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Sunday, March 29, 2020

Insurance Cover News

© leodeep / Adobe Stock

Mideast Tensions Create Insurance Headache for Tanker Owners

Even as the United States and Iran appear to signal a keenness to avoid further conflict, oil and gas shipowners are bracing to pay a price for the war of words that culminated in rocket strikes in Iraq over the last week - higher insurance bills.According to industry sources, payments known as war risk premiums for tankers shuttling through the Strait of Hormuz could rise significantly, adding hundreds of thousands of dollars to shipping costs in some cases that will ultimately…

Pic: Hapag-Lloyd

Hapag-Lloyd Launches Quick Cargo Insurance

German-based global cargo container shipping line, Hapag-Lloyd AG is expanding its digital product portfolio. As one of the first container shipping companies, Hapag-Lloyd is now offering its customers an online marine insurance."Quick Cargo Insurance" provides customers with tailor-made insurance offers around the clock. The insurance cover takes effect immediately upon conclusion of the contract."Not every cargo transported by sea is insured, yet. For instance, small and medium-sized customers often do not take out insurance for cost reasons.

Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions, an allegation that Iran denies. Image Credit: © MarineTraffic.com

INSIGHTS: Noose Tightens Around Iranian Shipping

Somewhere on its journey from the waters off Iran, around Africa's southern tip and into the Mediterranean, the Grace 1 oil tanker lost the flag under which it sailed and ceased to be registered to Panama. Iran later claimed it as its own.The ship carrying 2 million barrels of Iranian crude was seized by British Royal Marines off Gibraltar, raising tensions in the Gulf where Iran detained a UK-flagged ship in retaliation.Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions…

Pic: Danish Maritime Authority

Danish Maritime Authority Calls for Renewal of Shipping Documents

Time has come to apply for renewal of CLC, Bunker, Athens and Wreck Removal Certificates from the Danish Maritime Authority (DMA). The certificates must be renewed once a year when the underlying insurance expires.According to DMA, ships that are required to hold a certificate must not operate without valid certificates.Many certificates expire on 20 February 2019.These are typically  CLC, Bunker, Athens and Wreck Removal Certificates based on P&I insurance.Some CLC, Bunker, Athens and WRC Certificates expire on dates other than 20 February 2019.

Willum Richards, (Photo: Association of Average Adjusters)

Association of Average Adjusters Addresses Claims Lacking Clarity

Insurance market leaders have been urged to apply their policy-reforming zeal to key areas of marine claims lacking clarity – with fishing vessel claims illustrating some of the dilemmas. The call came from Willum Richards, chairman of the Association of Average Adjusters, as he lauded the London market's Joint Hull Committee for its decision to embark on a review of the Institute Time Clauses (Hulls). He wished success to those involved in developing revised hull wordings and…

(File photo: MSC)

Top Container Shipping Lines Reviewing Iran Operations

The world's top two container shipping groups Maersk Line and MSC are reviewing their Iran operations after the United States withdrawal from the international nuclear agreement with Tehran.The 2015 agreement, worked out by the United States, five other world powers and Iran, lifted sanctions on Tehran in exchange for limits to its nuclear program.U.S. President Donald Trump also instructed his administration to re-impose U.S. sanctions after a winding down period."MSC is reviewing its services…

Image: Danish Maritime Authority

DMA Call for Various Certificates

Time has come to apply for renewal of CLC, Bunker, Athens and Wreck Removal Certificates from the Danish Maritime Authority(DMA). The certificates must be renewed once a year when the underlying insurance expires. Ships that are required to hold a certificate must not operate without valid certificates. Many certificates expire on 20 February 2018; these are typically the CLC, Bunker, Athens and Wreck Removal Certificates based on P&I insurance. Some CLC, Bunker, Athens and WRC Certificates expire on dates other than 20 February 2018.

Photo: A.P. Moller - Maersk

Global Shipping Feels Fallout from Maersk Cyber Attack

Global shipping is still feeling the effects of a cyber attack that hit A.P. Moller-Maersk two days ago, showing the scale of the damage a computer virus can unleash on the technology dependent and inter-connected industry. About 90 percent of world trade is transported by sea, with ships and ports acting as the arteries of the global economy. Ports increasingly rely on communications systems to keep operations running smoothly, and any IT glitches can create major disruptions for complex logistic supply chains. The cyber attack was among the biggest-ever disruptions to hit global shipping.

© donvictori0 / Adobe Stock

Cybercrime at Sea: Prevention Is Better Than Cure

David Thompson, Investigator at UKP&I Club’s Signum Services consultancy arm at UK P&I Club, highlights the importance of cyber security at sea. While the use of computerized systems for everything from navigation to container inspection has enhanced the safety and security of vessels at sea, it has also created a new type of threat to the shipping industry – cybercrime. The risks around cyber security and insurers’ exposure to these risks are a concern for the industry and regulators alike.

Thomas Brown (Photo: Seacurus)

Seacurus: Yachting Sector Seafarers Need Attention

Specialist marine insurance intermediary Seacurus has called for more flag states to establish a process of compulsory registration for all providers of Seafarer Recruitment and Placement Service (SPRS) in the yachting sector. Thomas Brown, managing director of Seacurus, says, “More countries need to follow the initiatives shown by the likes of the UK MCA and France, with the latter making company registration compulsory for SRPSs in the yachting sector. The measures introduced by the French authorities…

Photo: Shipping Corporation of India (SCI)

India's SCI to Sail to Iran

India's biggest shipping company Shipping Corporation of India (SCI) will resume sailing to Iran this month after a hiatus of about four years, reports Reuters. The company says it will accordingly use one of its Suezmax-sized tankers to ship an oil cargo for state-refiner Hindustan Petroleum Corp Ltd (HPCL) from Iran. "It is not yet decided ... which SCI-owned vessel is going to Iran," said SCI Chairman B.B. Sinha. SCI stopped sailing to Iran in 2012 when sanctions targeting Iran's nuclear programme prevented the company obtaining insurance cover for oil and other shipments.

Pic: IUMI

Industry Unprepared for New Container Weighing Rules, says IUMI

Helle Hammer, Managing Director Cefor & Chair of the International Union of Marine Insurance (IUMI) Political Forum discuss about Container Weighing Rules. As of 1 July 2016, only containers with a verified gross mass will be allowed to be loaded on board a vessel (although IMO is allowing a grace period of three months). Although the new SOLAS requirement was adopted in 2014, many shippers and forwarders are still unprepared, and masters will have little choice but to refuse unverified containers. In the short term, non-compliance is likely to affect the cargo insurance sector.

Photo: European Space Agency (ESA)

IUMI Position Paper on the Offshore Safety Directive

Neil Roberts, Manager, Marine and Aviation, Lloyd’s Market Association (LMA), United Kingdom, and International Union of Marine Insurance (IUMI) Ocean Hull Committee Secretary and Political Forum Liaison discuses  about the position paper published by IUMI. The paper is published in response to the recent Commission report on liability, compensation and financial security for offshore oil and gas operations, which raised some questions in relation to the implementation of the Offshore Safety Directive.

Anne Marie Elder

Navigating 2016’s Marine Insurance Market

Marine insurance may have the distinction of being the oldest line of insurance in existence, but it’s not letting its venerable age hinder its growth or flexibility. Given the new, emerging and increasingly complex risks faced by the maritime industry, the insurance market must adapt to meet the evolving needs. In fact, the marine insurance market continues to grow and evolve to address maritime industries new operating and trading environment. While bad weather and rough seas may have been the big risk of days gone by…

File photo: MOL

Ship Insurers Plug Hole in Iran Oil Cover Left by US Sanctions

Ship insurers have stepped in to help plug a shortfall in cover for transporting Iranian oil resulting from the fact that U.S. reinsurers are still restrained by Washington's sanctions, according to officials involved in the initiative. International oil and shipping companies have been eager to boost business with Iran since international sanctions related to its nuclear programme were lifted in January, but securing proper insurance cover has been among the stumbling blocks in recent weeks. The insurers' move will benefit Iran as it seeks to further ramp up production and exports.

Image: Pioneer Marine

Pioneer Marine Posts Loss, Takes New Delivery

Singapore-based dry bulk operator Pioneer Marine posted a loss of $80.6m for the fourth quarter, and a yearly loss of $96.9m for 2015. Excluding the effect of the impairment loss, net loss as adjusted would have been $22.5 million for the year ended December 31, 2015 or $0.87 adjusted loss per share basic and diluted and $6.2 million for the fourth quarter of 2015 or $0.21 adjusted loss per share basic and diluted. Pankaj Khanna, Chief Executive Officer, commented, “2015 proved to be a challenging year for the drybulk industry with excess supply overwhelming anaemic demand growth…

Courtesy Danish Maritime Authority

Renewal of Bunker, CLC, Athens and WRC Certificates

Time has come for most shipowners to apply for renewal of Bunker, CLC, Athens and Wreck Removal Certificates from the Danish Maritime Authority (DMA). Certificates must be renewed when the underlying insurance expires. Ships subject to a requirement for a certificate are not allowed to operate without the certificate. All Bunker, CLC, Athens and Wreck Removal Certificates based on P&I insurance typically expire on 20 February 2016. We invite shipowners to apply for renewed certificates from the DMA in due time.

Kevin King

Seminar Highlights Freight Liability in Russia

International freight insurer TT Club convened a special seminar at the recent conference on transport and logistics, Trans Russia in Moscow. Lead by TT Club’s General Manager, EMEA, Kevin King and Kirill Berezov from the insurer’s long-established Russian network partner Panditrans, the seminar outlined both the changing nature of the transport operator’s liability in Russia and the idiosyncratic nature of insurance conventions applicable in the region. TT Club believes that there is an urgent need for international freight forwarders…

Outlook for India's Seaborne Dry Bulk Trade

Hinode Maritime Conferences have announced their "2nd Annual Conference on the Outlook for India's Seaborne Dry Bulk Trade". Considered the largest conference in India on Dry Bulk Trade to be held on January 22, 2015 at Hotel Vivanta by Taj-President Mumbai, the event has created a lot of interest and leading players in the field are expected to participate. a) Demand Outlook Projections for the Major Bulks.

Maritime & Offshore Employment: Contractors, Coverage and Confusion

Faststream USA Managing Director Eric Peters defines the risks in hiring contract workers in today’s marine and offshore markets, and lays out the course to mitigating those headaches. Recruitment, insurance and peace of mind – all rolled into one neat package. It’s no secret that the marine and offshore worlds require comprehensive insurance coverage in the event of an accident or emergency; however, the complex laws associated with contract workers mean that some employers are unaware of exactly what is needed to ensure their employees are properly covered.

Session in Progress at India Shipping Summit 2014

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain. The reasons are not too far to see. From the very beginning it has been reputed to be a mega event of South East Asia. It sought consistently to bring government representatives and the leading lights of the industry on to a common platform thus acting as a beacon for the country’s maritime trade to move on the road to progress.

Piling It On: Oil Spill Liability

While the U.S. Congress can create and pass legislation, in many circumstances there can be state laws that either augment, overlap or potentially create conflict with the federal laws. This can be especially true in the maritime world, where federal admiralty jurisdiction results in legislation that often specifically allows concurrent state law requirements. Three good examples of this can be found in the areas of abandoned and derelict vessels, vessel discharges, and liability for oil spills.

David Skinner, BE&O P&I Group Managing Director

DGS Reports Significant P&I Growth

DGS Marine, a global P&I (protection and indemnity) management provider, and exclusive manager for the British European and Overseas (BE&O) P&I facility, announced 19% premium growth following the completion of P&I renewals on February 20, 2014. This marks a significant growth in the fixed premium P&I market as ship owners and operators look to reduce their operational costs, the company said. BE&O has seen a significant global increase in its business, including a 22% premium growth in the Middle East and a 35% increase in the Far East, especially in China, Indonesia, Malaysia and Vietnam.

Ian Ferns: Photo courtesy of Shipowners' Club

Shipowners' Club P&I Offers MLC 2006 Wage Insurance

In response to specific market demand for insurance cover not formerly available, the Shipowners’ Club has launched a policy for its high net worth super yacht client base to indemnify them against Seafarers Unpaid Wages Following Abandonment (SUWFA). Although some 80% of the world’s gross tonnage of shipping has been signed up to the Maritime Labour Convention 2006 (MLC), there are still many owners and managers unsure as to the extent and applicability of some of the provisions.

David Phillips (middle), Chairman of the NAFL and CEO of Freight Systems LLC presents Julien Horn (left) and Andrew Kemp (right) from TT Club with an award in recognition of their expertise.

TT Club Pinpoints Operating Risks for Dubai Forwarders

In early October the UAE’s National Association of Forwarding and Logistics (NAFL) hosted a workshop for its members as part of its AGM proceedings. The group invited freight transport insurance specialist TT Club to present an overview of the risk profile that freight forwarders and logistics operators in the region are experiencing and the insurance cover available to mitigate such risk. Held at Dubai’s Chamber of Commerce and attended by some 140 representatives of the UAE’s freight transport community…

'The Seafarers' Charter': P&I Clubs Clarify Financial Obligations

Entry into force of the Maritime Labour Convention, 2006 (MLC) Circular 10/13: International Group P&I clubs clarify financial aspects. Members are referred to the previous circular issued in March this year on the Maritime Labour Convention (MLC). The imminent entry into force of the MLC has brought the Convention and its requirements on shipowners into focus and in particular the financial security requirements established in the Convention. By way of clarification and for Members’ guidance…