London P&I Club’s capital position remains strong despite heavy cost of claims

THE London P&I Club has issued an advance summary of its result for the 2018/2019 financial year, ahead of the publication of its annual report.

With free reserves of $168.8m, the club’s capital position remains strong, despite an overall deficit for the financial year of $25.8m. Net earned premiums increased by 3.3% but there was an increase in the cost of claims, which included two International Group Pool claims involving the club’s members as well as increased activity on the pooling system generally and a rise in the cost of the club’s retained claims.

The growth in claims activity came during a period when premium rates remained under intense pressure and, as a result, the combined ratio increased to 140.1%. The club’s investment portfolio, however, did produce a return of 3.0%, or $8.2m.

Ian Gooch, CEO of the club’s management team, says, “The 2018/2019 financial year was an extremely challenging one for the P& I sector generally. On a positive note, the London Club continues to see strong levels of support from new as well as existing members and assureds and, following the February 2019 renewal, its combined entered tonnage increased to over 60m gt. This reflected year-on-year tonnage growth of more than 7% in the mutual membership and further positive progress in the club’s fixed premium lines of business.”

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London P&I Club reports further growth in owned entry

THE London P&I Club saw further growth in its mutual owned entry following the conclusion of the recent P&I renewal season.

The club’s director of underwriting, Reto Toggwiler, says, “Our mutual membership saw year-on-year growth of approximately of 3.5m gt or 7%. This result is evidence of the strong commitment shown to the club by existing members and by the new members that we were pleased to welcome, drawn from a number of different countries around the world.

“Everybody at the club is grateful to members and brokers for their support in achieving an encouraging outcome which underlines the importance that shipowners attach to the London Club’s service-focused and understanding approach to P&I”.


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London P&I Club advocates old-school approach to identifying problems

THE London P&I Club says its Ship Inspection Programme has revealed a frequent failure to observe basic onboard procedures, with potentially costly consequences for owners and operators.

In the latest issue of its StopLoss Bulletin, the club says, “With increased commercial pressure on the master of a ship, some simple and potentially ‘old-school’ habits often fall by the wayside. For instance, we consider that one of the most useful tools for maintaining a quality operation and safe working environment is the weekly captain’s rounds.”

The club cites examples of issues that may slip past the daily team, but be spotted by the master. These include an untidy paint locker with opened and part-used tins of paint lying around, presenting a fire risk, mooring ropes left uncovered on mooring drums, open to degradation in sunlight, and a perished rubber gasket on the engine room escape hatch.

The club says, “Many findings identified during a ship inspection are easily detectable by the ship’s officers and crew. It is relatively rare that findings are latent. The master is the overseeing eye, carrying enhanced responsibility for all shipboard activities, coupled with a motivating role as the ship’s focal point.

“Not all ships’ operational programmes allow for regular ‘Sunday Routines’ but, when an opportunity exists, an hour spent touring the ship with the chief officer can enable the master to detect housekeeping issues as they develop. The experienced eye of the master can not only detect these issues at an early stage, but can also help the chief officer populate the weekly job list.”


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London P&I Club issues loss prevention guide for coal cargoes

THE London P&I Club has published a loss prevention guide on risks associated with the carriage of coal cargoes, with particular emphasis on gas monitoring and ventilation.

The guide, written by Paul Willis, Senior Associate with UK-based forensic investigation and root cause analysis specialist Hawkins, notes that the management of coal cargoes and the proper use of gas detection equipment are key elements in the prevention of coal fire claims. It details the fundamental requirements relating to the installation, use and maintenance of gas detection devices and the different types of sensors involved in their operation. It also includes a checklist of good gas monitoring techniques, and recommendations on the use and care of this specialist equipment.

Despite the risks associated with the transportation of coal, the majority of ships carry such cargoes without incident. “Ultimately,” says the London Club guide, “the key to proper and efficient use of gas detection and monitoring equipment is the crew’s full understanding of how the unit works, and their familiarity with its functions and proper, prescribed maintenance routines. Adhering to the requirements and recommendations in the IMSBC Code greatly reduces the risk of fire and helps prevent incidents from becoming major casualties.”

The guide concludes, “If the master only allows cargo below 55˚C to be loaded, and regularly checks it during passage, then problems can be identified at an early stage and prevented from escalating to the point where the ship and its crew are potentially in danger.”

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London P&I Club issues guide to ECDIS management

THE London P&I Club has joined forces with London Offshore Consultants (LOC) to produce a guide to the proper management of ECDIS (Electronic Chart Display and Information System) on board ships.

The driving force behind the publication, ‘Is your ECDIS contributing to safe navigation or introducing risk?’ is the increasing number of negative findings recorded by the club during ship inspections which are attributable to the manner in which the introduction of ECDIS on ships is being managed.

In the latest issue of its StopLoss Bulletin, the club notes that the more common failings identified include a lack of ECDIS content in the watch handover checklist, a lack of familiarity on behalf of bridge-watchkeeping officers with the manual position-fixing method, a lack of GPS position cross-checking, a lack of understanding of the safe application of deep-contour, safety-depth, shallow contour and safety contour, and a failure to revise the Safety Management System (SMS) to include ECDIS.

The club says, “The introduction of ECDIS can easily be assumed to be a simple application of beneficial technology. Indeed, it is a powerful navigational tool which, when well-managed and in the hands of well-trained and motivated users, can bring various enhancements to navigational safety. However, managers should ensure that the users of such systems, while potentially experienced navigators, are able to apply vital navigation skills such as manual position-fixing and parallel indexing in the ECDIS environment.

“While the skills of an experienced navigator can be presumed, familiarity with the electronic method of applying the ECDIS equivalent cannot. The importance of type-specific quality training cannot be overstated in ensuring that staff can perform their fundamental navigational tasks. Also, the ‘at a glance’ constantly updated nature of a GPS position, making progress along a planned course line in ECDIS, whilst a useful feature, can encourage the watchkeeping officer to neglect to cross-reference the satellite-derived
position with visual and radar fixes.

“It has become evident that a strong management-of-change policy at the heart of SMS reduces the likelihood of such issues arising. A well-structured SMS policy and a good-quality, type-specific training programme can help avoid navigational safety shortcomings caused by the introduction of technology which ought to enhance safety.”


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London P&I Club reports increased free reserves for 2017/2018

THE London P&I Club has issued an advance summary of its result for the 2017/2018 financial year, ahead of the publication of its annual report. The club recorded an overall surplus after tax of $6.6m, increasing the free reserve to $194.6m. The combined ratio was 118.7 percent. In the year to 20 February 2018, there was an investment return on the club’s portfolio of 5.5 percent, or $18.9m, net of associated management expenses.

The club continues to receive additional entries from new as well as existing members and, following the February 2018 renewal, there was a year-on-year increase of 5.8 percent in its mutual membership. In addition, there was further volume growth in the club’s bespoke covers for charterers and for the owners of smaller vessels.

Ian Gooch, CEO of the club’s management team, says, “The continued strengthening of the free reserve was pleasing and the growth in the membership was also encouraging. At the same time, though, the 2017/2018 result reflected a $14.4m rise in the cost of the club’s net incurred claims, the drivers of which included an increase in claims activity involving the International Group Pool as well as an increase in the cost of higher-severity Fixed and Floating Object claims within the club’s retained layer. The claims outturn coincided with a period of continued pressure on P&I premium levels and the combination of these factors contributed to an increase in the combined ratio.”

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London P&I Club records encouraging growth

Following the recent completion of the 2018 renewal, the London P&I Club saw an encouraging 2.5m gt, or 5.8% year-on-year increase in its mutual business, to 45.4m gt.

The club’s underwriting director, Reto Toggwiler, says, “While the renewal period generally saw rates come under pressure, it is also the case that, in 2017/18, we saw a notable reduction in the impact on income of mid-year churn.

“This renewal again underlined the high level of commitment to the club by its members. There were some extensive and at times challenging negotiations over rates and terms, especially in a relatively small number of cases where the loss records required particular attention. But, overall, in addition to organic growth, it was pleasing to see the addition of a number of new fleet entries to the club’s mutual membership. At the same time there has also been good progress in the club’s fixed-income business, on which we will be reporting a little later in the year.”


The London P&I Club is one of the world’s leading mutual marine liability insurers. It is a prominent member of the International Group of P&I Clubs, playing a key role in co-ordinating and promoting the collective strength of the P&I industry on behalf of the global shipowning community. www.londonpandi.com

More information:
Reto Toggwiler
London P&I Club
reto.toggwiler@londonpandi.com
Tel: +44 (0)207 72 8000

London P&I Club warns of increased risk at congested Chittagong anchorage

The London P&I Club has noted a marked increase in accidents involving ships at anchor in the Bangladeshi port of Chittagong, which it says has become an international hot-spot for anchor-dragging incidents.

The club notes that there has been a significant rise in the number of ships calling at Chittagong in recent years and that, as most bulk carriers discharge into lightering barges, congestion is increasing at the port’s outer anchorage. Last year, the average number of ships lying at anchor at any time was between 60 and 90.

In the past year, the club has experienced a rise in incidents involving ships at anchor in Chittagong, exacerbated by the increased number of vessels open to monsoon-type conditions, strong prevailing currents and poor holding ground. It says it is paramount for mariners to remain vigilant while at anchor in the port, with the consequences of reported incidents ranging from minor contact damage with other ships, to groundings and the associated risk of pollution,

In the latest issue of its StopLoss Bulletin, the club has drawn the attention of its members to the Chittagong Port Authority guidelines for masters anchoring at Chittagong Outer Anchorage. It says that these guidelines, together with local sailing directions and other salient port information, should be considered during the passage planning stage.

The London P&I Club is one of the world’s leading mutual marine liability insurers. It is a prominent member of the International Group of P&I Clubs, playing a key role in co-ordinating and promoting the collective strength of the P&I industry on behalf of the global shipowning community. www.londonpandi.com

More information:
Carl Durow
London P&I Club
Carl.Durow@londonpandi.com
Tel: +44 (0)207 72 8039

London P&I Club joins with BV in issuing blackout and engine failure guidance

The London P&I Club, in a joint project with leading classification society Bureau Veritas and its casualty and salvage subsidiary TMC Marine, has issued a new booklet providing operational guidance for preventing blackout and main engine failures.

This new publication, the second in a series on loss prevention subjects, focuses on marine engineering issues and procedures related to the prevention of loss of propulsion. Its purpose is to provide general guidance and practical advice to marine engineers and ship owners on blackout and main engine failures, the risks associated with loss of propulsion, and the precautions that can be taken to limit and prevent them.

London P&I Club loss prevention manager Carl Durow says, “The club has seen an increase in the number of machinery failure-related cases in recent years. In most cases, it is the timing and location of the incident which dictates the severity of the claim. This publication is aimed at raising awareness of the necessary good practices and post-incident investigation activities which in combination can result in significantly reducing the risk of major claims.”

The London P&I Club is one of the world’s leading mutual marine liability insurers. It is a prominent member of the International Group of P&I Clubs, playing a key role in co-ordinating and promoting the collective strength of the P&I industry on behalf of the global shipowning community. www.londonpandi.com

More information:
Carl Durow
London P&I Club
Carl.Durow@londonpandi.com
Tel: +44 (0)207 72 8039

London P&I Club reports increased free reserves for 2016/2017

THE London P&I Club has issued an advance summary of its result for the 2016/2017 financial year, ahead of the publication of its annual report. The Club recorded an overall surplus of $27.3m, increasing the free reserve to $188m. The combined ratio was 97.9 per cent. The positive technical performance was supplemented by an investment return of 8.4 per cent.

Ian Gooch, CEO of the Club’s management team comments: ‘There were various drivers behind this positive result with the claims environment – which remained benign by longer-term historic standards – being an important factor, even though it was not as favourable as the 2015/2016 year. In particular, we saw a notable reduction in retained claims in the band between $500,000 and $1m and in the level of claims falling on the International Group Pool’.

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London P&I Club says consistent approach to publication management is essential

The London P&I Club says its inspectors have consistently noted negative findings in connection with the management of ships’ chart folios and associated publications, as well as concern over the approach adopted by deck officers to the management of external navigational warning information from SAT-C and Navtex.

The most common finding is the lack of application of Temporary and Preliminary Notices to voyage charts. The club’s loss prevention officer, Carl Durow, says, “Officers in charge of such activities are reminded that, while often temporary, T&P Corrections should not be regarded as less important to safe navigation than weekly permanent chart corrections. Ships’ ISM manuals should give clear and concise guidance on how the nautical publications are to be corrected to avoid inadequate and personal approaches being applied by ships’ officers.”

Another regular club finding relates to the poor or inconsistent application and management of permanent chart corrections. “This can be a very time-consuming task,” says Durow, “particularly when a global folio is maintained. Where paper charts are in use, they should be kept corrected to the latest onboard edition of ‘Notices to Mariners’. Owners should consider the time-saving and most accurate step of supplementing their notices with the appropriate tracings when they are not provided.”

The club believes that consistency of approach is the key to good publication management. It adds that the period of crew changeover is when consistency can either be maintained or lost, and where incoming officers with a potentially subjective approach to the task should take instruction from company policy and procedure and act accordingly.

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London P&I Club guidance on reducing risk of bulk cargo liquefaction

The London P&I Club, working in co-operation with leading classification society Bureau Veritas and its casualty and salvage subsidiary TMC Marine, has produced an operational guide designed to reduce the risk of liquefaction in potentially volatile bulk cargoes such as ore fines and concentrates.

Reducing the Risk of Liquefaction is intended to provide general guidance and practical advice to masters, shipowners, shippers and charterers on the loading and carriage of bulk cargoes which may liquefy, the risks associated with liquefaction, and the precautions which should be taken to minimise those risks.

Despite an improvement in the awareness of the risks associated with the carriage of cargoes such as iron ore fines, coal, manganese ore fines and nickel ore, incidents involving liquefaction continue to occur, sometimes with catastrophic and tragic results. The main, mandatory requirements for the safe carriage of solid bulk cargoes are stipulated in the IMSBC Code, but Reducing the Risk of Liquefaction supplements this by explaining the precautions that should be taken before accepting cargoes for shipment and the procedures to be followed for their safe loading and carriage.

Carl Durow, Loss Prevention Manager at The London P&I Club, says ‘Bulk carriers represent a significant proportion of the tonnage entered in the London P&I Club, and we continue to see evidence of incidents involving cargo liquefaction, most notably involving shipments from South-East Asian ports. The club is therefore committed to providing advice which improves an understanding of how liquefaction occurs and its effect on the stability of a ship. Key decision-makers are generally to be found on board ships, and the advice in the guidance which we have produced in co-operation with BV and TMC is therefore aimed primarily at seafarers.”


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London P&I Club supports appointment of warranty surveyors for deck cargo loads

THE London P&I Club has highlighted a recent increase in the incidence of deck cargoes shifting in heavy weather, and supported a recommendation to appoint a warranty surveyor to supervise high-risk marine construction and transportation project operations where appropriate.

In an article in the club’s latest StopLoss Bulletin, Paul Walton, a director with international marine consultant LOC (Hong Kong), says, “In the past year, LOC has seen many deck cargoes shifting in heavy weather. Invariably, after further investigation, it has been discovered that the stowage and securing of these cargoes did not comply with the ship’s Cargo Securing Manual (CSM) or the practices laid down within the Code of Safe Practice for Cargo Stowage and Securing (CSS Code) or other applicable codes of safe practice.

“Such losses have prompted the view that a suitably qualified Marine Warranty Surveyor (MWS) should be recommended to attend such load-outs. This would ensure that the port captain or supercargo carries out the operation correctly, and that the master is satisfied with the stowage, securing and tensioning requirements, as is his responsibility under SOLAS.”

An MWS provides independent third-party technical review and approval of high-value and/or high-risk marine construction and transportation project operations, beginning at the planning stage. The objective of employing such a surveyor is to make reasonable endeavours to ensure that the risks associated with the specified operations are reduced to an acceptable level in accordance with best industry practice. The role of the MWS is independent of, and complementary to, that of the port captain / supercargo.

Paul Walton says, “By appointing an independent third-party MWS to review the whole
operation from start to finish, carriers and charterers will reduce the high-risk factor associated with deck cargoes. The attendance of an MWS will ensure that the regular areas of failure within a deck stow such as poor lashing equipment, insufficient use of lashing equipment, and non-compliance with all relevant safety codes will be avoided.”

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London P&I Club reports shortfalls on mooring station procedures

THE London P&I Club says its inspectors continue to note negative findings in and around ship mooring stations. The most common findings are a lack of anti-skid deck paint in key areas, a lack of hazard marking of protruding objects and platforms, and low awareness of the dangers of snap-back zones.

The club recommends that ships’ officers conduct a risk assessment of their mooring stations to establish the best location for anti-skid areas, and the use of a prescribed additive to the deck paint, which can usually be found in the ship’s coating technical file. Good surface preparation is essential to a long life, says the club, as it is believed that 70 per cent of premature coating breakdown on ships is attributable to poor surface preparation.

The club emphasises that hazard markings make trip hazards more visible, and says officers should also not overlook dangers at head height when conducting a risk assessment of a mooring station.

Poor awareness of snap-back zones, meanwhile, continues to feature as a regular negative finding on club inspections. Inspectors appointed by the club are required to determine as part of an inspection questionnaire the awareness of ships’ crews who are involved in mooring operations. The intention is for the inspectors to speak directly to crews when making their assessment.

London Club Loss Prevention Manager Carl Durow says, “The club is always pleased to note occasions where the Best Practices section of the questionnaire records that ships’ crews are engaged in ‘toolbox’ meetings prior to operations, and crew are encouraged to consider each individual mooring operation - and specifically the planned mooring arrangement - in good time.

“Also, the latest (2015) edition of the Code of Safe Working Practices for Merchant Seaman makes clear reference to a particular industry-wide confusion over the area of snap-back zones being marked on the deck. It states, ‘The painting of snap-back zones on mooring decks should be avoided because they may give a false sense of security’.”

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London P&I Club celebrates 150 years of operation

THE London P&I Club is celebrating its 150th anniversary during 2016/17, and has published a history of the club to mark the occasion.

Nigel Watson, author of 150 years of The London P&I Club, says, “When the London Club was founded in 1866, shipping was dominated by the British mercantile marine, and the general cargo steamer was developing as the major conduit for world trade. As the club reaches 150, the world’s shipping fleet is much more disparately owned and huge container vessels ship goods across the seas. One constant has been the prime importance of shipping to world trade and the way we live our lives in the modern world.”

As well as illustrating the momentous shifts in shipping since 1866, the story of the London Club also highlights the crucial role played by mutual insurance clubs in sustaining the role of international shipping.

In a foreword to the book, Alderman The Lord Mountevans, Lord Mayor of London and a former shipbroker with Clarksons, says, “The history highlights foresight and planning, for example in the early establishment of the overseas club offices. It also highlights enduring principles such as a commitment to mutuality and the strong shipowner interest and engagement, which clearly underpin the London Club’s work.”

Further details can be accessed at: www.londonpandi.com/about/history/

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Shipping must not underestimate physical risk posed by cyber-attack

THE London P&I Club says the physical risk to ships from cyber-attack may not be

as well understood by shipowners as those threats posed to traditional back-office functions such as accounting, payments and banking.

 

In an article in the club’s latest StopLoss Bulletin, Philip Roche, a partner with Norton Rose Fulbright, notes that good cyber hygiene, up-to-date firewalls, penetration testing and staff training are routinely deployed in the shipping industry to counter the back-office threat. But he warns that the physical risk to ships themselves is less well-understood by owners.

 

“Although it might be said that the risk is currently low”, says Roche, “cyber-attacks potentially pose a serious risk to the overall operability of a ship because of the increasing use of onboard IT, even where there is no single network controlling numerous systems and where internet connectivity is low. Examples of such technologies in common use are the Automated Identification System (AIS), Electronic Chart Display & Information System (ECDIS), Global Navigation Satellite System (GNSS) and E-Navigation Systems (E-Nav).

 

“Although cyber-attacks can occur deliberately, it seems that currently the risk is principally from the inadvertent introduction of viruses and the like into key systems. For example, a crewman charging a mobile phone from a USB port in the ECDIS system causing a virus to render the system entirely inoperable. The ship’s maintenance and propulsion systems are exposed to the same hacking/malware risks and the consequences of cyber-attacks might be potentially severe if key systems are lost at crucial times.”

 

Roche acknowledges that cyber-attacks causing physical damage are still thankfully rare, not least because of the comparative invisibility of shipping to the general public, and the existence of a number of far easier targets for cyber criminals. But he warns that, because ships’ systems are centrally controlled, because connectivity with the shore is continuous, and because maintenance and diagnostics are increasingly carried out via USB ports in equipment, the risk will only increase.

 

Roche concludes, “It is time for shipping to consider these issues proactively. It is a matter of applying tried and trusted risk assessment methodology. Consider the risks, weigh the consequences and put proportionate steps in place to reduce that risk. IT and cyber-attacks are outside most marine professionals’ experience, and so help has to be sought from experienced IT consultants.”

 

 

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London P&I Club warns on enclosed space entry and testing procedures

The London P&I Club says it continues to see cases of injuries and fatalities associated with entry into enclosed onboard spaces, including cargo holds on bulk carriers where atmospheres have not been treated as potentially dangerous.

In a recent case, two shore staff were permitted by the ship’s crew to enter the cargo hold of a bulk carrier via the usual means of access. But, due to an atmosphere which did not have sufficient oxygen to support life, one member of the shore staff died, along with a crewman who made an attempt to rescue them without following proper emergency procedures.

London Club Loss Prevention Manager Carl Durow says, “Despite the recent introduction of legislation relating to drill requirements for personnel engaged in entry into enclosed spaces, the club is still concerned about the number of spaces which should be considered potentially dangerous but may not be by crew who might focus on the traditional spaces such as ballast tanks and bunker tanks.

“The carriage of goods in bulk which may deplete oxygen content or produce toxic substances remains a threat, together with the dangers arising from the use of fumigants in ships’ holds. Ships’ officers in particular should consider the risks of cargo hold entry at all points during the voyage and ensure that, by means of onboard training, drills and toolbox meetings, crew are also minded to question circumstances in which they and others are entering holds.

“Furthermore, the club hopes that ships’ officers and crew will practise the necessary skills and emergency response procedure established in their safety management systems, so there is every possible chance of a positive outcome in the event of such an incident.”

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London P&I Club reports increased free reserves

THE London P&I Club’s result for the 2015/2016 financial year produced an overall operating surplus of $3.3m, lifting the free reserve to $160.7m. This result was underpinned by a technical underwriting surplus of $15.3m, with the combined ratio standing at 82.5%.

In a circular summarising the result, the club’s management team says there was a substantially improved claims outturn following the unusually adverse experience seen in 2014/15. The club’s annual report will be released as usual in July and will contain further details of developments, including particular reductions seen in the costs of claims in the high severity and attritional retained layers, together with positive developments in the cost of older policy years. The cost of International Group Pool claims notified by other clubs, meanwhile, was in line with expectations.

For the first time since 2008/2009, the club recorded a negative return on its investments, amounting to 2.5% or $11.5m, a position which has been reversed since the year-end.

Moving into the current P&I policy year, the club, which this year celebrates its 150th anniversary, saw further steady growth from existing and new members in its owners’ entry and a year-on-year increase of about 600,000gt following the 20 February renewal. There was also growth in its charterers’ book of business, including the addition of a number of European and Far East-based operators.

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London P&I Club warns of dangers arising from carriage of Indonesian coal

The London P&I Club has issued a warning about continued problems associated with the carriage of Indonesian thermal or ‘steam’ coal, following a number of recent incidents involving owners and charterers.

Indonesian coal has a propensity to self-heat and/or emit methane. If uncontrolled, self-heating can lead to serious cargo fires, and an accumulation of methane can explode. The IMSBC Code states that coal with such characteristics should not be loaded if the temperature of the cargo exceeds 55ºC, and that the atmosphere in the holds is monitored at least daily on passage. The oxidisation process that can lead to self-heating can be detected by checking the hold atmosphere for rising levels of carbon monoxide (CO) and falling oxygen (O2) levels. Methane levels can be measured directly.

The IMSBC Code recommends that the ship carries a means of measuring cargo temperature, and requires that the ship is fitted with gas sampling ports (normally on the side of the hatchcovers), and carries an instrument capable of measuring O2, CO and methane.

Cases recently reported to the club have highlighted the need for thermometers and gas sampling equipment to be regularly serviced and calibrated in accordance with the manufacturer’s instructions. In one case in which the club was acting for charterers, the club-appointed surveyor arrived on board more than a week after the commencement of loading, only to find that a dispute over safety to load had in part been based on readings from equipment which did not have a valid calibration certificate.

London Club Loss Prevention Manager, Carl Durow, says, “Care should be exercised in interpreting methane measurements carried out in the low O2 concentrations often found in unventilated cargo holds. Typically, manufacturers advise that methane readings will be meaningless if the O2 level falls below 10 per cent. But the club has seen evidence of ships’ staff relying on methane readings even when O2 levels have fallen to negligible levels (one per cent or less).

“In order to obtain meaningful information, measurements should be made via an approved sample point. The club has seen samples drawn through hold access hatches, which undermines the reliability of the measurements.

“The atmosphere in the space above the cargo should be regularly monitored – and this may mean that measurements continue after arrival at the discharge port, particularly when discharge is slow. The club has seen problems with both self-heating and methane release worsening markedly during interrupted unloading.”

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Solid renewal for London P&I Club

Moving into the new P&I policy year, the London P&I Club has seen further growth in its owners’ tonnage, in addition to strong growth in its charterers’ book of business.

Ian Gooch, chief executive of the club’s management team says, “The recent renewal was particularly challenging for a number of reasons, including the depressed trading conditions in many sectors.

“A key part of our strategy involves work to strengthen the club’s long-term technical performance, and the renewal saw some especially intense dialogue and detailed analysis of loss records and risk exposures with members and brokers. It was also the case that, for various reasons, terms were not agreed with some members. But there were also good opportunities to attract additional entries from existing members, and we were pleased to welcome a number of new members to the club as well.

“The overall result is that the club achieved further controlled growth in its owners’ entry of around 1.5 per cent on the position twelve months ago. We were also pleased to see growth in the club’s charterers’ entry during the 2015/16 year and especially at the recent renewal, including new entries from a number of European and Far East-based charterers.”

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