London Club stresses need to observe passage planning and weather information

The London P&I Club says it has seen a rise over the past twelve months in the number of deficiencies relating to Temporary and Preliminary (T&P) notices to mariners, and an increase in negative findings in relation to the management of radio navigation and meteorological warnings.

In the latest issue of its StopLoss Bulletin, the club says its Ship Inspection Programme has identified failure to manage T&P notices, or to apply them to the ship’s chart folio, as a commonly recorded occurrence. It says, “If T&P notices are not consistently applied to the chart folio, the ship’s navigating officer and officers of the watch may be deprived of valuable passage planning information. T&P notices contain a vast array of information which may influence the planning or conduct of a passage. Efficient passage planning requires the assimilation of good-quality information which ought to leave the mariner better equipped to decide how to conduct the passage of a ship.”

The club also points to a failure to properly observe navigation/meteorological warnings and/or systems by which information is collected, applied and displayed for watchkeeping officers to monitor. It says a lack of observation of the meteorological information provided by the Navtex system on the bridge of a ship entered with the club recently contributed greatly to a significant oil spill claim.

The Navtex equipment on the bridge of the ship, which was anchored at the time of the incident, was fully operational and properly set. Unfortunately, there was no established system by which the information – whether navigational or meteorological - was read, considered and applied on the bridge. Heavy weather was forecast by various means, including Navtex, but was quite unexpected at that time of year. By the time the poor weather struck, it caught the bridge team by surprise in the early hours of the morning. In the time that it took to get the main engine on-line, the ship had dragged its anchor approximately one nautical mile onto a rocky shoreline, puncturing its bunker tanks. The resultant spill clean-up and associated claims amounted to more than $44m.

The club concludes, “Officers should be reminded of the full extent of the chart and publication folio to which corrections apply, and of the risks of ignoring sources of navigational and meteorological information.”

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London P&I Club issues renewed warning on cargo liquefaction

The London P&I Club says the lifting of an iron ore ban in India, together with the recent total loss of two ships, has put the spotlight once again on the problem of cargo liquefaction.

In the latest issue of its StopLoss Bulletin, the club says, “There are specific challenges involved in the export of iron ore fines from Indian ports during the monsoon season which can increase the moisture content of the cargo to levels where liquefaction can occur. This can result in severe loss of a ship’s stability and, sometimes, in the vessel sinking. Other cargoes such as nickel ore are also prone to liquefaction.

“Last month, the Indian Supreme Court lifted the ban imposed in 2010 in Goa on the mining, storage and export of iron ore, and allowed the e-auctioning of 11.5m tonnes of excavated iron ore which has been lying unused since the ban was introduced. The process will be supervised by a committee set up by the court. A separate committee was also appointed to advise how much iron ore can be extracted each year, and it is due to report its recommendations by 15 February, 2014. It is likely that there will be an increase in iron ore loadings from that region.

“There have also been total losses in recent months of a ship carrying Indian iron ore fines and a second carrying nickel ore. Investigations into both cases are at an early stage to establish precisely the cause of the sinkings. There are currently no links between these incidents and the cargoes on board.”

The London Club has issued a number of warnings about the dangers of cargo liquefaction, particularly in cases involving the carriage of iron ore fines and nickel ore from places such as India, Sierra Leone, Guatemala, Indonesia and the Philippines. It says, “Great care must be taken when handling these cargoes, and the rules governing them under the IMSBC Code must be closely observed. Ships can be offered cargo which is unsafe due to their moisture content being above the Transportable Moisture Limit. This can lead to liquefaction, and is a particular problem in locations such as parts of India, when the cargoes are exposed to monsoon rain.

“Owners who are considering carrying iron ore fines or nickel ore are strongly advised to contact the club early on, before concluding a fixture, to ensure that the risks and associated precautions are fully explored.”

Persistence pays off for shipbroker in recovering charter party commission

International Transport Intermediaries Club (ITIC) has illustrated how persistence can pay off for shipping intermediaries looking to pursue legitimate claims in today’s difficult financial climate.

In the latest issue of its Claims Review, ITIC recounts the case of a shipbroker owed outstanding commission by time-charterers who were widely thought to be in financial difficulties. The charter party provided that the time-charterers were obliged to deduct the broker’s commission from the hire and pay this directly to the broker. The charterers had deducted commission of Euros 50,514 from the hire, but had only paid Euros 20,000 to the broker. Thereafter, payments had suddenly ceased without explanation. ITIC wrote to the time charterers on behalf of its shipbroker client on two occasions and was advised that payment was to follow. But no money was ever received.

The charterer was then warned that ITIC would consider a ship arrest should the next instalment not be promptly received. This prompted the payment of a further Euros10,000 - leaving Euros 20,514 still owing. Payments ceased again. ITIC was advised that it was not possible to arrest the ship against which the commission had been incurred because the debtors were only the time-charterers. However, the charterers had their own fleet of ships, one of which was due to arrive in a jurisdiction where it could be arrested for shipbrokers’ commission. An arrest order was obtained, and this produced another payment of Euros 10,000.

Unfortunately, no further payments were received and it became apparent that the ship on which the arrest order had been obtained was held up at the previous port, so the arrest order could not be served. An arrest order was therefore obtained to arrest another of the charterer’s fleet. This arrest was effective and the charterer paid the balance owed. The legal costs were paid by ITIC.

“Persistence pays,” says ITIC.

Copies of the ITIC Claims Review can be requested from: chris@merlinco.com

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:                   

Charlotte Kirk                                  

ITIC                                                 

Tel. +44 (0)20 7338 0150                          

Fax. +44 (0)20 7338 0151                         

charlotte.kirk@thomasmiller.com