Marine Link
Monday, July 16, 2018

London Pi Club News

China Adds More Ports to Its Low Sulphur ECAs

© William Messing / Adobe Stock

China has expanded its Emission Control Area (ECA) regulations to include ships berthing at six additional ports, bringing the total number of key ports in the country’s ECA to 11. With the new rules, effective from January 1, 2017, China is now requiring ships to burn bunker fuel with a maximum sulphur content of 0.5 percent when berthing at six additional key ports: Guangzhou, Huanghua, Qinhuangdao, Tangshan, Tianjin and Zhuhai, extending from five ports that have implemented the regulation in 2016.

London P&I Club Reports Increased Free Reserves

Ian Gooch (Photo:  London P&I Club)

The London P&I Club has issued an advance summary of its result for the 2017/2018 financial year, ahead of the publication of its annual report.The club recorded an overall surplus after tax of $6.6 million, increasing the free reserve to $194.6 million. The combined ratio was 118.7 percent. In the year to 20 February 2018, there was an investment return on the club’s portfolio of 5.5 percent, or $18.9 million, net of associated management expenses.The club continues to receive additional entries from new as well as existing members and…

London P&I Issues Warning on Bagged Rice Cargoes

The London P&I Club has advised shipowners to seek advice before loading bagged rice cargoes in view of the inherent risks associated with the trade and an increase in the severity of claims in recent years. In the latest issue of its StopLoss Bulletin, the club notes that poor freight markets have seen an increase in the number of owners employing their ships in the bagged rice trades. It says the size of individual consignments being shipped from southeast Asia to the Middle East and sub-Saharan Africa has also increased…

Solid Renewal for London P&I Club

Moving into the new P&I policy year, the London P&I Club has seen further growth in its owners’ tonnage, in addition to strong growth in its charterers’ book of business. Ian Gooch, chief executive of the club’s management team says, “The recent renewal was particularly challenging for a number of reasons, including the depressed trading conditions in many sectors. “A key part of our strategy involves work to strengthen the club’s long-term technical performance, and the renewal saw some especially intense dialogue and detailed analysis of loss records and risk exposures with members and brokers. It was also the case that, for various reasons, terms were not agreed with some members.

London P&I Club Reports Increased Free Reserves

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.

London P&I Club Issues Recommendations on Bauxite Cargoes

Dr Martin Jonas (Photo: London P&I Club)

The London P&I Club has issued a list of recommendations to owners contemplating the carriage of bauxite cargoes in the wake of renewed concerns about the dangers of cargo mis-declaration and potential liquefaction. In the latest issue of the club’s StopLoss Bulletin, Dr Martin Jonas, of international marine consultant and surveyor Brookes Bell, notes that grades of bauxite containing a high proportion of fines capable of retaining significant moisture are potentially at risk of liquefaction, resulting in cargo shift which may cause the capsizing of the carrying ship.

London P&I Club Reports Increased Free Reserves for 2016/2017

Ian Gooch (Photo:  London P&I Club)

The London P&I Club has issued an advance summary of its result for the 2016/2017 financial year, ahead of the publication of its annual report. The Club recorded an overall surplus of $27.3 million, increasing the free reserve to $188 million. The combined ratio was 97.9 percent. The positive technical performance was supplemented by an investment return of 8.4 percent. Ian Gooch, CEO of the Club’s management team commented,"There were various drivers behind this positive result…

Kurdish Crude Lightered, Destination Unknown

Part of a Kurdish oil cargo has been offloaded from a Greek-managed tanker into another tanker in the South China Sea, but mystery surrounds the identity of the buyer and where the two tankers are headed. The United Emblem, which is carrying more than 1 million barrels of oil, is one of three tankers loaded with oil from the autonomous Kurdish region, which is trying to sell oil independently. Iraqi Kurdistan is locked in a bitter legal and diplomatic struggle with Baghdad over international oil sales. A U.S. judge on Tuesday refused a request by Baghdad, citing a lack of jurisdiction, to seize 1 million barrels of oil aboard the United Kalavrvta tanker, which has been anchored off the port of Galveston since the weekend.

Dangers Arising from Carriage of Indonesian Coal

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.

London P&I Club Reports Increased Free Reserves

The London P&I Club’s result for the 2015/2016 financial year produced an overall operating surplus of $3.3 million, lifting the free reserve to $160.7 million. This result was underpinned by a technical underwriting surplus of $15.3 million, with the combined ratio standing at 82.5 percent. In a circular summarizing the result, the club’s management team says there was a substantially improved claims outturn following the unusually adverse experience seen in 2014/15. The club’s annual report will be released as usual in July and will contain further details of developments, including particular reductions seen in the costs of claims in the high severity and attritional retained layers, together with positive developments in the cost of older policy years.

Call for Increased VDR Testing Awareness

Ian Barr (Photo: London P&I Club)

The London P&I Club has called for greater familiarization by ships’ officers and crews with the testing requirements relating to Voyage Data Recorders after two recent claims incidents investigated by the club’s loss prevention team revealed VDR malfunctions. In both claims, when the VDR data had been retrieved and analyzed, it was apparent that certain required sensors were not feeding data to the VDR unit at the material time. This led to delay in the analysis of the incidents, and to loss of important claims handling information.

P&I Club warns on Enclosed Space Entry & Testing

Carl Durow Photo P&I Club

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.

Charterer Pays Heavily for Breaching 'Safe Port' Warranty

Photo Wiki CCL

Charterer incurs US$138-million liability by breach of 'safe port' warranty in the 'Ocean Victory' case. Alistair Feeney, partner of London law firm Holman, Fenwick & Willan LLP gives valuable insights via London P&I Club news. The recent decision of the Commercial Court in Gard Marine & Energy Ltd v China National Chartering Co Ltd (The Ocean Victory) [2013] EWHC 2199 (Comm) serves as a useful reminder of how far charterers' warranties of port safety extend, and the size of the liabilities that may result when such warranties are breached.

London P&I Club Warns on Need for ECDIS Training

The London P&I Club said the timetable for the mandatory implementation of ECDIS (Electronic Chart Display and Information System) is advancing and that owners must take account of the potential risks involved in replacing more traditional means of voyage planning and monitoring with advanced technology. In the latest issue of its StopLoss Bulletin, the club notes, “Ineffective use of any electronic navigational aid can lead to marine accidents. A causative factor in a number of recent grounding accidents is the incorrect operation of ECDIS.

London P&I Club Holds Strong Despite Large Claims

Ian Gooch (Photo: London P&I Club)

The London P&I Club’s 2015 Annual Report highlights an unusual run of expensive claims in the 2014/15 policy year, with progress in other areas meaning that the free reserves stand at $157.4 million. Ian Gooch, chief executive of the club’s management team, said, “During the course of the last policy year, the club was required to respond in respect of 14 claims in excess of $1 million, two of which are expected to exceed the $9 million retention level and have accordingly been notified to the International Group Pool.

London P&I Club: Complacency is Significant Factor in Collisions

The London P&I Club says that a recent analysis of collision cases has highlighted the effect which complacency on the bridge of the vessel can have on the incidence of casualties. The club recently undertook a ‘root cause’ analysis of collision cases which concluded that the majority could be categorized as human error, with complacency often a significant contributing factor. In the latest issue of its StopLoss Bulletin, it cites the case of a bulk carrier which was approaching the end of a Traffic Separation Scheme. The ship was slowing to make an ETA at a pilot station in the adjacent Inshore Traffic Zone, and was soon to make a substantial alteration of course to starboard in accordance with its passage plan. At the same time, the vessel was being overtaken by a container ship.

New Guidance: Reducing the Risk of Propulsion Loss

© tantawat / Adobe Stock

Bureau Veritas, TMC Marine and the London P&I Club have issued a new booklet providing operational guidance for preventing blackout and main engine failures. In a joint project, classification society Bureau Veritas and consultancy TMC Marine, a Bureau Veritas Group Company since 2016, have cooperated again with the London P&I Club to produce the second booklet in a series on loss prevention issues. The new publication focuses on the marine engineering issues and procedures related to loss of propulsion incidents and how to prevent them.

P&I Club Analysis Warns of False Sense of Navigational Security

'Collision': Image courtesy of London P&I Club

The London P&I Club says that a recent analysis of collision cases has highlighted the effect complacency has on casualties. The club recently undertook a ‘root cause’ analysis of collision cases, which concluded that the majority could be categorised as human error, with complacency often a significant contributing factor. In the latest issue of its 'StopLoss Bulletin', it cites the case of a bulk carrier which was approaching the end of a Traffic Separation Scheme. The ship was slowing to make an ETA at a pilot station in the adjacent Inshore Traffic Zone…

London P&I Club Renews Warning on Cargo Liquefaction

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…

London Club Stresses Need to Observe Passage Planning

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.

London P&I Club Addresses "Cappuccino Effect"

The London P&I Club has advised its members on precautions to adopt to detect the presence of cappuccino bunkers. In the latest issue of its StopLoss Bulletin, the club explains that the cappuccino effect is essentially the frothing or bubbling effect caused by compressed air blown through the delivery hose. The aerated bunkers when sounded will give the impression that the fuel is delivered as ordered. In fact, after some time, when the entrapped air in suspension settles out of the fuel oil, the oil level drops and a shortfall is discovered.

Australia settles six years after Barrier Reef accident

Australia on Monday reached a A$39.3 million ($29.66 million) out-of-court settlement with the owners of a Chinese coal carrier that ran aground in 2010 on the Great Barrier Reef. The settlement, dismissed by an environmental group as not enough, is less than a third of what the Australian government was seeking from the ship's owner - Shenzhen Energy Transport Co - for remediation costs after the 225-metre long Shen Neng 1 ran aground on the reef's Douglas Shoal. The fully-laden carrier was en route to China when it sailed outside the shipping lane and ran aground on April 3, 2010. Anti-fouling paint that peeled off the ship contained a highly toxic component, tributyltin, that is now banned from use.

Members Boost London P&I Club Tonnage

The London P&I Club has increased its membership by almost two million gross tons over the past year. This increase reflects the entry of further tonnage with the club by existing members, and the addition of new members from China, Greece, Singapore, Turkey, and the U.K. Ian Gooch, chief executive of the club’s management team, says, “The London P&I Club heads into 2014/15 after a solid renewal and further controlled growth. The club has seen encouraging progress, including continued steady growth in its mutual membership, which now stands at 43.1m gt.

Maritime Reporter Magazine Cover Jul 2018 - Marine Communications Edition

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