invoice.The terms of the charterparty did in fact include provisions relating to the appointment of armed guards…

International Transport Intermediaries Club (ITIC) has urged ship brokers and managers to check the terms of their charterparty agreements closely before signing, in order to avoid costly mistakes further down the line.By way of illustration, ITIC cites the case of the manager of a tanker entering West African waters who believed that the terms of a charterparty provided that armed guards were to be appointed at the charterer’s expense. The manager duly appointed the guards for the voyage at a cost of $170…

In a recent dispute, International Transport Intermediaries Club (ITIC) helped a naval architect to reduce the level of a claim by a shipbuilder for damages and loss of profits following the sinking of a hydrographic survey vessel which was deemed to be unstable. The naval architect was appointed by the builder to approve the vessel’s design and stability in accordance with prescribed standards. The naval architect surveyed the vessel, conducted a stability test, and issued the necessary certificates of compliance, confirming that the vessel conformed to the relevant standards. The vessel was then put through sea trials during which it capsized, resulting in significant damage.

Scams to smuggle illegal migrants aboard ships are reemerging globally, warns International Transport Intermediaries Club (ITIC). ITIC is urging ship agents worldwide to be extra vigilant when approached to carry out crew changes by unknown owners or crew managers, as people-smugglers scams are becoming more prevalent. According to ITIC, agents are approached by scamming owners or managers (usually unknown to the agent) asking to attend a vessel's call and to provide assistance with crew changes.

International Transport Intermediaries Club (ITIC) has reimbursed a marine surveyor accused of negligence by the owner of a ferry which sustained significant machinery damage while being towed to a shipyard. The ferry, which operated in North American waters, was due to be towed to a shipyard to undergo a refit. A marine surveyor was engaged by the shipyard to undertake a ‘fit for tow’ survey and to provide a certificate of approval confirming that the towage arrangements between the tug and the ferry were satisfactory. The surveyor completed his survey and issued the certificate of approval. Three days later, however, the ferry took on water during the course of the tow and sustained considerable damage to its main machinery compartment.

International Transport Intermediaries Club (ITIC) has launched a cyber liability extension to ITIC policies to protect its existing professional indemnity members against the growing threat posed by hackers. ITIC has always provided cover for damage arising from the loss of or damage to computer records in its members’ custody. But it says that a new threat has emerged in the form of third parties misusing the systems of its members to cause damage to data held by others. Hacking into systems operated by service providers…

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes. In one case, an agent in Argentina failed to declare a cargo as transhipment cargo within fifteen days of the vessel’s arrival at Buenos Aires. This was the result of a simple oversight in the agent’s office. The obligation to make the declaration was strictly enforced and an automatic penalty of one per cent of the value of the goods was immediately imposed, amounting to $122,204.

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.

BIMCO has now launched a new standard contract for ship managers to provide supervision services for shipbuilding and conversion projects. The contract, code named SUPERMAN, is a valuable new addition to BIMCO's existing suite of ship management agreements. Developed by a team of industry experts, SUPERMAN is a comprehensive and clearly worded agreement setting out a ship managers’ duties and obligations when providing ship construction-related supervisory services. SUPERMAN is modelled closely on the widely used SHIPMAN 2009. All of which have been adapted to suit this particular set of services. Like SHIPMAN, the supervision contract will provide users with a range of optional services to suit the needs of users. ·         technical specification review.

Press release - International Transport Intermediaries Club (ITIC) has reported a case in which hull and machinery insurance underwriters instituted proceedings against a marine consultancy firm for alleged negligence in failing to properly review shipyard quotes in respect of the cost of repairing a fire-damaged vessel. The insured vessel had suffered extensive fire damage. The owners claimed that the ship was a Constructive Total Loss (CTL), alleging that the cost of repairing it was in excess of its insured value. The insurers rejected this claim, maintaining that the vessel was capable of economic repair. The vessel was ultimately scrapped, and the only remaining dispute was over the amount which the insurers were obliged to pay under the policy.

International Transport Intermediaries Club (ITIC) says fraudulent diversion of funds is on the increase in the maritime sector. Having previously issued a warning about the fraudulent diversion of port expenses, ITIC says it is now seeing evidence of similar frauds being perpetrated across the wider marine industry. In a typical such fraud, the party due to make a payment will receive a bogus message altering the recipient’s bank details. Examples have included the diversion of ship agents’ disbursements accounts. Ship managers are also among those who have been targeted.

A ship management company has been fined $283,500 in connection with a breach of clean air regulations in the United States, the International Transport Intermediaries Club (ITIC) has confirmed. ITIC reports that an inspector of the California Air Resources Board, the clean air agency of the state of California, boarded a ship in July 2011 at a terminal in Los Angeles. The chief engineer was asked if he was aware of the revised 2009 California clean air regulations which required vessels to switch main engine, auxiliary engines and auxiliary boilers to low-sulphur fuel when in California-regulated waters. The chief engineer said he was only aware of the requirement to switch auxiliary engines to low-sulphur fuel in accordance with regulations effective from January 1, 2007.

International Transport Intermediaries Club (ITIC) says recent claims experience demonstrates that naval architects need to be aware of the need to protect against their exposure to liability for damages resulting from errors in design work. ITIC cites by way of example a case involving the operator of a passenger and ro-ro ferry service which appointed a naval architect to design a landing craft ferry. The design was to be based on that of an existing vessel operated by the company. Prior to beginning the design work, the parties entered into a design agreement under which the naval architect’s liability was limited to approximately $750,000.

International Transport Intermediaries Club (ITIC) said that mistakes in arranging so-called ‘telex releases’ are a frequent and growing source of claims against ship agents. ITIC points out that this practice – whereby liner agents frequently have to arrange for cargo to be released against bills of lading surrendered at the port of loading – is risky, as no bill of lading is collected at the discharge port, and misdelivery of cargo frequently results. In the latest issue of its Claims Review…

International Transport Intermediaries Club (ITIC) says it has seen a noticeable increase in claims against ship managers by shipowners who are going through difficult financial times. In the latest issue of its Claims Review, ITIC notes that, as result of their financial difficulties, owners resist paying for the full maintenance of their ships and also end up owing ship managers not only for their own fees but also for disbursements paid on owners’ behalf. When ship managers try to collect the funds due, they are faced with a claim for negligence in the management of the ship.

Hard times have brought about an increase in bogus claims against ship managers by shipowners, warned the International Transport Intermediaries Club (ITIC) in its latest issue of 'Claims Review'. The ITIC finds that shipowners are resisting payment of ship maintenance costs and end up owing ship managers, not only for their own fees but also for money paid on owners' behalf, reported London's Tanker Operator. But when ship managers go to collect, they are charged with negligence in the running of the ship. Resulting claims are costly to defend, the ITIC said. One case that ended up costing US$250,000 in legal fees, involved a balance of funds owed to the ship manager.

The International Transport Intermediaries Club (ITIC) has issued the following general advice related to the outbreak of Ebola. Vessels that have recently called in an affected country should contact their local agents prior to arrival at the next ports of call for the latest country specific advice regarding measures taken to avoid the spread of Ebola. ARGENTINA: Pilot companies rendering pilotage services in the River Plate have decided that their pilots will not board any vessel coming from the infected areas (Guinea, Liberia, Nigeria and Sierra Leone) until thirty days since the vessel sailed from last port of the infected areas. BENIN (Port of Cotonou): Vessels must notify the harbour master of the 10 previous ports of call 3 days before ETA.

Press Release -- International Transport Intermediaries Club (ITIC) has reported a case in which the owner of a chemical tanker made an unsuccessful claim against a port agent for costs incurred in taking on additional low-sulphur fuel at a European port. The port agent was appointed by the owners of the chemical tanker to attend the vessel in port. As the agent did not have an office at that particular port, it engaged its usual sub-agent to assist locally. Prior to the vessel’s arrival, the master sent an email to the agent asking whether there were any restrictions on the type of fuel that could be used while the vessel was both alongside and at the port’s outer roads.

International Transport Intermediaries Club (ITIC) has illustrated how persistence can pay off for shipping intermediaries looking to pursue legitimate claims in today’s difficult financial climate. In the latest issue of its Claims Review, ITIC recounts the case of a shipbroker owed outstanding commission by time-charterers who were widely thought to be in financial difficulties. The charter party provided that the time-charterers were obliged to deduct the broker’s commission from the hire and pay this directly to the broker.

Persistence pays off for shipbroker's legitimate claim for outstanding financial commission due from time-charterer. In the latest issue of its Claims Review, International Transport Intermediaries Club (ITIC) recounts the case of a shipbroker owed outstanding commission by time-charterers who were widely thought to be in financial difficulties. The charter party provided that the time-charterers were obliged to deduct the broker’s commission from the hire and pay this directly to the broker. The charterers had deducted commission of EUR 50,514 from the hire, but had only paid Euros 20,000 to the broker. Then payments suddenly ceased without explanation. ITIC wrote to the time charterers on behalf of its shipbroker client on two occasions and was advised that payment was to follow.

When the Institution of Naval Architects was formed in 1860 it became one of the bastions of Victorian engineering, enabling and encouraging the exchange of knowledge, information and good practice in the field of naval architecture. The basic principles laid down in the early days saw the Institution thrive as a body representing all the maritime nations of the world and this was recognized in its incorporation by Royal Charter in 1910 as the Royal Institution of Naval Architects (RINA).

International Transport Intermediaries Club (ITIC) has emphasised the potentially costly consequences of a failure on the part of shipping intermediaries to confirm in writing any initiatives performed on behalf of their principals. In the latest issue of its Claims Review, ITIC says it has seen an increasing number of claims on its shipbroking members relating to the receipt and forwarding of messages. Emphasising the importance of accurate record-keeping and the need to reconfirm telephone conversations in writing…