Safety - The Swedish Club
Transcription
Safety - The Swedish Club
The Swedish Club No. 1 - 2011 April Owners have to reconsider their measures Page 14-17 Six steps towards improved safety Page 22-23 All vows renewed! Page 13 The comings and goings of DRUGs Page 6-8 T H E S W E D I SH CLUB TRITON 1-2011 Content | No. 1 - 2011 April Leader | On solid ground! 3 P&I | P&I coverage during post-casualty towage 4-5 | The comings and goings of illegal drug and chemical precursors 6-8 MarketING & | BUSINESS DEVELOPMENT | A business built to last 9 Fire | To allocate responsibilities and reduce risk 10-12 Underwriting | All vows renewed 13 Piracy | Somali piracy today 14-17 Loss prevention | The Aqaba corn case – a study of a cargo claim 18-19 | Demolishing an unused dolphin – an incident to punish or reward? 20-21 | Six steps towards improved safety 22-23 Legal | The new Turkish commercial code 24-25 The Swedish Club | New MRM training providers 26 Academy | Out and about with MRM 26-29 Club information | Staff presentation: | Hans Filipsson 30-31 | Joakim Enström 32-33 | News from Team Oslo Energy 34-35 | Notice Board 34-35 | News from Asia 36 | News from Piraeus 37 | News from Team I 38 | News from Team III 39 | Basic facts / New members 40 | Bohus fortress 40-41 | Out and about 41-42 | In Memoriam 43 | Staff news 43 | Club calendar 44 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. Head Office Sweden Visiting adress Gullbergs Strandgata 6 411 04 Göteborg Postal address P.O. Box 171 SE-401 22 Göteborg, Sweden Tel +46 31 638 400 Fax +46 31 156 711 E-mail [email protected] Emergency tel +46 31 151 328 Greece 5th Floor, 87 Akti Miaouli GR-185 38 Piraeus, Greece Tel +30 211 120 8400 Fax +30 210 452 5957 E-mail [email protected] Emergency tel +30 6944 530 856 Hong Kong Suite 6306, Central Plaza 18 Harbour Road, Wanchai, Hong Kong Tel +852 2598 6238 Fax +852 2845 9203 E-mail [email protected] Emergency tel +852 2598 6464 Japan Room 103, 6-1, 1 Chome, Kaigan, Minatu-Ku Tokyo 105-0022, Japan Tel +81 3 6459 0870 Fax +81 3 6459 0871 E-mail [email protected] Emergency tel +81 3 6459 0870 Norway Postal address Tel Mobile E-mail Emergency tel House of Business, 6th floor Tjuvholmen Allé 3 N-0252, Oslo, Norway +47 9828 0514 +47 9486 1205 [email protected] +46 31 151 328 The Swedish Club Triton is published three times a year and distributed free of charge. The Swedish Club Letter 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 Göteborg. Editorial Advisory Board Peter Andersson, Susanne Blomstrand, Henric Gard, Birgitta Hed, 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, Göteborg. Cover photo IStockPhoto. Print PR Offset. 1104PR5200B © The Swedish Club. Articles or extracts may be quoted provided that The Swedish Club is credited as the source. 2 www.swedishclub.com T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Leader | MD Lars Rhodin On Solid Ground! PHoto: Jonas Ahlsén Dear members and associates, 2010 was a year both of anniversary celebrations and of change for the Club. Great anniversaries, as we have a rich history to celebrate – 100 years of P&I, and 30 years of our office in Greece. Those occasions represent important milestones in our 139-year journey. Change, because we adapt and move in tandem with the changes taking place in shipping, insurance and the regulatory environment. Obviously, successful companies do not merely keep abreast of development – they foresee changes down the line. We take our core value “proactive” to heart and endeavour to do our best to stay ahead of the game. For members, the most important aspect is to have a club ready to act – to respond to casualties and other urgent insurance needs. Last year we experienced a rather benign claims distribution, but nevertheless we had our fair share of casualties during certain periods. A casualty seldom comes alone! Some had the real potential to develop adversely, to say the least. Fortunately, events turned our way and that of the shipowners, even though the exposure was challenging. Insurance means being prepared for the unknown, hence the importance of having a club ready to respond. In early December we passed 30 million GT of owner’s P&I entered with the Club. Whilst volume in isolation is not a target, we see this as a token of confidence. The Club is its members. It starts with quality. When that is in place, results will be generated from which growth will follow. The Club had a net combined ratio of 87% in 2010, adding a significant surplus from the insurance operation to the total result of USD 29.5 million. Team Oslo Energy is now up and running, and we have established an office in central Oslo in the Tjuvholmen district, next to Aker Brygge. Reinsurance has been fitted into our consolidated programme structure, and, as of 20 February 2011, we got the “pen”. We see synergies with our existing business by Lars Rhodin Managing Director this diversification and, in addition, it fits in well in the revised risk management plan. The market response has been positive within the broking community as well as among owners. The Club stands for strong values; there is reliance on the Club’s following through on long-term strategy. The European Commission’s investigation into the International Group continues. Claims-sharing and the joint reinsurance arrangement are under scrutiny and so is the mechanism for release calls. The current system is not perfect – no system is! The fact remains that it provides for unparalleled cost benefits to the consumers, i.e. the shipowners, at the same time as third parties and society at large stand to be the real beneficiaries. There may be behaviour within clubs that needs to be improved. I am rather sure that there will be some positive contributions emerging from this probe, but there are some fundamentals at play. So, please raise your voice in support through your respective channels! We shall do our part in safeguarding the benefits derived from the system. Yours sincerely, 3 T H E S W E D I SH CLUB TRITON 1-2011 P&I | Post-casualty Towage P&I coverage during post In the ordinary and customary course of any merchant vessel’s trading, vessels proceed in and out of ports and to and from berths to load and or discharge cargo. This is all in the natural pattern of ships movements. Liability relating to towage which forms part of the ordinary and customary course of trading is, for that reason, covered by P&I clubs. However, towage is in many cases more related to a casualty, or post-casualty, towage, usually following engine breakdown or damage to the rudder or propeller rendering the vessel immobile; the vessel is thus in need of assistance to be removed to a repair facility. Towage that does not form part of the vessel’s ordinary and customary trading is excluded from cover - unless the contract for such towage has been preapproved by the Club. Legal considerations for tug and tow post-casualty It is not uncommon that the post-casualty towage has been preceded by a salvage situation and that the vessel is subsequently at a “place of safety” – i.e. the legal geographical place where the salvage normally ends. The problem this presents for an underwriter is that a “place of safety” is not necessarily a place where there are any competent repair facilities. Furthermore, the legal requirement for the salvage to be considered successful is not only that the vessel is brought to the “place of safety”, but she needs also to be “safely afloat” there. All quite reasonable and logical. But for the underwriter this is no consolation. Because, whilst the vessel is “safely afloat” in a “place of safety”, she is not necessarily safe for onward towage to another destination (a repair facility). In relation to third parties, it might be worth keeping in mind that legally the tug and tow are considered as one unit. The “dominant mind” of that unit is presumed to be the tug, unless there is evidence to the contrary, although there is no automatic presumption of fault on the part of the tug. The burden of proof lies with the party asserting liability on the tug. But, in the absence of any other reasonable explanation, the inference is that the tug is 4 Tony Schröder Area Manager Team Göteborg I considered liable - res ipsa loquitur, i.e. “the thing speaks for itself ”. Cargo onboard - the Himalaya Clause The member must ensure that the Contract of Affreightment (COA) contains an adequate Himalaya Clause. The Himalaya Clause ensures that the member’s right of limitation and contractual defences also apply in favour of the tug owner. The purpose of the Himalaya Clause is a contractual provision expressed to be for the benefit of a third party who is not a party to the COA. If there is no Himalaya Clause, third parties may go against the tug in tort; which in its turn can turn to the tow (the vessel) under the COA. For example, a cargo owner may try to circumvent the carrier’s contractual defences under the Hague or Hague-Visby rules by bringing a tort claim against the tug. For this reason, it is also advisable to have an Indemnity Clause in the COA. The purpose of this clause is that the cargo owner must indemnify the carrier for liabilities that exceed those available under the COA, i.e. if the carrier has had to indemnify the tug under the towage contract for a claim brought by cargo interests. Marine cover The underlying rationale to proceed with post-casualty towage for the marine underwriter is that there is at least enough residual value in the vessel to justify the cost of towing (and repairing) – otherwise the vessel is usually considered a CTL (Constructive Total Loss) or wreck. Owners are responsible for fixing the towage contract, but The Swedish Club, in the position as marine underwriter, will assist the member in selecting an acceptable and competent towage operator from quotations received. The Club will, in addition, assist the member in approving the towage contract – but it is always the member who is the contractual party – not the Club. Under Norwegian Hull Conditions, the cost of removal of the vessel, meaning the towage, is covered, as are costs relating to the preparation of the tow. Importantly, if additional insurance needs to be taken out by the member, such as Shipowners’ Liability Insurance, that premium will be regarded as removal expenditure and is covered. Towage Certificate of Approval Unless the towage is of a very limited character, a Certificate of Approval must be obtained following inspection of the towing tug and all towing equipment as well as the vessel to be towed. The Certificate of Approval should be issued by a preapproved organisation by the Club. The organisation chosen should be consulted before any tug is contractually committed, in order to safeguard that inter alia minimum bollard pull, towing gear, passage plan and other performance records are met. Greatest exposure lies with P&I Marine underwriters assist the owners in making tow arrangements, as has been described above, and indemnifies for the costs of the towage. However, the greater exposure lies with the P&I club, with risks like pollution, environmental damage, collision and or contact with third party property, cargo loss or damage, wreck removal and personal injury or death claims. These risks are exacerbated compared to an ordinary shipping operation, by the fact that you have two vessels in close proximity to one another. If the tow commences without written approval of the Club, the member risks prejudicing their P&I cover; however, claims which arise in any event under the standard P&I rules are still covered. Bear in mind that contractual towage liabilities are only covered by the P&I club to the extent that those liabilities and costs fall within any P&I rule; otherwise they are excluded. Historical view Towage contracts actually have a place in P&I history and development. In a case T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 -casualty towage PHoto: iStockphoto from 1936 called Furness, Withy & Co., Ltd. v. Duder, (1936) 55 Ll. Rep. 52 there was a dispute whether a hull policy covered the vessel’s (the tow’s) liability to tug under the towage contract or not. There was no dispute that the tug was fully to blame for the collision between the tug and the tow (the vessel) in tort – but under the towage contract the tow (the vessel) was liable to pay for the damage, although the collision was solely due to the negligence of the tug. Underwriters successfully denied liability under the insurance policy on the grounds that the tow’s/vessel’s liability to pay arose not as a consequence of the collision, but by virtue of the terms of the contract, and that the sum was not paid by way of damages for a tortious act. In summary, hull did not cover this, and at that time this was an excluded liability under the P&I rules. It was subsequently decided that the P&I rules should be extended also to cover liabilities arising from (towage) contracts. Shipowners’ Liability Cover? What happens if the towage is considered too risky for the P&I club to approve the towage? As a mutual, the Club owes an obligation to the collective membership to determine where the tow is too hazardous to be a mutual risk. If this is the case, the member should purchase a Shipowners’ Liability Cover. This in effect buys back standard P&I cover from the insurance market. The Swedish Club can and will assist their members with this ancillary cover. The limit is flexible but is normally around USD 10-50 million, and premiums are negotiated on a case-by-case basis. The costs of the insurance may be recoverable from the marine underwriter (see above) or it may form part of expenditure in a General Average, if any. Towage contracts – synopsis Remember that any new contract means a new contract-based risk. From a P&I perspective, the member must, as mentioned earlier, seek the Club’s written approval to ensure that he enjoys undisturbed and full P&I cover. There is of course a wide variety of towage contracts around, but there are only a few that would be acceptable to a P&I club. For ocean towage, only towage contracts based on the knock-for-knock liability regime would be approved by the Club. For ocean towage the Club would not normally approve the UK, Netherlands or Scandinavian towage conditions, as they attempt to place all liability on the tow. For an ocean towage, the risks are just considered too high with these types of exculpatory and burdensome contracts. Typical standard contracts that would be approved, if unaltered, would be Bimco’s Towcon and Towhire contracts. The caveat here is, of course, that, if there are any special terms added or any amendments made to the standard wording, such as partial or complete deletion of original clauses or insertion of new clauses, which will affect the traditional liability system, this means that the contract needs to be reviewed by the Club before approval. If a party does not wish to be bound by specific terms, then they need to make this very clear to their contracting counterparty. Otherwise there is a risk that the party will be bound by the terms as is. Full service As a full service and all-in-one marine insurance provider, The Swedish Club is especially well geared to assist and guide members with all aspects of salvage and post-casualty situations. We can and will assist members with hands-on and legal advice as well as assistance to resolve any post-casualty towage situation as effectively as possible. 5 T H E S W E D I SH CLUB TRITON 1-2011 P&I | Drug Trafficking José E. Cruz Director, Maritime Claims-Americas New Orleans, US Since 2003 José E. Cruz has been a Director at Maritime Claims-Americas, Inc. (MCA) a USA bonded corporation that provides claims handing for several P&I clubs in Latin American Ports. Mr Cruz was Consul General of Ecuador and Dean of the New Orleans Consular Corps from 1999 to 2003, a seasoned bilingual business person, born in Guayaquil, Ecuador. The comings and goings of illegal drugs and chemi ”…particularly in the last few months, events have been developing in Latin America that require proactive attention on the part of those involved in the shipping industry.” The illegal trade in drugs and chemical precursors as well as the production, distribution, use and money laundering are present in one form or another in every country in the world. However, Latin America and particularly South America is a high-risk zone both because of its enormous production and proximity to the largest consumers. The traffic in illegal drugs is headline news, but we should also be watchful of the precursor agents for the production of drugs. In recent years, and particularly in the last few months, events have been developing in Latin America that require proactive attention on the part of those involved in the shipping industry. Under the banner of better control, Latin American countries, particularly Venezuela and Ecuador, have been introducing new regulations that place the burden of proof on the accused. While there are measures that might help in providing proof of lack of intent by members, the best measure is prevention. Prevention through awareness This article intends to encourage awareness and to identify some of the latent threats in the maritime industry so that preventive measures can be taken as regards the vessel, crew and cargo handling. Prevention is crucial since once an illicit substance is discovered dire consequences can arise. 6 T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 PHoto: iStockphoto cal precursors Largest producers COLOMBIA: “... illicit producer of coca, opium poppy, and cannabis; world’s leading coca cultivator…167,000 hectares in coca cultivation.” PERU: “world’s second largest producer of coca leaf ... 36,000 hectares ... second largest producer of cocaine, estimated at 210 metric tons of potential pure cocaine ... finished cocaine is shipped out from the Pacific ... increasing amounts ..., are being moved to Brazil, Chile, Argentina, and Bolivia for use in the Southern Cone or transhipment to Europe and Africa”. BOLIVIA: “world’s third-largest cultivator of coca ... 29,500 hectares under cultivation ... third largest producer of cocaine, estimated at 120 metric tons potential pure cocaine ... transit country for Peruvian and Colombian cocaine destined for US, Mexico, Brazil, Argentina, Chile, Paraguay, and Europe”.1 While we have singled out the main producers, most other countries of Latin America and the Caribbean are involved in this illegal trade whether in production, transport, transhipment or money laundering. Main consumers The United States of America, Brazil and Europe are respectively the largest, second and third largest consumers of cocaine. Each European country has its own pattern of consumption, but there, the use of synthetic drugs is on the rise. The comings: illegal precursors and synthetic drugs Precursor chemicals are produced and shipped from first world and developed countries. USA, Chile, Argentina, Europe and Asia are generally the source of precursor chemicals for South American cocaine. In addition, a growing trend in the use of synthetic drugs is creating a market for the sale and shipment of medicines and chemicals that will certainly continue to surface in the future. Noteworthy is the alarming increase in Germany’s and Great Britain’s production and use of synthetic drugs. The goings: a USD 400 billion business In order to realize how large this trade is, we refer to the following quotation from a United Nations Publication: “With estimates of $100 billion to $110 billion for heroin, $110 billion to $130 billion for cocaine, $75 billion for cannabis and $60 billion for synthetic drugs, the probable global figure for the total illicit drug industry would be approximately $360 billion. Given the conservative bias in some of the estimates for 1Central Intelligence Agency (https://www.cia.gov/library/publications/the-world-factbook). 9 continues on page 8 7 T H E S W E D I SH CLUB TRITON 1-2011 P&I | Drug Trafficking 9 continued from page 7 individual substances, a turnover of around $400 billion per annum is considered realistic.” 2 been hollowed-out and filled with cocaine, and over a thousand pounds of the drug was discovered and destroyed.” Cargo: be knowledgeable about the substances being shipped Sadly, the list of drugs, plants and chemicals which are used as illegal “recreational substances” is very large; and many medicines are used and abused for this purpose. Traffickers will sometimes use legitimate shippers to hide drugs, camouflaging drugs in bananas, furniture, canned goods or by misrepresenting cargo. Detailed knowledge of the chemicals and drugs that present risks is good preventive medicine. Useful information and details are available from the Controlled Substances Act of The US Food and Drug Administration, on their website. 3 Crew: prevention and education Drug lords and traffickers will use all means, even live or dead bodies, for the trade and transport; they are a constant threat, ever on the lookout for opportunities; with such high rewards, corruption is possible. Crew, officers and staff must be drug-free. Preventive measures that include drug-detecting PEME-tactics should be used to prevent problems among current and particularly from new staff. When possible, periodic drug testing systems should be applied by independent and expert institutions. Drug users are a primary target of traffickers who entice or blackmail them into the trade. Drugs don’t get on board by themselves; someone has to put them there! Crew on board and staff ashore should be well educated and briefed on this subject, so that they may help to detect, identify and prevent contamination with unending vigilance. Remind them that they also are at risk. ”Drugs don’t get on board by themselves; someone has to put them there!” Vessel security With so much to gain, traffickers may attempt to use the vessel or hull to camouflage drugs in secret compartments, even using divers while in port, to attach to the hull or inside the rudder space. Vigilance, security and crew participation are crucial for detecting and denouncing suspicious illegal activities. Be cautious of local national guards at the port, as corruption can be part of the problem. Recent developments in South America As mentioned before, the illegal trade in narcotics and its context is present in all countries; however, manipulation of the judicial system by the governments of Venezuela and Ecuador has deteriorated expectancy of justice. Due process or as in Spanish, “debido proceso”, does not exist and is not even understood in Venezuela or Ecuador, at least not as we would understand it; as proved by recent events in Quito in what was termed a “coup”. Corruption makes matters worse. Quoted from “El Comercio de Quito” 2/12/2011, (Free translation) “One out of four Ecuadorians paid some sort of bribe to the Courts last year” is the conclusion reached by the Vanderbilt University (USA) study “Latin American Public Opinion Project”. Venezuela is ranked 164th out of 178 countries, Ecuador 127th in the “Corruption Perception Index of Transparency International”, tabulated on the perception of corruption in the public sector by the Berlin-based group. Once one is detained, freedom can be difficult, tricky, expensive and lengthy. Chile is the most judicially transparent country in Latin America, ranking 21/178; nevertheless, drugs related maritime incidents can be costly and long drawn out. Here is a brief from Mr Patricio Valenzuela, MCA Correspondent in Chile: “Although Chile is at the extreme southwest of South America, traffickers from the north also try to use our country to ship drugs to Europe, the USA and Africa. Recently, in late 2010, the authorities in Chile were able to discover a new method used for hiding this cargo. With the intention of shipping through a port in Chile, in a container that had been loaded with wood in Santa Cruz, Bolivia, a mobile X-Ray inspection by authorities was able to detect a different density in the logs. The logs had Once an incident occurs, experience and know-how must be applied Every member should have a protocol for the captain and crew to follow. The local correspondent should vet these protocols and must have one for the local actions that need to be implemented, as these will prove to be crucial to the outcome. The press historically has been incendiary and has prejudged circumstances; therefore, the protocol should include prudent management of news. The correspondent must have pre-established plans, using expertise, transparency and experience combined with an urgent response. Only expediency may help to diminish the incident. The following are the core of a protocol for such incidents 1. 24/7 presence at portside by the correspondent’s agents to generate actions immediately upon detection 2. Protocol by the correspondent to advise captain and crew as pertaining to local laws and expectations 3. Emergency notification to member and club 4. Application of emergency protocol by local correspondent Conclusion In conclusion, prevention through education, awareness and preparedness remaining always attentive to suspicious acts, conduct and cargo is the best remedy, since benefits from this illegal trade will always be a hazard to maritime transportation. Quoting an Ecuadorian banana exporter, Mr Juan Jose Pons, who deals permanently with preventive measures: “Traffickers will find a way of trafficking while there is a market; that is the great tragedy”. So, be alert and prepared. Disclaimer: Any views or opinion presented in this article are solely those of the author and should not in any way be considered a legal opinion. 2Report of the International Narcotics Control Board 2007 (http://www.incb.org/incb/annual-report-2007.html) 8 3http://www.fda.gov/RegulatoryInformation/Legislation/ucm148726.htm T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Marketing & Business Development | State of the Market A business built to last The Swedish Club has a very proud and long history – it dates back to 1872 when a group of steamship owners decided to get together to form a mutual association in order to gain access to comprehensive and cost-effective insurance coverage. Today, 139 years later, much of the world and the daily realities in shipping and in insurance look very different. During the course of our history we have experienced two world wars, a number of recessions and tense political situations or conflicts that have affected the world in general and shipping and insurance in specific. Lots of things have changed no doubt, but the soul of the Club and our basic mission are still there to de delivered and fulfilled. The principle of mutuality remains strong and is still our guiding star when we act and express ourselves externally as well as internally. As a matter of fact, mutuality and the way the Club has interpreted its meaning over all these years has probably been the most important individual factor for the Club’s development, survival, progress, where we are today and where we will be in the future. Continuing on a steady course Today your Club is stronger financially than ever, and at the same time our portfolio is bigger than ever when it comes to P&I. Last year was yet another year of delivery from the Club in which we once again managed to demonstrate that our focus on high quality tonnage and owners coupled with a transparent and disciplined underwriting approach is a good recipe for sustainable results. You will see from our annual report that 2010 evidenced satisfactory performance in all lines of insurance and an encouraging result from our financial portfolio. As a member of the Club this should be reassuring for you, and as a member to be, it should be tempting and attractive to become a member in such a strong and robust Club. An increased drive for diversification In the last couple of years our Business Development Group have been busy both in looking at new areas of business as well as analysing and drawing conclusions from the current portfolio. This has resulted in some considerable changes for the Club and our portfolio. During the past year we have focused on and managed to further diversify our marine portfolio by writing more Increased Value, War and Loss of Hire. As from 20 February this year we have entered the property insurance market for Mobile Offshore Units and FPSO’s and have begun writing a new class of insurance. So far, we are pleased with the developments and the warm welcome we have received from both the broking community and owners. The timing of this new venture has been good, and our long-term commitment to this interesting segment we understand has been much appreciated. Significant P&I growth In previous articles I have written about the positive development that we have enjoyed in the last couple of years when it comes to the P&I side of our business. Having just finished the 2011/2012 renewal, it is very pleasing to be able to report that the renewal Henric Gard Director, Marketing & Business Development ”You will see from our annual report that 2010 evidenced satisfactory performance in all lines of insurance and an encouraging result from our financial portfolio.” went well and that we can continue to envisage good progress in this core line of business. During 2010 we have also had the pleasure to welcome several new members to our Club. This has inspired us to continue our efforts to develop the Club with additional high quality tonnage and owners, but – as before – volume can never prevail sustainability and quality. Marine – leading rather than following The marine market continues to be challenging, although the 2010 marine result was very encouraging. Our offer to the marine market is unique and our main task is to explain that fact to brokers and owners in order for us not to be compared incorrectly with very different business models and different service concepts. The Swedish Club is and has always been a lead market with a service concept, reach and capability second to none. Comparing our offering to pure capacity providers is comparing apples to pears, and we will have to make sure that this major difference is understood and hopefully also appreciated. At the end of the day, the true value of any insurance policy is tested when the policy holder is asking the leader to fulfil his promise. By having The Swedish Club in the lead position, brokers and owners should feel that they are in the very best of hands – that is our marine mission! Strong and resistant As you might have noticed, the theme in our last two annual reports has been different local fortresses, located on the Swedish West Coast. Yet another fortress will be the theme for our 2010 annual report, which will be available in May. Why is that so? A fortress is in our way of thinking a symbol of stability, strength and protection in testing times and in rough weather. It is simply something that is built to last, and so is The Swedish Club. Thank you for your continued support and rest assured –“we are with you all the time and all the way”. 9 T H E S W E D I SH CLUB TRITON 1-2011 PHoto: Scanpix/AP Photo/Pat Roque Fire | Ship Fire and Explosion Investigation To allocate respo Neil Sanders Partner Burgoynes, London Neil Sanders is a partner with Burgoynes, which investigates incidents for insurers, ship owners, company owners and others and is particularly well known for investigating ship fires and explosions. Neil trained as a chemical engineer and spent 8 years in industry before joining Burgoynes in London in 1997. He spent 3 years in Burgoynes’ Singapore office and is now back in London, where much of his work involves investigating fires and explosions on ships and on land. 10 ”Common causes of ship fires include hot work, fuel oil leaks and smoking as well as causes associated with cargo such as self-heating.” Ship fires and explosions are not common, but can be expensive and disruptive. Investigating them allows us to find the cause and consider related issues such as how the fire spread. This may help when considering claims from other parties; possible recovery of costs against other parties; whether insurance conditions have been complied with; and the value of salvage work. Knowing the cause may also help prevent further incidents or identify criminal acts. Overall investigation approach The same general approach applies to all investigations, although familiarity with the type of ship, equipment or cargo involved T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Philippine passenger ferry "Super Ferry 14" on fire southwest of Manila, February 2004. nsibilities and reduce risk can help. Evidence should be gathered systematically and considered objectively, without focusing too early on one particular aspect or item. Theories and scenarios must be thought through, tested against the evidence, and modified or discarded as further evidence is obtained. By the end of this process the cause (or range of possible causes) that fits all the evidence should become clear. Physical evidence Fire and explosion scenes on ships can vary from a single cabin, or one engine, to whole holds or even an entire ship. We usually start from the outside and work in, initially without disturbing anything, until it is possible to focus on one area of interest. In the case of widespread damage it is often necessary to use other sources, such as witnesses, to indicate where the fire started. It may then be necessary to excavate fire debris, or partially empty a hold, or dismantle machinery to find the cause. Fires and explosions often destroy evidence, which can make an investigation more difficult. It is important to look at surrounding areas, even beyond the damage. For example a pump and pipe system might have caused a problem at the far end of the pipe, well away from the pump. Another example is a large cruise liner fire in which hundreds of cabins on several decks were burned out. They all looked similar, with hardly anything left inside, but witnesses could identify the cabin where the fire was first seen. A look outside the surrounding bulkheads around the cabin revealed evidence of welding work that ignited materials inside the cabin. A further example is a small chemical tanker in which explosions spread to destroy most of the cargo area. Even though most of the bulkheads between tanks had been displaced, careful examination of the direction in which each bulkhead had been torn away from the shell indicated the tank in which the explosion started. 9 continues on page 12 11 T H E S W E D I SH CLUB TRITON 1-2011 Fire | Ship Fire and Explosion Investigation To allocate… 9 continues from page 11 Electrical evidence, such as the location of arcing damage on cables, may help to indicate where a fire started. All investigations may end up in Court, so it is important to take photographs and make notes that can be used later to demonstrate the evidence found, particularly once the investigation moves on to excavation or dismantling which cannot be reversed. Witnesses and other evidence Witnesses can often be helpful, for example indicating where a fire was first seen or providing information about the events leading up to the fire or explosion, such as what equipment was in use, what work was being done, or what problems had been encountered. However witnesses are not always reliable, either because they do not remember correctly or because they would rather not admit something. For example smokers may be unwilling to admit smoking after a fire has occurred. Press reports sometimes appear soon after the incident. They should be considered but are not always correct. In a recent incident of hull damage to a large tanker the early press reports, some originating from the local authorities, mentioned freak waves and hitting rocks as well as explosions (terrorist and otherwise). Inspection showed that a terrorist incident was to blame. Memory data logs from control or detection systems can assist. For example, in car carriers each deck may have many ‘addressable’ smoke detectors. In a fire that spreads widely, the origin may not be clear from the physical evidence but the location and order of operation of the smoke detectors may indicate where it started. Detailed investigation Once the origin of a fire or explosion has been identified, detailed investigation work on items or equipment in that area may be needed. For example, where a fuel oil leak at an engine has led to a fire, parts of the engine may be dismantled to find the leak and metallurgical work may be required to determine the basic cause of failure. Other factors may need to be considered such as whether parts of the engine were shielded and insulated according to SOLAS (International Convention for the Safety of Life at Sea) regulations. Cargo fires may require testing to determine, for example, whether the cargo self-heats or how it reacts with contaminants. Ship’s fire fighting systems It is usual to inspect the ship’s fire fighting systems including fire detection; suppression such as CO2; fire pumps; emergency generators; ventilation dampers; compartment doors and remote shut-off valves for fuel systems. Some of these items may not have operated properly, and the time taken to operate systems such as CO2 suppression may need to be considered. In the case of a failure or delay it may be necessary to consider what difference it made to the severity of the fire. 12 Common causes of ship fires The following is not a complete list, but it is intended to illustrate the common causes of ship fires we encounter. Accommodation We still come across fires caused by smoking. Cooking fires are another common cause, as are fires caused by hot work such as welding or flame cutting. Deliberate fires have occurred in ships’ accommodation, which may be indicated by lack of alternative causes or by a previous history of unexplained small fires. Electrical appliances or installations can also cause fires. Engine Room Fuel oil leaks, often being ignited on hot exhausts, are still a relatively common cause, although the SOLAS regulations aim to avoid this. Fires caused by hot work, electrical faults and deliberate ignition all occur in engine rooms. Cargo Smoking remains a relatively common cause of cargo fires. Electrical installations occasionally cause cargo fires, for example cargo lights left ‘on’ and buried in bulk cargo. Vehicles have also caused fires in car carriers and in other types of ship where they are carried as cargo on the return voyage. Self-heating is relatively common and can occur in container cargos (such as calcium hypochlorite or charcoal) or in bulk (such as coal or edible oil extraction residues). In recent years the shipping of rechargeable batteries has increased and some cargo fires are attributable to them. Cargos with flammable vapour, in tankers or otherwise, present an obvious risk of explosion and fire. Ignition sources for flammable vapour include static electricity discharge; friction in pumps etc; electrical equipment; hot work and even thermite sparks due to impact between aluminium and rusty steel. Summary Ship fire and explosion investigation should be approached in a systematic way, with a continual evaluation of evidence and testing of theories developed. As well as physical evidence, information such as witness evidence and data logs is often important. Common causes of ship fires include hot work, fuel oil leaks and smoking as well as causes associated with cargo such as self-heating. Proper investigation of incidents, with the Court process in mind, should help to identify where particular parties are responsible, as well as to enable owners, shippers and insurers to reduce risk. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 PHoto: morgueFile/Stefan Eliasson Underwriting | Renewals Marine/P&I All vows renewed! This year once again our members showed their appreciation of the high quality level of service being delivered. We are, needLars A. Malm less to say, extremely grateful for the renewed vote of confidence Director, Risk & Operations which the renewal is actually all about. We do take pride in being highly sophisticated in terms of our technical underwriting Unlike a regular marriage, the vows of P&I, FD&D skills and our ability to responsibly rate risks over a horizon and and Marine insurance policies are renewed annually. Maybe it to manage the inherent cycles in the industry. As to the latter wouldn’t be entirely wrong to have the same tradition in place for part, this is the most important task for us right now and going all kind of relationships? forward. It is of particular importance to stand our ground when Using the analogy of a marriage to describe a contract of insubeing compared to the influx of capacity to the Marine insurance rance may to some people seem a bit odd. When you think of it market, which has little or no ability to lead business. though, there are several common denominators. At the end of the If we turn to the P&I and FD&D renewal, the Club managed day it all comes down to each party’s promise to deliver and how well and in line with our targets. The gross premium on renewed that delivery is perceived: owners’ tonnage was amended upwards by some 3%, which was slightly better than target. Volumewise, we met our target and it is again pleasing to see that there is a “to have and to hold from this day forward” substantial addition committed for the 2011/2012 (the agreed policy period) period. As for the 1 January Marine renewal, it progressed “for better, for worse, for richer, for poorer,” according to plan. Volumewise, we managed slightly (handling and settling claims – paying premiums) better than forecast and as to rating we follow a long “in sickness and in health,” term view which provides members with continuity (supplementary calls – return of premiums/deferred calls) and predictability going forward. We are committed to not repeating any historic mistakes in relation to “to love and to cherish,” less fortunate cycle management. (issuing securities and giving benefit of doubt – organic growth) Being a member of The Swedish Club is obviously “till death do us part,” not a commitment for life, but we do walk the extra (total loss) mile in order to maintain relations for as long as possible. Handling claims in a professional and timely “according to God’s holy ordinance; and thereto I plight thee my troth.” manner is what counts in the eyes of our members (Articles of the Association, current Rules and Circulars) and business partners. The true test is; whether members and business partners feel that the product deIf delivery in a relationship is not on a par with expectation livered reflects the rate charged. We take pride in never parting – then the viability of the relationship is questionable. ways because of poor performance. 13 T H E S W E D I SH CLUB TRITON 1-2011 Piracy | Somali Piracy Today Owners have to reconsider their measures against Somali piracy! During and prior to 2008 Somali piracy was limited to the area of the Gulf of Aden. Somali piracy events that captured the attention of the general public that year included the hijacks of MV BBC Trinidad, MV Amiya Scan and SY Ponant. It was very clear from those early 2008 incidents, and has been confirmed by every incident since then, that Somali piracy is nothing more than maritime kidnap for ransom of the ship and crew. Ransom negotiations took place in order to release the crew and ship for an agreed sum of money. This remains the pirate’s business model today. The pirates offer the captured ship and crew to the only interest in the world who will pay good money for them – the owners. The negotiation takes the form of an aggressive business negotiation, albeit usually with life-threatening threats and menaces from the pirates. Anti-piracy forces deployed to the Gulf of Aden Since 8 December 2008, the international community has deployed anti-piracy forces to the Gulf of Aden, with usually more than 30 warships deployed on anti-piracy patrols at any time. The Somali pirates reacted by extending their operational ’hunting’ grounds to the Somali Basin and beyond. The pirates’ tactics continue to evolve and adapt, and ships are now under threat from the Red Sea in the north to the Mozambique Channel in the South and as far east as the coast of India. 2009 marked a change in Somali piracy The case of MV Hansa Stavanger in the spring and summer of 2009 marked a change in Somali piracy. The vessel was captured in the Somali Basin. By that time more Somali clans had become involved in piracy; which was as early as 2009 a business worth hundreds of millions of US dollars in ransoms paid. Also during the case of the Hansa Stavanger the German public, and to a lesser degree the West European shipping community, became aware of the pirates’ pressure tactics against the owners. These included the use of torture against the crew, mock-executions, maltreatment and solitary confinement of individual crew members amongst other cruelties. Another phenomenon to be observed on the Hansa Stavanger was that the ransom negotiations were remarkably prolonged by the pirates for the sake of a few hundred thousand dollars more. 14 Thomas Nintemann Head of Legal & Insurance Dep Intership Verwaltungsgesellschaft mbH Haren, Germany The pirates have the time, the owners the money. Too hasty agreement by owners to pay all or most of what the pirates demand does not result in early release. Quite the contrary – too much offered too early by owners may actually extend the hijack; as happened in this case. Piracy demands are escalating By spring 2010 it became crystal clear that the trend of long negotiations for larger amounts of money that had started in 2009 was confirmed. The captures took longer, and the ransoms paid by the responsible owner got higher. The average period a ship was held by pirates was more than 120 days, and the average ransom paid for a single vessel was in the region of USD 5 million, with one or two in individual cases in the area of USD 10 million. The pirate tactic of ‘the long wait’ had arrived, with very high demands. The pirates’ aim was to extract as much money as possible from the owner in each case. Citadels not always an effective defence In the meantime, many owners, following the ‘Best Management Practice’ guides, established citadels on their vessels. Others put armed and very expensive security guards on board during the vessel’s passage through the Gulf of Aden and the Somali Basin. Whilst citadels have worked on many occasions in 2010, the fate of the MV BBC Nomination showed that a citadel is not always an effective defence. If the pirates have sufficient time to cut their way into the citadel using oxyacetylene or mechanical cutters, they will do so. The pirates have also used hostage crews from captured ships already held as ‘human shields’ to deter interference from warships while they cut their way into the citadels. 9 continues on page 16 T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 PHotoS (montage): US Navy & iStockphoto ”pirates…!?” ”pir a te s …! ?” “It is a serious mistake by owners to underestimate the ability of Somali pirates to adapt and improvise. The situation is fluid with a constant evolution of tactics by the pirates in reaction to defensive measures by the shipping community. “ 15 T H E S W E D I SH CLUB TRITON 1-2011 Piracy | Somali Piracy Today Photo: US Navy photo 9 continued from page 14 The use of captured hostage ships as ‘mother ships’ has also extended the range and duration of pirate hunting patrols. Nor are the pirates any longer limited to operating only in the inter-monsoon periods. It was also reported in January 2011 that MV Leopard was captured by pirates near Salalah AFTER she had dropped off her armed guards. If owners do employ armed guards, where do they embark and disembark? Assumptions about the limits of the pirates’ range of operations are constantly being challenged. Ability to adapt and improvise It is a serious mistake by owners to underestimate the ability of Somali pirates to adapt and improvise. The situation is fluid, with a constant evolution of tactics by the pirates in reaction to defensive measures by the shipping community. The hijack of the MT Marida Maguerite and crew in the latter half of 2010 showed that Somali pirates, or at least some of them, will not shrink from using the most extreme violence against crew members. Some individual crew members on some hijacked vessels have even declared solidarity with the pirates in the hope of improving their own situation. Emotional and psycological burden can be considerable The pressures and tactics used by pirates against owners and the mistreatment of crew put great stress and strain on the owners’ crisis management team during negotiations. The team has to avoid overreacting and must stick to the selected negotiation strategy. This is a lot to ask and expect from an employee appointed by his employer to be a member of his crisis management team. The emotional and psychological burden can be considerable. The employer should ensure that crisis team members are carefully selected and trained IN ADVANCE. Or he should engage external and experienced professionals specialised in such negotiations. The problem with this last is that, 16 Suspected pirates in Gulf of Aden, February 2009. with usually more than 30 ships held by pirates at any one time, the supply of experienced negotiation advisers is very limited. However, if a vessel is hijacked, this does not mean that the crew will always be mistreated. Much depends on the pirates and also on the manner in which the owners conduct the negotiations. But cruel treatment and distressing pressures cannot be excluded in advance. So the owners’ crisis management team must be prepared by prior training and briefing for such eventualities. There is no offshore solution Somali piracy is likely to remain a serious problem for shipping for perhaps the next decade. There is no ‘offshore’ solution. If piracy is to be brought under control it must happen as a result of treating the causes, not the symptoms. That means a solution on land under a stable and pacified Somalia following a strengthening of civil society and law enforcement, particularly in Puntland. Anti-piracy co-ordinator Meanwhile, it is prudent of owners and their responsible underwriters to appoint an employee as the ‘lead’ or ‘anti-piracy co-ordinator’ in each owner’s and underwriters’ group, as much for prevention of piracy as for managing a hijack incident should one occur. It is vital that during negotiations owners and underwriters remain as professional and as focussed as the Somali pirates. This can only be ensured by the constant engagement of owners and their underwriters on questions of Somali piracy. Owners must be prepared to deal with the problem Waiting for the international institutions to effect a solution to Somali piracy in Somalia is not an option for owners. This may or may not come about. Shipping and Somali piracy do not have such a huge political impact on international affairs. This might change if the rate of attrition of ships by pirates increases beyond the two captures in every thousand transits that is the current average. But for now owners and their underwriters must be prepared to deal with the problem of Somali piracy on their own and with very little – if any – outside assistance. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Piracy – A never ending story....? All Piracy and Armed Robbery incidents are reported to the IMB (International Maritime Bureau) Piracy Reporting Centre. A daily update can be found on http://www.icc-ccs.org Published with courtesy of IMB Piracy Reporting Centre (PRC). 17 T H E S W E D I SH CLUB TRITON 1-2011 n Case r o C a b o: ot PH Mo rg i le uef The A qa Loss Prevention | Case Study P&I CARGO CLAIMS are a common aspect of shipping, but sometimes a shipowner is faced with an outof-the-ordinary cargo claim involving an exaggerated request for security, almost temporarily keeping the vessel hostage in a less than ideal place. This is a study of one such claim and how the Club might assist in resolving the migraine of a situation that may arise. Background In February 2008, some 17,500 mt of yellow corn in bulk, bound for Aqaba in Jordan, was loaded onto m/v Silver Star at Kakinada, India. The vessel was under a one trip time charter on the NYPE (New York Produce Exchange) form. The loading was carried out at the anchorage where cargo in bags was transferred from barges to the ship’s holds. The bags were opened in the holds by the stevedore labourers stationed there and thereby turned into bulk corn cargo. The voyage was uneventful. However, shortly after the vessel’s arrival at Aqaba, the local cargo receivers started complaining about the cargo and refused to continue the discharge. Various concerns were raised about the condition of the cargo, but the main issue was that the cargo was allegedly contaminated by human excrement and that this might result in the rejection of the entire cargo by the local health authorities. The contamination existed throughout the cargo in all holds, and consisted not only of 18 A study human excrement but also, for instance, of jute bags, stones, plastic, rubber, threads and other foreign matter. Some more localised cargo was also found either to be heat-damaged or to have an increased moisture content and in a state of caking. The cargo claim The cargo receivers lodged a claim against our members, the vessel owners, for about USD 1.3 million. The majority of the claim referred to the contamination of the cargo, but a smaller part referred to localised heat or mould damage to cargo in hold no 5 and also to some caking damage to cargo in hold no 1. The cargo receivers threatened to arrest the vessel and demanded payment of their claim in full and in cash. Only security by way of a bank guarantee for close to USD 2 million was accepted to allow the vessel to sail without any arrest or other interference with the operation of the vessel. No discharging of cargo was allowed in the meantime. Appointment of experts Given the complexity of this case, leading London cargo experts were instructed at a very early stage, and one of their senior surveyors was dispatched to investigate the matter on site at Aqaba together with a local surveyor already attending. In addition, English and Jordanian lawyers were put on stand-by so as to consider how to best resolve the impasse and how to best protect our members’ position in respect of a future potential indemnity action against charterers. The cause of damage The human excrement found throughout the cargo was caused by the stevedores, who it transpired used the holds as a toilet during the loading at Kakinada, India. At times there were no less than 50 stevedore labourers stationed in each hold. The other foreign matter found throughout the cargo was in part a result of the loading process (packing material) and in part commingled with the cargo before or during loading (stones, plastic, paper, rubber etc.). The other damage in respect of localised mould and caking damage could either be traced back to heating of the vessel’s bun- T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 of a cargo claim ker tanks during the voyage or to the fact that it appeared that some rainwater had entered one hold in particular at Kakinada. An early case assessment It quite soon became apparent that not only were these cargo receivers difficult but the local context was also problematic. The position under local law for this claim was not helpful and, furthermore, the entire cargo could potentially be rejected. In a similar vein, the local courts would seize jurisdiction of any cargo claim, despite any references to London arbitration and English law under the bill of lading. Against this backdrop, the Club and members considered how best to resolve the situation. Following some further investigation and consultation it became clear that a negotiated amicable settlement should be explored now, whilst the vessel remained at Aqaba, rather than trying our luck in the local courts and thereby also having to provide for a USD 2 million bank guarantee which might turn into a hostage of fortune; no other form of security was accepted or recognised by the local courts. Apart from the liability aspects, the loss of value to the cargo was considered in some detail by the London cargo experts. This assisted in assessing the reasonable amount of any potential settlement. There was also some detective work involved in seeking to quantify how much loss was a result of each individual claim item. All these exercises would also prove helpful in relation to any future indemnity claim against the charterers. Settlement of the underlying cargo claim Some eleven days after the vessel’s arrival at Aqaba, and after some rather intensive negotiations, a full and final settlement was reached with the cargo receivers at USD 440,000 (all inclusive). The discharge was resumed at the receiver’s risk and the vessel sailed shortly thereafter. The charterers were kept informed and consulted from an early stage but they, not entirely surprisingly, preferred to keep their involvement in this matter at arm’s length, at least as long as they could. We now started looking to recoup some of the losses and we, again, turned our attention to the charterers. Indemnity claim against the charterers The charter party incorporated the 1996 Inter-Club Agreement (“ICA”) and any cargo claim as between the owners and the charterers should, therefore, be apportioned according to the mechanical formula set out therein. The purpose of this formula is to Mats Segolson Senior Claims Executive Team Piraeus provide for rough and ready justice with 0/100, 50/50 or 100/0 apportionments. The charterers initially raised some issues in respect of the quality specification of this cargo and argued that the bills of lading should have been remarked in some fashion. For some time the charterers attempted to make the absence of any remarks in the carriage documents into a silver bullet in the negotiations. Despite the attempts from charterers to cloud this indemnity claim, there was a silver lining and, on the facts of this case, their bullet missed by some margin. After a perhaps rather protracted approach by the charterers and their insurers, an amicable settlement was achieved whereby the majority of the underlying cargo claim was ultimately indemnified by the charterers. Summary and practical considerations Cargo claims can sometimes be a serious headache. In some jurisdictions and circumstances, there may be little choice but to deal with the claim head on and settle there and then rather than to provide security and resort to the local courts. Potential subsequent recovery actions, if any, should also be gauged. They say prevention is better than cure and not infrequently making suitable precautionary measures at the port of loading, and making good use of surveyors, preferably in consultation with the Club, may avoid much of the headache later. The following points may otherwise provide some remedy. Consider appointing suitable experts early on to investigate and preserve best possible evidence. Consider making a global assessment of the matter with the Club early and how to best resolve it. In reaching an early potential settlement, if appropriate, consider preserving a good paper trail on the steps taken, should the charterers, or whoever you are considering a recovery against, seek to criticise the settlement or the reason for any of the steps and decisions taken. 19 T H E S W E D I SH CLUB TRITON 1-2011 Loss Prevention | Case Study H&M/P&I Demolishing an unused dolphin An incident to punish or reward? A ship will usually pay a claim whenever they damage an object, either fixed or floating, during their navigation; the incident described below might possibly be an exception to this. One of our member’s ships arrived at the outer anchorage of her discharge port at Douala at 06.48 hours GMT on 10 October carrying about 21,000 mt of cement clinker and on an even keel of 8.4m in fresh water. During the course of the voyage the master had read the Sailing Instructions and studied British Admiralty Chart No. 1456, 3rd Edition, which had been printed on 10 June 2010. He was aware of the warning on the chart concerning navigation aids. It read as follows: ‘AIDS TO NAVIGATION’ – the aids to navigation on the chart are reported to be unreliable. They may be missing, or out of position. The master also noted that there was a warning on the chart, under ‘Channel Depths’, that there were places in the channel where the depths were no more than 6.1 meters above chart datum. Later in the afternoon, the ship agent called to tell the master that the pilot would board the ship that evening, and eventually the pilot boarded the ship off buoy B23 at 19.00 after the pilots had instructed the master to weigh anchor and proceed inwards. 20 Bruce Hung Claims Manager Team Asia The pilot told the master that they were to berth port side to No. 52 berth, and that before reaching that point two tugs would attend the ship to assist in the berthing. These tugs came up with the ship at 19.45 hours. One stood off the starboard bow, the other at the starboard quarter, accompanying the ship, whose speed had dropped to less than 5 knots. By the master’s estimate, buoy B40, which he confirmed was lit, was abeam to port at 19.59 at a distance of just under a cable. At about this time, and while the ship was turning gently to port, the pilot told the master that there was an unlit, disused dolphin in the river ahead and asked him to tell the chief officer who was at the bow, to look out and report whether he could see it. This the master did, and he was told by the chief officer that he was unable to see it. The master examined the radar but could see no echoes in the river ahead of the ship. However, less than a minute later the chief officer called again to say that he could see what looked like a large piece of wood floating on the surface just ahead of the ship and almost immediately the star- No sign of a dolphin after the contact. board bow of the ship hit the dolphin. The time was noted to be 20.01 hours. The third officer fixed the ship’s position and this is shown on the copy of the ship’s chart as illustrated. It will be noted that the dolphin lies practically in the middle of the fairway. From close examination of the chart it can be seen that a ‘tanker berth’ is marked in magenta and represented by three small squares, in line, lying in a NNE direction and placed on the eastern extremity of the deep water channel – about 1.9 cables NE of buoy B40. A cable north of the berth is a black mooring buoy. It has further come to light that the dolphins forming this berth were severely damaged as a result of a ship hitting it about ten years ago. It has never been repaired and all the disused dolphins, with the exception of one, have subsequently subsided to the riverbed, pos- T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Position where the collision took place at 20.01 hours. sibly due to multiple contacts with other ships in the past decade. It was this sole surviving dolphin that the ship hit, and as far as we know it has now fallen sunk to the riverbed. The master told us that he did not see the mooring buoy when passing the spot to the berth, and it is assumed that it has been removed by the port authority. Security The port authority detained the ship and demanded a Letter of Undertaking to cover their potential ‘repair’ cost totalling EUR 3 million from the shipowners. According to the investigation and advice from the local correspondent/ agent, it is clear that this dolphin was damaged some time ago, and that the port authorities are well aware of this, and it is general-ly agreed that their estimate for repairs at EUR 3 million is totally unreasonable. The local agent for the ship has also indicated that the port authority have confidentially advised that the matter will go no further, because it is common knowledge that the dolphin was already almost totally destroyed. Indeed it will be quite interesting to see how their claim will be constituted, given that the original jetty was nonexistent (and therefore had no value, indeed was a liability); the port authorities have suffered no loss. Punish or reward? After the event, we checked our records and revealed that the ship that damaged these tanker dolphins ten years ago was entered with the Club (H&M), and the owners had paid the port authority the repair cost of these dolphins; obviously the repair had not been done over the years. In fact, as a result of levelling the remaining dolphin, it appears to us that the ship has rendered a benefit to the port and this should be fully appreciated by the Harbour Master and his principals. Instead of making a claim, should they not be rewarding the ship for her assistance this time? 21 T H E S W E D I SH CLUB TRITON 1-2011 Loss Prevention | Safety Six steps towards improved safety 1. A positive company culture It is important to have a positive company culture and a unified plan for how to promote and maintain safety. It is not enough to have implemented a Safety Management System (SMS) with a well-organised navigation policy. The policy needs to be constantly challenged, improved and reviewed. The pursuit of improvement has to derive from top management within the company. Without guidelines from top management, the benefits and importance of this policy will just be something on paper. If the SMS is followed correctly, most accidents will be prevented. If an accident occurs, either the procedures have been ignored, the SMS did not identify the task, or it was not specific enough. So how can a hazard be identified? The best defence will be to have trained and competent employees who are dedicated and who understand the importance of safety. In order to be able to remedy the real problem, the root cause has to be identified. The Swedish Club has a liaison process with the member that we call Interactive Root Cause Analysis (IRCA), whereby the Club will identify the root cause and propose a suitable remedial measure. This benefits both the member and the Club, and the knowledge gained can be shared with other members, thus preventing the same root cause in the future. If two ships collide, the immediate cause is that they did not follow the International Regulations for Preventing Collisions at Sea 1972 (COLREGS). This root cause may vary considerably. It might be that the company did not verify that the OOW (Officer of the Watch) was competent, or that the OOW was using unfamiliar technology for which he had not been properly trained, or that the OOW was suffering from fatigue. 22 Joakim Enström Loss Prevention Officer ”The Swedish Club has a liaison process with the member that we call Interactive Root Cause Analysis (IRCA), whereby the Club will identify the root cause and propose a suitable remedial measure.” 2. Belief in safety How can we motivate people to understand that a safety system with an organised SMS will make life easier, safer and even more efficient? On the vessel, the captain needs to be able to promote a safety culture. With the 2010 update to the ISM code, it is now a requirement for companies to have a system in which risk assessments are completed. The difficult part is to motivate the crew to actually follow the work permit and risk assessment. A good system should probably penalise people who have not followed the system and have broken regulations, but it should not be a system in which people are not allowed to make mistakes. We all make The problem with safety is t have been improved, but by then i an area where it is problematic to m and not only represents an econom mistakes, and we should learn from them, but making mistakes is very different from not following the rules and defined procedures; that is complacency and ignorance and should never be accepted. What can the company do to ensure that their employees follow best practices and policies? The answer might probably relate to training. If the company is willing to invest money and time in their crew, the result will most likely be that the crew feel greater ownership in the company and the vessel. It is very important for the company to invest in an infrastructure that can deal with these issues in a quick and efficient manner without much effort. Such an investment emphasizes that it is even more important to have software which is userfriendly, but still complex enough to deal with many different issues. 3. Safe manning Another major problem onboard vessels is fatigue, which is most common on smaller vessels with few crew members. Minimum safe manning might be sufficient for some trades and areas, but it might not be applicable in areas with dense traffic or many port calls. Navigating a coastal vessel in Europe with two watchkeeping officers including the master might be acceptable according to the safe manning certificate, but the vessel’s trade might have changed and the number of port calls might have increased so that it is impossible for the watchkeeping officers to get enough rest. The MAIB (Marine Accident Investigation Branch) Bridge Watchkeeping Safety Study report from 2004 identified that most accidents around the UK occurred when there was only one officer on the bridge, and the major cause was fatigue. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 that it is so difficult to measure. After a major accident it is easy to identify all the areas that should it is of course too late. In these uncertain economic times it can be hard to motivate an investment in measure improvement and identify cost until disaster strikes. The cost of a disaster is always substantial mic loss but also a loss of prestige and goodwill. Prevention will be the best possible investment. It was identified that such undermanning is something that the IMO should try to rectify through the STCW (Standards of Training, Certification and Watchkeeping for Seafarers) convention. The recommendations made by MAIB were proposed by the UK’s Maritime and Coastguard Agency (MCA) to the IMO, but unfortunately there were no changes to the STCW code during the IMO Manila conference on 25 June 2010, which ratified the Manila amendments to the STCW code. The amendments did not implement any stricter regime for a vessel’s safe manning, in Resolution 6 it also reaffirms that any decision relating to ships’ manning levels is the responsibility of the administrations and shipowners concerned, taking into account the principles of safe manning adopted by the International Maritime Organization. This would have been an excellent opportunity to make the safe manning requirements stricter. Now it is still only up to the professional company to ensure that they have enough crew who are welltrained and competent. 4. Crewing Crewing today is probably the biggest problem facing the maritime industry. It is a well-known fact that there is a shortage of experienced and proficient crew. How this can be rectified is very hard to say. There is not only a problem in crewing vessels, but also a problem in finding competent people for shore-based positions. This shortage emphasizes even more training within the company, as crew members might be promoted more quickly than before. It is a tough equation to solve when there is a lot of new tonnage being built and less competent people to choose ”Crewing today is probably the biggest problem facing the maritime industry.” from. The shipping industry needs to have a long-term goal to solve this major issue and shipping companies need to identify how they can deal with this shortage and still maintain a good service. 5. Communication One of the most critical operations on a vessel is navigation. Implementing a welldefined navigation policy, with trained crew who understand their tasks/duties, might be one of the best investments ever. If the crew is confident in themselves, their equipment and their fellow crew members, they will be well equipped to identify a problem or risk when it occurs. In order to have an organised and motivated bridge team, it is very important that all team members have well-defined duties. Every team member should know what to expect from a colleague, and who is responsible for what. This system usually needs a minimum of two officers. By what means should an efficient bridge team be organised? First of all, the company needs to have a specific navigation policy where the duties of all bridge team members are explained, navigation requirements regarding , for example, Closest Point of Approach (CPA), cross track error, calling the master, environmental policies, explaining the capabilities and limits of equipment and how it should be used, and much more. It is imperative that the policy is being followed. The policy should be implemented by the captain and verified during internal audits. It is easy to write a navigation policy, but hard to implement it. For the policy to work there needs to be a belief on the part of shore management that it is something that will benefit the operation and increase safety onboard. 6. Safety training For the policy to work on the vessels, the captains need to be trained through seminars and captains’ conferences so they understand the importance of the policy and actually believe in it. If the policy is only seen as another requirement from shoreside, it will fail. For success to be achieved, it is essential that there is a good understanding and teamwork between shoreside and onboard personnel. If the company is able to implement a system where communication is clear and well-defined, it is likely that their actions will prevent many mistakes and accidents. To assist companies in implementing an efficient and professional safety system, The Swedish Club has a well-established and approved training programme regarding safety for the entire crew and not only bridge procedures. It is called MRM (Maritime Resource Management), which is a training programme that would benefit any shipping company. For further information about MRM, please visit www.swedishclub.com/Academy 23 T H E S W E D I SH CLUB TRITON 1-2011 Legal | NTCC Prof. Dr. M. Fehmi Ülgener Lawyer Ülgener Legal Consultants Law Office Istanbul Professor Ülgener is a part-time lecturer and Head of the Department of Maritime and Insurance Law at the Faculty of Law, University of Istanbul. He is also the owner of Ülgener Legal Consultants – a law office based in Istanbul, serving as legal advisers to major Turkish shipowning groups and also to the Turkish Chamber of Shipping. The firm is also doing extensive work with P&I clubs and H&M underwriters. Professor Ülgener is the Turkish representative on the Bimco Documentary Committee. The New Turkish Commer The New Turkish Commercial Code (NTCC) as legislated by the Turkish National Assembly was passed in January 2011. At the same time, the Turkish National Assembly has also passed the New Turkish Code of Obligations. Both laws will come into effect on 1 July 2012. In this article we will mainly focus on the changes that have been effected in the Fourth Book of the NTCC which regulates the Law of Maritime Trade as this regards the P&I club. Carriers’ liability – the new regime While the present regime (TTK) is in line with the Hague Rules, the NTCC creates a mixed system of Hague-Visby and Hamburg Rules. As per Article 1178, the carrier is liable for loss or damage to the cargo as well as losses arising out of delay. This seems to be the main essence of the Hamburg Rules, and significant evidence of deviation from Hague-Visby Rules. On the other hand, exceptions of liability because of loss or damage to cargo are the same as in the present commercial code, and similar to the Hague-Visby Rules, i.e. errors in navigation and fire are straightforward exceptions, while perils of the sea, war, warlike operations, inherent vice, etc. are creating prima facie evidence for discharge of liability. A new rule has been introduced for los24 ses arising from several causes. If one of the causes stands as an exception of liability and the other stands as a cause for liability, the amount of claim will be calculated pro rata. Another important change has been made in respect of unit/package limitation, i.e. SDR (SDR 667.67 per unit/package or SDR 2 per kg, whichever is higher for loss of or damage to cargo) is now being introduced. Wilful misconduct and gross negligence on the part of the carrier amounts to the loss of the right to limit liability. Regarding Rotterdam Rules, Turkey has not declared its intentions yet about whether to accept those or not. If the decision turns out to be positive, then it is obvious that the NTCC will have to be amended accordingly. Time charters Time charters are not included in the present regime. As a positive improvement, time charters are now within the NTCC, but as a separate type of contract, i.e. they have not been included with other types of contract of affreightment (such as voyage charters), on the grounds that owners do pass the right of use of commercial spaces of the vessel to the charterers for a specified time and do not undertake to carry cargo under time charters. (As regards this aspect, the draft was strongly criticized) As a result of the initiative by the Chamber of Shipping, issues such as securing hire, minimum time of off-hire and redelivery have also been added to the sub chapter for time charters. Counter-security for arresting ships Turkey is not often considered a place of easy arrest; one of the major reasons for this has been high rates for countersecurity, i.e. the arresting party has to provide a bank letter of guarantee, generally up to 15% or even 20%, to the court in order to arrest a vessel. The position will be not the same under the NTTC. Under Article 1363 a fixed amount of EUR 10,000 has to be provided as countersecurity for arresting a vessel. The same Article also states that, upon application of the opponent party and subject to the consideration of the court, the amount of counter-security can be increased in accordance with factors such as TC rate. On the other hand, this Article has been criticized on the grounds that for small outstandings or damages and/or losses, the counter-security amount (EUR 10,000) would be a factor discouraging the claimants from arresting the vessel. By bearing in mind the present system and its consequences (for example, for an amount of EUR 10,000 the claimants have to provide counter-security for the same PHoto: iStockphoto T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 cial Code amount under the NTCC, but EUR 1,500 under the present system) the Chamber of Shipping has proposed a mechanism similar to one granted to the opponents, i.e. after pro-viding the counter security of EUR 10,000, claimants will have the right to ask the court to reduce this amount. Club letters of undertaking Another improvement within the NTCC is the introduction of CLU’s (club letters of undertaking). Under the present regime, letters of undertakings are not acceptable at all by the courts; a bank letter of guarantee (unconditional and unlimited as to time) is a condition precedent to arresting a vessel or to releasing an arrested vessel. This was naturally creating difficulties and also discouraging the parties, as loss of time for the issuing of a bank letter of guarantee was encountered in most cases (due to inter-bank problems); high interest rates were another factor discouraging parties. Under NTCC, letters of undertaking will be accepted by the courts, but this is conditional, i.e. the opponent party has to accept the CLU and also has to inform the court consequently. Cancellation of charter – compensation of losses Under TTK (the present regime), if the charterers cancel a charter without just cause (cases of justified cancellation are expressly stated by TTK, such as war or loss of the vessel and/or cargo, etc), they are obliged to pay half of the freight (and in some cases even 2/3) as a penalty. The NTCC has a different approach to this matter. The owners have to prove that their losses arise from of an unjustified cancellation of the charter; if there are difficulties in determining the loss, the court may calculate the compensation as 30% of the total freight. (This percentage was 10% in the first draft, but as a result of the Chamber of Shipping’s initiative, it has been increased.) General Average The present regime has a set of rules regarding general average. The NTCC is changing this and without containing detailed articles, it simply refers to the latest York-Antwerp Rules being applicable at the time of the event. Pollution One of the major changes introduced by the NTCC is a new chapter dedicated to pollution issues. The new chapter has two sections. The first refers to CLC 1992/ IOPC 1992, and the last governs the application of those conventions. The importation of those conventions into the domestic system also makes them applicable to Turkish-flagged vessels directly. IMAC Istanbul Maritime and Administrative Court (IMAC) was established in 2004 to deal with matters and disputes arising out of the fourth chapter of TTK. During the period since 2004 some difficulties have been encountered, for example: according to the by-laws of the Ministry of Justice, IMAC is a special court, which can only have a single judge. However, time has proved that a system with a single judge is not rational. Furthermore, the definition of the task of the IMAC as “matters and disputes arising out of fourth chapter of TTK” is making it impossible for IMAC to deal with cargo indemnity cases, as, in such cases cargo insurers based on subrogation are the claimants, but the issue of subrogation is not covered by the fourth chapter, but by the fifth chapter. (Insurance) In order to avoid those difficulties, the NTCC introduces a full commercial court (with three judges) which will only deal with matters and disputes arising out of the fourth chapter of the NTCC as well as stemming from any other source of law, which would be according same issues. Further, depending on the requirements, further IMAC’s can be established in different regions. 25 T H E S W E D I SH CLUB TRITON 1-2011 The Swedish Club Academy | New training providers/Out and Ab New MRM training providers Martin Hernqvist Managing Director The Swedish Club Academy AB Since the latest issue of The Swedish Club Triton, we have welcomed the following training establishments to our group: Hamburg Port Services GmbH, Hamburg, Germany Malaysian Maritime Academy (ALAM), Malacca, Malaysia Kherson State Maritime Institute, Kherson, Ukraine Novikontas Maritime College, Riga, Latvia Hindustan Institute of Maritime Training (HIMT), Chennai, India Odessa Maritime Training Centre, Odessa, Ukraine Odessa Maritime Training Centre (Kherson branch), Kherson, Ukraine Swayam Maritime Academy, Mumbai, India Reederei Hans Peterson & Söhne GmbH & Co KG, Rendsburg, Germany (c/o Hanseatic Shipping Philippines Inc., Manila, Philippines) 26 31 October 2010 MRM Workshop Leader Heikki Koivisto (front) of Satakunta University of Applied Sciences, Rauma, Finland has just completed an MRM course for representatives of the TUDEV/Piri Reis University in Istanbul, Turkey. Out and About with MRM T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 out with MRM 2-4 November 2010 The MRM Workshop Leader training and meeting event at Maritime Institute ”Willem Barentsz”, Terschelling, Netherlands, was attended by MRM training providers from ten different countries. Continues 11 November 2010 Delegates of Reederei Karl Schlüter’s crew meeting in Opatija, Croatia, gathered for a photo. The main topic of the meeting was MRM. 27 T H E S W E D I SH CLUB TRITON 1-2011 The Swedish Club Academy | Out and About with MRM 16 November 2010 The organiser of the seminar in Mumbai, Capt K. N. Deboo of Anglo-Eastern Maritime Training Centre, welcoming the guests. Introduction to MRM seminar in Mumbai, India. From left to right, Mr Kailash Gupta, Director, Shipping Corporation of India, Mr Amitava Banerjee, Chief Surveyor with the Government of India, Capt M. M. Saggi, Nautical Advisor to the Government of India, Dr Satish Agnihotri, Director General of Shipping & Ex. Officio Additional Secretary to the Govt. of India and Martin Hernqvist, The Swedish Club Academy. Out and About with MRM 21-23 February 2011 Participants on the island of Arkö, Sweden, at, what we believe to be the world’s first MRM course for pilot boat operators. The Swedish Maritime Administration aims at providing MRM training for all of their about 220 pilot boat operators over the next two and a half years. 12-14 January 2011 MRM course held at The Swedish Club Academy for officers from the residence ship “The World”. Front row, left to right: Staff Captain Sverre Falch, Captain Erik Bredhe, Ship Security Officer Martyn Lancaster. Back row, left to right: Martin Hernqvist, The Swedish Club Academy, First Engineer Rune Bondal, Assistant Chief Engineer Morten Skarshaug and Joakim Vonasek, JV Maritime Consulting. 28 T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 17-19 November 2010 Participants at the MRM Workshop Leader training and meeting event in Mumbai, India. Companies and training providers represented at the meeting were Anglo-Eastern Maritime Training Centre, BSM Maritime Training Centre for Advanced Learning, Hindustan Institute of Maritime Training, Malaysian Maritime Academy (ALAM), OMCI Ship Management, Samundra Institute of Maritime Studies (SIMS) and Wallem Maritime Training Centre. 1 December 2010 MRM training for pilots is increasing. Here a number of German pilots have received their MRM Workshop Leader training at the facilities of the Kiel pilots – Lotsenbrüderschaft NOK II/Kiel/Lübeck/Flensburg. 15 February 2011 MRM Workshop Leader Training at Marlow Navigation Ukraine in Odessa. Besides Marlow Navigation Ukraine the event was attended by the new MRM training providers in the Ukraine; Kherson State Maritime Institute, Odessa Maritime Training Centre and the Kherson branch of the Odessa Maritime Training Centre. 29 T H E S W E D I SH CLUB TRITON 1-2011 Club information | Staff Presentation New underwriter Hans Filipsson Carola Weidenholm Corporate Communications Our new underwriter, Hans Filipsson, became a sailor at the early age of 16. Since then he has tried out everything from deck boy to chief officer for several Swedish shipowners. In 1988 he completed his Master Mariner Exam at Chalmers University of Technology and then decided to go ashore to work with claims, underwriting and lecturer, as as well as running his own business before finding his way to The Swedish Club last year. But lets jump back some years first; to 1999 to be precise, when Hans studied the supplementary course: “Commercial Management and Organization in Nautical Science” and felt inspired to do something new. That resulted in him founding the company Marconova Survey AB, where he was working as a marine consultant providing claims management to international underwriters. “I did this for ten years and during the time I also had recurring engagements as a lecturer at my old university. As I am a people person I found myself more and more looking forward to the teaching and interaction with the students,” he tells. And one thing lead to another; in 2009 he sold the company to Lars Krogius in Helsinki and for two years he worked as a lecturer in ship stability and tanker courses at Chalmers University before the yearning for the hot air as an underwriter caught up with him. An understanding of the business Last year he was contacted by our HR Director Helena Wallerius Dahlsten, who expressed her and the Club’s interest in engaging him as an underwriter. ”From my earlier years as a broker and underwriter I had come to know the co-workers at The Swedish Club well and I regarded them to be very competent and professional to have dealings with, so when Helena called I felt both flattered and tempted by the offer.” says Hans. I have also been good friends for many years with Tord Nilsson, head of the Piraeus office, Kjell Augustsson at the Hong Kong office and Peter Andersson, head of Team III in Gothenburg, which made the decision even easier,” he continues. Hans Filipsson, Underwriter, Team Göteborg III. 30 Se T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 lling a relationship Photo: Jonas Ahlsén ”The doors are open as the spadework has already been done” Hans in brief Name: Hans Filipsson Age: 49 years Family: wife Christina and two children: Marcus 18 and Elin 13. Spare time: following the children’s activities. Elin is into horse riding and Marcus, who played ice hockey for several years, is now a hockey referee. Hans likes to sail, both off the West Coast and in the Mediterranean. He used to have a sailing boat in Turkey but for the time being he is satisfied with his Jeanneau 35 in Sweden. He is also a member of the board at the Nautical Club. Once he owned a trotting horse but it was an expensive hobby; “even more time consuming than golf”, according to Hans. Background: Several different positions aboard for Ektank, Broströms and Nordström & Thulin 1978 – 89. Studied at first to mate and then further to become Master Mariner in 1988. 1989-93 he went ashore to work with claims and underwriting at the insurance company Skandia, to move on to become a broker at Delta Insurance 1993-95. 1996-99 he was a hull underwriter at Atlantica. In -99 he also took a Diploma in Commercial Management and Organization in Nautical Science and next he started his own business, Marconova, working with Marine Surveyors and P&I correspondents. In 2009 he sold the company and joined the Club in 2010. Since six months Hans’ job is to keep in contact with brokers and shipowners at the Team III markets: Germany, the Netherlands, the U.K. and North America. His background, with the network that comes along with it, is perfectly suited to an underwriter as it has provided him with a wide knowledge of the shipowning enterprise as well as terms and conditions. “It is essential to understand the business of the client and what it requires, particularly when you are not selling a product but actually a long-term relationship”, Hans explains. ”I am also fascinated by the client meeting and the situations arising round the negotiation table; in general I really like to have people around me!” says Hans. Claims handling that opens doors In recent years The Swedish Club has carried out a marketing drive which has sent echoes throughout the shipowning community. And it has paid off with strong finances, a good reputation for supplying a high service level as well as a swift and smooth claims handling with rapid payments when necessary. “The Club has a very strong position as Lead in the hull market. We are one operator among very few in the business today, that can offer the highest level of service to shipowners and charterers. The majority of the marine insurance companies is primarly signing follow risks and accordingly the level of service is less important to them”, Hans explains. “Our claims handling in general has a very good reputation for being swift and smooth, which make it much easier for me as an underwriter to be let in by both shipowners and brokers. The doors are open as the spadework has already been done,” Hans says with a smile. Of current interest: our new underwriter in Team Göteborg III at the head office in Gothenburg At The Swedish Club since: November 2010 31 T H E S W E D I SH CLUB TRITON 1-2011 Club information | Staff Presentation New Loss Prevention Officer Joakim Enström Carola Weidenholm Corporate Communications From the depth of the seas, up to the surface and then ashore – in brief, that is how you can describe Joakim Enström’s way to the job as Loss Prevention Officer at The Swedish Club. He started his career in a navy submarine in the mid-90s but realised he preferred the water surface and decided to become a deck officer. Four years at Chalmers University of Technology took care of that and he was ready for take-off. His first job was to master the open tourist boats of Gothenburg, Paddan. But larger vessels caught his interest, so he contacted Royal Caribbean and a few months later he first moved to London almost directly to fly to Vancouver and sign on to the Radiance of the Seas. In summertime, he manoeuvred the 293 metre long ship through the narrow fiords of Alaska and in the winter he cruised around the islands of the Caribbean. Saving lives About a year later he experienced his first real rescue. It was a night in June and they were sailing the Passage’s Hecate Strait on their way from Ketchikan to Vancouver. “We got a radio call at 4:55 am from the Coast Guard Station telling us three fishermen on the Silver Bounty had called in an SOS as they where beginning to sink, so we ramped up the speed and went there”, Joakim tells. “And it was within an ace; as the last of the fishermen were hoisted up by the crew onto a rescue boat, the Silver Bounty went fully underneath the surface”, he continues. The rescue was completed at about 6 am and everyone escaped the incident alive. Widening the horizons During his years at Royal Caribbean, he made two detours to manoeuvre high speed crafts instead – first in the English Channel between Weymouth and the Channel Islands and later for a Canadian shipping company in warmer waters between Trinidad & Tobago. “At the latter I also took part in developing the enterprise in the Caribbean, which gave me new and useful experience of the industry”, says Joakim. In 2008 he added yet another experience when he went to the North Sea to operate anchor handlers for a Norwegian Joakim Enström, Loss Prevention Officer. 32 T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Wide experience of the seas Photo: Jonas Ahlsén ”…the immediate cause of an accident, is rarely the root cause” Joakim in brief Name: Joakim Enström Age: 35 years Spare time: Joakim spends quite some time in the gym and often sees friends. He also goes to concerts, especially heavy metal. In winter he likes skiing and in the summer he spends time at the family cottage by a lake in Värmland or sailing off the West Coast. Background: he did his military service aboard a submarine and after that went on to Chalmers University of Technology to become a Master Mariner 2002. Officer at Royal Caribbean 2002-2005, with two intermediate periods as chief mate on high speed crafts. 2005 officer on Crystal Serenity for Crystal Cruises. 2008 he switched to manoeuvring anchor handler ships in the North Sea and studying maritime law in London. 2009 he went ashore to work as Deputy Safety and Security Manager at CMA Ships in London. Of current interest: our new Loss Prevention Officer at the Head Office in Gothenburg shipowner. At the same time he began to study Maritime Law in London. In July the following year it was time for an even bigger change when Joakim went ashore to join CMA Ships UK in London. “I have always taken a particular interest in safety at sea – I even wrote my final exam at Chalmers on “Crisis management for onboard crews”. As Deputy Safety and Security Manager, my job was to execute internal audits at the fleet, so it gave me a chance to learn more about a variety of ships and to see things from an auditors view.” After eight years in England, he felt it was time to move back to his hometown and started to look around for interesting companies. He found The Swedish Club! “I sent an inquiry to Helena Wallerius Dahlsten, Director at the HR department and she answered almost immediately asking me to come for an interview. Then it all went quickly; I got the job, found an apartment, got a vanload of furniture on the road and a couple of months after that I landed in Gothenburg just to start at the Club a few days later.” Preventing accidents by root cause analysis Joakim has sailed a variety of ship types under several different flags, which has given him an insight into the differences in both vessels and cultures, as well as the variety of situations that can arise on board. Added to that, he also has the legal education with a degree in maritime law. “The Swedish Club has over the years put a lot of efforts into the loss prevention work and Joakim’s mix of competence is a strong combination for further development in that area, says Lars A. Malm, Director of Risk & Operations at the Club. “A large part of my job will be about Interactive Root Cause Analysis (IRCA), where we look for the connections between incidents when an accident occurs. An interesting observation is for example that the immediate cause of an accident, is rarely the root cause,” Joakim explains. We have to find the underlying causes to identify the real problems so we are able to propose the right measures to prevent them from happening again, he concludes. At The Swedish Club since: October 2010 33 T H E S W E D I SH CLUB TRITON 1-2011 Club Information | News from Team Oslo Energy/Notice Board The first risk is written The Swedish Club has now established an office in proper premises in central Oslo, at the House of Business located at Tjuvholmen close to Aker Brygge. Around 20 other smaller recently established companies are renting on the same floor, and we share a staffed reception, meeting rooms and other facilities. In the neighbourhood you will find the brokers Marsh and Bergvall plus Gard and many owners within walking distance. The Club has a modern reinsurance programme for all lines of business. This programme has now been extended to include Rig & FPSO business. Our intention to enter this segment was discussed with some reinsurers at an early stage, and reactions were positive. Subsequent to the decision made by the Board of Directors, several meetings have taken place with the reinsurance broker and the panel of reinsurers. Adequate capacity has been secured, mostly from large and professional reinsurers in Europe and USA. We can write up to USD 50 million for each Rig/FPSO, applied on total value. This means that we can write up to 5% on accounts with a top value of USD 1 billion, and this capacity is sufficient to attract the attention of brokers and owners. Total working capacity for this segment is estimated at around USD 1.5 billion, with a top value for any unit today of around USD 1.25 billion. In November 2010 we started a marketing campaign aimed at brokers located in Oslo and London. The response Notice Board Verner Rydning Senior Manager Team Oslo Energy has been very positive; the brokers are welcoming new and real Scandinavian capacity. A good number of accounts are expected to be shown to us in this first year of operation. Some potential clients/owners have already been visited, and many more will be seen during the course of this year, in full co-operation with their preferred broker, of course. In most ways a Rig/FPSO is handled in the same way as a vessel. The Swedish Club staff have been allocated to these risks, including claims handling and processing. We were kindly offered a participation on the Stena Drilling renewal on 1 March 2011. The fleet of drilling units consists of four semi-submersible drilling rigs and three modern drillships, with a very large and modern drillship scheduled for delivery from the shipyard in February 2012. We were offered a participation on the Gard quoted terms, and we approved these and authorised a good share. Competition for the share was surprisingly tough, even for a fleet with a top value in excess of USD 1 billion. However, we were allocated a significant participation and are very grateful to Parisco (broker) and Stena Drilling for supporting us. Kristian Gamme, Senior Broker & Partner at Parisco says: “In the mid 80’ties nearly 15 Scandianvian based insurers wrote Energy Risk. Now it is a handful of markets left. We much appreciate the entrance of The Swedish Club into the Rig & FPSO segment, capable of writing meaningful lines with Rotterdam Rules In January 2011 Spain became the first nation to ratify or deposit their ratification of the Rotterdam Rules with the United Nations. The Rotterdam Rules will not be fully implemented until one year after they have been ratified by twenty signatory nations. Now that the first nation has ratified the Rules, several other nations that have signed the Convention may follow suit, though it is likely that many nations may be waiting for the United States to ratify the Rules before acting accordingly. At present, we understand that 34 President Obama is still to request the Senate’s advice and consent, following which the President may deposit the United States’ ratification with the United Nations. The Rotterdam Rules are intended to replace the current international regimes of The Hague Rules, Hague-Visby Rules and Hamburg Rules in the respective countries that are signatories to those conventions. If the Rotterdam Rules are to become effective, it would be desirable that we do not have yet another Convention on the Carriage of Goods by Sea to which the United States is not a party. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Photo: Stena and there have also been some increases in the deductible levels. Competition between the markets and insurers for shares is increasing again, and the market is not as hard as it was during the first few months after the April 2010 losses. There have only been a few larger renewals in 2011, accounts that were renewed last year prior to the losses and we estimate that these renewals have received an average increase of approximately 10%. Most of the accounts renew during 2nd quarter 2011, possibly as much as 70%. Most clients want to avoid renewal of their insurances during the US Hurricane Season (summer/ autumn), as the market may be “shaky” if there are significant losses during this period. We hope to offer participation on around 25 accounts before mid-year. The Stena Drillmax, one of Stena's modern drillships. a new and fresh capacity. Stena is also Gothenburg based and we, together with our valuable client, have decided to allocate a good line on the Stena Drilling Package Policy that was renewed at 1 March 2011 to The Swedish Club.” Ingela Tengelin, Director Risk and Insurance Management at Stena adds: “We think The Swedish Club has taken the right steps to diversify and start underwriting of Rig & FPSO accounts out of Oslo. Our support will hopefully contribute to their development of expertise within this business segment.” After the two major losses to the rig market in April 2010, leading insurers have been requesting increased rates, Iranian sanctions – Important implications for members! As has been advised previously, the sanctions regarding Iran set out in EU Council Decision of 26 July 2010 and Regulation (EU) No. 668/2010 prohibit EU-based entities from making payments in excess of EUR 40,000 to an Iranian person, entity or body unless the payment has been authorized by a competent authority. As far as the Club is concerned, the Swedish Agency for Non-Proliferation and Export Controls is authorized to assess and grant permission and receive notifications regarding financial transactions. Due to the authorities’ turnaround time, the permission required for payments in excess of EUR 40,000 can take several weeks to obtain. Since the clubs’ abilities to issue A year has gone by since The Swedish Club Energy project started and it has been exciting days. The Club has now commenced underwriting Rig & FPSO business. I very much enjoy doing the marketing of our capacity and capabilities aimed at the broking and client community, together with Henric Gard, Marketing & Business Development Director. In the past I was underwriting Energy Risks for 15 years, before going into broking in the mid-1990s. The experience I gained as a broker is most valuable. I understand the risks and the client’s needs better now, and I certainly know the broker’s role. The Club intends to build a solid book of Rig & FPSO business over the next few years. security are restricted, it will be particularly critical for members in case of a vessel detention/arrest situation. The Club has experienced situations in Iran where security for cargo claims and custom fines was required. According to the claimants, a Club Letter of Undertaking (LOU) would be accepted, but the requests for security exceeded by far EUR 40,000. Due to the sanctions, the Club was prevented from issuing the required LOU’s, resulting in an obvious risk of delay of the vessel. As a consequence, the member had to take their own measures in order to ensure the security arrangements filling the gap between the allowance of EUR 40,000 and the requested security sum, in these matters several hundred thousand Euros. Members operating in Iran are recommended to observe the foregoing. 35 T H E S W E D I SH CLUB TRITON 1-2011 Club information | News from Asia Photo: iStockphoto Hong Kong from Victoria Peak. P&I renewal is behind us It is time to make some observations on the marine insurance and shipping market. The process of our P&I renewal in Asia was uneventful. We generally achieved our target of 2.5% general increase on the risks renewed. By and large we renewed all the accounts and the volume of business maintained. However P&I renewal has never been easy, and there was no exception for this last one even though the Club’s general increase was moderate and relatively speaking lower than those of many of our peers. The rationale for the general increase was sound and justified as the general trend of the shipowners’ liabilities are continuing to rise and the P&I claims are getting more expensive due to inflation. However, this came at a time when the freight market is depressed to say the least, particularly for both dry and wet bulk markets. Some shipowners are under a lot of pressure to cut costs to prepare for the difficult time ahead. The BDI (Baltic Exchange Dry Index) which reflects dry bulk market conditions went down steadily from about 3,000 points to about 1,000 points in the last couple of months. Then it rebounded slightly, but has stayed below 2,000 points so far. It appears that the market attitude is quite pessimistic. There is no sign of a quick recovery. On the contrary, there is still a large order book for bulk carriers. Some sources suggest that over 300 panamax newbuildings are due to be delivered to the owners in 2011, on 36 Ruizong Wang Managing Director Hong Kong average one newbuilding panamax each day. Similar number of capes are also in the pipeline this year. The newbuilding tonnages will put further pressure on the already weak freight market. In some sectors the daily earning of a ship is not enough to cover the running costs. Some shipowners have been planning to lay up ships. The poor freight market conditions will have some negative impact on marine insurance. We may see premium reductions due to lay-ups and reduced shipping activities. We have already seen a reduction in chartering activities in the dry bulk sector in the last few months, hence fewer declarations in respect of charterers’ liability covers. We hope that with a recovery of the world economy some more demand will be created, and the freight market will recover. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Club information | News from Piraeus Photo: Nikos Kokkalias It seems as if our philosophy is working One of the Club’s most vivid supports, Captain Vassilis Constantakopoulos, has passed away at the age of 76. Captain Vassilis not only built up a great shipping company, a mining company and developed a resort in his home region, but was also, together with his wife Carmen, an ambassador of Greek goodwill who made everybody in his vicinity feel important and appreciated. With his generosity and friendliness he made many friends and formed strong business relationships. He will be missed by many of us and there will always be a special place in the heart of many Swedish Club employees for him. The companies that he left behind are in good hands and are being looked after by his three sons Costis, Achilleas and Christos. * The last few months have seen a major drop in freight rates for bulkers, and in combination with Korea Line seeking court protection quite a few owners have seen income drop in this segment. Tankers are still struggling though the container market has improved in the last 12 months. High government debts in many countries will force tax increases in many places and is likely to hamper demand. China, India and to some extent Brazil and the middle-east are where the economic activity hopefully can kick-start demand. It was also nice to read about Sweden as being the “tiger economy” of Europe – who would ever have thought that? The port of Piraeus. Tord Nilsson Area Manager Team Piraeus As I write this we have just concluded the P&I renewal. 2010 was a pretty good year, or actually one of the best years that we have had. We have renewed most fleets and added some new accounts during the year. It was an interesting renewal and we got to see quite a lot of business from other clubs, mostly from those with members unhappy with renewal terms or disappointed with service. The polarization between the P&I clubs is increasing and one understands why some of the clubs are in trouble when we see deductible levels and claims records on some fleets. We, on the other hand, are trying our utmost to be fair to our members. It seems as if this philosophy is working, because we are able to offer almost the lowest average premiums per GT within the International Group. Today we also have one of the highest free reserves per GT and we are able to attract a lot of new tonnage. I also feel that our Greek and Middle-Eastern members and the brokers with whom we place business have bought into our concept. The ability to renew business is not about being a good underwriter and offering the right premiums, but it is about giving our members good service throughout the year seven days a week and 24 hours a day. The team at the Greek office has done a really good job during the year, and I would like to thank everybody for their efforts. 37 T H E S W E D I SH CLUB TRITON 1-2011 Club Information | News from Team I PhotO: Stefan Eliasson As clear as it can get to avoid unpleasant surprises. ”No cold showers” As most OF you re by now well aware, the shipowners of the Board of the Club decided on a General Increase of 2.5% for P&I policy year 2011/2012. We are pleased that The Swedish Club for two consecutive years has been one of the clubs’ with the lowest annual increase among the International Group of P&I Clubs. The modest increases seen in the light of an ever increasing claims environment and, of course, the basic monetary inflation that over time diminishes the value of money, have been very positive news for our members. The Club has now managed to balance its books for yet another year; this, coupled with an excellent healthy growth, where premiums are commensurate with risks, has greatly exceeded our expectations. This is no easy task in a very competitive market, and we are humbled by the keen interest that is currently shown for the Club. We (that is to say the Club and its members represented by the shipowners of the Board) know that recovery after the 2008 financial turmoil has been a hard undertaking for many members, and we are well aware that some markets and some 38 Tony Schröder Area Manager Team Göteborg I shipowners are still struggling and facing harsh market realities. We continuously aim at being our members’ long term partner and as such being sensible, pragmatic and prudent in regard to our underwriting. By introducing a minor adjustment of 2.5% for the above-mentioned obvious reasons, we hope that we will not surprise our members with sudden large increases in the future, by imprudently undermining the Club’s finances in the short term. Members have been extremely helpful and seen the rationale for the clubs position; although negotiations are sometimes tough, this year being no exception. Our goal – in the concept of mutuality – is always to do our utmost to treat all members equally. Staying true to our values and keeping on the prudent and mutual path of underwriting we hope to be the stable associate that we aspire to be, and hopefully, there should be no surprises in terms of general increases for our good members in the years and times to come. No cold showers! T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Club information | News from Team III Photo: Stefan Eliasson Lookout in Gothenburg maritime adventure centre. ”We have hopes of 2011” It appears that 2010 was one of those rare good years for the marine insurance market as a whole. Part of the explanation is the performance of investments; another is the benign loss outcome. The latter is mainly attributed to layup and slow steaming as well as less congestion in approaches and ports. At least so we believe. It may be premature to predict a return to normal, but one observation may be worth noting. In December 2010, a so far benign loss outcome started to “normalize”, and 2011 so far seems to be following the pattern of a “normal” year. Seasoned readers know what a normal year means to the marine insurance market. It is not instinctive in humans to go against the majority. Yet, when an in-depth examination indicates that the majority is likely to be wrong, we need to make our own way with a lower probability of disappointment. We know from own experience, and the market will come to learn, that current market levels are not sustainable unless there is an exceptional year like 2010. Peter Andersson Area Manager Team Göteborg III We have an exceptionally good crew onboard and we have been trusted with new members from a wider range of brokers. The result for 2010 was a bit better than expected, showing technical underwriting surplus from all classes of insurance. What is more, the outcome of the recent 1 January and 20 February renewals were in line with expectations. Crew changes: Kristoffer Lindqvist, LL.M, has left Team III for a one-year assignment in Team Pireaus. We wish Kristoffer all the best in Greece and hope to welcome him back in a year’s time. Jennie Hagward, LL.M, joined Team III in March and we wish her welcome onboard. We have high hopes of 2011 becoming a better than expected year for shipping and we will continue doing our utmost to assist members to not be put in harm’s way. 39 T H E S W E D I SH CLUB TRITON 1-2011 Club Information | Basic Facts/New Members/Bohus Fortress Basic facts per 1 April 2011 Protection & Indemnity (including Charterer’s Liability) Number of vessels 1,410 Average age 9.3 GT (million) 48.0 Freight Demurrage & Defence Number of vessels 737 Average age 8.5 GT (million) 28.6 Hull & Machinery Number of vessels Average age GT (million) 1,389 9.7 59.6 Loss of Hire Number of vessels Average age GT (million) 531 8.9 20.1 New Members Bohus fortress – a Northern struggle In Sweden you find several fortresses standing as memories from ancient times. Then, they where indispensable for kings to protect their land; today they are acting more as symbols for something solid, sustainable and safe that survives any storm or unrest. For the third consecutive year we are borrowing their attributes to form a theme for our annual report. Now the time has come to Bohus Fortress, 20 km north of Gothenburg. Borealis Maritime Ltd., Germany PI, FO Greathorse Ship Management, China PI Guangdong Yudean Shipping, China HM Leif Höegh & Co. AS, Norway HM, HI, LH Negmar Shipping Investment A.S., Turkey PI, FO OSG Shipholding Group, USA LH Rederi AB Gotland, Switzerland PI SSC-Ships Service and Consulting GmbH & Co KG, Germany HM, HI, LH, PI Starship SA, Greece FO Stena Drilling Ltd., Sweden EM SwissMarine Services S.A., Switzerland HM, HI Zhenhua Translink Shipping, China TL, FC EM - Energy Marine FC - Charterer’s Freight Demurrage & Defence FO - Freight Demurrage & Defence HI - Hull Interest HM - Hull & Machinery LH - Loss of hire PI - Protection & Indemnity TL - Charterer’s Liability Insurance 40 Carola Weidenholm Corporate Communications Bohus Fortress stands on a high cliff along the old Norwegian–Swedish border in Kungälv, where River Götaälv splits into two branches. The construction began in 1308 under King Haakon V Magnuson of Norway. At the time the province of Bohuslän was Norwegian and served as a main defence against Sweden. Records show it was constructed, as normal for that period, out of granite and brick. By 1450 it included a continuous surrounding wall, 3 metres thick at the base, with a height of 8.5 to 13.5 metres, varying with the terrain. It was approximately rectangular, with four corner towers. Finally Sweden won! The fortress was invested numerous times, but was never captured. During the Nordic Seven Years’ War (1563-70) it was seriously damaged, when 250 Swedish soldiers stormed the north-eastern tower. The Norwegian commander sent a volunteer to blow up the ammunition stores underneath, killing the Swedes and repelling the attack. Bohus Fortress was rebuilt and reinforced immediately afterwards and in 1593-1604 it was upgraded to a bastion. As Swedish invasions continuously threatened in this period, the improvements went on for decades. Under the Treaty of Roskilde in 1658, Denmark-Norway ceded Bohuslän to Sweden. Since the fortress no longer lay on the border it was of less use to Sweden, which relied on the existing Älvsborg Fort-ress at Gothenburg and Carlsten Fortress erected at Marstrand. These two have already figured in our 2008 and 2009 annual reports. Prison & demolition Instead the fortress was used as a prison. The most infamous inmate was the radical pietist Thomas Leopold, who spent 32 years of his life at Bohus – where he also died in 1771 – for his alleged heresies. His stone cell can be visited at the castle today. T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Club information | Out and About Christmas Dinner in Greece – December 2010 Photo: Anna Jolfors Among the distinguished guests were Dr & Mrs John Coustas, Danaos Shipping Co Ltd… The traditional Christmas Dinner in Greece was, as usual, held at the Yacht Club. The dinner was well attended by members and business associates. The guests were entertained by the Scandinavian Church Choir, for the evening strengthened by some beautiful voices of the Club’s staff. At the end of the 18th century it was decided that the unused fortress should be demolished. Demolition crews worked for two months before the money ran out and residents of the surrounding town of Kungälv used the dressed stones for building houses. Much of the fortress is still intact, including the large northern tower “Fars hatt” (Father’s hat), and is now a museum open to tours in the summer. Bohus Fortress in short Built: 1308 Materials: granite, brick In use: 1308-1789 Controlled by: Norway, Denmark-Norway and Sweden Read more at: www.bohusfastning.com …and Mr and Mrs Andreas Callitsis & son Nassos, Callitsis Shipmanagement S.A. 41 T H E S W E D I SH CLUB TRITON 1-2011 Club information | Out and About Club Evening Gothenburg On 16 November last year The Swedish Club held a Club evening in Gothenburg. Participants heard Lena Gipperth from The Swedish Institute for the Marine Environment at the University of Gothenburg and Fredrik Vinge from the Vinge law firm discussing the liabilities concerning shipwrecks which leak oil and other ecologically harmful substances. From left Fredrik Vinge, Vinge, Gothenburg, Lena Gipperth, The Swedish Institute for the Marine Environment at the University of Gothenburg and Henric Gard, Director Marketing & Business Development at the Club. Traditional Christmas Dinner at the island of Donsö On 14 DecembER 2010 the Club gathered members from the southern archipelago of Gothenburg to enjoy the traditional Christmas Dinner at restaurant “Isbolaget”. 42 T H E S W E D I S H C LU B T R I TO N 1 - 2 0 1 1 Club information | In Memoriam/Staff News Staff News Head office Göteborg Victor Bogesjö Ingrid Andersson, has accepted permanent employment and been appointed Claims Exeutive in Team Göteborg I. Senior Hull Claims Adjuster, retired from the Club on 28 February 2011 after 43 years of dedicated service to the Club and its members. We wish her all the best for the future and a happy retirement. Jennie Hagward, Captain Vassilis C. Constantakopoulos in Memoriam We have THE sad duty informing you that Captain Vassilis Constantakopoulos, founder of Costamare Shipping, passed away on 25 January 2011. Costamare has been a member of The Swedish Club since 1979, and Captain Vassilis served as a most valued board member from 1987 to 2005, of which the last five years as Deputy Chairman. Captain Vassilis was known for his warm heart and business skills. He combined these qualities in pursuing opportunities and in inspiring others both on land and at sea. Apart from building Costamare successfully in the container trade, he designed Costa Navarino, an environmentally friendly resort featuring state-of-the-art facilities in Messinia, from where he originated. His concern for the environment, which started at a time when few others were involved in the same way, was also at focus of his work as Chairman of HELMEPA (Hellenic Marine Environment Protection Association). Whilst we miss Captain Vassilis’ caring personality, his endeavours will be treasured and always remembered. Assistant Claims Executive, joined Team Göteborg III on a oneyear traineeship as of 1 March 2011. She holds a business-oriented LL.B from the University of Gothenburg and an LL.M in Maritime law from Southampton. Thomas Carlsson, Systems Engineer, has resigned from the Club after 21 years of service. We wish him all the best in his future career. Ingalill Dahl, Underwriting Assistant, retired from the Club on 28 February 2011 after 41 years of dedicated service to the Club and its members. We wish her all the best for the future and a happy retirement. Jenny Herlin, Communications Assistant, joined Corporate Communications as of 7 March 2011. She holds a Bachelor of Arts in Media and Communication and has previously worked as an Information Assistant and Marketing Coordinator. Göran Lindholm, Erik Johansson has been appointed Underwriter in Team Göteborg I as of 1 January 2011. Systems Engineer, retired from the Club on 31 January 2011 after nearly 14 years of dedicated service to the Club and its members. We wish him all the best for the future and a happy retirement. PIRAEUS Louise Kolderup-Finstad has accepted permanent employment as Underwriting/Team Assistant in Team Göteborg III. Kristoffer Lindqvist, Claims Executive, FD&D joined the Club’s Piraeus office on 1 March 2011 for a one year assignment. Lars Rhodin Managing Director 43 T H E S W E D I SH CLUB TRITON 1-2011 Club calendAr 13 April 2011 Club Evening, Hamburg 14 April 2011 Club Evening, Bremen 2-6 May 2011 Marine Insurance Course, Gothenburg 11 May 2011 Member Luncheon, Piraeus 12 May 2011 Member Luncheon, Istanbul 15 June 2011 Board Meeting, Gothenburg 16 June 2011 Annual General Meeting, Gothenburg For further upcoming events, please refer to www.swedishclub.com/Club Calendar 44