ITIC warning for ship managers on unsuitable cargoes
ITIC has warned ship managers of the potentially severe financial implications of nominating unsuitable ships for the carriage of specific cargoes.
In the latest issue of its Claims Review, ITIC cites the case of a commercial ship manager which fixed a ship for a voyage of 4,000 metric tonnes of ammonium nitrate in large bags. This type of cargo had been carried by the manager’s fleet on several occasions, but the cargo had always previously been described as being in loose/bulk condition.
After the ship had loaded about 950 metric tonnes of cargo, port state control came aboard and stopped any further loading, as it was established that the ship had permission to load ammonium nitrate only in loose condition. After checking the position with the owners, the classification society and the flag state, it was confirmed that the ship which had been fixed was not suitable to load the ammonium nitrate in bags.
In order to keep costs to a minimum, the commercial manager fixed a different ship in its managed fleet for the same cargo, with the agreement of the charterers. The charterers then looked for reimbursement of the additional costs to the owners, who in turn held the manager liable. ITIC duly settled this claim on behalf of the manager.
Noting that the claim could have been significantly higher if a suitable substitute vessel had not been available, ITIC says that commercial managers need to be fully aware of all the limitations of ships under their management with regard to the carriage of particular cargoes. It emphasises that they need to pay careful attention to the detailed description of any cargo which they agree to commit their owners to in any charter party fixture.
Copies of the ITIC Claim Review can be requested from: firstname.lastname@example.org
ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com
For more information:
Tel. +44 (0)20 7338 0150
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Labels: ammonium nitrate, ITIC, Marine insurance, ship managers liability, unsuitable ships
Dutch Court of Appeal cheers up bankers
ROTTERDAM-based law firm AKD says a recent decision in the Dutch Court
of Appeal substantially extends the jurisdiction of Dutch courts following a
ship arrest. In the case of the Hero (HSH Nordbank vs Hero Shipping) the
court ruled that the 1952 Arrest Convention applies to all vessels,
irrespective of flag and owner. The court also broke new ground by agreeing
that a bank did not need to provide security for its claim because it had
sufficient financial strength.
van Lynden, a partner with the shipping and offshore
team at AKD in Rotterdam, says, “This is a good decision for mortgage
banks. This case was for the repayment of a loan, secured by a mortgage. The
courts decided that jurisdiction by Dutch courts is created simply by the
arrest by the mortgage bank, regardless of the flag and nationality of the
owner. It gives banks quick access to the very favourable auction system in The
applicability of the Arrest Convention and its ability to create jurisdiction
varies across different countries. Where it does not automatically create
jurisdiction it may offer protection to owners of vessels from or vessels
flying flags of nations not contracting to the convention. This decision in The
Netherlands lifts that protection.
Van Lynden, “This is also a remarkable decision because for the first time a
claimant has not had to provide security in a case involving owners registered
in an EU country. The summary judgment sought by the bank against the owners is
a provisional measure under European law and until now has only ever been
granted if security for the claim was posted by the claimant. In this case the
court accepted that the bank was sufficiently financially strong and also
sufficiently likely to repay the claim if it later failed so no security was
shipping and offshore team provides a full range of legal services to the shipping
and offshore industry. The team is ranked top tier in both Chambers and Legal
500. AKD is a full-service firm with over 250 lawyers. www.akd.nl
Labels: EU law, ship arrest, ship fiance, ship mortgages
London P&I Club says 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 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, 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. As a changeover of navigational watch was approaching, it became apparent to the Officer of the Watch (OOW) on the bulk carrier that the overtaking ship was not taking action to pass well clear in accordance with its obligations under Rule 13 of the Collision Regulations.
A VHF conversation took place in which the bulk carrier made its intentions known to the overtaking container ship, and an agreement was reached whereby the bulk carrier would make its alteration to starboard, and the overtaking ship would alter course to port and pass on the port side of the bulker. Shortly thereafter, the relieving officer arrived on the bridge of the bulk carrier and the watch handover process began. It was apparent that the OOW was confident that the plan was fully understood by both ships and expected the containership to pass on the port quarter. Unfortunately, he failed to monitor the situation, failed to alter course to starboard as agreed, and was taken by complete surprise in mid-conversation when the overtaking containership collided with the bulk carrier just forward of the bridge on the starboard side.
It was clear that, throughout the episode, the ships were in a developing close-quarters situation, and that good seamanship ought to have dictated that the OOW monitored the conduct of the overtaking ship very closely until it was finally past and clear, possibly delaying the watch-handover. The club says that misplaced complacency and over-confidence may have significantly contributed to the resulting collision claim.
Labels: analysis, complacency, human error, London P and I Club, ship collisions
Bureau Veritas boosts Dutch maritime innovation
Leading international classification
society Bureau Veritas is boosting innovation and sustainability in partnership
with Dutch owners, builders and designers.
Jan Smit, Senior Vice President and head
of the North Europe & North America
Zone of BV’s Marine & Offshore Division, says, “BV was
founded in the Low Countries and is a core part of the Dutch maritime industry
which is pushing ahead with innovative designs focusing on operational
excellence and energy efficiency. We are helping yards and owners to invest in
ships which are cleaner and more economical to operate. We have a strong
pipeline of new projects for highly-innovative vessels linked to the Dutch maritime
This year specialist Dutch gas carrier
operator Antony Veder took delivery of the world’s first directly driven
dual-fuel LNG carrier, the Coral Energy,
from Papenburg-based Meyer Werft in January 2013. With a capacity of 15,600 m3
and a specially designed compatibility package, the Ice Class IA vessel can
load LNG at all major terminals. BV assigned the ship a sophisticated class
notation, reflecting the vessel’s innovative design, environmental friendliness
and advanced control systems.
Wagenborg recently took delivery of its
first 23,000 dwt Ice Class IA multi-purpose vessel from Ferus Smit. The
BV-classed Reestborg is the largest
vessel ever built by the yard. The distinctive hull form, featuring an
innovative bulbless bow with negative stem profile, sharp entrance angles and
reduced bow flare in combination with a ducted large slow-running propeller,
significantly reduces the hull resistance.
M2 Runner is an innovative design concept for a short-sea
general cargo vessel which has been developed by Dutch designer Conoship in
co-operation with owners Hartman Marine. In order to achieve the highest
flexibility for carriage of high-volume project cargoes such as wind turbine
parts and industrial plants, the cargo deck area has been maximised to over
1,300 m2 and the open-top concept has been applied. The first out of
a series of three, Oceanic, was
delivered to BV class from the Polish Partner Shipyard in 2012.
In the OSV and tug segment, De Hoop is
building a 65 m dynamically positioned multi-purpose support vessel (MPSV) with
triple moonpools for Seamar Subsea, while Niestern Sander has been awarded a
newbuilding contract for a 79 m “walk-to-work” vessel designed to support the
North Sea gas operations of the NAM. The vessel, which will be operated by
Wagenborg, incorporates an integrated Ampelmann system to access offshore
units. Both MPSVs will be certified by BV as special purpose ships. Meanwhile
Damen Shipyards continues to extend its product range of sophisticated tugs and
OSVs. BV is currently involved in several new designs, including the ASD Tug
BV is the class of choice for dredgers.
Boskalis has taken delivery of the 4,500 m3 trailing suction hopper
dredger Causeway from Dutch
shipbuilder Shipkits. Conoship designed the vessel as a highly manoeuvrable
craft for shallow-water operations. IHC Merwede delivered the 25 MW
self-propelled cutter suction dredger Artemis
to Van Oord in April 2013, the second of a pair of highly advanced
mega-cutters. The shipbuilder also launched the “Easydredge” concept, which
aims at providing cost-efficient trailing suction hopper dredgers by supplying
a basic design platform with various option packages which can be delivered
from stock. Specific attention is paid to lifecycle management, energy
efficiency and sustainable dredging.
Veritas at Europort, Ahoy Rotterdam, 5 – 8 November 2013. Stand Number 7306
Veritas is a world leader in conformity assessment and certification services.
Created in 1828, the Group has 61,000 employees in around 1,330 offices and
laboratories located in 140 countries. Bureau Veritas helps its clients to
improve their performance by offering services and innovative solutions in
order to ensure that their assets, products, infrastructure and processes meet
standards and regulations in terms of quality, health and safety, environmental
protection and social responsibility.
www.bureauveritas.com for corporate
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