London Club News

THE London P&I Club has published a loss prevention guide on risks associated with the carriage of coal cargoes, with particular emphasis on gas monitoring and ventilation.The guide, written by Paul Willis, Senior Associate with UK-based forensic investigation and root cause analysis specialist Hawkins, notes that the management of coal cargoes and the proper use of gas detection equipment are key elements in the prevention of coal fire claims. It details the fundamental requirements relating to the installation…

British ship insurer London P&I Club is setting up a new subsidiary in Cyprus to ensure continued access to trade in the European Union in case Britain loses single market access, the group told Reuters on Friday.Britain dominates the global marine insurance market and losing access to specialist Protection and Indemnity (P&I) clubs could weaken its multi-billion pound shipping services sector."We have … chosen Cyprus to establish our new post-Brexit EU subsidiary, and we are currently going through the process of setting it up and obtaining the necessary license," London Club said in a statement.London Club is one of 13 major global P&I insurers and Europe accounts for over 60 percent of the group's activities.The six P&I clubs regulated in Britain are estimated to account for over half t

The London P&I Club says it continues to see cases of injuries and fatalities associated with entry into enclosed onboard spaces, including cargo holds on bulk carriers where atmospheres have not been treated as potentially dangerous. In a recent case, two shore staff were permitted by the ship’s crew to enter the cargo hold of a bulk carrier via the usual means of access. But, due to an atmosphere which did not have sufficient oxygen to support life, one member of the shore staff died, along with a crewman who made an attempt to rescue them without following proper emergency procedures. London Club Loss Prevention Manager Carl Durow says…

The London P&I Club has issued a warning about continued problems associated with the carriage of Indonesian thermal or ‘steam’ coal, following a number of recent incidents involving owners and charterers. Indonesian coal has a propensity to self-heat and/or emit methane. If uncontrolled, self-heating can lead to serious cargo fires, and an accumulation of methane can explode. The IMSBC Code states that coal with such characteristics should not be loaded if the temperature of the cargo exceeds 55ºC, and that the atmosphere in the holds is monitored at least daily on passage. The oxidisation process that can lead to self-heating can be detected by checking the hold atmosphere for rising levels of carbon monoxide (CO) and falling oxygen (O2) levels. Methane levels can be measured directly.

The London P&I Club said it has seen a rise over the past 12 months in the number of deficiencies relating to Temporary and Preliminary (T&P) notices to mariners, and an increase in negative findings in relation to the management of radio navigation and meteorological warnings. In the latest issue of its StopLoss Bulletin, the club said its Ship Inspection Programme has identified failure to manage T&P notices, or to apply them to the ship’s chart folio, as a commonly recorded occurrence. It said, “If T&P notices are not consistently applied to the chart folio, the ship’s navigating officer and officers of the watch may be deprived of valuable passage planning information. T&P notices contain a vast array of information which may influence the planning or conduct of a passage.

The London P&I Club said the lifting of an iron ore ban in India, together with the recent total loss of two ships, has put the spotlight once again on the problem of cargo liquefaction. In the latest issue of its StopLoss Bulletin, the club said, “There are specific challenges involved in the export of iron ore fines from Indian ports during the monsoon season which can increase the moisture content of the cargo to levels where liquefaction can occur. This can result in severe loss of a ship’s stability and, sometimes, in the vessel sinking. Other cargoes such as nickel ore are also prone to liquefaction. “Last month, the Indian Supreme Court lifted the ban imposed in 2010 in Goa on the mining…

The London P&I Club’s result for the 2012/2013 financial year was a surplus across all classes of $9.4 million, increasing the free reserve to $154 million. Claims experience over the financial year was mixed, the company said. In the retained layer there was an encouraging picture at the attritional level, involving claims up to $100,000. There was also a continued moderation of claims in excess of $1 million, but there were additional indications of increasing claims cost and activity in the band between $100,000 and $1 million.

The  London P&I Club has set a general increase of 12.5 per cent in annual P&I call rates for the 2013/2014 policy year. Commenting on the background to the decision, Ian Gooch, chief executive of the Club’s management team, says, “Claims in the Club’s retention layer for the current policy year show some encouraging signs, especially at the attritional level, where increased deductibles seem to be playing a part. Although claims in the highest band, in excess of $1m, are running at a moderate level, this band is volatile and has been very expensive in other, recent years.

GAC and Crystal Palace Football Club (CPFC) have sealed one of the longest-running sponsorship deals in English Football, with the extension of their collaboration for another two years until June 2014. Dating back to 2004, the agreement now represents a decade-long uninterrupted relationship between the South London Club and the global shipping, logistics and marine services provider. Under the renewal agreement which was finalized in October, GAC continues as the club’s main sponsor and its logo will be featured prominently on CPFC’s first team and replica shirts…

THE London P&I Club has set a general increase of five per cent in annual P&I call rates for the 2012/2013 policy year. Commenting on the background to the decision, Ian Gooch, chief executive of the club’s management team, says, “Prior open policy years are developing in line with expectations. In the current year the news is conflicting. On the one hand, we have seen some signs of increased claims activity, mainly involving cargo cases in the $100,000-$1m band. But at the same time we are finding that claims above that band…

THE London P&I Club has warned that shipowners face a significant increase in exposure to claims and fines levied against them in jurisdictions which suffer from a combination of high interest rates and a reputation for protracted legal proceedings. In the latest issue of its StopLoss Bulletin, the club notes, “Brazil provides a good example of such a jurisdiction. The prevailing interest rate is in the region of 12 per cent per annum, in addition to which the courts apply a further variable uplift to take into account the effects of inflation, which can be as much as 6 per cent.

London Club says owners must not accept exemptions from IMSBC code for DRI cargoes. THE London P&I Club has urged shipowners to be alert to any attempt by shippers and other cargo interests to claim exemptions from the International Maritime Solid Bulk Cargoes (IMSBC) Code in connection with the carriage of DRI (Direct Reduced Iron) cargoes. Long-standing concerns about the carriage of DRI - involving the possibility of a chemical reaction between the cargo and water, leading…

The London P&I Club said the response to two recent onboard cargo fires has highlighted the value of both fire-fighting training and realistic shipboard drills for ships’ crews. In the latest issue of its StopLoss Bulletin, the club refers to a case where smoke was seen by the crew of a containership to be escaping from a container stuffed with bone meal in bulk. The crew quickly established the best means of fighting a fire involving that commodity and then executed a well-drilled plan to extinguish the fire by flooding the container using a fire-fighting lance connected to a fire hose. The lance was introduced into the box through a hole which the crew punctured in the roof of the container.

The London P&I Club said a recent casualty involving a containership serves as a timely reminder of the consequences of failing to check navigation charts for information about corrections that need to be applied to satellite-derived positions. In the latest issue of its StopLoss Bulletin, the Club refers to an incident in which a containership grounded as a result of total reliance on GPS, coupled with a failure to recognise that a significant correction had to be applied to GPS positions before they were plotted on the chart. During a coastal passage, the ship ran aground after a navigating officer commenced a significant alteration of course about half a mile before he reached the intended alter-course position.

The London P&I Club reported that, while investment performance was adversely affected in the year to February 20, 2009, its financial position has been considerably strengthened as a result of action taken by its committee in setting additional calls in October 2008. The club’s annual report will be published in July. But a summary of results for the 2008/9 financial year reports a 13.4 per cent fall in the value of the club’s investments, equating to $39m, despite the decision…

The London P&I Club reported that one of its members recently suffered an onboard fire as a result of the wilful misdescription by shippers of a chemical cargo. London P&I warns that there is a danger of further such incidents occurring, given the nature of modern transport logistics. The cargo involved was calcium hypochlorite, a chemical in widespread use throughout the world, most commonly in the treatment and purification of water, and which has some inherent properties which can make it extremely dangerous. For example, if it becomes too hot, or contaminated with impurities, a reaction may set in, leading to fire or explosion. Several such incidents occurred in the late 1990s, some involving explosions in onboard containers which resulted in extensive damage to large oceangoing ships.

The Club has been experiencing very high levels of claims since 2006 (most particularly claims on the International Group Pool) and since the middle of 2007, a negative impact of the credit crunch on its investments. As a consequence, free reserves fell to just under $81M on February 20, 2008. The Club announced that Additional Calls will now be levied and an increase in Advance Calls going forward is required. The Club reports that the 2005/2006 policy year has developed satisfactorily and will be closed without further call. For 2006/2007, an Additional Call will be payable at 35 percent of the Estimated Total Cost (the ETC) for the year.

The P&I Club recorded a growth of nearly two million gross tons in its book of owners’ P&I business during the 2007/8 policy year, increasing the total mutual membership to approximately 37.5 million gross tons. In addition, the Club’s portfolio of charterers’ entries - cover for which has been enhanced by the development of a flexible combined single limit facility - brought the ’s overall tonnage to nearly 40m gt. During the course of the year, the Club welcomed new members, including Dong Guan Haichang Shipping Co, Epic Shipmanagement, Free Bulkers, Global Ship Lease, Grand China Logistics Holding Co, Hellenic Star, Maritime Capital Partners, MSI Ship Management Pte, Neptune Lines, Primal Shipmanagement, Trans Asian Shipping Services Pvt, and Tristar Management.

The withdrawal from the P&I market of a number of fixed premium insurers should not affect the priorities of the mutual clubs, according to John M. Lyras, Chairman of the London P&I Club. withdrawal or consolidation of so much capacity of this nature had not come as a great surprise. needs of the great majority of shipowners, particularly in view of the many services which the clubs provide. Lyras adds, however, that "the clubs will need to take care to avoid complacency by maintaining a strong focus on their members' needs". Lyras confirms that the London Club gained tonnage steadily during the 2000/2001 policy year, ending it with a successful renewal and thereby demonstrating its underlying strength and reputation. newbuildings are entered for FD&D risks.

advance call for the 2004/2005 policy year. unchanged. 82.7m at the end of the 2002/2003 financial year. security of the Club. the future," he said. also apply. The advance calls will now be paid in two instalments. call". total call, as budgeted at the beginning of the year.

The London P&I Club says the increasing amount of new tonnage being ordered by its members, and entered with the Club for P&I and FD&D risks, is confirmation of the current healthy state of the shipping industry, as well as being good news for the Club itself. Twenty-five per cent of the vessels entered with the London Club during the last twelve months have been newbuildings. Many of these have been entered by shipowners who have not previously bought new tonnage. The newbuildings have been split equally between tankers, bulk carriers and containerships. Michael Hill, Underwriting Director of A Bilbrough & Co, Managers of the London Club, says, "Shipping markets generally are going through a boom period at the moment.

needed to ensure the safety of personnel involved. Department. removal operation on board a vessel at anchor in the southern North Sea. on deck, the chief officer came between it and the accommodation bulkhead. and crushing his pelvis against the bulkhead. an easy exit. cover being lifted by the derrick of a dumb lighter. fell to his death.

The London P&I Club achieved its premium income targets during the renewal negotiations completed on February 20. It now has a total fleet entry of more than 30 million gross tons, covering all categories of membership. Major new entries in the Club included fourteen bulk carriers operated by Petros Pappas' Sentinel Marine Services in Greece. additional vessels with the Club. As in previous years, the Club declined to insure a significant amount of tonnage which did not meet its stringent quality requirements. The London Club has traditionally pursued a policy of selective, quality expansion and strategic investment. For the period between February 1997 and February 2001, it enjoyed the best average investment return of all clubs in the International Group of P&I Clubs.