improving main engine fighting

Transcription

The Swedish Club
No. 3 - 2012 November
IMPROVING
CRASHWORTHINESS
Page 6-7
MAIN
ENGINE
DAMAGE
Page 13
FIGHTING
the FAKES
Page 10-12
In-house loss-adjusting – efficient and fast settlement
Page 16-17
T H E S W E DI S H CLUB TR I TON 3- 2012
Content | No. 3 - 2012 November
Leader | A matter of reputation 3
LEGAL | Update 4
risk & operations | Renewal 5
ship design | Improving crashworthiness 6-7
Hull and P&I | Hull insurance and P&I insurance
| – some borderline issues 8-9
illegal trade | Fighting the fakes 10-12
loss prevention | Update of main engine study 13
MARINE | On-line measurement of catalytic fines in | heavy fuel oil systems 14-15
| In-house loss-adjusting – efficient and fast
|settlement 16-17
| The Plan goes Nordic 18-19
Club information | Notice Board 20
P&I | Chinese crew claims 21-23
FD&D | The ”Paiwan Wisdom” case 24-25
The Swedish Club | From Titanic to Costa Concordia
Academy | – a century of lessons not learned 26-27
| Out and about with MRM 28-29
| New team members 28-29
| New MRM training providers 29
Club information | Staff presentation: Peter Niman | – New Risk Manager and Actuary 30-31
| Out and about 31
| News from Piraeus 32
| News from Asia 33
| News from Oslo 34
| News from Gothenburg 35
| Out and about 36-39
| Staff news 38-39
| Club quiz 39
| Club calendar 40
The Swedish Club is a mutual marine insurance
company, owned and controlled by its members.
The Club writes Protection & Indemnity, Freight,
Demurrage & Defence, Charterers' Liability, Hull &
Machinery, War risks, Loss of Hire insurance and any
additional insurance required by shipowners.
The Club also writes Hull & Machinery, War risks and Loss
of Hire for Mobile offshore units and FPSO's.
Head Office Sweden
Visiting address Gullbergs Strandgata 6
411 04 Gothenburg
Postal address P.O. Box 171
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The Swedish Club Triton is published three times a year
and distributed free of charge. The Swedish Club Triton
is an editorially independent newsletter and opinions
expressed by external contributors are not necessarily
those of The Swedish Club. Articles herein are not
intended to provide legal advice and the Club does not
accept responsibility for errors or omissions or their
consequences. For further information regarding any
issue raised herein, please contact our head office in
Gothenburg.
Editorial Advisory Board Maria Berndtsson, Susanne
Blomstrand, Hans Filipsson, Birgitta Hed, Johan Kahlmeter, Anders Leissner, Lars A. Malm, Lars Rhodin, Tony
Schröder, Carola Weidenholm.
Production co-ordinator Susanne Blomstrand.
PR-consultant TRS Public Relations Ltd., London.
Layout Eliasson Information, Gothenburg.
Cover photo iStockphoto.
Print PR Offset. 12115200B
© The Swedish Club
Articles or extracts may be quoted provided that
The Swedish Club is credited as the source.
2
www.swedishclub.com
TH E SWE D ISH CLU B T R I TO N 3 - 2 0 1 2
Leader | MD Lars Rhodin
A matter of reputation
Reputation management has become increasingly
important for companies recently. Stakeholder groups
are so much larger today compared with the past.
Transparency is a one-way street, with no return. A
company’s reputation needs to be looked after at all
times. Most businesses are trust business, particularly
in the insurance industry. Projecting trust requires
a higher level of transparency to a wider group of
people nowadays.
We have seen the benefits of having earned a good
name when marine casualties occur. Equally, we have
also seen how the best names have been discredited
and shamed regardless of how they respond to an
incident. If you are a marine polluter, the existence or
non-existence of culpability or negligence, is not part
of the equation – you are the bad guy. It’s as simple as
that. The spill itself makes the difference.
We received plenty of positive feedback from our
Annual General Meeting (AGM) events in June, when a
panel discussion on branding in shipping took place.
The “invisible” shipping industry gave itself further
recognition over and above what consumers just
take for granted. Branding means that the benefits
of the service are not only realised, but also valued. It
is also the best form of preparation for a rainy day, if
and when such a day arrives, even though the media
treatment may not be a walk in the park. Branding is
reputation and is worthwhile considering.
The European Commission has closed its
investigation into the operation of the International
Group Agreement (IGA) and the P&I reinsurance
arrangements. Why? Are there bigger fish to fry or
has it fully appreciated the rationale behind IGA as a
structure necessary to underpin the system?
As an advocate of the system, I am the first to admit
that the structure is not perfect, i.e. even the sun
has its stains. But it is sufficiently efficient and fair to
serve its intended purposes. I think the drivers for the
commission closing the case is a combination of “if it
PHoto: Jonas Ahlsén
Dear members and associates
Lars Rhodin
Managing Director
ain’t broke – don’t fix it” thinking and the P&I
clubs responsiveness to addressing the underlying
concerns.
Mutuality requires responsible participants – in
other words ‘members’ in P&I. Quoting procedures
and release calls are designed to set a balance
between the interests involved given the “longtail” nature of insurance. Clubs should use these
procedures and tools in line with their intended
purposes.
At the time of writing this article I have just come
back from attending the annual IUMI (International
Union of Marine Insurance) conference. The theme
this year was “Charting the course through economic
uncertainty”. The big issue for underwriters is to
rate the risk commensurate with exposure. Major
casualties such as the Costa Concordia and Rena tend
to draw disproportionate attention. These casualties
represent “tail events” i.e. low frequency and high
severity.
Most important is to rate exposure. Exposure should
be rated on every ship and every fleet. Only then
can ends meet and ensure a sustainable insurance
business providing long-term service commitment to
its members.
3
Legal | Update
Sometimes with the hope
to make a difference
ter the Exclusive Economic Zone of several European counAs a major marine underwriter, we occasionally find
tries and had therefore to remain idle for weeks outside the
ourselves, whether we like it or not, at the forefront of the
coast of United Kingdom, burning with tugs connected,
legal development. Shipping interacts with many sectors
waiting for clearance.
and the area in which we become involved is wide – it enFor obvious reasons the impasse aggravated property
compasses everything from discussions with governments
losses and also the risk of environment losses. The incident
and legislators to the fine print of law when a charterparty
has sparked a discussion on the issue
dispute ends up in court or arbitraof Place of Refuge and, apparently,
tion. Either way, P&I and FD&D
highlighted a loophole in European
insurers are frequently involved in
legislation imposing obligations on
changing the law. It can be re-writMembers States in relation to vessels
ing the IMDG Code for carriage
in the waters under their jurisdiction.
of Calcium Hypochlorite (a change
Anders Leissner
Hence, it seems that a State’s duties
prompted by the Club some time
Director,
Corporate Legal & FD&D
can conveniently be avoided by not alago following a casualty) or how a
lowing the vessel into the jurisdiction.
demurrage clause should be conWe have been informed that the
strued. Indeed, we have an imporEC Commission closely followed the
tant role in fighting our members’,
casualty and that they were surprised
and industry’s, corner.
over the behaviour of the Member
State’s authorities.
More Iran sanctions
We will do what we can to ensure
We previously reported about the
that this issue is revisited and that legIran sanctions and in particular the
islation is enacted that prevent States
insurance ban concerning shipment
to obstruct the salvage of vessels.
of Iranian petroleum products.
A question has now arisen whether carriage of bunker for
Maritime Labour Convention
own consumption originating from Iran falls within this
The MLC has now reached the required threshold (30 sigban (see Notice Board page 20).
natures and 33% of the world’s fleet tonnage) and will come
Although this would be a very unnatural and impractical
into force in August 2013.
interpretation, it is less from clear that bunker oil is excludMLC is a comprehensive range of labour standards covered from the ban from the letter of the Regulation. In order
ing working conditions for seafarers. Among other things,
to do what we can to make a difference we have approached
the convention imposes an obligation on shipowners to
the Swedish government and highlighted the need for a
have financial security for costs associated with the repaclarification. We have also provided the government with
triation of seafarers where, inter alia, the shipowner has
arguments that they have promised to take onboard when
become insolvent and the question is if P&I clubs can issue
discussing the Regulation in Brussels later this year.
such security (e.g. blue cards). The relevant risks are presOn 16 October, the EU issued another set of Iran sancently not within P&I cover. Whether the risks should be
tions. The list of prohibited entities has been expanded
included into P&I is a controversial issue, which is currently
(Regulation 945/2012). In addition, future prohibitions are
being considered by IG (International Group) clubs' boards.
expected (Decision 2012/635) regarding the transport and
Watch this space.
insurance of certain products, including natural gas and a
complete ban for EU-based banks to have dealings with Iranian banks, For more information about present and prospective sanctions please see the Club’s website under the
heading ‘Topical Issues’.
“P&I and FD&D insurers
are frequently involved
in changing the law”
Place of Refuge
Earlier this year, one of the Club’s members had a severe
casualty when a vessel’s containers caught fire mid-Atlantic.
The vessel was supposed to be towed to what we thought
was a safe haven. However, the vessel was not allowed to en-
4
Risk & Operations | Renewal
The Club is here for you
policies on a stand-alone basis. Previously this was not
How can we help our members and business partthe case. We can clearly see that this new approach has
ners in difficult times? The question is fair and certainly
been well received. More importantly, we can see that
requires an answer. One of our core features has always
it is something that is going to benefit the membership
been our Loss Prevention programme. Today, when every
through improved diversification and better results. Again,
dollar counts more than it did yesterday, it is of the utin difficult times we must focus on what we can do to
most importance for us to help our members avoid even
assist our members. To us, keeping the Club financially
the smallest casualty. As we have reported in our publicastrong and increasing our Loss Prevention activities must
tions throughout the year, we have seen a general increase
be regarded as both a core item and
in the number of claims. From an
welcome to our members.
underwriting perspective the only
measure cannot simply be to resort
Marine renewals
to premium and deductible inThe Marine renewals for 1/1 will as
creases when rectifying a frequency
always be challenging. As already
problem.
Lars A. Malm
mentioned, we have various ways
Director,
Risk & Operations
of supporting our members and in
To keep the Club financially
this respect we are confident that
strong
we are in a good position to manage
As we have pointed out in conour members’ and business partners’
nection with our Interactive Root
overall expectations as far as the 1/1
Cause Analysis (IRCA) tool “Correnewal is concerned. As we stated in
recting symptoms wastes resources
our Marine Circular issued in Octo– correcting root causes removes
ber this year, our focus in the Marine
the problem”. Every casualty carries
renewals for 2013 will be on deductiuninsured elements such as combles and policy conditions.
mercial relations and deductibles.
To this end it is our responsibilP&I renewals
ity to assist in preventing as many
As to the upcoming P&I renewal
casualties/saving as much money as
there is room for some proactive
possible for members. Especially, in
measures taken by the Club. Looktimes of unsupportive freight maring at our fleet there is more room than otherwise for such
kets (the least to say) – the idea of supporting with a view
measures on younger tonnage. Yet another positive thing is
of saving members’ and the Club’s money is more natural
that we have little issues with the otherwise famous “churn
than at any other time.
effect”. The Club’s age profile is in comparison evenly disSome people would say “just lower the premiums and
tributed.
take it from your free reserves”. Had that been a prudent
The average age of our fleet insured on P&I is today
way of operating, nothing would have given us greater
10.1 years. Having said this, we must not shy away from
pleasure. But as we all know, such a measure would potenthe greater number of cargo and crew claims. Nor can we
tially lead to future uncertainty. Uncertainty would be the
ignore the greater liabilities in future on the back of new
last thing that members want right now. As much as we
conventions and increased limits on global limitation
see the need to support our members in difficult times, we
In addition, members need to deal with the authorities’
equally believe our stakeholders can see the need of keepattitudes on a global basis for making members’ trading the Club continually in a financially healthy position,
ing conditions more unpredictable than before to an ever
which will enable us to respond whenever called upon.
greater extent. Challenging future developments dictate
that members need to cover their liabilities and have their
Increasing our “availability”
claims handled professionally. We will continue to take reWe have re-shaped our approach to how we offer ancillary
sponsibility and respond in relation to our members’ needs
covers over the last year to a great extent. We have
going forward.
identified a continued demand from our members and
business partners to make ourselves more “available” in the
sense of being more flexible as far as our offer is concerned.
Today, we are successfully marketing War, IV and LoH
“Keeping the Club
financially strong and
increasing our Loss
Prevention activities
must be regarded as both
a core item and welcome
to our members”
5
Ship Design | Crashworthy structures
Improving Crashworthiness
Photo: Jan-Olof Yxell
Statistics about accidents and incidents related
to collisions and groundings show that the number of
reported events has increased slightly over the last decade. The reasons behind this are not fully outlined.
It is likely that several factors contribute, such as the
increase in number
Per Hogström
of vessels in operaNaval Architect and Ph.D. in Ship Design
Chalmers University of Technology, Gothenburg
tion (higher traffic
density) as well as
stricter demands
Per Hogström graduated from customers and cargo owners on raised profitabilas a Naval Architect
ity leading to tighter schedules.
from Chalmers in
Another factor may be the implementation of new
2004. He worked as a
technical equipment on the ship’s bridge that is intest engineer in the
tended to act as an aid and support, but instead leads
automotive industry
to mistakes during handling.
for two years before
returning to Chalmers
in 2007. He defended
his Ph.D. thesis in 2012
on how to simulate the
structural response of
a ship being struck in
a collision. The shape
and size of the damage
opening resulting from
the collision was used
in stability simulations,
where the sinking
sequence of the ship
could be studied.
Using this method,
the consequences of
uncertainty factors
in collision analysis
have been studied, for
example, the speed of
the striking ship and
the collision angle.
In addition, concepts
for designing more
crashworthy structures
have been evaluated.
Currently, he holds
a position as a teacher
in ship design and hull
structural mechanics
at Chalmers. He is also
responsible for the
masters program in Naval
Architecture and Ocean
Engineering.
6
Addressing the problem
Today’s research on maritime safety has a lot to do
with risk assessment and management. Risk is defined
as a combination of the probability of an accident
happening and the consequences of this accident in
terms of loss of human lives, financial loss and environmental impact. Different actions can be taken
to reduce the probability of ship-to-ship collisions:
separation of fairways, greater Vessel Traffic Service
(VTS) activity and more effective navigational aids.
Today, these actions are continuously implemented
in the shipping industry, but are they enough in the
long-term? The answer to this question is probably no,
a fact that was observed and taken care of in the car
industry several decades ago.
Zero vision in the car industry
The car industry strives towards a “zero vision” of no
casualties in traffic. In order to fulfil and reach this
target, research in the areas of safer and more effective road traffic planning, continuous improvements
and new developments of passive and active safety
systems in cars, can only become successful if there is
an interaction between all of them. As an example, if
there is a malfunction in the traffic planning system
for a specific traffic situation that leads to a collision,
the passive and active safety systems in the car are the
final “barriers” that should ensure that there are no
casualties.
Crashworthy structures
The same reasoning can also be applied in shipping
and motivate a more extensive use of crashworthy
structures to reduce the consequences of a shipto-ship collision. The definition of a crashworthy
structure is the ability of the structure to protect its
occupants and cargo during an impact. When used
in a ship’s structure, it should minimize the damage
opening of the inner barrier/side-shell, or ultimately
result in no opening at all during collision or grounding so that the watertight integrity of the vessel is
maintained.
One possible approach is to design the bulb so that
it makes less damage to the struck ship in the case of
a collision. Such a design has been proposed, with the
bulb structure stiffened by ring frames. Thus, it folds
together in the case of a collision, distributing the
forces of a collision over a larger area. However, the
incentive for a shipowner to invest in a structure that
reduces the consequences of a collision may be greater
if the benefits are to their own ship. Thus, the shipowner is probably more likely to invest in improving
the crashworthiness of the side-shell structure in his
own ship.
Crashworthy side-shells
The crashworthiness can be improved by redesign according to two different approaches, based on which
of the two ships in the collision the major part of the
initial kinetic energy is dissipated into structure deformation and fracture of the material. This relation
depends on the relative strength of the two parties.
Taking the perspective of the struck ship, one approach is to build the ship stronger than the striking
ship. Thus, the bow of the striking ship has to absorb
the major part of the energy from the collision. This is
called the “strength design” principle and is beneficial
since the bow is a deformation zone up to the collision bulkhead. Most of the structures presented in
the literature follow the strength design philosophy,
i.e. the structure should absorb as much energy as possible without allowing for large-scale deformation and
intrusion of the striking bow. Out of these strength
design structures, the one that shows most promise,
is the X-core. It comprises of an outer and inner shell
plate with two corrugated plates in between.
The ductile design
The alternative ductile design principle is to allow the
double-hull side-shell structure to absorb as much
energy as possible by allowing for large-scale deformation and large intrusion of the striking bow while
maintaining watertight integrity. As large-scale deformation and intrusion of the striking bow through
fracture of the outer side-shell is allowed for, the
contact area of the striking bow section against the
struck ship is increased and the energy dissipation
is distributed to large parts of the structures. This is
called the “ductile design” principle and one concept
Research shows that there is great potential for mitigating the
consequences of a collision between ships by replacing today’s
conventional side-shell structures with a more crashworthy structure
Picture: Per Hogström
This is what different
side-shells look like in
the case of a collision
a) conventional side-shell used
as a reference
b) the corrugated inner side-shell
c) the X-core.
in this design philosophy is the corrugated inner side-shell.
The outer side-shell is a conventional stiffened plated
structure made of normal steel grade, while the inner sideshell is made of a corrugated plate made of high-strength
steel. In case of a collision, the corrugated plate is designed
to release from its supporting web frames and unfold in
order to maintain watertight integrity, thereby being able
to withstand a larger bow intrusion depth. The attachment
points (weld joints) between the corrugated plate and the
web frames is a key element for the performance of the
structure; these joints should break before the corrugated
plate does, allowing it to unfold.
Pros and cons
Research shows that there is great potential for mitigating
the consequences of a collision between ships by replacing today’s conventional side-shell structures with a more
crashworthy structure. However, many practical issues remain to be resolved – each structure has its own challenges.
The crashworthiness of a structure can be discussed in
terms of the amount of energy a structure is able to absorb
in relation to the penetration depth before the inner sideshell is breached. The figure shows that in relation to a
conventional side-shell structure, both the X-core and the
corrugated structure are able to absorb more energy, but
the X-core structure achieves this with much less intrusion. Moreover, in comparison with the corrugated inner
side-shell, it has a more even performance, giving good results for all impact scenarios, whereas the corrugated inner
side-shell structure give very poor results for some special
scenarios.
In implementing the structures in ships, there are the
issues of weight, manufacturing costs and maintenance.
In comparison with a conventional structure, the X-core
structure is both heavier and more costly to manufacture
than a conventional structure. In addition, this design consists of many small compartments that make it difficult to
use them for ballast or access them for inspection. The corrugated inner side-shell structure though, is both cheaper
to manufacture and more lightweight than a conventional
structure.
Promising future?
Looking into the crystal ball, the first implementation of
these kinds of structures will most realistically be put in
critical parts of newbuilt vessels. One example is to put
them around the engine room in order to protect these
areas against seawater ingress and avoid a black-out in a
critical situation like a collision or grounding. There are
shipyards that have decided to use the X-core structure in
newbuildings. The corrugated inner side-shell however has
not yet been implemented in a ship.
7
Hull and P&I | Borderline issues
Hull insurance and P&I
Max Slotte
Senior Counsel
Setterwalls, Gothenburg
Max Slotte has a lifetime in the shipping business and is listed in The Legal
500 and Chambers Global. He started as a deckhand in old steamers and
ended his seagoing career as a chief officer in liner trade. After a legal
education he worked as in-house counsel in Swedish shipping companies
for thirteen years. He joined Lagerlöf & Leman in 1982 and Setterwalls in
2000. His clients consist of shipping companies in Sweden and abroad,
banks and financial institutions, P&I clubs and marine insurers.
Hull insurance is principally an insurance of property but,
to a certain extent, hull insurance also covers the insured’s collision
liability. Collision between vessels will usually result in damage to
both vessels and it is, therefore, practical to let the hull insurance
include collision liability. However, even if hull insurance covers
collision liability there will still be a need for P&I insurance as will
be seen below. This is due to the fact that the hull insurer’s collision
liability is limited regarding the nature of the liability covered.
A borderline, not always very distinct, is therefore to be drawn
between collision liability that is covered by hull insurance and
collision liability, which shall be partly, or entirely, covered by P&I
insurance. Below some practical examples will be given that illustrate how the borderline in certain cases is drawn between hull and
P&I insurances. The comparison in this article is done with due
consideration to the new Nordic Marine Insurance Plan of 2013
(the Plan), which is based on the Norwegian Marine Insurance
Plan of 1996, Version 2010, and The Swedish Club Rules for P&I
Insurance 2012/13.
Cover according to the Nordic Marine Insurance Plan of
2013 and Rule 7 for P&I insurance
The scope of the hull insurance collision cover is specified in Chapter 13 of the Nordic Marine Insurance Plan of 2013. Some of the
risks covered may sometimes also involve a vessel’s P&I insurance.
First of all it should be mentioned that the hull insurer’s liability
for damages payable to a third party is limited to damage (inclusive
of loss of time and other indirect losses) arising out of direct collision or contact with some other vessel or object. Indemnity is paid
only in respect of damage to property. In each recoverable casualty
the hull insurer is liable up to the amount insured (the vessel’s value) in relation to a third-party for damages inclusive of interest and
expenses incurred in defending claims by such third party.
The agreed hull insurance amount can, as a consequence thereof,
be consumed a second time to cover such third party liabilities in
addition to and above the agreed total loss value that in a particular
case has been paid by the hull insurer to the insured for the total
loss of his vessel. The aggregate of these payments constitutes the
ultimate liability cover under a vessel’s hull policy.
Should the legal liabilities that in principle are to be covered by
the hull insurance exceed the hull value as aforesaid, the balance is
8
provided by the P&I insurance according to Rule 7, Section 2 (b),
in the Rules for P&I insurance as excess collision liability. The borderline between hull insurance and P&I insurance is in this respect
rather clear.
Scope of the hull insurer’s liability for damages payable to
a third party
The hull insurer’s liability to pay damages to a third party for damage inflicted to property by the vessel, will be according to principles governing the law of torts. A prerequisite therefor is that the
damage has been caused by the vessel or its boats or appliances by
direct collision or contact with another vessel or object.
On the other hand, the hull insurance does not cover damage
caused by the vessel’s manoeuvring or otherwise without direct
contact with the other vessel or object. Without having been in
contact with another vessel the vessel insured may cause that other
vessel to run aground or to collide with a third vessel. The cause of
the casualty may be negligent manoeuvring on the part of the vessel
insured, or a consequence of interaction that is often inadequately
referred to as “wash damage”.
This risk is covered by the vessel’s P&I insurance according to
Rule 7, Section 1 in the Rules for P&I insurance. In this regard we
have a rather distinct borderline. However, in certain situations the
cover may remain with the hull insurer. This would be the case if
the manoeuvring of the vessel causing the casualty was deliberately
made to avoid a collision covered under the hull insurance policy,
cf., Chapter 4, Clause 4-7 of the Plan.
A similar situation may arise in respect of loss or damage incurred by the vessel for the purpose of completing a voyage in ballast, or for saving the vessel when carrying no cargo, to the extent
that the loss or damage should have been made good in general
average had the vessel carried cargo, cf., Chapter 4, Clause 4-11 of
the Plan.
The situation may be explained by a practical example
A vessel under way in ballast is encountering extraordinarily rough
wind and sea conditions. The master, after consultation with the
chief engineer, decides to seek shelter at a nearby anchorage close to
shore in order to avoid excessive exposure of the vessel and its main
engine to the rough weather conditions. Having dropped anchor,
TH E SWEDISH
THE
SWE D ISH CLUB
CLU B TTRITO
R I TO N 3 - 2 0 1 2
Photo: iStockphoto
insurance
– some
borderline
issues
the anchor starts dragging and the vessel is drifting in strong wind
and currents towards an electric cable area. Prior to having the anchor aweigh the anchor and the remaining chain in the water is fouling
and damaging electric cables.
The borderline is not clear
Two different views may arise on this casualty. If the vessel’s master decided
to go to anchor in order to avoid exposing the vessel’s hull and machinery to
potential risks, his decision to seek shelter and go to anchor may be justified
and regarded as good seamanship. In such a case cover for the damage caused
by the vessel’s anchor to the electric cables is excluded by Chapter 13, Clause 1,
sub-paragraph (h) of the Plan and indemnity is to be sought under the P&I insurance cover by virtue of Rule 7, Section 1 in the P&I rules.
On the other hand, if the master’s decision to seek shelter and go to anchor
was influenced by the chief engineer’s concern, after having ascertained during the
course of the voyage some problems with the main engine, the damage caused by
use of the vessel’s anchor may be regarded as a reasonable and intentional measure to
avert a peril as stated in Chapter 4, Clause 4-7 and 4-12 of the Plan and shall be made
good by the hull insurer. This is an example where the borderline between hull insurance and P&I insurance is not clear-cut and arguments may arise as to which insurance
cover shall bear the risk.
9
Illegal Trade | Counterfeit
We all have a picture in our mind about what counterfeit is: something related to
women's handbags and DVDs peddled in the streets. So, when the Swedish Trade
Council in Athens invited someone from SKF to give a presentation on the subject of
counterfeit, there was a positive reply more out of politeness then of genuine interest,
since this is not an issue in our industry, is it? Was I ever so wrong! Read Tina Åström’s
article and beware!
Kjell Augustin
Technical Advisor
Team Piraeus
Photo: SKF
Tina Åström
Director Group Brand Protection
SKF Group Headquarters, Gothenburg
Counterfeit
bearing
Fighting the
FAKES
SKF, as well as other bearing manufacturers, is putting a lot of effort
into fighting the worldwide problem
of counterfeit bearings. The main
goals are to protect public safety
and to prevent clients from being
cheated.
Counterfeit products are an issue for all
branded bearing manufacturers. They exist
in all geographical markets, in all industry segments and for all types and sizes of
bearings. Counterfeiting is an illegal and
unethical activity that can be a real threat
to public safety, company finances and operations. It can also cause damage to local
economies and to people working under
poor conditions in counterfeiting operations.
Companies that import counterfeit
bearings from Asia are able to keep a very
high margin on the products when they
are sold as genuine bearings of a premium
brand. The level of resemblance is very high
10
and you need a real expert eye to spot the
difference. However, the quality level is
unpredictable and for shipping companies
that have accidentally bought counterfeit
bearings they could cause severe damages
to your business operations.
This is also a big problem because clients
who buy counterfeit bearings are being
cheated. We are on the same side as our clients. The best way to safeguard authenticity is to buy from SKF or SKF Authorized
Distributors.
Case story from the marine segment
In the case of a marine vessel, after only 14
hours of continuous operation, a generator
onboard began experiencing such extreme
vibration that it had to be shut down. As
the generator had just undergone repairs,
the crew immediately became suspicious.
Fearing the worst, the vessel’s maintenance team removed the suspect bearing
and sent it to SKF for a rigorous bearing
failure analysis. We confirmed that the
Tina Åström leads a team of highly
specialised brand protection specialists at SKF Group Headquarters.
The team cooperates extensively with various law enforcement
authorities around the world. Every
year the team is participating in
approximately 200 authority raids
against those involved in manufacturing and sales of counterfeit bearing. The team is also highly active
in creating awareness in the market
about the existence of counterfeit
bearings of all premium bearing
brands and what customers could
do to avoid getting cheated.
bearing was counterfeit, which nearly
caused the “repairs” to be worse than the
original problem.
But it is not only shipping companies
that may accidentally buy counterfeit
products. Recently, we had a case when a
large European manufacturer of marine
machinery accidentally purchased counterfeit products and mounted them in their
application.
Successful raids
To spread information about counterfeits
and how to avoid getting cheated, we
continually communicate with customers
and distributors. We also actively assist
local law-enforcement authorities in taking
action against this illegal trade. Successful
raids and closed businesses do great harm
to those involved in the counterfeit trade.
SKF and other bearing manufacturers also work closely to track down fakes
through the World Bearing Association
(WBA). The WBA is currently investing
Photo: SKF
Police raids
take place
when enough
evidence is
collected.
in a global information campaign against
counterfeiting. To learn more, visit the
www.stopfakebearings.com campaign site.
Some examples of investigations where
SKF has supported law enforcement
authorities:
Italy
A significant number of counterfeit products were seized in a raid against a branding and packaging operation in the Turin
region of Italy. The raid took place in
February 2011 and was conducted by the
Italian Guardia di Finanza, supported by
our personnel and other brand owners. The
confiscated products included fake standard industrial bearings, wheel bearings,
belt tensioning units, timing belt units and
SKF boxes and bar code labels as well as
fake products and packaging from other
leading bearing manufacturers and original spare parts producers.
We also encountered laser marking
equipment as well as unmarked no-name
bearings from China. Judging by the number of empty boxes, this was a rather large
operation. It was actually the first time we
found a ‘manufacturing’ operation outside
Asia.
Greece
In the spring of 2009, SKF Hellas acted on
several complaints from various shipping
companies in the region. This culminated
in a series of jointly co-ordinated raids by
Greek police and SKF Group representatives at different addresses in Athens and
the adjoining port city of Piraeus.
Complaints were consistent against certain traders over a period of a few of years.
Suspicions were aroused by a somewhat
lower price level and high availability of
these so-called SKF products. The evidence
subsequently revealed the possibility of a
major haul of counterfeit being uncovered.
As soon as sufficient suspicious factors
came to light, the police were called in to
investigate. However, as the local police
Authorised Distributor logo.
were not able to judge whether the goods
were genuine or otherwise, SKF Group in
Gothenburg, Sweden were called in to assist the police during the raid.
Investigating the premises of the major suspect in Piraeus, they found a store
fronting a large warehouse selling and
exporting bearings to local market and
throughout Europe. The dealer was mainly
supplying shipping companies plus large
industries in other segments.
9
continues on page 12
11
Illegal Trade | Counterfeit
9
continued from page 11
About 95% of his SKF stock, about 15 tons or > 19,000 products
was seized by the police. The quantity of the counterfeit bearings
was so vast, that two large trucks were needed to carry the bearings
from the dealer’s warehouse.
Meanwhile the second team targeted smaller stores in Athens. At
that location they discovered a large haul of around 1,500 counterfeit bearings.
According to Mrs Rania Patsiopoulos, Managing Director of
SKF Hellas, it is the end user’s reaction that should be the most
crucial motivating factor in the fight against the counterfeiters.
“We’ve had calls from end users who are totally shocked that a
specific SKF product is of poorer quality or has maybe been established as fake. Whether it is a large paper mill or a small marine
company, we must connect with our customers, warn them to be
vigilant and take a close look at exactly who they buy from.”
Turkey
A raid in Istanbul, which was planned over a six-month period, culminated in August 2011 in the seizure of tonnes of fake SKF bearings. The case was the result of a successful collaboration between
us, SKF Turkey and the authorities in Istanbul. It began in February 2011 when Ulvi Bagoglu, manager of SKF Marcom & Distributor Development, Turkey, received information from SKF Brand
Protection about a complaint from an end customer regarding a
bearing marked with the SKF trademark that failed prematurely
less than 36 hours after it was put into service.
Björn Zeidler, SKF’s counterfeit case-handling manager, travelled to Turkey and was able to track the source of the bearing to a
supplier at a large market on a main street in the centre of Istanbul
where more than 400 traders sell bearings.
Between March and August 2011, we worked closely with a
lawyer in Turkey who investigated the bearings sold at the market,
bought samples and sent photos to Zeidler. This work culminated
in the decision to raid the supplier on 23 August. The raid was carried out by the police in the presence of local lawyers and our representatives.
During the raid, the team discovered bearings marked with a
fake SKF trademark as well as those of other manufacturers – some
10 tonnes of fake bearings in total.
Make sure that you are protected
Given the extremely high “look-alike quality” of today’s counterfeit
products, it is very difficult for most people to tell a real SKF product from a fake. The best way to safeguard authenticity is to buy
from authorized distributors. We keep a list of authorized distributors on www.skf.com. It is important to rely only on skf.com as it is
quite common that companies claim to be authorized even if they
are not and even have false certificates.
FAQ on counterfeit
Ask for a certificate of authenticity?
SKF would normally never issue such certificates. On the other hand it is very common that
those trading in counterfeit goods provide fake certificates.
What is the quality level of the counterfeits?
UNPREDICTABLE! It is impossible to generalize. Some have been of so poor quality that you
can carve a piece of the steel just using a knife, while others preformed OK for their application.
Is it more common for certain types or sizes?
No, SKF see all types of counterfeits in all sizes. The largest counterfeit found so far had an
outer diameter of 1.4 m. Types where authorised distributors have longer delivery times
tend to be slightly over represented among those discovered.
What do I do when I suspect that I have received a fake product?
Take photos of the product (ideally with its packaging) and send together with a copy of the
invoice to [email protected]. SKF will reply to you by mail. It is important that you enclose
the invoice or other documents giving evidence of the supplier because SKF will otherwise
not reply.
How to locate an authorised SKF distributor when arriving at a port?
SKF keeps a list of authorized distributors on www.skf.com. It is important to rely only on
skf.com as it is quite common that companies claim to be authorized even if they are not
and even have false certificates. If you have any doubts, you can always call the local SKF
sales unit that will suggest the best reliable sources to you.
12
Loss Prevention | Update of main engine study
Main engine damage
The Club will be soon publishing a recently completed study concerning main
engine damage between 2005-2011. This
study is an updated version of the 2004
study. The objective is to identify new claim
trends and to further reinforce the Club’s
Main Engine Damage Prevention Programme.
The Club has always had a proactive
policy, directed at raising awareness of main
engine damage and encouraging manufacturers to respond with new and more effective measures for reducing the frequency of
engine damage.
In the 2004 analysis the cost of machinery claims accounted for 32% of the total
H&M claims costs. In the most recent
analysis this proportion has risen to 36%.
Main engine damage remains by far the
most expensive category, contributing 40%
of total machinery claims cost and 14% of
total H&M claims cost.
Invest in employee training.
Carry out comprehensive audits and inspections. dings
Findings
Joakim Enström
Loss Pevention Officer
Inferior maintenance and/or repair are by
far the most frequent cause of damage. We
have noticed numerous cases where damage
occurs shortly after the engines have been
overhauled by ship or shore staff. This emphasises the importance of having experts
in attendance during major overhauls.
Prevention
Implement Onboard Fuel Management and fuel system audits. During these audits, the various parts (including separators) of the fuel treatment plant should be checked for proper function.
It is imperative to monitor the quality of the lubrication oil. Samples of lubrication oils should be sent ashore for analysis at least every three months.
During major overhauls it is highly recommended to have an expert in attendance.
To ensure a long service life for the boiler it is important to implement correct boiler water treatment.
To prolong the service life of the economiser it is very important to keep the economisers clean. This will increase their service life and minimise the risk of soot fires.
Cause of damage
Contaminated lubrication oil
Not having experts attending major overhauls
Using untested bunkers
Separators not operated as per manufacturers’ instructions
Engine components not overhauled as per manufacturers’ instructions
Crew with insufficient experience/
training
Turbocharger damaged by foreign object
Graph 1.
Percentage
of Club entry
and damage
cost by
engine make,
1998-2004.
The primary finding is that medium speed
engines still account for a disproportionate
number of machinery damage claims. Furthermore, the average cost of main engine
claims (on a per year/vessel basis) is twice as
high for medium speed engines, compared
to low speed engines.
Since 2004, the average cost of main engine damage has risen by 52%.
Medium speed engines still represent a disproportionately large share of main
engine damage costs. Vessels with medium speed engines accounted for about 18% of Club entry yet generated 30% of total main engine damage cost. In comparison with a low speed engine, a medium speed engine has more moving parts and operates at a much higher rpm. As a consequence, the medium speed engine is more susceptible to breakdowns.
Turbocharger damage remains the most common and expensive damage category across all engine types, accounting for 145 of the 370 main engine claims.
Crankshaft failure is the most expensive damage to medium speed engines, with 12 failures.
Inferior maintenance and/or repairs caused 52 casualties with a cost greater than USD 576,000 per claim.
60%
60%
Club entry (%)
50%
Claims cost (%)
40%
30%
Graph 2.
Percentage
of Club entry 50%
and damage
cost by
40%
engine make,
2005-2011.
Club entry (%)
Claims cost (%)
30%
20%
20%
10%
10%
0%
0%
LS1
LS2
LS3
LS4
MS1
MS2
MS3
MS4
LS1
LS2
LS3
MS1
MS2
MS3
MS4
Graphs 1 and 2 show claim distribution by cost and entry for specific main engine manufactures. The identity of the eight specific makes
surveyed is protected by the LS1-LS4 and MS1-MS4 codes. The abbreviation LS is low speed and MS medium speed engines. The identity of
these makes is available to Club members upon request.
13
Marine | Catalytic fines
On-line measurement of ca
in heavy fuel oil systems
Cat fines (catalytic fines) are hard aluminium and silicon oxide
particles that are normally present in heavy fuel oil. For refineries
relying on catalytic cracking, cat fines are added to the crude oil to
enhance low temperature fuel cracking. Therefore, heavy fuel oil
containing non-vaporized residual oil will naturally contain cat
fines that have not been recycled or filtered out at the refinery. The
maximum concentration of aluminium + silicon, according to ISO
8217:2012, is set at 60 ppm. This means that 60 mg Al + Si is allowed for each kg of fuel. However, many shipowners still purchase
fuel oil according to the previous standard allowing 80 ppm cat
fines. Major engine manufacturers recommend less than 15 ppm
cat fines at the engine inlet, meaning that there is a need for an efficient onboard fuel oil treatment system.
Cat fine wear and its consequences
Recent MAN Diesel & Turbo statistics based on replica impressions of cylinder liners, show that cat fines were present in a significant part of high cylinder and piston ring wear-damaged cases in
low-speed engines.
When failing an engine due to excessive wear, the overhaul will
normally require new cylinder liners or in some cases reconditioning of damaged liners, in addition to new piston rings. Consequential damage of pistons and turbo chargers are not unusual. However, the most expensive cost is often the resulting off-hire period
for the vessel.
Daniel Grunditz
Managing Director
Combustion Care AB, Gothenburg, Sweden
Mark Hoffmann Nafshi
Global Sales & Marketing
NanoNord A/S, Aalborg, Denmark
The Chris-Marine Fuel Analyzer/CatGuard
and fuel treatment system
Figure 2 shows a schematic on-board fuel treatment system monitored by the Chris-Marine Fuel Analyzer/CatGuard. Fuel oil is
pumped from the bunker tank to a settling tank (once a day at
100% load). Each purifier is normally capable of feeding the day
tank with a sufficient amount of fuel, and a feeder pump controls
the feed rate through each separator. A second purifier is installed
for redundancy. After purification, fuel is fed to a day tank (or service tank). A vessel operating on HFO normally has two day tanks:
one for high-sulphur HFO for use outside SECA and one for lowsulphur HFO for use inside SECA. When a day tank is full, there
is normally a return line allowing overflow back to the settling
tank.
Figure 1: 25 μm cat fine particle embedded in the running surface of a failed
piston ring. Scratches from abrasion are clearly visible.
The above statistics indicate that it is important to keep the
onboard fuel treatment system in good condition. Until recently
there were no on-line measurement tools for cat fines on the market. This changed when NanoNord and Chris-Marine introduced
CatGuard/Fuel Analyzer at the SMM in Hamburg in September
2012. Unlike any other product in the industry, the device monitors the cat fine level continually in the fuel treatment system and
the result can be reviewed from the superintendent’s office.
14
Figure 2: Installation scheme for Fuel Analyzer/CatGuard.
talytic fines
“
Recent statistics based on replica
impressions of cylinder liners, show
that cat fines were present in a
significant part of high cylinder and
piston ring wear-damaged cases in
low-speed
engines.” Henrik Rolsted
“
Catfines in the fuel
as used can rapidly
destroy critical engine
components”
Douglas Raitt
Global FOBAS Manager
Lloyds Register
Senior Research Engineer
MAN Diesel & Turbo
Root causes for high cat fine levels and possible
countermeasures
The Fuel Analyzer/CatGuard will continuously measure the cat
fine level in the different sample points. If a pre-set alarm level is
reached at the engine inlet, it is possible to switch to cleaner fuel
from the second day tank as an emergency action. More importantly, it is possible to analyze what caused the level to rise and implement countermeasures preventing similar events.
With a configuration shown in Figure 2, the root cause may be
traced to a) the settling tank, b) the purifier, or c) the day tank, by
comparing the measurements from the different sampling locations. Cat fines have a higher density than fuel oil and therefore
tend to settle at the bottom of the tanks. In rough sea, accumulated
cat fines could stir up and suddenly generate a high concentration
at the tank’s outlet. This can be circumvented by cleaning the tank
as soon as the measurement device picks up an elevated cat fine
level at the tank’s outlet (purifier inlet or engine inlet).
Further, if the purifier efficiency is too low (also monitored by
the device), then the cat fine level will unavoidably rise at the engine inlet. The back-up purifier system can then be used while
cleaning/repairing the poorly performing purifier.
The different countermeasures will result in cleaner fuel being
fed to the engine and therefore less engine wear and less risk of serious damage.
Technology Review
The CatGuard/Fuel Analyzer is based on NMR technology capable of accurately measuring the aluminium content in the fuel oil.
The device monitors up to seven automatic sampling points and
one off-line point at 1-10 bar and 25-140° C. The off-line point can
be used for analyzing manual samples taken during bunkering, or
samples from settling and storage tanks during trouble-shooting.
The system is designed for engine/separator room conditions
and the only consumable component inside is an air conditioning
unit with an expected 5-year lifetime. Additionally, a maintenance
check is recommended every four months (done by the crew).
The device takes 90-264 V/1000 W (average 300W) single phase
electricity and may optionally be connected to the internet through
an ethernet connection. Measurement data can then be reviewed
remotely (e.g. from the superintendent’s office) over the internet.
The complete system weighs around 200 kg and needs 2 m x 1.5
m x 0.4 m installation space in the separator room.
Figure 3: Example installation in the separator room of a vessel.
Product development, sales and marketing
The CatGuard technology was developed in close cooperation
between NanoNord and Aarhus University, one of the leading
institutes in Europe for NMR research. Lloyd’s Register FOBAS
has supported the development of the device since its conception
in early 2006 and now welcomes its introduction into the shipping
industry. The device is also endorsed by MAN Diesel & Turbo.
15
Marine | Adjusting
Photo: iStockphot
o
In-house
loss-adjusting
In-house loss-adjusting is an important casualty/
claim-related service provided by The Swedish
Club. The effectiveness of this service turns on
the existing close relationships between the
Club and its members. The most significant
benefit of all, of course, is timely settlement.
Loss-adjusting is the process which brings the parties to
final settlement of a claim. The process identifies what is
allowable under the policy, apportions financial responsibility.
As might be expected, some costs are not recoverable in
full. For example, there are cases where work undertaken
in a shipyard goes beyond that specifically relating to
casualty damage.
In-house advantages
When the Club’s in-house staff handle the loss-adjusting,
members benefit from quicker settlement. This enhances
their cash-flow and, therefore, adds substantial value to
the Club’s overall service.
16
Johan Kahlmeter
Head of Claims - Marine
Team Gothenburg
There are several reasons why settlement is faster inhouse but, perhaps, the most important advantage turns
on the issue of communication. We have clear channels of
communication with our business partners, the brokers
and our members. Any adjustments made to a claim are
based on decisions taken by those who have been directly
involved in the case from the very beginning. These decisions always have the important quality of fairness and
those involved are already totally familiar with all aspects
of the case.
Complex matters are discussed at length with the
member before any proposals for final settlement are
presented. This is always done in a spirit of cooperation.
efficient
and fast
settlement
The key point is that in-house
adjusting is based on a different type
of relationship than that which might
develop between shipowner and external
adjusters.
The advantages of the in-house route
relate to more than the speed of settlement.
In-house adjusting is also more cost-efficient.
In addition to in-house lawyers, the Club has
its own Casualty Surveyors, Naval Architects,
Master Mariners and Salvage Master providing
support in the claims handling and adjusting process and this tends to reduce costs.
Types of case
Many cases reaching the loss-adjuster’s desk are very
straightforward and present little difficulty. In one recent
case – involving damage to an auxiliary engine – all costs
were allowed beyond some
minor elements, which were
already allowed for under
the manufacturer’s detailed
responsibility for the supply
of spares.
Other cases are much more
complex. An example arose
when a containership struck a breakwater during departure. The damage required urgent temporary repairs (with
payment on account made during the repair work). This
vessel then resumed trading. Nearly four years later, the
ship arrived at a yard for its normal scheduled drydocking
– at which time permanent damage repairs were carried
out to the bulbous bow. This work went ahead concurrently with the owner’s scheduled maintenance programme. Here, much of the loss-adjusting work focused
on the apportionment of costs between owner’s repairs
and casualty repairs.
it is also important for the Club. We find that fast, fair
loss-adjusting does much to strengthen the relationship
between Club and member. In short, people tend not to
forget good service, delivered in difficult circumstances.
Our in-house team
We are fortunate. We have a very competent team of
loss-adjusters, who are accustomed to working within all
recognised Hull conditions. We have seven professional
adjusters; five are based in Gothenburg and two more are
stationed at the Club’s offices in Greece and Hong Kong.
They have a variety of backgrounds; the team includes
both nautical, legal and engineering specialists.
Claims adjusting can make tough demands on the individuals involved. This work requires a good spread of
expertise and the ability to “see the wood for the trees”.
Claims handling and loss-adjusting go hand in hand. In
order to be a good claims-handler, it is vital to appreciate the considerations which
govern loss-adjusting. We
seek consistency in our decision-making, as this helps
maintain our reputation for
fairness. At the same time,
conditions do vary. The reality is that loss-adjusting will
always be more of an art than a science. Certainly, working as loss adjusters tends to “keep us on our toes”.
Loss-adjusters need to apply common principles with
consistency. When presenting our final position, we are
confident that our conclusions have been thoroughly
cross-checked by team members having no direct involvement in the case. Accuracy and fairness are our touchstones.
It should be said, of course, that there are situations
when the Club requires specific input from external providers – especially in the large general average cases. In
some instances, a large network is required, to collect
securities in an efficient manner. Furthermore, in a major general average, cargo and other interests might well
regard it as inappropriate that a shipowner’s insurer takes
the adjusting lead. That said, in the vast majority of cases
in-house adjusting is appropriate and beneficial to members. This system delivers the settlement quicker, more
efficiently and at lower cost.
”In the vast majority of cases
in-house adjusting is appropriate
and beneficial to members.”
Service objectives
Naturally, the time taken to reach final settlement relates
to the size and complexity of the claim. Our in-house
loss-adjusters have a performance goal of adjusting within
a predestined time frame. This goal is of utmost importance to the Club and an effective measure of our service
performance.
Good performance is important for the member, but
17
Marine | The Nordic Marine Insurance Plan
The Plan goes Nordic!
The Nordic Marine Insurance Plan of 2013 (Nordic
Plan) will be introduced onto the international marine insurance market on 1 January 2013. The Nordic Plan has been jointly developed and agreed by
insurers and shipowners in Norway, Sweden, Denmark and Finland, using the well established Norwegian Marine Insurance Plan of 1996, version 2010
as the starting point.
Johan Kahlmeter
Head of Claims - Marine
Team Gothenburg
As far back as the introductory notes to the Swedish Plan
of 1896, reference is made to Norwegian rules and it is clear
that there is a long-standing tradition of seeking inspiration
from our neighbour. In the preface to the Commentaries of
the General Swedish Hull Conditions of 1966 it states that
the basic aim of the revision was to update Swedish hull insurance to more closely resemble its Norwegian counterpart.
The Norwegian Marine Insurance Plan had successfully been
revised two years earlier (1964) and was considered to provide a more comprehensive and satisfactory insurance cover.
In the new Swedish conditions, provisions on new for old
deductions were therefore abolished and cover for machinery
damage was introduced to the benefit of the assureds.
On 3 November 2010 it was decided to go one step further
and an agreement was finalized between the Nordic Association of Marine Insurers (CEFOR) and the Danish, Finnish, Norwegian and Swedish Ship Owners’ Associations to
develop a Nordic Marine Insurance Plan. A Standing Revision Committee with members representing all parties was
established to draft the Plan. It was agreed that the Chair
and Secretary should be nominated from the Scandinavian
Institute of Maritime Law at the University of Oslo, Norway
and that an Average Adjuster should be appointed to represent the Nordic Average Adjusters on the Committee. It was
furthermore agreed that the new Plan should be based on
18
the Norwegian Plan and that although translated into the
Nordic languages, in case of any inconsistencies or disputes
the English text will prevail. The Nordic Plan will be revised
by the Standing Revision Committee at regular three-year
intervals.
In brief, the Nordic Plan is perhaps best described as an updated version of the Norwegian Plan and anyone used to this
will definitely not feel lost in the Nordic Plan. While all basic
principles remain unchanged, necessary amendments have
been made to make the Plan applicable in Denmark, Sweden
and Finland.
Some benefits to the Nordic Plan versus
the General Swedish Hull Conditions of 2000
In terms of cover, the Nordic Plan has a number of benefits
from a shipowner’s perspective compared with the General Swedish Hull Conditions of 2000, some of which are
highlighted below. However, the greatest benefit to anyone
working with claims and adjusting is the extensive Commentary with explanatory notes and practical examples on how
to understand and interpret the clauses. This is very much
welcomed and something the Swedish conditions generally
lacked.
Compensation for unrepaired damage
It has been a tradition in Scandinavian marine insurance that
the insurer’s liability to pay compensation does not arise until the damage is repaired. In the past, this was the situation
both under Swedish and Norwegian marine insurance conditions. As an exception to this rule, the assured was granted
a limited right to compensation if the vessel was sold before
casualty repairs were carried out. However, in the 2007 revision, the Norwegian Marine Insurance Plan included a right
for the assured to also claim compensation for unrepaired
damage upon expiry of the insurance policy. This rule has
been adopted into the Nordic Plan.
Compensation for temporary repairs
Final repairs of casualty damage may be postponed for several
reasons, perhaps the most obvious being that it is impossible
to carry out such repairs where the ship is located. In these
and port expenses, etc. The assured also has a limited
cover of his loss of time during the removal in that the
insurer is liable for the necessary crew’s maintenance
and wages throughout the period of the removal.
Whereas the Swedish conditions only allows compensation for the removal to the yard, the Nordic Plan pays
both ways, net of any savings to the assured if the vessel
is put in a more favorable position.
situations, the insurer will be liable to pay the reasonable cost
of temporary repairs to enable the vessel to be moved to a
port or place where permanent repairs can be carried out. The
insurer will also be liable to pay for temporary repairs in full
if it is shown that such repairs result in overall saved costs for
the insurer.
However, there may be commercial reasons for which the
assured wishes to postpone the permanent repairs until a later date that may not be in the best interest of the insurer. The
Nordic Plan entitles the assured to compensation of up to
20% per annum of the hull valuation for the time the assured
saves by postponing the repairs. In comparison, the Swedish
conditions only allow half the cost of such temporary repairs,
which generally provides a less attractive result to the assured.
Costs of removing the vessel for repairs
Generally, the removal of the ship to the repair yard constitutes part of the repairs. Such costs must therefore be covered
by the insurer. Removal costs first and foremost comprise
costs of bunkers, towage if the ship has to be towed, canal
Costs incurred in expediting repairs
The repairing of a ship shall not only ensure a satisfactory result from a technical point of view. The time factor is also of great importance to the shipowner as the
ship has to be returned to income-producing activities
without unnecessary delay and there is usually a clear
connection between the speed and the costs of repairs.
The speed can often be increased by extraordinary measures in the repair procedure, such as sending spare parts
by chartered air transport or instructing the yard to work
over-time. The same applies if the assured chooses to buy a
new and more expensive part in a situation where the part
in question could be obtained at a more reasonable price after
some waiting time. Ordinary measures must be covered by
the insurer, whereas extraordinary measures are covered only
to a limited extent. Whereas the General Swedish Hull Conditions pays 50% of extraordinary costs incurred in expediting the repairs, limited to 50% of the deductible, the Nordic
Plan allows up to 20% per annum of the hull valuation for
the time saved by the assured in undertaking such measures.
When time is of utmost importance, this must be seen as a
considerable improvement from a ship owner’s perspective.
The abovementioned examples only highlight some
of the differences between the General Swedish Hull
Conditions of 2000 and the Nordic Plan. For further
information about the Nordic Plan and its Commentary,
please visit www.nordicplan.org
19
Club Information | Notice Board
Cappuccino bunkers
– Singapore starts investigation
A cappuccino bunker is an effect caused, for
example, when compressed air is injected into the bunkers to increase the apparent volume of fuel oil. Once the
foam has stopped, the bunker volume reduces and tank
measurements indicate a loss of bunker oil. Since bunkers
are ordered by weight, but measuring is done by volume,
the cappuccino effect causes the soundings to be misleading, resulting in the incorrect calculation of the quantity
received.
The MPA (Maritime Port Authority of Singapore) has
introduced initiatives to enhance the quality of bunkering
in Singapore. Disputes between fuel buyers and bunker
suppliers related to cappuccino bunkers have been ongoing. The MPA has reported that an in-depth study will
start on frothed bunkers to investigate it and evaluate the
consequences of such bunkers during the custody transfer
of bunker fuel. The study is expected to be completed in
2013.
The MPA is establishing a bunker assistance hotline for
the industry to contact it for on-site assistance in the event
of bunker quantity disputes. The hotline will be open 24/7
and will enhance the bunkering experience offered in the
Port of Singapore and facilitate dispute management. The
bunkering assistance hotline will come into effect from 1
November 2012.
The MPA will also be publishing an information sheet
about licensed bunker suppliers in the Port of Singapore,
to allow shipowners to make more informed decisions in
appointing bunker suppliers. This information sheet will
enhance transparency across the bunkering supply chain
by providing details about sales performance, technical
performance and other value-added propositions. The
information sheet will be available on MPA’s corporate
website at: www.mpa.gov.sg/sites/pdf/infomation_sheetlicensed_bunkering_suppliers.pdf and the data will be
updated every six months.
For further details please see MPA’s press release at:
www.mpa.gov.sg and www.bimco.org
Iran sanctions – bunkering
arrangements
Clubs are receiving a number of enquiries regarding the impact of the insurance prohibitions in relation
to bunkering arrangements. To date, through enquiries
via various sources, including IBIA (International Bunker Industry Association) we have ascertained that areas/
220
0
locations where Iranian bunkers have historically been
supplied include the PG, Fujairah, India, Pakistan and
Singapore. In addition, there should be considered a risk
that Iranian bunkers may be stemmed at ports within the
states, which are continuing Iranian oil imports including
Japan, South Korea (probably), China and India. Conversely there should be a negligible to zero risk of such bunkers being supplied within the EU, Scandinavia or the US.
There does not yet appear to be any concerted approach
to addressing this problem within the bunkering industry although clearly those bunker suppliers who have
traditionally used Iranian stocks will be under increasing
pressure to find alternative supply sources. The IBIA has
recommended to members that they include warranties in
their purchase contracts that products are not of Iranian
or Syrian origin. They also anticipate that it is likely that
bunker stem contracts presented to shipowners/operators/
charterers will contain sanctions clauses containing a “to
the best of sellers knowledge and belief ” (bunkers supplied
are not of Iranian or Syrian origin) provision coupled with
waiver and hold harmless provisions in case bunkers supplied do turn out to be of Iranian or Syrian origin and the
shipowner incurs liability/loss as a result.
The practical advice for shipowners remains as before,
namely that if they are arranging bunker stems in areas
where traditionally Iranian bunkers have been supplied, or
where there may be some other reason to believe bunkers
may be of Iranian origin (such as in states which are continuing to import Iranian/Syrian oil and/or petroleum),
then they should ask the questions and if in doubt make
alternative stem arrangements.”
EU Commission has closed
its investigation
After a long period of silence the EU Commission recently closed its anti-trust investigation of the International Group (IG). The investigation started in 2010 and
has been conducted in close cooperation with the IG Secretariat and individual Clubs who have allocated significant
resources to accommodate the Commission’s request for
various information. A setback was encountered in 2011
when the entire EU case team was replaced and the new
case team started to ask for information already provided.
However, following a final meeting between the IG and
EU case teams earlier this year the investigation was formally closed on 1 August 2012 with no formal complaints
recorded.
P&I | Chinese Crew Claims
中国船员索赔
[Chinese Crew Claims]
to
P h o t o: iS
c
kp
ho
to
The past decade has seen a clear
trend in Chinese crew claims costing
more. The stronger Chinese Yuan, rapidly
increasing wages, and the increase in the
living standard in China have all been
contributory factors. In this article we
would like to give an idea of the compensation level of Chinese crew cases under
Chinese law and the two criteria for disability assessments used in China.
Chinese standard compulsory
The crew contract normally includes a
compensation scheme for crew who are injured or die while employed. For example,
the ITF IBF Agreement signed between
the shipowners and individual crew sets
the compensation level for death of a crewmember at USD 90,882, plus compensation to each dependent child (maximum
four under the age of 18) USD 18,176
for the case in 2012. Should the deceased
crewmember have two children, the compensation would be USD 127,234.
If there is no agreement in the contract,
the relevant regimes under Chinese law
will be used to determine the compensation level. If the agreed compensation level
is lower than that established in Chinese
law, a Chinese court will think the compensation established under Chinese law
is mandatory, and the contract compensation clause will be considered invalid.
Two regimes: Employment under
Labour Law and Civil Law
There are two types of employment contracts under Chinese law: employment un-
der Labour Law and under Civil Law. Employment under Labour Law is between
an individual and a company established
under Chinese law.1) All other employment
for example between an individual and
another individual(s) or foreign shipowners will not be subject to the Labour Law
but Civil Law. Crew can claim against
Julia Ju
Claims Executive, P&I
Team Asia
their employers under Labour Law as well
as under Civil Law.
It is quite common that agreements
signed between crew and the manning
company amounts to an employment contract under Labour Law and between the
crew and foreign shipowners, as a Civil
Law employment contract. For the same
injury case, the crewmember could be trying to get the best compensation or even
double compensation from the employer(s).
The employer under Labour Law pays
for the crew’s pension, Work-related injury insurance, unemployment insurance,
medical insurance and a welfare-like housing fund. 2)
The employer under Labour Law should
also provide not-work-related sick wages
up to 6 months, and pay the crew in case
of not-work-related death up to 15 months’
salary or the average salary of the company
in that province. 3)
In cases where crewmembers are injured
when working on board, compensation by
the employer under Labour Law should be
subject to the Work-related injury insurance regulation (the compensation is also
paid by the insurance fund), while for civil
law employers, the compensation regime is
guided by a directive published by the Supreme People’s Court’s in 2003. 4) If foreign
factors are involved, the directive will be
used together with a directive published in
1991 for foreign-related maritime personal
injury cases. The latter sets a limitation of
RMB 800,000 (USD 126,416). However,
the cap of RMB 800,000 is thought to be
out of date. In 2011, a crewmember was
awarded RMB 1,123,044 (USD 177,464)
by two levels of courts. 5) To put it simply,
if the 2003 directive reaches a higher compensation level than the cap, the cap that is
part of 1991 directive will give way to the
later regulations.
Two regimes of compensation for
death, both higher than ITF standard?
Two major heads for compensation of
death under two regimes are the same: the
lump-sum compensation and compensation for the living costs of the dependants,
but the calculations are different.
The 2003 Directive for calculating the
lump-sum death compensation is 20 times
the urban per capita disposable income for
the previous year in the province where the
court is located. 6) The dependant’s living
expenses is calculated at an amount per
9
continues on page 22
1) Article 2 of the Labour Law: This Law applies to enterprises, individually-owned economic organisations (hereinafter referred to as the employer) and
labourers who form a labour relationship with them within the boundary of the People's Republic of China. 2) This also includes other welfares including the
Allowance for one-child policy. 3) Different provinces might have different standards but generally the same. The figures cited here are according to the rules in
Guangdong Province. 4) Interpretation of the Supreme People's Court on Several Issues Concerning the Law Applicable in Hearing Cases of Compensation for
Personal Injury 5) People’s Court Daily, 17 February 2011 6) Clause 29 of the 2003 Directive
21
P&I | Chinese Crew Claims
Photo: iStockphoto
9
continued from page 21
capital annual expenditure on consumption for the previous year in the province
where the court is located.7) If the case
is heard in Shanghai where the 2011 urban per capita disposable income is RMB
36,230 (USD 5,727), and per capital annual expenditure on consumption is RMB
23,200 (USD 3,667), the lump-sum compensation will be RMB 724,600 (USD
114,502). Suppose the crew’s dependents
need his income for ten years, the living costs for dependants could be RMB
232,000 (USD 36,660). Parents, grandparents, spouse, children and grandchildren are all eligible claimants if they can
prove the deceased crewmember provided
for them. These two heads together already
make the claim to USD 151,162.
Under Work-related injury insurance
regulation, lump-sum compensation is
20 times the Chinese national urban per
capita disposable income of the previous
year. 8) The State statistical bureau has announced that the 2011 urban per capita
disposable income is RMB 21,810 (USD
3,447). The lump-sum compensation is
therefore RMB 436,200 (USD 68,928)9)
for the 2012. The living costs of the dependants are calculated based on the crew’s
actual salary. 40% of the salary is allowed
for the dependant spouse until she remarries. 30% to the other dependant relatives
until he/she dies in case of parent, or until
reaching 18 years old in case of children,
limited to 100% maximum in total.10) The
dependants should prove their inability
to earn to provide for themselves (stricter
than 2003 Directive). If a crewmember
who earned USD 500 a month was the
only son to a widow mother of 55 with a
life expectancy of 75, the compensation for
the living costs of the widow mother could
be USD 36,000. In this hypothetical case,
the two heads of compensation amounted
to USD 104,928.
Except for the two major heads, there are
other items allowed for compensation. The
calculation here is an example, allowing
a better intuitive grasp of the compensation level. Normally, if crewmembers do
a bit forum shopping, the compensation
calculated under the 2003 directive will
be higher than that under Work-related
Injury Insurance Regulation. That is why
the crew would more likely to choose the
foreign owners to get more compensation
when he also could sue against the manning company.
7) Clause 28 of the 2003 Directive 8) Art 39 9) Exchange rate 0.15802 on 5 October 2012 10) Art. 37
22
The current compensation level(s) could
probably have already been higher than
ITF standards. Bearing in mind the correlation between the disposable income/
expenditures and these compensation calculation methods as well as the continuous
rapid economic growth, the compensation level under Chinese law could be well
above that stated in the contract in the
future.
Finger broken healed itself = 10%
disability?
When crewmembers suffer injury while
working on board, the compensation will
also be measured under these two regimes.
The focus in this article is on the evaluation of the injury. The crewmember’s compensation on injury claims largely relies on
the seriousness of his disability. In many
crew contracts, it is agreed that the disability assessment should be done by a doctor
appointed by the company in accordance
with the agreed compensation scale in the
contract.
Under Chinese law, only recognised
institutions are allowed to carry out a disability assessment. Crew disabilities are
normally evaluated at Judicial Expertise
ITF
I
g
CC A
BF T
re e
t
me n
injury
COMPENSATION
e se
Chin
st an
da
ivi
rd C
l law
Ch
es
ine s
t an d
ar
bo
d La
(for the cases crew against foreign
Shipowners)
(for the crew claim against Chinese
Labour Law employer)
w
ur la
Loss
of one eye
20%
USD 30,294 for Senior Officers
USD 24,235 for Junior Officers
USD 18,176 for Ratings.13)
50% 14)
USD 57,251 15)
60% 16)
i) 18 months own salary
ii. a ) 70% salary until retirement Or
ii.b) USD 12,313.764 paid by
Insurance and USD 12,313.764 by the
employer.17)
Index finger
fracture healed
without
dysfunction
0%
0%
10%
i) 7 months own salary
ii.a) USD 2,050 paid by insurance
ii.b) USD 2,050 by employer18)
Loss
of one leg
65%
USD 98,455.5 for Senior Officers
USD 78,764.4 for Junior Officers
USD 59,073.3 for Ratings19)
60% 20)
USD 68,701.2 21)
70% 22)
21 months own salary as
compensation and 75% of salary paid
monthly until retirement
Death
USD 90,882 plus USD 18,176 for
each children23)
USD 114,50224) plus substantial
compensation to dependants
(grand parents, parents, wife,
children, grand children subject to
conditions)
USD 68,928 plus substantial
compensation to dependants (grand
parents, parents, wife, children, grand
children subject to conditions)
A rough comparison on the compensation level for injury and death cases.
Centres. As there are two regimes regulating crew compensation, each regime has
its own rating for the personal injury disability assessments, namely, Assessment
for body impairment of the injured in road
traffic accident (hereunder referred as Traffic Accident Injury Assessment)11) and Assessment and gradation of disability caused
by work-related injuries and occupational
diseases12)(hereunder referred as Workrelated Injury Assessment).
The two assessment criteria both divide
the disability into ten grades, grade one
is the most serious level amounting to
100% disability while grade ten 10%. But
the criteria are different in many aspects.
Under the Traffic Accident Injury Assessment criteria, it takes the old injury/illness
into consideration, deducting the original
disability while Work-related Injury Assessment does not. When there are two or
more injuries to consider the assessments
of injury under the two criteria have different measurements on how to upgrade the
injury grade.
The Work-related Injury Assessment’s
measurement of bone fracture is noticeable. Under the j.14 of the Work-related
Injury Assessment, crew can get 10% disability compensation for “no dysfunction
after fracture healing in any part of the
body”; under i.23, 20% for “no dysfunction
after internal fixation for fracture”. It does
not differentiate the importance of the
bone that was fractured. Evaluations do
not differentiate between fracturing major
bones like the Femur or Humerus and minor bones like Phalanx or Phalanges, thus
the compensation level the same. Under
the Traffic Accident Injury Assessment,
the injured party is not automatically assumed to be disabled after a fracture, with
the assessee needing to suffer some dysfunction of the injured parts.
Get a proper assessment first
The legal practice clearly shows that the
assessment for the injury subject to the
labour law contract should use the Workrelated Injury Assessment; and the claim
against foreign Shipowners should use the
Traffic Accident Injury Assessment. When
a member as a foreign Shipowner decides
to get the Chinese crew evaluated in Chinese Judicial Expertise Centres, the member is suggested to ask the manning company to assess the crew according to the
Traffic Accident Injury Assessment as this
is the right regime under Chinese law.
We hope this article will be of assistance in
giving you some idea of the compensation
level in the unlikely event of the death
of a crewmember, as well as some notes
on the injury evaluation. In case you are
involved in a serious personal injury case,
please get a Chinese lawyer’s comments.
And if there is anything you want to
discuss, please feel free to contact the
author at [email protected]
11) GB 18667-2002 12) GB/T16180-2006 13) ITF IBF Framework TCC agreement 14) 4.6.2.b of Traffic Accident Injury Assessment 15) This is only the compensation.
The sick wages, dependant’s living costs etc. are also allowed 16) E.28 of Work-related Injury Assessment 17) Suppose it is in Shanghai where average salary
is RMB4330.66 (USD684.098). Grade V allows 36 months average monthly salary of the city paid by the Insurance as well as the employer 18) Suppra 19) Any
disability higher than 50% allows 100% disability compensation 20) 4.5.10.b of Traffic Accident Injury Assessment 21) This is only the compensation. The sick wages,
dependant’s living costs etc. are also allowed 22) D.13 of Work-related Injury Assessment 23) Maximum four 24) Supposed it is heard in Shanghai
23
FD&D | The “Paiwan Wisdom” Casestrategy
Jonas Adolfsson
Solicitor
Ince & Co LLP, London
The High Court provides important guidance on the operation of the CONWARTIME
2004 clause: “The Paiwan
Wisdom” (Taokas Navigation
SA v Solym Carriers Ltd [2012]
EWHC 1888 (Comm) considered
Jonas Adolfsson is a
solicitor with Ince & Co in
London and is presently
on a secondment with
Team Gothenburg,
assisting with FD&D and
P&I claims.
On 11 July 2012 Teare J handed down the judgment of the High
Court in the ”Paiwan Wisdom” [2012] EWHC 1888 (Comm).
The case, which clarifies certain aspects of the CONWARTIME
2004 clause that commonly features in time charterparties, is of
significance to both shipowners and charterers
Factual background
In the “Paiwan Wisdom” the relevant charterparty was dated 25
March 2010 and was on the NYPE 93 form, providing for a charter
period of 11-13 months trading via safe ports from delivery at Hakodate dock, Japan. The charterparty further provided as follows:
“Clause 5 Trading limits
The Vessel shall be employed in such lawful trades between
safe ports and safe places within (See clause 50).
Clause 50 Trading limits / exclusions
Vessel always to trade within I.W.L...., always afloat at any
time of tide, Charterers’ option NAABSA, always via safe
port(s)/berth(s)/anchorage(s) excluding: [a number of countries and areas including Eritrea, Ethiopia and Somalia, but
not including Kenya], places subject to U.N. sanctions, areas
prohibited by vessel’s war risks underwriters due to war-like
activities, and places which may be excluded by the authority
of the vessel’s flag. Passing Gulf of Aden always allowed with
H&M insurance authorization”.
Clause 94 of the charterparty incorporated CONWARTIME
2004, sub-clause (b) of which read as follows:
“The Vessel, unless the written Consent of the Owners be
first obtained, shall not be ordered to or required to continue
to or through, any port, place, area or zone (whether of land
or sea), or any waterway or canal, where it appears that the
Vessel, her cargo, crew or other persons on board the Vessel,
in the reasonable judgement of the Master and/or the Own-
24
The “Paiw
ers, may be, or are likely to be, exposed to War Risks. Should
the Vessel be within any such place as aforesaid, which only
becomes dangerous, or is likely to be or become dangerous,
after her entry into it, she shall be at liberty to leave it”.
The vessel was delivered to the charterers on 22 April 2010 and the
following day orders were received to proceed to Hoping, Taiwan,
and there load a cargo of cement clinker for discharge in Mombasa,
Kenya. The owners refused to perform those voyage instructions
in reliance on the CONWARTIME 2004 clause incorporated in
the charterparty. The matter was ultimately referred to arbitration
where the question of law determined was this:
“Whether, on the true construction of the Charterparty of
the PAIWAN WISDOM between the Claimant (as charterers) and the Defendant (as disponent owners) dated 25 March
2010, the Defendant is precluded from relying upon on [sic]
the CONWARTIME 2004 clause to justify its refusal to proceed on a voyage to Mombasa ordered by the Claimant on
23 April 2010 in the event that there was no material change
in the risk (otherwise encompassed within the words of the
CONWARTIME 2004 clause) of proceeding with that voyage between the date of the Charterparty and the date of the
order?”
In holding that the answer to that question was ‘No’, the arbitrators made the following findings of fact:
 There was no suggestion that the owners were aware, when
entering the charterparty, that the vessel was likely to be employed on one or more voyages to Kenya,
 When the charterparty was concluded the shipping community was aware of the threat of piracy in some parts, at least, of
the Indian Ocean; and
 The risks inherent in passing through the Gulf of Aden were
ameliorated by the presence of naval forces and the convoy system.
 The charterers sought and were granted leave to appeal to the
High Court under section 69 of the Arbitration Act 1996.
The charterers’ argument before the High Court
Before Teare J the charterers argued that on a true construction of
the charterparty there had to be a material change in the relevant
war risk after the date of the charterparty before the liberty to refuse to obey the charterers’ order could be exercised.
an Wisdom” Case
The charterers based their argument on the Court of Appeal
decision in the “Product Star (No. 2)” [1993] 1 Lloyd’s Rep 397, a
case in which the shipowners had refused to proceed to Ruwais in
the UAE on account of war risks in the Gulf near Ruwais making
entry there dangerous. The Court of Appeal found in favour of the
charterers and held that where the owners have, by the terms of the
charterparty construed in its factual context, accepted a particular
war risk involved in trading to a port or area, the liberty to refuse
to trade to such port or area is not available unless owners can establish that there has been an increase, or escalation, in the relevant
war risk since the date of the charter.
The charterers in the “Paiwan Wisdom” argued that the principle
laid down by the Court of Appeal in “Product Star (No. 2)” is of
general application. The charterers further noted that clause 50 of
the charterparty expressly excluded Eritrea, Ethiopia and Somalia
but expressly permitted “passing Gulf of Aden”. The reference to
the Gulf of Aden, charterers argued, amounted to an implicit reference to the risk of piracy and indicated the owner’s willingness to
bear that risk; the parties had given detailed thought to where the
vessel might go in East Africa, excluding a number of countries and
areas but not Kenya. It followed, charterers said, that owners had
accepted the risk of piracy in proceeding to Kenya.
The court’s decision
The court rejected charterers’ submissions as to the effect of clause
50, distinguished the decision in the “Product Star (No. 2)” and
dismissed the appeal.
The court held that although Kenya was clearly within the vessel’s trading limits under the charterparty, CONWARTIME 2004
provides that an owner may refuse to proceed to a place which is
dangerous on account of a war risk. There is no requirement that
the relevant war risk must have escalated since the date of the charterparty.
The court further held that CONWARTIME 2004 must be
read in the light of the charterparty as a whole. On the one hand,
clause 50 contained an express agreement to pass through the Gulf
of Aden and the owners would therefore not be entitled to refuse
to pass through the Gulf of Aden by reference to a danger of being
attacked by pirates. On the other hand, the presence in the Gulf of
Aden of naval forces and a convoy system explained why the owners had agreed to pass through that area. There was no warrant for
construing clause 50 as an agreement that the vessel would proceed
to any port or place on the east coast of Africa where there is a risk
of piracy, but no naval forces or convoy system. The charterers may
direct that the vessel proceeds to Mombasa, but the owners are entitled to refuse to proceed to Mombasa through the Indian Ocean
if within the meaning of CONWARTIME 2004, there is a real
likelihood of the vessel being exposed to acts of piracy.
The court distinguished the decision in the “Product Star (No.
2)”, pointing to a number of features in that case which allowed the
court to conclude that the shipowners had accepted that the risks
prevailing in the Gulf area at the date of the charterparty “were not
such as they would consider ‘dangerous’ so as to render the discretion [afforded to the shipowners by the war risk clause] exercisable”.
First, in the “Product Star” the vessel had been chartered for the
purpose of carrying oil from the UAE and so it appears to have
been accepted that the shipowners were aware the vessel would be
trading there. By contrast, in the “Paiwan Wisdom” there was no
evidence to suggest that the owners were aware the vessel might be
trading to Kenya. Second, the court noted that the charterers in
the “Product Star (No. 2)” were to pay war risk premiums for trading to “mainly United Arab Emirates waters (i.e...Ruwais...)”. Although the charterparty in the “Paiwan Wisdom” provided for the
payment of war risk insurance by the charterers, it did not provide
for the cost of war risk insurance for going to a named place.
Therefore, the court concluded, the present case was not one
where the owners had accepted, by the terms of the charterparty
construed in its factual context, the risk of piracy in trading to
Mombasa.
Concluding remarks
The decision in the “Paiwan Wisdom” is important to shipowners and charterers alike. The court confirmed that a shipowner
who relies on CONWARTIME 2004 to refuse an order is not
required to show an increase in risk between the date of the charterparty and the date the relevant order is given. But the CONWARTIME 2004 must be read in the light of the charterparty as
a whole. Owners should be particularly cautious in circumstances
where they have knowledge of particular areas to which charterers
intend to trade the vessel and/or where the charterparty provides
that charterers will bear the costs of war risk insurance involved
in going to certain named ports or places. Charterers will want to
continue to minimise the number of contractually excluded ports
or places and to specifically include ports where they anticipate the
vessel trading, thus minimising the risk that the owner can rely on
the war risk clause to refuse orders.
25
The Swedish Club Academy | MRM
From Titanic to Costa Concordia – a century of lessons not learned is the
somewhat provocative title of an article published in the World Maritime University’s Journal of Maritime Affairs in October 2012. The recent foundering of the Costa Concordia
in January 2012, demonstrated that accidents can happen even with ships that are considered masterpieces of modern technology and despite more than 100 years of regulatory and
technological progress in maritime safety. The authors of the article, Jens-Uwe SchröderHinrichs, Erik Hollnagel and Michael Baldauf do not speculate about the concrete causes of
the Costa Concordia accident, but shed light on some human and organizational factors that
were present in the Costa Concordia accident as well as in the sinking of the Titanic a century ago. These are factors which can be seen in many other maritime accidents over the years.
EXTRACT from
WMU Journal of Maritime Affairs
Volume 11, Issue 2, October 2012
Authors
Jens-Uwe Schröder-Hinrichs,
Erik Hollnagel & Michael Baldauf
While the maritime technology has
changed beyond recognition between 1912
and 2012, the human factors – understood
as the psychological and physiological characteristics of seafarers – and the organizational factors have not. If humans change,
it happens at the pace of evolution, compared to which 100 years is but the blink
of an eye. More interestingly, the organizational factors also seem to be very much
the same then as now. Organizations have,
of course, changed in the way they carry
out their work, due to increased horizontal
and vertical integration made possible by
ubiquitous information technology. But
the thinking and attitudes of management
have changed less and may possibly not
have changed at all, at least when it comes
to such issues as risk taking and prioritization of issues relating to operational safety.
It is not the purpose of this paper to speculate about the direct causes of the Costa
Concordia accident. It is still too early to
draw any conclusions or to propose recommendations about the many aspects that
undoubtedly will be unraveled during the
inquest. The purpose is rather to show that
accidents still happen for the same underlying human and organizational reasons,
despite the technological progress in the
last 100 years and despite all safety regulations and precautions. It is remarkable that
certain underlying conditions are still the
26
From Titanic to Costa
– a century of lessons
same today as at the time of the Titanic. It
is even more remarkable – and worse, regrettable – that the accident investigations
and the reactions to accidents more or less
are the same now as they were 100 years ago.
Similarities between two major
accidents
The fact that there are so many similarities
between two major maritime accidents a
century apart raises the question of why
these underlying factors remain when the
technology has changed significantly during the same time. To understand this, it
is necessary to look at the human and organizational factors of the accidents. But it
is also necessary to consider how accidents
are investigated and how the information
produced by such investigations is used in
the follow-up, by shipping companies and
regulatory authorities.
As far as the latter is concerned, the traditional way of reacting to accidents is to
insist on compliance to rules or procedures,
to add new rules or procedures (and expect
them to be followed), or to introduce new
technology (Psaraftis 2002; Schröder-Hinrichs 2010). Hollnagel (2008) has discussed
the extent to which the focus of an accident
investigation may influence the results.
In other words – that accident investigations seem to follow the What-You-LookFor-Is-What-You-Find principle and that
solutions follow the What-You-Find-IsWhat-You-Fix principle. In both cases, the
outcome becomes limited by the unspoken
assumptions of the investigation.
Authority gradient and its influence
on communication
The term “authority gradient” refers to the
distribution of decision-making and the
balance – or imbalance – of authority and
power in a group or organization, usually in
relation to a specific type of situation. Although it is rarely considered by the maritime industry, it plays an important role
in, e.g., health care or aviation. It is used to
describe how easy or difficult it may be for
someone with a lower authority to question
or challenge somebody with a higher authority. The authority gradient is itself influenced by a number of other factors, such
as education, social background, gender,
age, professional roles, and perceived expertise (cf., Sasou and Reason 1999; Cosby
and Croskerry 2004).
From the information provided in the
accident investigation reports, it appears
that the master of the Titanic was not challenged by his subordinates with respect
to his assessment of the situation or the
conduct of the ship. But the absence of
documentation of a disagreement between
the master and the officers does not mean
that all the officers agreed that the overall
The paper critically reviews the focus of maritime accident investigations and points out that
these factors do not receive sufficient attention.
Many of the factors discussed in the article are the typical factors that are dealt with in
Maritime Resource Management (MRM) training. It therefore provides tremendous support
for greater use of MRM training in the maritime industry and we recommend anyone interested in safety issues to read the article in full.
With the permission of the authors, we are pleased to provide our readers with an extract
from the article. The full article is available at http://link.springer.com (Search for Costa
Concordia.)
Martin Hernqvist
Managing Director
The Swedish Club Academy AB
Photo: Scanpix
Concordia
learned
Group think and the desire for
harmony
The authority gradient is not the only factor that may hinder critical comments from
crew members to decisions made by their
superiors. Other factors are group think
and the desire for harmony in a group (cf.,
Janis 1972; Hart 1991; Turner and Pratkanis 1998).
Summary and conclusions
In the wider perspective, the really important question is therefore not why these
and many other ships have foundered, but
rather why these reasons remain and why
Photo: Scanpix
risk of a collision with an iceberg was under
control and that an iceberg close to the ship
could be identified in time. The authority
gradient may nevertheless have prevented
individual officers from voicing their concerns. It remains to be seen whether the
master of the Costa Concordia was challenged by his bridge team when the ship
approached the Island of Giglio. But there
From Titanic...
are several other maritime accidents where
the authority gradient played a role.
The navigation of ships has from a historical point of view always been characterized
by semi military organizational structures
and decision making by a single person in
command. This may foster the development
of a steep authority gradient.
…to Costa Concordia.
accident investigations and the reactions to
them are more or less the same now as they
were 100 years ago.
It is time for a fundamental change to
the way we look at maritime accidents and
to the understanding of how we can improve maritime safety by addressing human
and organizational factors.
27
The Swedish Club Academy | MRM
Out and About
with MRM
11-13 September 2012 MRM Workshop Leader seminar
in Almere, The Netherlands. The seminar included a visit to
Carnival Corporation’s training facility CSMART - a member of
the MRM training network since 2009. Representatives from
the following training establishments attended the seminar:
ABB Oy Marine Services, Aboa Mare (Novia University),
Antwerp Maritime Academy, CSMART, De Ruyter Training &
Consultancy BV, VDAB Belgium, Hamburg Port Services GmbH,
Kymenlaakso University of Applied Sciences, Liverpool Pilots,
Maritime Institute Willem Barentsz, Nederlands Loodswezen,
Northern Crewing Services – Hamburg, Nova College, P&O
Ferries, University of Applied Sciences Emden/Leer and Vestfold
University College.
18-19 September 2012 MRM Workshop Leader seminar in
Bangkok, Thailand. From left to right: Nelson Quirante, KiwiRail
(Interislander), Narong Phukaeophuek and Nares SingsaArd, both from Precious Shipping, Martin Harper, KiwiRail
(Interislander), Samranjit Thoolmala, Chemstar Nautical
School, Sebastian Cardozo, Precious Shipping, Ulf Nordman,
Star Cruises, Wichai Rammaroeng, Chemstar Nautical School,
Suraphong Phongkam, Thoresen Service Center Limited and
Martin Hernqvist, The Swedish Club Academy.
New team members
Megan Tynan-O’Mahony
Position: Academy Assistant
Age: 23
Megan is from
County Clare, in
the west coast of
Ireland. She recently
graduated from the
University of Limerick
with a B.A. in New
Media and English.
While at university, she gained work
experience with Club Méditerranée
as a boutique assistant, in both France
and Turkey, over a period of seven
months. Following this, she studied
at Gothenburg University as part
28
of the Erasmus programme, for the
autumn/winter term of 2010. After
her final term at university she moved
to Sweden to live with her boyfriend,
Arvid. Having lived in different
countries, Megan is very interested in
anything culturally-based from music
to literature, film, food, customs, and
of course, language. She also writes
and edits a fashion blog, along with
a number of other contributors from
different countries across Europe. As
Academy Assistant, Megan will be
involved with all areas of The Swedish
Club Academy, but predominantly
administration and customer relations.
Lorraine Migalbin Hager
Position: Project Coordinator
Age: 33
Before moving to
Sweden, she was an
Executive Director of a
Swiss funded foundation in the Philippines
handling a scholarship
program and capacity building for young
people. Prior to that she was a program
coordinator at the Ayala Foundation
working with a USAID (United States
Agency for International Development) project on education focused on
the Autonomous Region in Muslim
8-9 October 2012 The Maritime Resource Management
21 September 2012
Participants from local schools
and shipping companies
gathered outside Uniteam
Marine’s training facility in
Yangon, Myanmar, after
completing an MRM course
and an MRM Workshop Leader
refresher seminar. The MRM
course on 18-20 September
was run by MRM Workshop
Leader Mr Johnny Sim (front
row, fourth from right),
Uniteam Marine’s Director of
Corporate Training & Business
Development.
seminar held at the Kherson State Maritime Academy, Ukraine,
attracted a lot of attention, not least from the media. Here
Ukrainian television is interviewing Mr Vladimyr Fedorovich
Khodakovisky, rector of KSMA (left), Martin Hernqvist, The
Swedish Club Academy (centre) and Capt Walter Wekenborg,
Director of Human Resources and Training at Marlow Navigation
(right).
The MRM seminar at the Kherson State Maritime Academy had participants from training centres,
schools and universities in both Russia and the Ukraine.
New MRM training providers
Mindanao. She has a B.Sc. in Agriculture,
a major in Entomology and a minor in
Horticulture. She also has a Diploma in
Physical Education from the University of
Southern Mindanao. She met her Swedish
husband, John Patrik, in 2006 and moved
to Sweden in October 2008. They have a
2 year-old daughter, Lisa Sofia. Lorraine’s
hobbies are music, singing, cooking, baking
and hosting parties. She is also interested
in public speaking, facilitating and hosting
events, training, seminars and conferences.
She is now looking into the importance of
understanding cultural diversity issues and
is currently the Project Coordinator of the
Mariner Attitude Survey for The Swedish
Club Academy.
We have welcomed the following training establishments
to the MRM network since the last issue of Triton:
 VDAB Maritieme Opleidingen, Zeebrugge, Belgium
 NSB Academy, Buxtehude, Germany
 Fleet Management Training Institute, Mumbai, India
 Uniteam Marine, Odessa, Ukraine
 Chemstar Nautical School, Bangkok, Thailand
 Consolidated Training Systems Inc., Manila, Philippines
 Kymenlaakson ammattikorkeakoulu University of Applied Sciences, Kotka, Finland
 Neptune Shipmanagement Services Pte Ltd, Singapore
 Centro Jovellanos, Veranes, Gijón, Spain
 Consolidated Marine Management Inc, Piraeus, Greece
29
Club Information | Staff presentation
– the man of probabilities
Reality is rarely constant. But to bring some kind of
order to the disorder we daily predict the probability
of different outcomes to take as good decisions as
possible. To be competitive on an increasingly volatile
market, this has become more and more important to
companies as well, which is where the Actuary Peter
Niman comes in to the picture. Since May this year he
has worked side by side with Just Arne Storvik in order
to develop our risk management and risk analysis.
Peter has spent 17 years in the insurance business, beginning at
the Swedish insurance company Skandia in 1996, so the experience in this field is
both long and deep.
Previous to The
Swedish Club he
worked as an actuCarola Weidenholm
arial consultant at
Corporate
KPMG for almost
Communications
four years, mainly
commissioned by insurance companies.
“At KPMG I managed about 30-40 clients varying from life
insurers, general insurers, direct insurers and reinsurers, and one
day I couldn’t help but starting to reflect on which of all these
clients I would like to work for the most. Guess who came out on
top – The Swedish Club! The main reason was that the marine
insurance business is a very interesting, complex enterprise for an
actuary and in many ways different from the rest of the industry,
but also because of the courteous and competent treatment I always received in my contacts with the Club”, says Peter.
So when the opportunity arose, he became interested in the
position as Risk Manager and Actuary.
Managing risks
One of Peter’s most important tasks is to thoroughly follow the
developments of the Solvency II project at EU-level and implement the rules imposed. Currently he is also involved in the construction of the Club’s new internal capital mode, ICM, l, with
Just Arne Storvik at the helm. The plan is for Peter to take over
these responsibilities soon.
“My job as an actuary is to make sure that the insurance premiums and the technical provisions are both on a sufficient level.
Briefly, this means that I have to assess the probabilities of occurrence of a number of possible scenarios, e.g. collision between
vessels, and the magnitude of its financial impact on the Club’s
balance sheet. Our financial strength is crucial for the ability of
withstanding unexpected losses.”
30
Since the raw material of our product, the insurance policy, is risk,
managing the insurance risk has always been the basis of our operations. The scope of Enterprise Risk Management is, however, much
broader and consists of all the other kinds of risks our business faces,
e.g. market risk, counterparty default risk, operational risk and others.
“It is essential to weigh in all kinds of possible risks and scenarios
in our Enterprise Risk Management framework. My task as Risk
Manager is to create this framework and set up the control and reporting mechanisms for it. It’s the Club’s staff, all of us, on an operational level, that need to be aware of all these risks and manage them,
not only me, despite of my title Risk Manager”, Peter explains.
“It is important to find and understand the connections between
the parts in the whole enterprise in order to manage our risks and
reach our capital targets. Doing so we can minimize our risks and
make sure that the Club and its members are well protected now and
in the future.”
Photo: TSC
Peter Niman
New Risk Manager
and Actuary at the Club
Club information | Out and About
Peter Niman in brief
Title: Risk Manager and Actuary
Age: 47
Family: the daughter Andrea, 24
and the son Rudolf, 20.
Spare time: when some time
on hand he likes to exercise and
test his physical limits. He was a
top-level swimmer when living in
Transylvania, something he had
good use for when he completed
“A Swedish Classic” two years
ago. That means he skied the
Vasaloppet for 90 km, cycled
around lake Vättern for 300 km,
swam 3 km Vansbro lake and ran
the 30 km long Lidingöloppet
within the same year. His next
challenge is planned to be a
triathlon in August next year.
Background: Peter was born in
Transylvania, Romania as part of a
Hungarian minority. In December
1989 he moved to Sweden with
his wife and daughter and started
at the University of Uppsala in
1991 where he got his M. Sc in
Mathematics. He has also studied
several individual courses at the
Royal Institute of Technology,
Stockholm School of Economics,
and University of Economics in
Stockholm. In 1996 he joined
the insurance company Skandia
Life, where he stayed for eight
years before he moved on to the
parent company Skandia AB to
work as an actuarial and finance
controller for two years. He has
also managed one year as an
Actuary at Pinnacle Sweden, one
year as Chief Actuary at Cardif
Nordic and since 2008 until May
this year he worked as Senior
Manager and Actuary at KPMG
Sweden.
Of current interest: new Risk
Manager and Actuary at The
Swedish Club since May 2012.
Tony Schröder and Örjan Karlsson greeted the
guests to the seminar.
From left: Johan Brax and Gustav Brax (Brax
Shipholding Rederi).
From left: Pernilla Myrefelt (Damco Survey AB)
and Magnus Having (MH Shipping Concept AB).
From left: Per-Olof Nyström, Lena Schultz and
Kristoffer Matisson, all from Handelsbanken,
Gothenburg.
Club Lunch in Gothenburg
– 6 November
Members and business associates were invited to a Club seminar with highlights of some of
the challenges and complexities that can be encountered following major casualties. The Club
has vast experience of dealing with large claims and some of this knowledge was shared with the
guests by Tony Schröder and Örjan Karlsson. The seminar was held at our office in Gothenburg
and was well attended and much appreciated.
The Swedish Club presentation on “Major
Casualties” at seminar in Stockholm
Together with many people from Stockholm’s shipping business world, The Swedish Club
was invited to a seminar arranged by Capital Shipping at the House of Shipping at Skeppsbron,
Stockholm, on 9 October.
Tony Schröder and Örjan Karlsson presented the Club’s current state of affairs, followed by a
lecture on the topic “Major Casualties”. The casualties were presented focusing on the different
problems faced with major, complex cases, such as remoteness, environmental issues and negotiations with contractors and the authorities. The presentation was well received by the participants and many interesting questions followed.
31
Club information | News from Piraeus
Photo: TSC
A successful event
Despite economic woes in Greece and shipping in
general, Greek shipowners continue to order new vessels. So far
this year 92 vessels have been ordered for a total investment of
USD 5.2 billion. Newbuilding prices have come down significantly since 2008, and many Asian shipyards are having major
difficulties filling their order books. Although there is an oversupply of vessels in most shipping segments, it seems like low
newbuilding prices coupled with more fuel-efficient designs are
making it worthwhile to order ships. We have seen quite a few
of our members in Greece ordering new ships as well as buying second-hand ships. It is good to see that there are still people with money and with a positive vision for shipping in the
future. This year we have also seen a record number of vessels
being scrapped as older tonnage is having difficulties finding
employment in most segments. Recently we have also seen layups on the rise.
We have just concluded our first Marine Insurance Seminar
in Greece. It was a three-day condensed version of the five-day
Marine Insurance Course that we offer annually at the head
office in Gothenburg and similar to the one we offer in China.
Given that the course we offer in Gothenburg and the seminar we offer in China have been very successful, we decided it
would be a good idea to offer an overview seminar in Marine
Insurance at Piraeus.
We wanted to keep the number of participants to around 30,
enabling us to have interactive sessions with them. This being
the first seminar, we limited the participation to members and
brokers and to our surprise we had almost 80 people who wanted to take part. This made the selection process quite difficult
but we will offer the course again so the people who were not
32
able to attend this time around will have another chance soon.
We are proud to say that we had a lot of positive feedback
from the participants who really helped us with their active
participation and questions. The content of the seminar, coupled with good presentations and the fact that we offered it free
of charge, were probably the main success factors.
The seminar speakers were all employees of the local office, except for Martin Hernqvist, Managing Director for The
Swedish Club Academy, who presented our MRM (Maritime
Resource Management) programme.
We are planning to do more seminars in future on specific
topics of interest and the Marine Insurance Seminar will be
offered again, if not before, next year. I would like to take this
opportunity of thanking all of the staff at the office for preparing and making their presentations – you all did really well!
We opened our office in Greece 32 years ago and we have
seen the ups and downs of both shipping and insurance cycles.
However, we can say one thing – our commitment to Greece
has never been bigger and we look forward to continuing to
develop our business in Greece.
Tord Nilsson
General Manager/Area Manager
Team Piraeus
Club Information | News from Asia
Photo: iStockphoto
Finns det något foto från seminariet?
The Swedish Club – 30 years in Hong Kong
The Swedish Club set up its office in Hong Kong 30
years ago. The office started in 1982 as liaising office. Until
1988 the Club staffed the office with an underwriter, Jan Risinger, claims manager, Lars Rhodin and a staff surveyor all
from the head office in Gothenburg, Sweden. Kitty Lam had
worked for the Club for few years by then and Carmen Or
joined the Club the same year.
The office was first located at Sutherland House in Central,
which had been demolished in the early 1980’s, and the office
then moved to The Exchange Square II in Central in 1985.
In 1994 the office moved to Central Plaza in Wanchai, Hong
Kong where it remains today.
The Swedish Club was one of the first clubs in the International Group of P&I Clubs setting up an office in Hong Kong.
Lars Lindfelt, Managing Director of the Club back then, had a
vision that the weight of international shipping would gradual
shift to the East, the future development and expansion of marine insurance had to follow the shift of the international shipping market. Hence, The Swedish Club Hong Kong Limited
was set up in 1982, two years after the Club set up an international office outside Sweden in Greece.
Until the late 1970’s The Club’s insurance business was
limited to its domestic market. The Club’s strategy for expansion onto the international market coincided with the shrinking of the Swedish shipping industry. Sweden was once a very
strong maritime country. However, by the early 1970’s after
the shipping crisis the maritime industries in Sweden started
losing the competitive edge due to high labour costs and high
social welfares costs. Shipyards closed down and many shipping
companies gradually moved out of Sweden, or were bought up
by shipping companies from other countries. Of course some
shipping companies in Sweden adapted to the changes and
reformed, and remain strong, even today. However Sweden’s
relative strength as a maritime nation generally declined from
international shipping scene. Fortunately the Club’s strategy
to introduce international expansion worked out well for the
company. Now the Club is a truly an international company.
Swedish business now only represents about 7% of the Club’s
overall business.
The Club’s Hong Kong office is responsible for the Club’s
business in Asia, and handles about 40% of the Club’s total
P&I business including owners and charterers’ tonnages. The
Club’s hull business is relatively small in Asia compared with
other regions where the Club carries out hull business. This
reflects the Club’s strategic policy change from a marine focus
to a more P&I focused underwriter. The Club’s business in
Asia generates about one quarter of the Club’s total premium
income. The trend of shipping shift to the East will continue, as
will the increased importance of the Asian market to the Club.
Ruizong Wang
Managing Director/Area Manager
Team Asia
33
Club Information | News from Oslo
Photo: Seadrill©
Good organic growth expected
over the next 3 years
The drillship West Auriga is one of Seadrills' 10 newbuildings which will be delivered during the current insurance policy period alone.
The demand for deepwater drilling units is expected to
continue to be very high both over the short and long terms.
Daily hire rates are typically around USD 600,000 – 700,000
for large semi submersible drilling rigs and large drillships. The
demand for units capable of drilling in other areas is also good.
A number of units are under construction and deliveries are
made continuously. Over the next 12 months we expect to add
some 20 units to our books from existing clients. There are also
Newcos taking deliveries and ordering newbuildings and our
client base is expected to grow somewhat. Mergers and acquisitions are expected to take place and large companies are expected to grow further.
Our largest member, Seadrill, has ten deliveries of newbuildings during the current insurance policy period alone,
taking the total number of units to approximately 50. Further
growth will take place, with known newbuilding contracts
taking the number of units to approximately 60. And their
appetite for smaller drilling contractors with new and modern
units may still be intact. Other segments are also growing, i.e.
accommodation.
34
Another member, the successful company Floatel, located in
Gothenburg, has two large semi submersible accommodation
rigs in operation already, one working in the North Sea and
one working offshore Brazil. And, they have ordered two newbuildings for delivery in 2013 and 2014. Other existing members are ordering newbuildings and are also purchasing older
units for upgrading.
Overall, the number of units that we are insuring is expected
to grow, perhaps by as much as 30% over the next three years.
We intend broadening our client base somewhat during the
same period, adding a number of quality international accounts.
Verner Rydning
Senior Manager, Energy
Team Norway
Club Information | News from Gothenburg
Photo: iStockphoto
No future in the past
Whilst there might be no future in the past, we need to learn from it.
Team Gothenburg celebrated its first anniversary
on 1 September 2012. A year on, things have started to fall
into place. Having said that, improving service and presence,
knowledge and experience requires constant effort, for this
team as for any other organisation and an institution like The
Swedish Club is no exception. There is no finish line if you
want to be at the forefront. There are always improvements
that can be made. On top of that there is the usual circle of life
issues. People retire. People find new challenges in life. Whilst
there might not be any future in the past, reflections are always
good and if you ask the writer – a necessity in order to be able
to improve. Is it a perfect organisation? No. But our aim is for
it to become one and that is what counts.
Speaking of improvements we have, as of 1 September, employed Malin Högberg, a lawyer that started with the Club as
a trainee last year, as a Claims Executive. She will mainly handle FD&D claims. Going forward, we are looking at further
strengthening our P&I and FD&D claims handling capacity.
We are further establishing our presence in Norway and we are
pleased to say that we have just recently employed Tore Forsmo
who accepted the position as Area Manager for Team Norway.
A warm welcome to him. We have further employed a new underwriter starting at the beginning of next year.
The state of the shipping market continues to be complicated, for some more than others. Shipowners of large bulk
carriers, product tankers and container vessels below 3-4 000
TEUs are some that are currently facing particular challenges
in terms of employment and freight rates; whilst larger modern
container carriers enjoy economies of scale benefits. Scrapping,
generally, has gone up, which is a good sign but not a quick fix.
Another development is that new, more energy efficient main
Tony Schröder
Area Manager
Team Gothenburg
engines, are a threat to older tonnage. More stringent emissions demands in various jurisdictions are another reality.
Whilst there might be no future in the past, we need to
learn from it. Although the future might hold exciting opportunities that did not exist in the past, there are always larger
underlying trends that may continue to govern our business.
Like any good navigator you need to be able to zoom in and
zoom out to get the best possible picture of potential dangers
ahead. Or like any good lawyer you need to know the details,
but also be able to see the broader picture.
Everybody who knows the history of shipping knows that
tough times are part of its nature albeit the values at stake
might be higher in shipping than in many other businesses. It
is a fact that shipping is cyclical. It is a truism. The cycles are
long and hence endurance is vital. On top of these dire straits
you can always add new legislation and political difficulties
tightening the straits further, locally as well as globally.
Although the past is important for better preparing for future challenges – we should not dwell too much on what has
been. How do we proceed and progress? We look ahead! This is
what we at The Swedish Club are doing.
To that end – there is no future in the past.
35
Club Information | Out and About
The Swedish Club celebrates 30 years in Hong Kong with…
The Club invited members, brokers
and business associates to celebrations at
cocktail receptions in Hong Kong and
Shanghai in the latter part of October
to celebrate the Club’s 30 years in Hong
Kong. Both receptions were very well
attended and much appreciated.
More pictures can be found on www.swedishclub.com
under News/Circulars and Out and About.
…cocktail reception
in Hong Kong
From left: M. T. Yung (Abacus Ship Management Ltd, HK), Lars Rhodin (TSC), Vincent J. Foley (Holland
& Knight, NY), Richard Hext (Univan Ship Management, HK), Ruizong Wang (TSC Hong Kong),
Alexander Slee (Vanmar Shipping, HK) and Zoe Leong (Univan Ship Management, HK).
From left: Fred Cheng, (Shinyo International Group, Tokyo), Lars
Rhodin (The Swedish Club) and Mats Berglund (Pacific Basin
Shipping, HK).
From left: Zhang Haiyan (Helen Insurance Brokers, HK), Zhang Lianshui
(Dasin Shipping, Singapore), Zhang Baoliang (China Merchants Energy
Shipping, HK) and Wang Guijun (Stephenson Harwood, HK).
…and in Shanghai
From left: Li Chuan Min (Rewood Shipping, Shanghai), Ruizong Wang
(The Swedish Club Hong Kong) and S. G. Huang (SG & Co., Shanghai).
36
From left: S.O. Lam (OSM Maritime Services), Filip Isaksson (The Swedish
Club) and Viktoria Li (Consulate General of Sweden in Shanghai).
Photo: TSC
Peter Harren at the helm of S/Y Athena, Heiko Felderhoff to the left and a glimpse of Peter Grönwoldt in the background.
Schiffahrtsregatta 2012
Sailing the S/Y Athena is a great
experience. Partly because all crewmembers
are so pleasant and partly because Athena
is a fine yacht. She is a yawl, built by Abeking & Rasmussen in 1955 and cared for by
a prudent owner who keeps her in mint
condition.
This year I had the pleasure of joining the crew during the Peter Gast Schiffahrtsregatta together with the core sailing
team of Peter Harren, Peter Grönwoldt and
Heiko Felderhoff from H&P along with a
guest crew from business partners to H&P.
The Peter Gast Shiffahrtsregatta is an
institution and the 2012 race was the
30th event manifesting the sailing traditions of the German shipping community.
More than 150 yachts, ranging from classic
beauties to hi-tech racing machines assembled in Maasholm to participate in the race
starting at Schleimünde in Germany and
ending off the coast of the picturesque city
of Aerösköbing in Denmark.
Good and favourable wind made the race
reasonably fast and apart for one man-overboard incident all went well and Athena
ended 4th out of 17 yachts competing in
the Oldtimer class. Later we learnt that the
The Swedish Club
Marine Insurance
Course 22-26 April 2013
- Sharing knowledge -
unfortunate person who had fallen overboard had indeed been rescued.
Worth acknowledging is that the fast
yacht “Norddeutsche Vermögen” with
Marcus Hempel, Thomas Drömer, Lars
Malm and a few more crew on board came
7 th out of 19 in its class and ended 12th in
the total race. Well done.
Thanks to Peter Harren and his team for
their kind hospitality and also to the guest
crew of Anders, Carsten, Jon Edvard and
Phil for their excellent comradeship and
“hygge“.
The date for our next Marine Insurance Course in
Gothenburg is set to 22-26 April 2013.
An on-line application form will be posted on our
website in early January 2013.
www.swedishclub.com
37
Photo: TSC
Staff News
Head office Gothenburg
piraeus
Malin Högberg has accepted permanent
employment and been appointed Claims
Executive, P&I and FD&D in Team
Gothenburg.
Alexander Larsson joined Team Gothenburg
as Assistant Claims Executive on a one-year
traineeship as from 5 November 2012. He holds
an LL.M. in Maritime law from the University
of Oslo and an additional LL.M. in Commercial
and Business law from the University of
Linköping, Sweden.
Ludvig Nyhlén joined Team Gothenburg as
Underwriting Trainee on a one-year traineeship
with effect from 1 September 2012. He has a
B.Sc. in Shipping and Logistics from Chalmers
University of Technology in Gothenburg.
Elisabeth Rydén has been appointed Assistant
Underwriter in Team Gothenburg with
effect from 1 September 2012. She previously
worked as Business Analyst at the Club’s IT
department.
38
Aglaia Politou joined Team Piraeus as Assistant
Claims Executive on a one-year traineeship with
effect from 3 September 2012. She has university
degrees in Law and in International Relations and
European Studies and an LL.M in Maritime and
Energy Law from the City University of London.
hong Kong
Filip Isaksson joined the Club’s Hong Kong office
as Marketing Executive on an assignment as from
1 September 2012
Gwen Vetuz joined the Club’s Hong Kong
office as Claims Manager, FD&D and P&I, on
1 November 2012. She has an LL.B (Honours)
from the University of Bristol and is a qualified
Barrister in England and Wales as well as an
Advocate and and Solicitor in Singapore. Prior to
joining the Club she worked for Holman Fenwick
Willan in Hong Kong.
Club information | Out and About / Staff News / Club Quiz
Claims Handlers’ Conference 2012
– an inspiring and rewarding event
In mid September, the Club´s
claims handlers and staff surveyors gathered for a two-day conference. This meeting will take place every two years and
is an excellent way for colleagues of our
four teams in Gothenburg, Hong Kong,
Oslo and Piraeus to meet each other and
to share knowledge and experience. Being
an international organization, it’s important that the Club is recognized as “One
Club” offering a standard and coherent
approach.
The first day of the conference focused
on issues of common interest among the
teams within the Club, such as insurance
warranties, emergency response group or
claims feedback committee.
The second day addressed uniformity regarding how we handle claims. A
management consultant was invited to
talk about structure and culture within
companies and how these support and
guide us in making decisions. A number
of case studies based on real scenarios were
discussed and gave rise to interactive discussions, first in each working group and
then a general discussion. This conference
was a truly inspiring and rewarding event,
which will be the source of new developments inspiring us in our daily work.
CLUB
Qu i z
 From
where can the term “kamsarmax”
be derived?
1Japan
X Kenya
2 Republic of Guinea

How
OSLO
Tore Forsmo joined Team Norway as Area Manager on 1 November
2012. Tore came from the Norwegian Shipowners’ Association. He
has a degree in Naval Architecture and Marine Engineering from
the Norwegian University of Science and Technology and executive
programmes from IMD, Kellogg School of Management and Duke
University/London School of Economics.
many cylinders has a MAN
6L/60MC Low Speed Engine?
14
X 6
2 8

When
did The Swedish Club open an
office in Hong Kong?
11979
X1982
21988
Mail your answer to [email protected]
The first right answer will be awarded a
Club give-away.
Winner of Club Quiz 2-2012
Marie Strand In Memoriam
It is with great sorrow that we have to announce the passing away or our dear
colleague Marie Strand.
Marie started her career with the Club in 1979 as a telex operator. She then
moved on to our Underwriting Department where she worked as an Underwriting Assistant for many years. From 1992 onwards she focused on reinsurance
administration and joined our Reinsurance Department in 2003, where she
held the position Reinsurance Assistant.
Marie was highly valued in her role and was a much-appreciated friend and
colleague. Her warm personality will be sadly missed.
Winner of Club Quiz in
Triton No 1-2012 is JanOlof Grönhult of DNV (Det
Norske Veritas), Malmö,
Sweden, who will be
awarded a Club give-away.
The right answers to the
questions are:
X 13
X Fastening “device” of anchor cable to ship’s bow
2 Flowergate
39
Club calendAr
For further upcoming events, please refer to
www.swedishclub.com/Club Calendar
2012
6 December
Board Meeting
11 December
Christmas DinnerDonsö
13 December
Lucia DinnerPiraues
London
2013
40
21 March
Board Meeting Bangkok
21 March
Breakfast SeminarOslo
22-26 April
Marine Insurance Course
Gothenburg
17-19 June
Annual General Meeting
Gothenburg
www.swedishclub.com

improving main engine fighting

Transcription

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