Inland Marine Insurance: Assuring Property and Goods Move Forward
Though water covers more than 70 percent of the Earth’s surface, businesses engaged in marine shipping operations and logistics, and other businesses that manufacture and ship product still have a lot of ground to cover getting their various goods to their final destinations. The ocean marine insurance market, the oldest insurance market in the world, was initially developed to protect these goods while crossing the ocean’s open waters, later to morph into a product to protect all international transportation regardless of mode.
How to Work with Your Insurer When Experiencing a Loss
Marine insurance – just like health, automobile and homeowner’s insurance – can be a valuable safeguard in case something unexpected happens. And when something bad happens, it provides reassurance that you have assistance in place to help get back to business quickly. In the maritime industry, there is a high likelihood that your businesses will experience a loss at some point. Vessels run aground, cargo containers get damaged, and fires occur in shipyards. These are just some of the types of situations that can – and do – happen routinely to maritime owners and operators. Knowing these risks exist, you should ask yourself two questions to make sure your business is prepared: First, what can I do to mitigate the risk of loss before an incident occurs?
Bradley Appointed as New Director For TT Club e-Commerce Initiatives
forwarders worldwide, has appointed Louise Bradley to the new position of director of e-commerce strategy. Based in London, the appointment highlights the growing importance of the TT Club's suite of Internet services, which include ClaimsTrac, eClaims and TTXpress.com. Bradley, a graduate in law from Queen's University, Belfast, will be responsible for leading the development and implementation of the club's e-commerce presence. strategic alliances, she will be responsible for the management, development and delivery of existing services. "Louise brings a rich and varied experience to this important new role," said Paul Neagle, TT Club's CEO.
Is No Guarantee of Future Performance, Says North of England
Shipowners were warned in Greece on December 15 that the increasing financial transparency of P&I clubs was no guarantee of their future financial performance. The warning from the 45 million GT North of England P&I club was given at the Piraeus Marine Club's prestigious annual P&I seminar. North of England director Mike Salthouse, formerly head of the club's Piraeus office, told delegates: 'It has never been easier to monitor a P&I club's financial performance. He said sophisticated regulatory controls, the International Group's comprehensive disclosure requirements and the constant probing by ratings agencies and brokers meant it was very difficult for a P&I club to mislead its members or the industry, either inadvertently or intentionally.
Myanmar Accedes to Treaty Covering Bunker Oil Pollution Damage
The International Maritime Organization (IMO) treaty ensuring that adequate compensation is available to persons that suffer damage caused by oil spills, when carried as fuel in ships’ bunkers, has been ratified by Myanmar. The International Convention on Civil Liability for Bunker Oil Pollution Damage (BUNKER) applies to damage caused on the territory, including the territorial sea, and in exclusive economic zones of States under the Convention. Under the Convention, the registered owner of a vessel is required to maintain compulsory insurance cover…
New Maritime Cargo Insurance – 'Undercover'
Willis Group Holdings has launched a new insurance facility, called Undercover, to protect cargo in transit and in store against all types of political violence, terrorism and war risks, informs shipping trade association Maritime London. The global risk adviser, insurance and reinsurance broker says that, in recent years, cargo losses worth more than one hundred million dollars have not been recovered under traditional cargo insurance policies due to critical exposures being excluded.
Denmark Updates Insurance Claims Requirements
Danish ships with a gross tonnage of or above 300 without a Certificate of Entry in a P&I Club from the international group of P&I clubs must inform the Danish Maritime Authority about alternative insurance for maritime claims before March 31, 2014. Danish ships with a gross tonnage of or above 300 must carry a certificate confirming that insurance has been taken out to cover maritime claims. The certificates are issued by the insurance companies and are subject to the general control of ships and certificates. Most ships have a recognized Certificate of Entry. In case the ship does not have a Certificate of Entry, the Danish Maritime Authority must be informed about the insurance taken out before 31 March 2014. What is a recognized Certificate of Entry?
Yemeni Ports Seek Safety in Shipping
Mukalla has no bearing on the safety of shipping at the country's ports. However, the incident has required the relevant authorities to take extra measures to ensure the safety of shipping in its ports and offshore crude oil loading terminals, according to the Ministry notice Ref. MTMA/GC2/2002 dated October 16, 2002 quoted below. insurance premiums on cargoes destined to Yemen. vessels.
Operating Costs Hit by Insurance and Crew Expenditure
per cent in their total operating costs, compared to the previous year. crew costs. to upgrade their ships. bulk carrier sector. keep a tight rein on costs. overall 1.2 per cent on the previous year. significant variations across different vessel types. expenditure on repairs and maintenance. becoming beautiful. actually down on last year, it still came in at an average 9.2 per cent. remains a premium for experienced, specialist crew. was recorded in respect of insurance. the market, recorded the biggest increase, at 31.2 per cent. have gained some courage from a series of big losses. significant general increases. 2005. This year's report covers the twenty most common vessel types. and administration. since last year and information on dry-docking costs and duration.
Coming your way, a 3% rise in Operating Costs
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.
Key Elements of Yacht Insurance, Q&A
Accidents happen. That comes as no surprise to those in the insurance industry, but what may be a surprise is the fact that the majority of maritime accidents occur in good weather with perfect visibility. In the following Q&A, Joseph McNulty, founding member of Carroll McNulty & Kull, joins Richard Furman and John Orzel, members of the same law firm, in a discussion on the key elements of marine insurance and what underwriters and claims professionals need to know about federal laws governing the maritime industry. Q. Let's start at the beginning. What is marine insurance?
Foss Names Sumner CFO
Bryceon Sumner has joined Foss Maritime as chief financial officer, hired to oversee all aspects of the organization's financial function and performance. Sumner brings to the role years of experience gained at a number of organizations ranging from education technology and real estate, to architecture and financial services. Prior to joining Foss, Sumner served as COO and CFO for public and private companies, family offices and as a senior financial officer of a $60 billion government banking insurance fund.
Original 1971 Oil Pollution Compensation Fund Closes
Several years ago, the 1971 Fund was replaced by the two subsequent Funds that pay higher compensations to the victims of oil pollution. It was an international innovation when a global, solidary scheme on compensation for the victims of oil pollution caused by tankers was established with the 1971 Fund. It has proven to be such a great success that the system has been improved twice, and the model has been copied for other types of pollution from ships. The 1971 Fund has been replaced by the 1992 Fund and the Supplementary Fund…
MISHA to Install DESMI BWMS Fleet-wide
Danish firm DESMI Ocean Guard A/S said it has finalized a contract to supply CompactClean ballast water management systems (BWMS) to the entire fleet of Turkish ship owner MISHA Shipping. The contract includes delivery of 10 CompactClean BWMS in sizes from 340 to 750 m3/h, with the first system to be delivered later in 2018 for the m/v Mohican currently under construction. MISHA Shipping is a privately held company with both shipping and shipyard activities. Its vessels are shallow-draft dry cargo vessels primarily designed for operations in Russian inland waters…
Wreck Removal Convention Inforce From April
The insurance and certification requirements of the Convention on the Removal of Wrecks become effective this April. In this connection, the Danish Maritime Authority has a request for Danish companies and shipowners. All Danish ships of or above 20 GT (gross tonnage) must take out insurance or other financial security to cover the owner’s liability in connection with the removal of wrecks. The ships must not engage in trade at all if such insurance or other financial security is not held.
Port Operators Risk Inadequate Insurance Cover
Speaking at the Panama Maritime VI World Conference, Dan Negron, vice president at Through Transport Mutual Services (Americas), stated that port operators face significant liability risk unless they are properly advised by specialist insurers and are in possession of a bespoke port and terminals policy. The devastation caused to New York in the September 11 terrorist attacks has inevitably led to repercussions in the insurance markets. Reports from market analysts contain the sobering conclusion that reinsurance capacity will diminish significantly in the foreseeable future. Consequently, many weaker insurers will either restrict their coverages, or will consolidate with others in order to maintain their capacity.
Moving 30 barges at once takes the sure hand of a tugboat pilot who knows how to maneuver a flotilla through the twists and turns of the Mississippi River. Lashed together, three across and 10 long, the barges cover more than twice the surface area of a modern aircraft carrier. Most would agree that the best river pilots are artisans, deeply skilled in methods to meet the challenges of that particular job. Equally skilled, however, are the tugboat captains in a crowded ocean harbor…
Deltamarin Joins GTT for LNG-Powered Ship Designs
Finnish ship designer Deltamarin, part of AVIC Group, together with France's Gaztransport & Technigaz (GTT), an engineering company involved in membrane containment systems for transport and storage of LNG, has studied the use of membrane-type tanks on cargo and passenger vessels. For quite some time now, Liquefied Natural Gas (LNG) has been an established fuel alternative for short sea shipping routes and also acts as a complementary fuel for longer routes. Deltamarin’s references include various vessels with LNG capabilities…
Report of First Drop in Ship Operating Costs Since 2002
International accountant and shipping consultant Moore Stephens reports an average fall of 2.0 per cent in total annual operating costs in OpCost 2010, its unique ship operating costs benchmarking tool. This is the first time since 2002 that OpCost has revealed a fall in total operating costs, which compares with the 15.8 per cent average increase recorded in OpCost 2009. All cost categories were down this time, except for crew costs, which in recent years have been the single largest contributor to total increases. OpCost 2010 reveals that the majority of vessel categories experienced a decrease in total operating costs in 2009, the financial year covered by the survey. Costs for the main vessel types in the three sectors covered - bulkers, tankers and container ships – were down.
Vessel Title Insurance Helps Protect Assets
When maritime liens turn up, an unsuspecting vessel owner and the lender can be left in the wake of a deal gone sour. But thanks to a new form of title insurance tailored to the maritime industry, owners, lenders and lawyers who might have green-lighted the transaction with a legal opinion are insulated from the potential risk. First American Transportation Title Insurance Co., a member of The First American Corp., recently introduced its EAGLE Protection Vessel Title Insurance to protect owners and lenders against title defects and deficiencies. The company's location in a renovated French Quarter complex - a stone's throw from the Mississippi River and the Port of New Orleans - is no accident.
P&I Invests in Singapore Branch
P&I insurance provider, The Shipowners’ Club, continues to expand business in the Asia-Pacific region by investing in its Singapore branch. Growth in demand for its liability insurance cover for small and specialist vessels of all types is cited as a major imperative behind Shipowners’ moves to expand its team of underwriters and claims handlers at its Singapore branch. Improved customer service to members and their brokers based on local, time-zone-based expertise is another goal of the expansion, as is the development of new products and simplification of existing cover. Robert Hunt will moving from the London branch to Singapore in early-August.
Must-Haves for Vessel Repair Contracts
By Fred B. My last column addressed critical clauses in vessel charters. Since this issue of MarineNews is focused on vessel construction and repair, this column will focus on some, but due to space limitations, not all, critical clauses in vessel repair contracts. Vessel repairs are usually an expensive proposition. The vessel must be taken out of service and thus is not generating income while being repaired. Often, the vessel has to be drydocked. Thus, owners usually want to get as much done at once during this disruptive period.
China Oil Spill Compensation Claims Face Iran Payment Snags
The reluctance of foreign banks to deal with Iran could complicate any compensation payments resulting from the collision last week of an Iranian oil tanker and a Chinese cargo ship, sources say. The tanker Sanchi, carrying 136,000 tonnes of highly flammable condensate oil, collided with the Chinese dry cargo vessel CF Crystal on Saturday in the East China Sea, causing an oil spill and a blaze that is still raging four days later. Liability has yet to be established but lawyers…