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Condition Surveys: Tankers Which Have Carried Heavy Fuel Oil As Cargo

As in previous years and in accordance with International Group practice, the Club is required to carry out condition surveys of seagoing tankers aged 10 years or more if they carried heavy fuel oil (HFO) as cargo during the previous policy year unless the ship: • has undergone a P&I Club condition survey during the previous 12 months; or • has undergone a class Special Survey during the previous 6 months; or • is currently rated as CAP 1 or CAP 2 by an IACS classification society. All Members with ...

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Ship insurers ‘already charging’ war risk premium around Fujairah post-sabotage attacks

Shipping and maritime insurers have already started charging war risk premiums in the waters around the Middle East bunkering hub of Fujairah after the insurance coverage area was expanded to include the Persian Gulf and the Gulf of Oman, according to industry executives. Following attacks on four oil tankers near Fujairah on May 12, the Joint War Committee of insurance body Lloyd’s Market Association on May 17 issued a circular adding the Persian Gulf and adjacent waters including parts of Gulf of Oman to the list of areas under risk ...

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MARPOL ANNEX VI – Sulphur Cap 2020 – Demystifying the FONAR

Fuel Oil Non-Availability Report (FONAR) is primarily a discretionary tool for a Member State to lessen the breach of MARPOL Annex VI, it is not an exemption but rather a self-declaration by owners that a breach has or is about to occur. IMO’s Marine Environment Protection Committee (“MEPC”) 74 published its resolutions on 20 May 2019 and specifically Section 5 deals with the ramifications of the aforementioned report. The concerns over non-availability of globally compliant bunkers of 0.5% bear identical hallmarks of the implementation of the ECA zones and availability ...

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Diversification and service excellence pays off for North P&I Club in 2018-19 annual results

North P&I Club has confirmed a 3% increase in free reserves to US$463m, a 99% Member retention rate for the third year in a row, and a 2.45% investment return that has contributed to an overall surplus of US$12.6m in the year ending 20 February 2019. In what has been a landmark year for North, total entered P&I tonnage exceeded 200 million GT for the first time at the conclusion of the renewal, along with FD&D reaching a record 150 million GT. Over the last 12 months, owned and chartered ...

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Class 1 and Class 2 Policy Year Balances and Financial Position 20 February 2019

The Board met on 22 May 2019 to approve the Report and Accounts for the year ending 20 February 2019 for The West of England Ship Owners Mutual Insurance Association (Luxembourg) and are pleased to report another strong result. You can view our Financial Highlights Flyer here. The Report and Accounts 2019 will be published shortly. FINANCIAL POSITION The overall net investment return was a positive 3.9% generating $28.6 million. Despite the Club’s claims in general developing better than expectations, the technical result was impacted by the industry-wide erosion in ...

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IUMI appoints new Asia Ambassador

The International Union of Marine Insurance (IUMI) hosted the second IUMI Asia Forum in Shanghai on 22-23 May and appointed a new additional Asia Ambassador to enhance its position in the region. Agnes Choi, Chair of Promotion and External Relations for the Hong Kong Maritime and Port Board and former IUMI Executive Committee member, has been selected to take on this important role. Agnes’ key responsibilities will include close liaison with the Asian markets, advising insurance professionals on IUMI and IUMI policy; providing information about Asian marine insurance to the ...

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‘Going dark’ is a red flag – AIS tracking and sanctions compliance

The Automated Identification System (AIS) was developed to counter the safety limitations of visual/VHF/Radar that were traditionally relied on for safe navigation in busy waterways. Regulation 19 of SOLAS Chapter V requires AIS is to be fitted on all ships of 300 gross tonnes and upwards engaged in international service, cargo ships of 500 gross tonnes and upwards not engaged on international voyages, and all passenger ships irrespective of size. Because vessels with AIS can ’see’ each other’s course and speed in real time, AIS is a critical collision avoidance ...

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West of England P&I Club’s overall financial position and capital strength remain robust

West of England P&I Club announced its results for the year ending 20 February 2019. The Club’s capital has strengthened and remains considerably in excess of the ‘AAA’ capital strength requirement under Standard and Poor’s model. This has been re-affirmed in its financial strength rating of A-, reflecting its view that the Club will sustain its ‘extremely strong’ capitalisation. The free reserve has been maintained in excess of $300 million at a near-record level of $306.4 million. Large claims in 2018 were fewer than 2017 (six in excess of USD ...

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Increase in PSC detentions due to defective sewage treatment plant

The Maritime and Port Authority of Singapore (MPA) has issued a circular (no. 5 of 2019) highlighting increase in Port State Control (PSC) detentions experienced by Singapore ships due to defects relating to the ship’s sewage treatment plant. The attached shipping circular provides reference to the following IMO guidelines: 2012 Guidelines on implementation of effluent standards and performance tests for sewage treatment plants. These guidelines would apply to sewage treatment plants installed on or after 1 January 2016 on ships other than passenger ships in all areas, and on passenger ...

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Owners’ remedies – contractual rights vs reality

The chartering of ships, like any other business, comes with risks that the business counterparts do not honour their obligations to pay. Some owners (including head owners and disponent owners) believe that their position should be relatively secure given the various rights and remedies written in the charterparties in the event of non-payment by charterers, such as the right to hold on to the cargo. It is important to note however that there is a gap between owners’ rights as written in the contract, and how and where they can ...

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Maritime security update on Fujairah incident

We refer to our alert “Incident at Fujairah anchorage” of 14 May 2019. In a joint press release, OCIMF and INTERTANKO state that the widely reported attack on four tankers at Fujairah anchorage on 12 May 2019 appears to be well-planned and coordinated. They further state that it appears that each ship was attacked by a sub-surface explosive device placed by either a remotely operated vessel or divers. Both these types of delivery method are more likely to happen when ships are near stationary or in a very restricted waterway ...

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Standard Club Announces Additional Premium Areas

We hereon issue notice of cancellation to amend the War Risks Trading Warranties. The following are to be incorporated in the new list (see Appendix) and will become effective at 00.01 Hours Greenwich Mean Time 1 June 2019: Added: Oman Persian or Arabian Gulf and adjacent waters including the Gulf of Oman west of Longitude 58°E United Arab Emirates Amended: Saudi Arabia (Gulf coast) Saudi Arabia (Red Sea coast) excluding transits Definitions Named Countries shall include their coastal waters up to 12 nautical miles offshore, unless specifically varied above. Named ...

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Persian Gulf Now Most Risky for Oil Tankers Since Last Iraq War

Not since 2005 have the world’s insurers considered shipping in the Persian Gulf so dangerous for oil tankers. The Joint War Committee of London’s Lloyd’s Market Association said Friday that it would expand its so-called ‘listed areas’ — those regions that pose the greatest risks for shipping, and potentially warranting higher insurance costs — to include the entire Persian Gulf. The last time the entire region held the designation was a period that ended in June 2005 and encompassed the most recent Iraq War. It highlights the growing risks in ...

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Violations of IMO 2020 Emissions Rules for Shipping Could Hit Insurance Cover

Tougher rules on sulfur emissions from ships will come into effect next year in the biggest shake-up for the oil and shipping industries for decades. United Nations shipping agency the International Maritime Organization (IMO) met in London this week for the only Marine Environment Protection Committee (MEPC) session this year and will fine tune guidance. What will the regulations mean for users and makers of marine fuel? IMO 2020 From January 2020, the IMO will ban ships from using fuels with a sulfur content above 0.5%, compared with 3.5% now. ...

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Gard works from grass roots to serve a global industry

Gard is known as one of the largest marine insurers in the world – and the market leader with perhaps the most challenging travel route to their headquarters. But as any visitor knows, once in Arendal, Gard’s home since their founding in 1907, the charms more than outweigh the challenges. A quaint but bustling maritime village located 250 kilometres south of Oslo, Arendal was the largest sailing ship port in Europe in the late 1800s, and the most important stopover for ships trading between London and St Petersburg. Not the ...

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