Machinery Insurance News

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…

25 Oct 2018

Moore Stephens: Ship Operating Costs to Rise in 2018, 2019

Richard Greiner, Moore Stephens partner, Shipping and Transport

International accountant and shipping consultant Moore Stephens says total vessel operating costs in the shipping industry are expected to rise by 2.7% in 2018 and by 3.1% in 2019, according to our latest survey.Responses to the firm’s latest annual Future Operating Costs Survey revealed that drydocking is the cost category likely to increase most significantly in both 2018 and 2019, accompanied in the latter case by repairs and maintenance. The cost of drydocking is expected to increase by 2.1% in 2018 and by 2.3% in 2019…

14 May 2018

Partners Look to Tackle Risks of Autonomous Shipping

Photo: Rolls-Royce

As industry efforts to make autonomous shipping a reality continue, Rolls-Royce and AXA Corporate Solutions have signed a letter of intent (LOI) to explore ways in which they can bring a new risk management offering to the marine market.The companies say they seek to utilize Rolls-Royce Ship Intelligence systems and equipment and AXA’s risk analytics capabilities to support current sailing and future vessels."Combining AXA’s Marine Underwriting expertise and Rolls-Royce Ship Intelligence will enable both companies to deliver higher customer value through continuous innovation…

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

© Big Face / Adobe Stock

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.

17 Oct 2017

Interferry Conference Reviews Issues with Financial Impact

The challenges and opportunities posed by alternative fuels, safety management and social media dominated Interferry’s 42nd annual conference in Split, Croatia, where a record 370 delegates shared insights on ship technologies, safety issues including cyber security and the customer experience. Attendance at last week’s conference represented 210 ferry operators and suppliers from 27 countries. Mediterranean ferry operators voiced their concerns on meeting the 0.5 percent sulphur emissions cap due in 2020. Minoan Lines managing director Antonios Maniadakis complained that using low sulphur fuel would increase costs by €2 million per year.

12 Sep 2017

Interferry Conference to Spotlight Issues with Bottom Line Benefits

© Paul Prescott / Adobe Stock

Trade association Interferry stages its 42nd annual conference in Split, Croatia, next month with an agenda highlighting the income and savings potential in three key areas – the customer experience, ship technologies and safety issues including cyber security. The event runs from October 7-11 and is on course for record attendance with some 300 delegates already registered among member and non-member operators and suppliers. “I think the high level of interest is a response to the pace of change in our industry,” suggests Interferry CEO Mike Corrigan.

06 Dec 2016

Market Forces Down Ship Operating Costs

© chrisberic / Adobe Stock

The cost of operating cargo ships has fallen for two successive years but is forecast to rise in 2017 and beyond, according to the latest Ship Operating Costs Annual Review and Forecast 2016/17 report published by global shipping consultancy Drewry. 2016 was another very difficult year for most shipowners and operators. Weak freight rates, declining asset values, eroded profitability and denuded cash balances have forced shipowners to reduce costs wherever possible, and vessel operating expenses have been no exception.

31 Oct 2016

Ship Operating Costs Set to Rise -Survey

(File photo: Thomas Poster)

Vessel operating costs are expected to rise in both 2016 and 2017, according to the latest survey by international accountant 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 expected to rise by 1.9 percent in 2016 and by 2.5 percent in 2017.

30 Oct 2015

Ship Operating Costs on the Rise

File photo

The survey responses, gathered primarily from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia, revealed that vessel operating costs are expected to rise by 2.8 percent in 2015 and by 3.1 percent in 2016. Crew wages are expected to increase by 2.4 percent in 2015 and by 2.3 percent in 2016, with other crew costs thought likely to go up by 2 percent and 1.9 percent, respectively, for the years under review. The cost of repairs and maintenance is expected to escalate by 2.3 percent in 2015 and by 2.4 percent in 2016…

12 Oct 2015

Value of Fire-damaged Vessel Disputed

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.

24 Oct 2014

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens. 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 expected to increase by 2.9 per cent in both 2014 and 2015, with crew wages and repairs & maintenance the cost categories likely to increase most significantly. Crew wages are expected to increase by 2.4 per cent in 2014 and by 2.6 per cent in 2015, with other crew costs thought likely to go up by 1.9 per cent and 2.1 per cent respectively for the years under review.

28 Mar 2014

Growth for the Swedish Club

Lars Rhodin

The Swedish Club announced to its board today a significant increase in financial strength, with a positive underwriting outcome and investment earnings leading to a surplus of $17 million overall - a testament to the strategy of diversification and focused business development. This positive underwriting outcome resulted in a combined ratio of 93.5% with free reserves increasing to a record level of $168 million. The year also saw an increase of 6% in Owners P&I entries, which now total 37 million GT.

02 Jan 2014

Coming your way, a 3% rise in Operating Costs

(Photo: Alex Sergienko)

A new survey from Moore Stephens finds that vessel operating costs are expected to rise by more than 3% in both 2013 and 2014. While this news should not be unexpected it is nevertheless bad news for ship owners that continue to struggle with low freight rates and over capacity across several oceangoing sectors. In total the survey examined 10 main cost areas, summarized in charts one and two. Crew expenses, broken in two categories as ‘wages’ and ‘other’ by far dominated the cause of cost escalation, accounted for a 4.5% rise in 2013 and a projected 4.7% rise in 2014.

05 Nov 2013

Vessel Operating Costs Expected to Rise 3%

File image in public domain

Vessel operating costs are expected to rise by more than 3.0% in both 2013 and 2014, according to a new survey by international accountant and shipping consultant, and Maritime London member, Moore Stephens. 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 expected to rise by 3.0% in 2013, and by 3.2% in 2014, with crew wages and P&I insurance likely to increase most significantly.

31 Oct 2013

Survey: Ship Operating Costs to Rise 3-4%

A new survey from Moore Stephens finds that vessel operating costs are expected to rise by more than three% in both 2013 and 2014, unwelcome news to shipowners that continue to struggle with low freight rates and over capacity across the oceangoing sectors. 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 expected to rise by three% in 2013, and by 3.2% in 2014, with crew wages and P&I insurance the cost categories likely to increase most significantly. Crew wages are expected to increase by 2.4% in 2013 and by 2.5% in 2014, with other crew costs thought likely to go up by 2.1% and 2.2% respectively for the years under review.

22 Jul 2012

Star Bulk Ship Off Hire Following Engine Failure

Greece's Star Bulk Carriers Corp. Star Bulk Carriers Corp. announce that their Star Polaris sustained main engine failure while sailing from the port of Dangjin, South Korea. The ship is currently docked in South Korea where it is undergoing repairs, which are expected to be completed in approximately four months. As a result, Star Polaris has been declared off hire by its charterers. Subject to the completion of an investigation into the cause of the engine failure, the Company will seek to recover the cost of the repairs and damages related to the vessel being off hire under the Warranty of Quality provided by the shipyard where it was constructed, and the Company's Hull and Machinery insurance policy, if applicable.

19 Jul 2012

WSS Helps Provide Safe Arctic Passage

Wilhelmsen Ships Service (WSS) is helping clients execute voyages through the Northern Sea Route (NSR) as this new trade lane begins to open up new opportunities for shipping. WSS is working with Russian Arctic shipping specialist Rosatomflot for ice-breaking assistance and has developed a programme to assists clients with technical, legal and insurance preparations they must satisfy to make the journey safely. The NSR is currently open between 1 July and 1 November but holds out the long-term prospect of a faster route between Northern Europe and North Asia/Alaska, cutting the journey time on an Europe-Asia voyage from 34 days to 22 days.

14 Sep 2005

GlobalSantaFe Updates Rig Status

GlobalSantaFe provided a preliminary estimate for the expected start of operations for its four offshore drilling rigs damaged by Hurricane Katrina. Most of the damage to the company's four semisubmersible rigs was to their mooring systems. Three of these rigs, the GSF Arctic I, GSF Development Driller II and GSF Celtic Sea, are projected to begin normal operations in the U.S. Gulf of Mexico during the fourth quarter of 2005. The GSF Development Driller I, which also sustained water damage to some of its thruster control systems, is projected to start work in the first half of 2006 due to longer delivery times for critical replacement parts. All of the damaged rigs are covered under a hull and machinery insurance policy with a combined deductible of $10 million for this event.

06 Aug 2010

Seaspan Financial Results, Three and Six Months

Seaspan Corporation (NYSE:SSW) announced the financial results for the three and six months ended June 30, 2010. Gerry Wang, Chief Executive Officer of Seaspan, stated, "During the second quarter, Seaspan achieved high utilization for its modern fleet and posted strong operating results while further expanding its contracted revenue streams. We took delivery of six newbuildings, four of which were delivered ahead of schedule, highlighting increased demand during the quarter. All six vessels commenced long-term time charters with top liner companies as planned. In addition, we capitalized on an attractive market opportunity by acquiring a 4250 TEU newbuilding, our first acquisition since late 2007.

02 Mar 2012

Star Polaris Damaged Entering Turkish Port

Star Bulk Carriers Corp. (Nasdaq: SBLK) announced that one of its vessels, the STAR POLARIS, sustained bottom damage when entering the port of Eregli, Turkey. Following a survey of the damages, the vessel proceeded for permanent repairs to Daewoo Mangalia shipyard in Romania. The repairs are expected to be completed in approximately thirty days. As a result of the incident, the vessel has been declared off hire by its charterers.  The Company has commenced an investigation into the circumstances of the incident and has reserved its rights relating to the unsafeness of the port. The Company expects the cost of the repairs to be covered by the vessel’s hull and machinery insurance policy, subject to the applicable terms.

23 Jun 2009

Allianz Piracy Study

Allianz Global Corporate & Specialty (AGCS), an insurer of ships and cargo, has released a study suggesting its clients adapt their approach to marine insurance as the threat of piracy off the Horn of Africa continues to grow. In addition, the study points out that crews entering dangerous waters must be prepared to handle an attack, and it calls for a more coordinated solution to the current wave of piracy. In a study entitled “Piracy: An ancient risk with modern faces,” AGCS suggests that special war insurance policies should be used to meet the needs of ships in high risk areas. AGCS also identifies a number of practical responses that crews can take when passing through piracy zones…

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