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A new countdown to MLC has begunGreece: Light on the horizon
trito
nThe Swedish Club
No.3 | 2016
WorldsapartThe dangers of operating in local waters
The Swedish Club Triton is published three times a year and distributed free of charge. The Swedish Club Triton is an editoriallyindependent newsletter and opinions expressed by external contributors are not necessarily those of The Swedish Club. Articlesherein are not intended to provide legal advice and the Club does not accept responsibility for errors or omissions or theirconsequences. For further information regarding any issue raised herein, please contact our head office in Gothenburg.
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© 2016 The Swedish Club Articles or extracts may be quoted provided thatThe Swedish Club is credited as the source.
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The Swedish Club
No.3 | 2016
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ContentsLeaderWhen marine insurers get together ......................................................................................3
Loss PreventionCase study: Unforeseen consequences during mooring operations ..............................4/5Fire: The hidden causes......................................................................................................6/7Cargo disputes: Self-heating damage in South American soya bean cargoes ..............8/9Worlds apart: The dangers of operating in local waters ........................................10/11/12
RegionalGreece: Light on the horizon ..........................................................................................13/14Poseidon adventure..............................................................................................................15
P&ICINS: A new loss prevention initiative ..........................................................................16/17A new countdown to MLC has begun............................................................................18/19Attorney’s fees are recoverable in New York maritime arbitration ....................................20
CrewingTaking control of quality ......................................................................................................21
TechnologyBarnacles beware ..........................................................................................................22/23
Interview Alastair Long, Hill Dickinson: Drones friend or foe? ..............................................24/25/26
Legal/FD&DLegal update ........................................................................................................................27
Maritime Resource ManagementAsia revisited ........................................................................................................................28Sharing stories and bringing MRM to life............................................................................29
Club InformationNotice board....................................................................................................................30/31On the agenda ................................................................................................................32/33IUMI 2016: Effective underwriting in a changing environment ....................................34/35Out and about..................................................................................................................36/37Staff news ............................................................................................................................38Calendar/Quiz ......................................................................................................................39
Triton 3 2016 \ 3
When marine insurers get together theyare always keen to discuss global trendsaffecting the market. The InternationalUnion of Marine Insurance meetsannually for a worldwide conference.The themes may vary from year to year,but the central ingredient is effectiveunderwriting.
Marine insurance is as old as barter andtrade: however exposure is constantlychanging. Nowadays, the accumulationof risk has taken on new proportions, asevidenced by the Tianjin explosion ayear ago. For an underwriter it is amatter of knowing the full exposure atany one time in order not to besurprised.
What is constant over time though is theneed to transfer risk. And there are manyunderwriters prepared to absorb that
risk. The cost of capital is currently lowwhich makes it attractive to try out theindustry, for a while at least. However,there are not that many that can providecasualty response and an effectiveclaims service. And there are not thatmany who are prepared to make theunderwriting commitment for a longerperiod of time. This is what you getwhen you insure with The Swedish Club.
The world marine market experienced arise in major casualties in 2015according to available statistics, andThe Swedish Club was not immune.2016 has shown a mixed picture and thelevel of claims activity has varied duringthe year. It is always difficult toascertain trends in insurance, but I thinkit is safe to say that the overallfrequency of claims is reducing overtime. We also see the frequency
experienced by The Swedish Club islower than the level for the market. Tome this says something about thequality of the members of the Club.
Many interesting topics and socialevents are featured in this edition ofTriton. I hope you enjoy reading it.
When marine insurers get together
Lars RhodinManaging Director
Dear members and associates
LEADER
CASE STUDY
It was early morning and the vessel wasapproaching the port prior to berthing.There was no wind and there were nocurrents. On the stern an AB was preparingthe mooring ropes. The stern lines wereput partly around a bollard with a bight ata right angle to the normal pull direction.
After the AB had prepared the mooringlines, the 3rd Officer joined him. Theytalked for a while before the berthingoperation began. First the spring lineswere sent ashore and made fast. TheMaster was on the bridge and he putthe engine pitch to zero, whichmaintained a slight forward movementof the vessel. The rudder was hard tostarboard as the vessel was berthingport side alongside. After the springlines were secured the heaving linewas connected to both stern lines.
The Chief Officer, who had been by themanifold, came to the stern to assist
and took charge of the mooring winch.The 3rd Officer walked to the sternrailing by the fairlead.
The linesmen shouted that they wereready to receive the stern lines, so theAB started to lower the stern lines to thewater. He was facing the mooring winchand had his back to the 3rd Officer bythe railing. He let the mooring lines runout at a very high speed.
Suddenly the 3rd Officer started toscream. The AB turned around andcould see the 3rd Officer was caught
between the mooring line and thefairlead. The mooring line was comingout very quickly and was cutting into the3rd Officer’s leg.
The mooring line’s speed was now sofast that it cut through the officer’sclothes and he was bleeding badly. Themooring line was actually cuttingthrough the 3rd Officer’s leg and it wassevered just below the knee.
The Chief Officer realised that themooring rope was stuck in the propellerand screamed over the VHF to theMaster to stop the engine. The Masterpushed the emergency stop and thepropeller stopped.
The 3rd Officer was still standing but insevere shock and he finally collapsed.The Chief Officer ran over to give firstaid and the gangway was rigged. A firstaid team from shoreside came onboardand helped. It took about 30 minutes foran ambulance to arrive and take theOfficer to hospital.
4 / Triton 3 2016
Each month the Club’s Loss Prevention department issues a new safetyscenario to assist members in their efforts to comply with internationalsafety regulations and to follow best practice. Visit Swedish ClubOnLine (SCOL) for more examples.
By Joakim Enström, Loss Prevention Officer
“The AB turnedaround and could seethe 3rd Officer wascaught between the mooring line and thefairlead.”
Unforeseen consequencesduring mooring operations
Safety scenario
LOSS PREVENTION
Issues to be consideredThe vessel had undertaken a risk•assessment for the mooringoperation, but this did not includethe risk of the mooring line gettingstuck in the propeller, as undernormal circumstances the mooringline should be floating. This time themooring line was lowered tooquickly and ended up under thesurface. The propeller blades areonly 2 metres below the surface sothe lines were sucked into thepropeller, which caused theaccident.
Another risk was that the mooring•line was partly around the bollard,with a bight and a right angle to thenormal pull direction. Thisarrangement caused the snapbackzone to cover the entire areabetween the bollard and railing.When the rope ran out rapidly andbecame caught in the propeller itsnapped back to where the 3rdOfficer was standing. The Officer
was in point of fact not inside thenormal snapback zone, showingthe importance of everybodyinvolved in an operation toconstantly evaluate the risksand extent of potential snapback zones in eachindividual situation.Mooring a vessel may be anormal everyday operation,but still the risks need tobe evaluated every time,as can be seen, it isrightly categorised asa risk operation.
Triton 3 2016 \ 5
“The Chief Officer realised that the mooring rope wasstuck in the propeller andscreamed over theVHF to the Master tostop the engine.”
The mooring line’sspeed was now so fastthat it cut through the officer’sclothesand he was bleeding badly
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What were the immediate causes of this accident?
Is there a risk that this kind of accident could happen on our vessel?
How could this accident have been prevented?
How do we send mooring lines ashore?
Do we consider the risk of the stern lines getting caught in the propeller?
What sections of our Safety Management System (SMS) would have been breached if any?
Is our SMS sufficient to prevent this kind of accident?
If procedures were breached, why do you think this was the case?
Do we have a risk assessment on board that addresses these risks?
Could our risk assessment be improved?
Are the snap back zones clearly marked?
Could they be improved?
Do our stern lines float?
What do you think was the root cause of this accident?
To prevent this occurring on your vessel ask yourselves these questions:
LOSS PREVENTION
Why do materials self-heat?Two main types of reaction can lead tocargo self-heating:
Oxidising reactions in which cargo•reacts with oxygen in air and/orwater. Common examples are coal,oil seed cake, DRI and metalturnings.
Self-reaction or self-decomposition•of cargo. Well-known examples arecalcium hypochlorite and somefertilisers.
Loss prevention advice There are a number of actions that canbe taken which affect the severity ofself-heating and whether it develops to aproblematic level:
6 / Triton 3 2016
LOSS PREVENTION
A small but significant numberof marine cargo fire andexplosion incidents are due toself-heating in some form. Self-heating can affect a surprisingvariety of cargoes includingcoal, iron in the form of directreduced iron (DRI), metalturnings, charcoal, seed cakeand biomass, in addition to themore obvious issues with solidand liquid chemicals. A newjoint publication from TheSwedish Club and Burgoynes,‘Fire – the hidden causes’ isplanned for later this year andwill provide loss preventionadvice on such incidents, inaddition to examining thosevessel fires caused by everydaysources such as cargo lights,fumigation, movement of cargoand of course smoking and hotwork.
- the hidden causes
Effects of an incident involvingreactive solids in a containership hold
Tanker fire
All images ©Burgoynes
By Neil SandersPartner, BurgoynesBased in London, Dr Sanders has conductedmore than 1,300 investigations worldwide forBurgoynes in addition to offering advice tocounsel and providing expert evidence in theUK court and overseas.
In this article we focus on self-heating, perhaps the mostperplexing of all causes of fire. Ingeneral, self-heating occurs whenan exothermic (heat-producing)chemical or biochemical reactionhappens within a body of cargo.Loss of the heat produced by thereaction is restricted by thesurrounding cargo, packaging,dunnage, containers etc. Due torestricted heat loss, thetemperature within the cargotends to increase. The rate ofmost chemical reactionsincreases with increasingtemperature and it often roughlydoubles for each 10°C rise intemperature. Therefore theheating and the temperature risecan worsen exponentially, whichcan ultimately lead to a fire in thecargo and surrounding materials.
Fire
Reduce the availability of oxygen: With many bulk cargoes, such as coal,the holds need to be kept closed andsealed. This limits the access of air(oxygen) to the cargo, thus restrictingthe oxidation reactions, so thattemperatures do not rise to problematiclevels.
Reduce the availability of water: Some cargoes, such as DRI, need to bekept dry so that they cannot react withwater. If water does enter holdscontaining DRI it can start a self-heatingreaction which can then worsen, leadingto oxidation reactions with air and thensevere heating.
Prevent air diffusing into the cargo:Self-heating due to oxidation can onlyprogress to a problematic level ifenough oxygen can pass into the cargoto produce heat that cannot bedissipated. For example, some cargoessuch as activated carbon may need tobe carried in hermetically sealed bags tostop oxygen coming into contact with
the cargo. Bulk coal cargoes shouldalso be properly trimmed to give acompacted, flat surface that restrictsentry of air into the stow.
Monitor the size of the body ofcargo:Heat is dissipated less effectively from alarger body, causing an increase oftemperature within the cargo. This iswhy some cargoes have package sizerestrictions or maximum container loadrestrictions.
‘Age’ the cargo by exposure to air:Some cargoes are particularly reactiveand so need to be ‘aged’ by exposure toair, ensuring that the most easily-oxidised parts have reacted beforeloading. This means that the rate ofoxidation of the cargo is reduced and soself-heating is less likely. This methodcan be applied to DRI and also somecharcoal cargoes.
Control the loading temperature ofthe cargo:Reactions occur faster at highertemperatures, so it makes sense torestrict the loading temperature of somecargoes so that oxidation rates are nottoo fast. Bulk coal, for example, shall notbe loaded if it is above 55°C.
IMO requirementsrelating to self-heatingBoth the International Maritime SolidBulk Cargoes (IMSBC) Code and theInternational Maritime Dangerous
Goods Code (IMDG) address factorsaffecting self-heating. For somecargoes there may be other relevantrequirements or guidance. Some of themain IMO requirements are below –these vary depending on the type ofcargo:
Closing and sealing holds to•exclude air and water.
Flushing holds with inert gas to•exclude air.
Adhering to maximum cargo•loading temperatures.
Keeping such cargoes away from•sources of heat, such as directsunlight.
Ensuring proper ageing before•loading/stuffing.
Following packaging/stuffing•requirements, such as maximumpackage sizes.
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LOSS PREVENTION
Fire from self-heating of DRI Unloading self-heating DRI Effects of a fire in a containerinvolving rechargeablebatteries
Self-heating of coal
Self-heating due tooxidation can onlyprogress to aproblematic level ifenough oxygen canpass into the cargo toproduce heat thatcannot be dissipated.
Some cargoes areparticularly reactive andso need to be ‘aged’ byexposure to air,ensuring that the mosteasily-oxidised partshave reacted beforeloading.
The problemWe have recently seen a large number ofcargo disputes concerning damage toSouth American soya beans in Chinathrough self-heating. These cargocomplaints normally relate to:
Deterioration in cargo condition e.g.•unsound appearance, discolouredand darkened beans, hightemperatures, malodour.
Cargo quality e.g. high free fatty•acid (FFA) content of the oil,reduced protein digestibility.
Both of these factors may impact on theintended use for crushing to extract theoil for food uses, with the remainingresidue or ‘meal’ sold as animal feed.
These disputes can result in substantialcargo claims for several millions ofdollars and may risk delays or arrest ofthe vessel while security is sought.
The nature of thedamageNormally, soya beans are cream or yellowround oilseeds, but self-heating oftengives rise to mouldy, caked, anddiscoloured cargo (from darker yellow tobrown to black with progressive heating).In extreme cases these elevatedtemperatures can reach up to +100°C.
Superficial surface mould damage,characteristic of ship’s sweat, may alsobe present.
The extent of the deterioration isdependent on the inherent moisturecontent and temperature of the beans,as well as the storage time.
Self-heating damage is more commonlyseen during storage on board the vessel,with the soya bean cargoes loaded inapparently sound condition.
Occasionally beans that have undergoneself-heating in storage prior to loading
(so-called ‘bin-burn’) may be presentedfor loading, and the deterioration in thatcase is usually conspicuous.
The cause of the damage
Self-heating in soya bean cargoesoccurs because the beans were storedafter harvest at a moisture content thatwas too high for their initial temperature.This causes storage moulds (fungi) togrow – these can generate heat, leading
8 / Triton 3 2016
LOSS PREVENTION
Cargo disputes: Self-heatingdamage in South Americansoya bean cargoes
Normally, soyabeans arecream or yellowround oilseeds,but self-heatingoften gives riseto mouldy,caked, anddiscolouredcargo.
By Dr Nick ChapmanAssociate & Consulting Scientist,Brookes Bell LLPDr Chapman has provided technicalassistance in relation to soya beandisputes worldwide, including onsiteinvestigations in South America, Europe,the Middle East, and Asia.
to caking and discoloration. For thisreason, these cargoes are often referredto as ‘microbiologically unstable’.
Ventilation while on board cannot causeor prevent self-heating, but isrecommended as it minimisessuperficial damage from ship’s sweatcaused by cargo heating.
It seems that the high frequency of theserecent cases we have seen has beenpartly due to wet weather conditionsduring the growth and harvest of theparticular crop in question, as well aslong delays at anchor on arrival in China.
While the vast majority of that particularcrop has now been exported, generalloss prevention guidance for loadingsoya bean cargoes remains relevant tofuture crops.
Minimising the risks
Although sometimes difficult due to•the method of loading and quantitiesof dust, the officers should monitorthe cargo condition throughoutloading as best as they can, i.e.visually from the decks, duringbreaks in loading, by taking samplesusing a bucket on a rope, etc.
Only cargo in visually sound•condition with normal temperaturesshould be accepted for loading.Where apparently unsound cargo is
presented for loading, that cargoshould be rejected and replaced.
If anything abnormal is seen during•loading, further investigationsshould be made by the Master/ChiefOfficer and reported to owners. Ifnecessary, cargo surveyors mayneed to be appointed to makefurther investigations.
The Master must ensure that the•cargo documents (e.g. mate’sreceipts/bills of lading) accuratelyreflect the condition of the cargo atthe time of loading.
Soya beans should be appropriately•ventilated while on board, inaccordance with establishedventilation rules and/or instructionsfrom charterers/shippers andfumigators, with the details of anyventilation applied (or not) to berecorded in a separate ventilationlog.
If the voyage is delayed at any stage,•regular inspections of the accessiblecargo condition should be madewhen sea/weather conditions permitand recorded in the deck logbook.
The officers could usefully take clear,•high resolution photographs todocument the general cargo condition,i.e. at loading, completion of loading,during delays, on outturn, etc.
In the event of cargo complaints at•the discharge port, advice fromcargo experts should be sought asearly as possible regarding thenature, extent, and mitigation, of anyalleged damage.
Triton 3 2016 \ 9
LOSS PREVENTION
Self-heating insoya beancargoes occursbecause thebeans werestored afterharvest at amoisture contentthat was too highfor their initialtemperature.
10 / Triton 3 2016
LOSS PREVENTION
10 / Triton 3 2016
Worlds apartThe dangers of operating in local waters
The problemImagine you are driving your car and yousee another driver ignoring the rules ofthe road – perhaps driving on the wrongside or about to cross your path. Youdon’t just drive on regardless; you takeevasive action and drive accordingly.This is how Martyn Hughes, SeniorClaims Manager FD&D interprets thesituation for large commercial shipsneeding to negotiate a busy harbour fullof little wooden fishing boats.
“We get reports that this can be acomplete nightmare in some places,with fishing boats not obeying any ofthe regulations, not carrying a full setof lights, and Vessel Traffic Service(VTS) unable to control them. Not onlydo some of these boats ignore whatthey are supposed to be doing andwhat is going on around them, theyseem to think that a ship the size of ablock of flats is as manoeuvrable as asmall car or can just put the handbrakeon. They come too close, they aredotted about, they change course atthe last minute.”
Joakim Enström, Loss PreventionOfficer agrees. “Those operating littlefishing boats may not have a clue aboutcollision regulations and some don’teven have a certificate to operate”, hesays. There are even cases of fishingnets being put out illegally in the middleof shipping lanes.
“Sometimes those in a small vesselsimply don’t appreciate the stresses onboard for the large vessel,” he says. “Theymay well think it is OK to cross 100metres in front of the bow – willing totake risks that you and I would not take.Equally, there are cases of a little boat’sengine breaking down when it is right infront of the ship, and it is impossible forthe ship to alter course in time.”
Tilmann Kauffeld, Senior Claims Adjuster,Marine has direct claims handlingexperience of the problem: “In super-busyharbours in Asia where ships also have tocontend with restricted visibility in badweather and/or night time, it is difficult tokeep a watch,” he says.
“From a 300 metre long, very highcontainer ship, the lights shone by afishing vessel – if they shine lights at all– can be hard to see, and it is difficult tomake out their course and speedbecause they may not have AIS.”
ConsequencesWhatever the difficulties Tilmann is veryclear as to the consequences. If you runover a fishing boat and there’s a loss oflife, then first and foremost that is ahuman tragedy.
“The potential fallout could also includedetention of the ship, long delays, legalcosts, financial loss – even jail for theofficers held responsible and theresulting loss of reputation,” he says.
And the P&I consequences of a collisionbetween a bulk carrier or container shipand a fishing boat are immense.
“There will be apportionment of liabilitybetween the vessel and the fishing boat.Sometimes blame will be on both sides,because it could be that the fishing boatdidn’t have lights in place,” explainsFrançoise Fouchier-Matte, ClaimsManager, P&I.
“P&I will have to pay compensation forany deaths, depending on the liabilityapportionment. There are also the costsof wreck removal; in some jurisdictionswe don’t have a choice of the companydoing this job but are under the controlof the maritime authorities, who willsimply present us with the bills.”
Triton 3 2016 \ 11
Night time, busy waters, restricted space, a large container ship under way and … dozens of wooden fishingboats zipping around, often poorly lit and not necessarily aware of the basic rules of navigation – yes, it’s thestuff of nightmares.
The risks involved in such a scenario are nothing new but these risks are, in some areas, increasing. It hardlyneeds stating that any loss of life in the event of a collision is likely to be on the small fishing boat. And in thecase of the larger ship, even if the accident really could not be avoided, the repercussions for officers on boardthe ship can be severe if the correct actions are not taken.
What can shipowners and operators do? Triton spoke to key members of The Swedish Club team to obtaintheir advice.
LOSS PREVENTION
“From a 300-metre-long, very highcontainer ship, the lights shone by afishing vessel – if they shine lights at all –can be hard to see, and it is difficult tomake out their course and speed becausethey may not have AIS.”
“In super-busyharbours in Asiawhere ships alsohave to contend withrestricted visibility inbad weather and/ornight time, it isdifficult to keep awatch.”
Françoise urges operators: “In the firstinstance there is a need to actuallyimplement best practice for safenavigation in these busy waters. You doneed extra vigilance and to properlyadjust your speed. Through diligentwatchkeeping, officers can sometimesalter the course of the ship in time if afishing boat is moving into a dangerousposition. If it isn’t possible for vessels toavoid these areas and if a fishing vesselis in the way, those on the bridge canthen only slow down and take evasivemanoeuvres.”
Joakim Enström advises taking actioneven earlier for maximum lossprevention. “Make sure ships talk totheir local agents, get information aboutthe number of fishing vessels in thevicinity, and remember that the pilot isonly there for guidance – the Masteralways has the ultimate responsibility.”
Dealing with an incidentBut what happens in a situation whenthe ship just can’t avoid the fishing boat.What then?
“If you have had any sort of close call orpossibly hit something but can’t see, thenyou must get in touch with VTS,” saysMartyn Hughes. “Explain that you mighthave had a problem, ask to check if anyfishing vessel has put out a distress call,and always stop to make sure. If youdon’t stop and report it, then effectively itis treated as ‘hit-and-run’ – always acriminal act, whether at sea or on shore.”
Sometimes it is true those on board avery large ship don’t even feel a collision,agrees Françoise. “But you do have to askyourself: Are you just hoping for the best?If you are not sure, wake up the Master,report to VTS, stop the engine, lookaround, and don’t run from the scene.”
Tilmann Kauffeld urges all members toreport such events, even when they areunsure, reminding us that human livesmay be at stake. “Possibly somethingcan be done if search-and-rescue iscalled out quickly,” he says.
Even in pressured times, it is difficult tounderstand why crew members don’tstop and instigate a search if they thinkthere could have been an accident, hesays. And beware: voice data recordershave in the past revealed officersdiscussing an incident, saying ‘probablywe hit it’ and then doing nothing.
“I believe part of it is a lack of onboardcommunication” he warns. “This reallyhighlights the importance of MRMtraining. Also, it is true to say that if crewmembers are involved in such a collision,there is a fear that they are going to besacked by their employers, so they don’treport it. Yet if best practice has beenobserved in both navigation and collisionfollow up then this is not an inevitableresult.”
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LOSS PREVENTION
CASE STUDIESTilmann Kauffeld“We have seen three incidentsrelatively recently where ourmembers have been involved insuch a collision – with loss of lifein the fishing vessel or at leastsome severe injuries,” says TilmannKauffeld. “In two of these, theofficers in command suspectedsomething had happened but werenot sure and didn’t report it.
“In one case, the officers on boardlooked back and saw some floatinglights and the fishing boat stillmaking speed, so decided not toreport it – but later on the boatwent down and two people died.Soon afterwards, VTS becameaware of a missing signal on theirmonitors, made contact with theship and ordered it to anchorage toawait further developments.
“In the second incident, officersdiscussed whether there had beena collision, decided ‘maybe not’ anddidn’t call the Master. “But theMaster was woken up – by theauthorities, which is not better.
“In the third case highlighted, thoseon the bridge thought thereprobably was contact with a fishingvessel off Korea and theyimmediately contacted VTS.Rescue vessels and a helicopterwere dispatched to search. Nothingwas found but in the end theauthorities said – ‘you did what youcould’. The ship was released tocontinue on its way and a couple ofmonths later the authorities saidthey had finished theirinvestigation, nothing was found,no loss was reported and the fileswere closed. To my mind, if you doyour utmost, there will be no unduedelay.”
“Make sure ships talkto their local agents,get information aboutthe number of fishingvessels in the vicinity,and remember thatthe pilot is only therefor guidance – theMaster always hasthe ultimateresponsibility.”
“The Greek shipowners are buying now,and that is a good sign. They have beenright before,” says Hans Filipsson, TeamPiraeus Area Manager.
Of course Greek shipowners are notimmune from the global shippingdownturn but, as Hans says, they havealways been known for their good timing.“I think there is a trend now where pricesare at rock bottom and we are seeingpeople buying ships and waiting for thefreight market to rise.”
Team Piraeus Underwriter Maria Yiassaagrees: “As a club, we are beingapproached for many new additions byowners – with saved money and mainly
for bulk carriers. They are feeling that themarket is at the bottom; a lot of them soldin the good times and they feel it’s nowthe right time to re-enter the market.”
However, there is no feeling or proof thatthe market is turning around immediately,she says. “Those going into it now willprobably have to sustain maybe one ortwo years before the market turns.”
Greek shipowners have a reputation fornot borrowing money, giving them theflexibility and swift response needed in a
cyclical market. But there are changes,says Hans Filipsson. “In the past you hada lot of captains who bought their firstship and started up a company. But thesecond and third generations are sent tobusiness or law school, not to sea – theystill have their heart in the business butthe new generations don’t run thecompany in quite the same way.”
What are the standout characteristics ofthe Greek shipowning sector? Owners aregenerally very hands-on and havetraditionally been involved in every aspect
REGIONAL - GREECE
LIGHT ON THE
Is Greek shipping pointing the way to recovery?In a world of mixed messages – a tough dry bulk market, overcapacity in the containersector and positive news from the tanker and cruise sectors – The Swedish Club has seenan increase in tonnage entered this year, especially P&I. With growth coming from acombination of new tonnage and current members adding new vessels to their fleets, theGreek influence on this result cannot be underestimated.
“The Greek shipowners are buying now, and thatis a good sign. They have been right before.”
Triton 3 2016 \ 13
of their business, he says. “Whilst Greecedoes have a number of very bigbusinesses I think the core of Greekshipping is a lot of smaller companies.Owners want to know everything that ishappening in their organisation – technical,
operational, insurance and finance. Theyhave always been very personal about itbecause the business is their baby.”
Just over a year ago, in recognition of this,the Greek government underlined thesignificance of the shipping sector withits decision to revive a standaloneshipping ministry. Greek shipowners areknown for focusing on bulkers, tankersand containers, and that remains the casetoday.
The Swedish Club has developed aparticular reputation for containership
cover in this market. “We have gained alot of experience through ourcontainership portfolio and we are knownfor that,” says Maria.
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REGIONAL - GREECE
Hans Filipsson, Piraeus Area Manager
“Those going into it nowwill probably have tosustain maybe one ortwo years before themarket turns.”
Maria Yiassa, Underwriter, Team Piraeus
As long ago as AD 1,000 a Swedishvisitor to Greece left an indelible markon his surroundings, chipping Nordicrunes into one of the marble lionsremoved from Piraeus to adorn thePiazza San Marco in Venice. Most likelyone of the many Nordic - usuallySwedish - members of the ImperialGuard seems to have wanted to leavethe world a record of his extensivetravels.
Today Sweden and Greece haveestablished a close relationship comingtogether via immigration and tourism,with a commitment to future growth inareas such as commerce and industry,and a shared love of the sea andseafaring.
The Sanctuary toPoseidonSweden has also made a more recentcontribution to Greek culture with thediscovery of the Sanctuary to Poseidon
the god of the sea, at Kalaureia. Thefirst ever Swedish archaeologicalexcavation in Greece, it was excavatedby two Swedish archaeologists in 1894.Located roughly 200 metres above sealevel, Kalaureia is situated on the largerof the two islands that make up today’s Poros, with a view of theAthenian Acropolis from Kalaureia. This archaeological dig is close to theheart of The Swedish Club as Triton, the symbol used by The Swedish Clubsince 1962, is the son of Poseidon and lived in a golden palace beneaththe sea.
Almost forgotten in the 1960s, the sitehas now once again become the focusof attention, under the auspices of ArtoPenttinen, Director of The SwedishInstitute at Athens. The new excavationshave produced information about whatwent on in the sanctuary and cast lighton how the environment looked duringdifferent periods of antiquity.
The most recent find is a small statue ofHerakles, Poseidon’s nephew. Foundnext to a wall in a house that was beingrenovated, it was buried in order to bringluck to the owners of the house.
Triton 3 2016 \ 15
REGIONAL - GREECE
Both Sweden and Greece are typical examples of North and South respectively,and it can be difficult to imagine any relationship between them.
Yet both countries have a long shared history.
Poseidon adventure
Statue of HeraklesRecent find from Kalaureia
By Arto Penttinen, Director of The Swedish Institute at Athens
Triton
Triton is the son of Poseidon and Amphitrite and hasserved as a symbol for The Swedish Club since 1962. Tocalm and raise the seas, he blows a twisted shell.
The ancient Greeks revered Poseidon as the one god thatwas overseeing all things sea-bound: tradesmen whotransported goods by boat, as well as fishermen and thosewho fought wars at sea.
The Sanctuary of Poseidon at Kalaureia
The Sanctuary at Kalaureia used to be a place that hardly even the locals knew of.Now it is visited by thousands of tourists every year, and the municipality of Porosuses it as a venue for outdoor concerts.
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P&I
CINSA losspreventioninitiative tobenefit theentireindustryWringing your hands and saying ‘thingsare terrible’ doesn’t do much good, saysUffe Ernst-Frederiksen, Chairman ofCINS and Head of Cargo Managementat Maersk Line; but a great deal can beachieved if problems are reported,shared and analysed.
This is the basis of the Cargo IncidentNotification System (CINS), a shippingline initiative which was set up in 2011and has been steadily expanding itsinfluence since then.
Ernst-Frederiksen current chairman ofCINS, believes that by encouragingconsistent, reliable reporting of cargoincidents on board ships, CINS canprovide the foundations for a lossprevention initiative that will benefit theentire industry.
CINS was developed to increase safetyin the supply chain, reduce the numberof cargo incidents on board ships andhighlight the risks caused by certaincargoes and/or packing failures.
CINS databaseInformation reported by members isuploaded onto the CINS onlinedatabase, which is accessible bymembers. The idea is that by analysingthe information, trends can be assessedand any specific incidents which mayrequire immediate action can beidentified. Any areas of concern may bepassed on to the International MaritimeOrganization (IMO) or other relevantauthorities.
MembershipAt the last count, CINS membershipstood at 17 major shipping lines,together with the 13 members of the International Group of P&I Clubs and theTT Club. There are also three honorarymembers – the Container OwnersAssociation, the World Nuclear
CINS was developedto increase safety inthe supply chain,reduce the number ofcargo incidents onboard ships andhighlight the riskscaused by certaincargoes and/orpacking failures.
Transport Institute and ExisTechnologies.
The CINS Board comprises the fivefounding members of the organisation:Chairman, Uffe Ernst-Frederiksen,Maersk Line; Vice-Chairman, Dirk VandeVelde, MSC and Board Members, MarcLesebvre, CMA CGM; Capt Rover Chang,Evergreen Line and Ken Rohlmann,Hapag Lloyd.
The shipping line members represent70% of the world’s container slotcapacity, but Ernst-Frederiksen says:“We are, of course, a young organisationand at present only six or seven carriersout of the 17 are reporting consistently.So we are putting together a strategywhich will involve members signing anMoU confirming their commitment toregularly report.”
The need for consistentreportingThe role of CINS had been clearlyidentified back in 2011, he says, but itwas not agreed what data membersshould actually feed back – hence therisk of inconsistency.
“If reporting is mainly from just a few,then we could end up with an over-dominance of geography or commodityin the incidents reported,” he says.“What we are interested in is the bigdata. In order to measure and manage,we need to ensure each incident isreported and recorded, whether it is justa small incident involving a leak of oliveoil on the deck, or a major incident witha fire.”
As he points out, everything in thecontainer industry is aboutsimplification: “And the more we canstreamline the process for reporting aproblem, the better.”
Reporting requirementsCINS has held two strategy meetingsover the past year – hosted by CMACGM in Marseilles, and by Maersk Linein Copenhagen. These led to thecreation of the MoU on reporting, whichwill be launched in January 2017.
“There will be a period ofimplementation. Of course we can’tachieve what we are aiming forovernight – we have to respect thedifferent modus operandi of the carriers.Each carrier has its own bestmanagement practices and ownchannels of reporting. Some will haveonly head office reporting incidents,while others decentralise and havefrontline reporting. So there will need tobe an alignment period to ensure therespective carriers’ reporting functionsare working.”
As well as the online database ofincidents which have led to injury or lossof life, loss or serious damage of assets,or environmental concerns, CINS wasset up to provide members withpublications that provide guidelines forcarrying specific cargoes.
CINS guidelinesThis year CINS has published two newguidelines – one on the transport ofcoiled materials in containers (coils areoften badly packed and not securedproperly, leading to cargo shifting atsea), and the other on the carriage ofcalcium hypochlorite (often misdeclaredand a significant fire hazard if incorrectlypacked).
Next on the publication list will beguidelines on the carriage of cargo innon-operating reefers, while guidelinesfor the carriage of self-reacting cargoes,including lithium batteries, charcoal andfishmeal, are in the planning stage.
CINS has gained strong support fromthe P&I sector, says Ernst-Frederiksen;
with clubs recognising its potential forloss prevention. “We believe CINS is avery positive move, providing theopportunity to bring carriers together toshare best management practice.”
However, he emphasises, CINS is anNGO with no full-time employees. “Weare very much reliant on the time andresources of our members, supportersand advisers. We have spent a lot oftime trying to formalise CINS to ensurewe give something back to themembers, and that they can contribute.We are aiming to build a foundation thatwill grow. It is really important that weknow CINS is not only for the short andmedium-term but also for the long-term.”
He then added: ”I would describe CINSas very much a passion for thoseinvolved – we all have day jobs too!”
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P&I
“We believe CINS is a verypositive move, providingthe opportunity to bringcarriers together to sharebest managementpractice.”
“What we areinterested in is thebig data. In order tomeasure andmanage, we need toensure each incidentis reported andrecorded, whether itis a small or majorincident.”
Uffe Ernst-Frederiksen, Chairman of CINS and Headof Cargo Management at Maersk Line
A number of amendments to theConvention, proposed by a joint IMO/ILOworking group, particularly focus onprotection for seafarers in the event ofabandonment of the vessel and theircover for death or serious injury.
These proposed amendments will comeinto force on 18 January 2017. After thisdate, ships that are subject to the MLCwill be required to display certificatesissued by an insurer or other financialsecurity provider confirming thatinsurance or other financial security is inplace for liabilities in respect of:
Outstanding wages and repatriation•of seafarers together with incidentalcosts and expenses in accordancewith MLC Regulation 2.5, StandardA2.5.2 and Guideline B2.5, andCompensation for death or long-•term disability in accordance withRegulation 4.2., Standard A4.2. andGuideline B4.2.
The boards of all clubs in theInternational Group (IG) have agreedthat clubs should provide the necessarycertification, assisting their members tomeet the financial securityrequirements.
Who will needcertificates? Ships will require MLC Certificates ifthey are:
Registered in a state where the MLC•is in force, or Calling at a port in a jurisdiction•where the MLC is in force.
Details of states which are party to MLCcan be found in the MLC database atwww.ilo.org.
MLC Certificates are not required byships registered in states which are notparty to MLC and which will not call atstates which are party to MLC.
What is the process? The certificates will be sent to members,upon their specific request, by their clubsin PDF format based upon jointly agreedwordings. Members must then print thecertificates and ensure that they areposted in a conspicuous place on board,where they are available to seafarers, nolater than 18 January 2017.
Once the certificates are issued, they willbe recorded on the ship search facility onthe clubs’ websites. The certificates areprovided by the club and there is no needto apply for state issued certificates.
Those members who intend to renewwith their existing club may be able toobtain certificates which are valid up to20 February 2018.
Liabilities within thescope of standard P&IcoverSome of the liabilities arising under thecertificates will fall within the scope ofstandard P&I cover for crew. Forexample, club rules generally covercompensation for death or long termdisability. Similarly, repatriation costsand wages following a shipwreck formpart of standard cover.
Liabilities outside thescope of standard P&IcoverHowever other liabilities fall outside thescope of P&I cover, in particularrepatriation costs and wages arisingfrom the abandonment provisions setout in Standard 2.5.2 of the MLC, asamended. For risks that fall outsidecover the club will pay claims advancedby seafarers under certificates but themember will be obliged to reimburse theclub.
So why has the IGobtained reinsurance ifrisks are not covered?Claims which fall outside the scope ofP&I cover will also fall outside of thescope of the IGs pooling andreinsurance arrangements.Consequently the Group has arrangedadditional reinsurance cover forliabilities falling outside the scope ofcover.
A new countdown to MLC
Once the certificates are issued, they will be recorded on theship search facility on the clubs’ websites. The certificatesare provided by the club and there is no need to apply forstate issued certificates.
The Maritime Labour Convention (MLC) has now been in force since August 2013, with flagstates adopting it into their own national legislation at different times.
There were however a number of amendments proposed to the Convention, as far back as2009, that were on hold until the legislation became law.
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By Anders Leissner, Director, Corporate Legal & FD&D
has begun
It has put the reinsurance placement inplace to protect clubs in the eventclaims arise due to the member’sinsolvency, since recovery prospectsfrom such members are likely to be slim.The reinsurance is sufficient for mostmembers, with the possible exception ofa small number of fleets withexceptionally high crew numbers. Forthose fleets the relevant club needs toarrange for additional reinsurance.
Clubs have gone theextra mile for members The MLC financial security requirementsraise many challenges for shipowners,insurers, Flag States and Port States. Although there is some resemblance tothe compulsory insurance system underIMO Conventions, there are considerabledifferences. For example, MLC does notstipulate a prescribed wording for thesecurity. In addition, individual stateshave a degree of flexibility as to howthey implement and enforce MLC fromboth a Flag State and a Port Stateperspective.
In order to save costs and ease theadministrative burden on members theclubs in the IG have assumed the role ofarranging and administering thesesecurity requirements, even thoughsome risks are outside P&I cover.
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P&I
The proposed amendmentswill come into force on 18 January 2017. After thisdate, ships that are subjectto the MLC will be requiredto display certificatesissued by an insurer orother financial securityprovider confirming thatinsurance or other financialsecurity is in place forliabilities.
For more detailed informationabout MLC and the certificationrequirements please visit TheSwedish Club’s website.
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Many clients are still unsurewhether attorney’s fees arerecoverable in New York Maritimearbitration cases, despite the factthat the ability to recover these feeshas actually been common practicefor several years. Kirk M. Lyons,partner in Lyons & Flood LLP, aleading New York based maritimelaw firm regularly receives suchenquiries, and here providesguidance as to exactly howattorney’s fees are recoverable bythe prevailing party.
BackgroundPrior to 1996, the ‘American Rule’ onassessing attorney’s fees was followedby New York maritime arbitrators: Eachparty pays for its attorney’s feesregardless of who wins the arbitration,unless a statute or the contract providesa fee-shifting provision (e.g. theAsbatankvoy charter form).
However the typical maritime disputedoes not involve any statute with thattype of provision, and only a limitednumber of form charter parties in regularuse provide for assessment of attorney’sfees to the prevailing party.Consequently, unless the parties hadagreed to the application of the Societyof Maritime Arbitrators, Inc.’s (SMA)Rules, which provide for an award of‘reasonable’ attorney’s fees to theprevailing party, the American Rulecontrolled and no attorney’s fees wouldbe assessed to the winning party.
1996 saw a significant shift in theassessment of attorney’s fees as a resultof the Second Circuit’s decision inPaineWebber v. Bybyk. In this case theSecond Circuit was faced with an issueas to whether the language – ‘any and allcontroversies’ – gave the arbitratorsauthority to award attorney’s fees to theprevailing party. The Second Circuitfound that it did. Although PaineWebberwas not a maritime decision, New Yorkmaritime arbitrators swiftly adopted itsreasoning and began issuing awardsthat included attorney’s fees to theprevailing party.
Awarding attorney’s fees to theprevailing party in maritime arbitrationcontinues in earnest today, and theauthority of arbitrators to awardattorney’s fees to the prevailing party hasbeen routinely upheld by district courtsthat have faced this issue.
Of the 186 SMA awards issued between2010 and 2015:
Approximately 70% of the decisions•awarded attorney’s fees to theprevailing party.
Of this 70%, approximately 70% of•those awards were based on thearbitrators’ authority (post-PaineWebber) to award attorney’sfees. (This is contrasted with thoseawards where the charter partycontained a specific fee-shiftingprovision.)
On average, the percentage of•attorney’s fees awarded was 60% ormore of the amount requested.
The general trend over time is to•award a greater percentage ofattorney’s fees to the prevailingparty.
The result of this change has been two-fold:
Firstly, for a party with a strong claim ordefence on the merits, the threat ofrecovering attorney’s fees should providesignificant leverage in seeking to settlethe claim on favourable terms; andsecondly, if arbitration neverthelessbecomes inevitable, the knowledge thatat least a significant portion of attorney’sfees incurred in the arbitration arerecoverable (whether prosecuting ordefending a claim) should provide moreresolve to hold fast to one’s position.
P&I
Attorney’s fees are recoverable in New York maritime arbitration
Awarding attorney’s fees tothe prevailing party inmaritime arbitrationcontinues in earnest today,and the authority ofarbitrators to award attorney’sfees to the prevailing partyhas been routinely upheld bydistrict courts that have facedthis issue.
By Kirk M LyonsPartner, Lyons & Flood LLPKirk M Lyons has specialised in maritimeand admiralty law since 1981.
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CREWING
When the Bremen-based shippingcompany F.A. Vinnen & Co. decided toset up its own crew training activities,Managing Director Bernd Hein could nothave predicted the success of theventure.
In the last ten years the company hasselected and trained 55 of its owncadets, across engine, deck andelectrical disciplines.
This story started in what was a boomtime in the shipping industry. “There wasa global shortage of qualified seafarersand we were affected by that,” saysHein. “We decided we couldn’t continuewholly relying on a third party crewingagency and taking whatever wasavailable on the market. We had to makesome investment in training.”
Personal recommendations andinspections led him to the John B.Lacson Foundation Maritime University,and he then sought out the specialisttraining offered at GigaMare in SubicBay, to add to the total package.
In 2009, all was in place to enrol the firstten engine cadets. “Within three days,we had 300 applicants from which wecould select only ten,” says Mr Hein.
There followed one year at university, oneyear on board and then a final year backat university, with two eight-week trainingcourses at Subic Bay slotted into thelandside training. After exams the firstgraduates came on board in 2013.
Before anyone could be employed,however, Vinnen had to establish its ownPhilippines-based crewing company, inaccordance with the country’semployment laws. It can now directlyemploy Filipino cadets and seafarers,which has enabled it to stay close to itsemployees; supporting families, helpingwith problems and taking time to talkwith the seafarers.
The company is careful totrain only the number ofcadets that can be offeredjobs on its vessels. “Ofcourse, we don’t live outsidethe market; our fleet hasshrunk, so we have onlyeight vessels at present, andwe have had to trainaccordingly,” Hein says. “Itdoesn’t make sense to buildup hopes, train cadets andthen, at the end, say – weare very sorry, we can’temploy you. It is a waste ofeveryone’s resources.”
The payback of all this effort has beenhugely positive. “Everyone knows themajority of technical problems on boardvessels involve the human element. Ifpeople are not properly trained, you willsee that in your technical costs, as wellas possibly in your insurance costs,”says Hein.
As for the cadets: “We enter anagreement with them; we spend a lot ofmoney on their training and we earntheir loyalty. It is working well and weare happy about that. Sometimes I askmyself – why didn’t we start thisearlier!”.
Taking control of quality
Bernd Hein meets with cadets and their families
TECHNOLOGY
By Lena Lindblad, R&D Director and co-founderof I-Tech
BarnaclesbewareA unique new product from Gothenburg basedcompany I-Tech offers both environmentalperformance and fuel cost savings.
When major awards are won andprestigious contracts announced, it’seasy to take for granted the success ofa breakthrough product.
But behind the scenes? In the case ofSelektope, the antifouling agentdeveloped by Gothenburg-based I-Tech,it has taken more than 15 years ofincredibly hard work and sheerdetermination to get to this point.
Selektope is an organic, non-metalmarine coating ingredient whichfeatures an innovative pharmacologicalapproach to combat barnaclesettlement. It works by temporarilystimulating the swimming behaviour ofbarnacle larvae, deterring them fromattaching to the hull. It has an extremelylow biocidal loading and is approved foruse in the EU, Japan, Korea and China.
We asked Lena Lindblad, R&D Directorand co-founder of I-Tech what it waslike, leading the way in taking an entirelynew approach to antifouling.
“I have heard from the very beginning,constantly, for 15 years, that it isimpossible, it can’t be done,” she says.
How did she hang on in there? Where didshe get her strength and persistence?“Because I am naïve and I really believe inthe product. I am a positive and optimisticperson and, with my scientific background,I know it works.”
Academic researcher Lindblad firstbecame involved in the topic afterfinishing her thesis in pharmacology atthe University of Linkoping; anopportunity came up to study barnaclesas part of an existing programmelooking at antifouling substances.
She says she doesn’t like to talk about‘environmentally friendly’ products: “Tomy mind, nothing is entirelyenvironmentally friendly. However, it’strue to say you can reduce the amount ofbiocides by 95% by using our compoundsand eliminate the use of copper, usingmetal-free alternatives and degradables.We have shown that pharmacology logiccan be applied to enhance theperformance of anti-fouling coatings.”
Earlier this year, I-Tech received aEuropean Marine Engineering Award
recognising Selektope’s environmentalperformance. This is now a widelyapproved, high-volume product; the firsthigh-profile user was Japan’s ChugokuMarine Paints, which has incorporatedthe agent in a new copper-free product.
Tests have shown that antifoulingproducts containing Selektopesignificantly reduce fouling, loweringwater resistance and potentially savingup to 40% in fuel costs (compared with aseverly fouled ship), with associatedreductions in ship air emissions. Byrepelling barnacle attachment, coatingscontaining Selektope also lower the riskof transporting invasive species fromone region to another. They even repelbarnacles when the ship is at rest,allowing fuel saving claims made bycoatings suppliers to cover the ship’sentire operational cycle.
“All of the hard and long work was worthit,” says Lena. “I am so fortunatebecause there are few people thatactually have the opportunity to see theirown ideas coming out properly, and bepart of it the whole way.”
So, the obvious question – what next? “Iam going for the next project,” she says.“I have a few ideas to work on, aroundnew materials and new applications. Iam happiest when I have my diagramsand figures and if I can have ideas andgo to the lab. And that breakthroughmoment is the greatest happiness.”
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TECHNOLOGY
Tests have shown thatantifouling productscontaining Selektopesignificantly reducefouling, lowering waterresistance and potentiallysaving up to 40% in fuelcosts, with associatedreductions in ship airemissions.
“We have shown thatworking pharmacologicalprinciples, rather thanbiocides, can work.”
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INTERVIEW
Dronesfriend or foe?The use of drones at sea is becoming more and morewidespread. But what are the insurance risks?
Why did the arrival of a box ofcookies on a Maersk tanker makeheadlines earlier this year? Becausethe cookies were delivered from abarge to the ship by a small UAV(Unmanned Aerial Vehicle). And thiswas just the tip of the iceberg.Maersk told journalists that the useof drones could save thousands ofdollars in costs per vessel per day, byreducing the need to hire tenders fordeliveries when a ship is not in port.
On land, Amazon has been busy this yeartesting the use of drones to deliverpackages to customers and the Rwandangovernment is using drones to make upto 150 emergency deliveries of blood aday to a number of transfusing facilitiesin the western half of the country.
Use of drones at seaWe are accustomed to the idea of theagricultural industry using UAVs for cropsurveillance and treatment. Yet out atsea, and out of sight, drones areincreasingly being deployed for taskssuch as inspecting offshore windturbines, oil rigs and vessels.
The advantages are clear, says AlastairLong, Aviation Associate with law firmHill Dickinson. “Take offshore windturbines – conditions can be very harsh,and climbing up the side of a turbine isdangerous. If you are able to fly a dronein to inspect the structure, it issignificantly safer and potentially moreaccurate, too.
“We are seeing drones used for variousoperations – whether in harsh climates orin remote areas too dangerous for humanintervention - using drones is a significantway of reducing risk. Interestingly we arealso seeing unmanned submarines beingused in this way.”
It is a case of mixing and matching thisautomated technology to reduce risk, hesays. And in tough times for shipping,there is increasing focus on the cost-saving potential.
RisksNot unusually, the opportunities comewith their own set of challenges and
risks. The use of drones raises issuesaround privacy, security, liability andnuisance, quite apart from the risk of aUAV simply crashing into something orsomebody. Compared with the risks ofoperating drones over denselypopulated land areas, the issues may beless of a problem out on the open sea:“But operators would still need to bevery mindful,” says Long.
“This is a nascent industry that is stillfeeling its way through as to how themarket is going to grow and howregulators are going to respond to thatgrowth.”
He quotes an obvious but brutal truth; a2kg drone malfunctioning and falling fromthe sky could be just as fatal to someoneas a 20kg one. Liability if a drone crashed
into a dozen people in a bus queue wouldbe based on the law of the state. Out atsea it may be less clear-cut – what wouldhappen if a drone malfunctioned andslammed into the side of a ship or injureda member of the crew?
Liability in the shippingindustry“Drones are becoming more complexand more automated, with less and lesshuman intervention. AI (artificialintelligence) units are starting to makedecisions themselves. In the event of anaccident, that makes it ‘greyer’ to workout what has happened, how it wentwrong, and the liability issues.
“However, having said that, I suspect inthe shipping industry the operator will bemore readily identifiable than theamateur where a drone suddenlyappears in the flight path of adescending aircraft landing atHeathrow.”
Current aviation regulations are broadlyinternational, because manned flightsgenerally fly a reasonable distance,says Long. “But drone regulation hasso far been quite local, almostparochial, simply because thetechnology limits civilian drones as tothe distance they can go. Apparently inKentucky you can legally shoot down adrone that is over your land; but youmay not be able to do that elsewhere.
“It is different with shipping. A tanker inthe shipping lane is in internationalwaters; you are talking vast expanses ofsea and the industry will seek to employfairly substantial drones that can carryquite a lot of, for example, medicalsupplies or emergency rations to astricken ship in the middle of nowhere.”
In theory a drone operating over theopen sea poses less of a risk, he says.“The worst case scenario might be thatit crashes into the sea – unless it hits apassing ship.”
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INTERVIEW
Alastair Long, Aviation Associate, Hill Dickinson
“We are seeing drones used forvarious operations – whether in harshclimates or in remote areas toodangerous for human intervention -using drones is a significant way ofreducing risk.”
The futureThese sorts of liability issues will begenerated as drones become moremainstream, says Long. And one thing,he says, is certain – the use of dronesis set to grow. “It will be a profitablemarket because it will respond to therequirements of business to savecosts and reduce risk. We will see aquiet, steady proliferation of UAVactivity in the shipping sector, incommercial operations, deliveries,surveillance and security monitoring.
“The cookie delivery made news – thefact that drones inspected the insideof a vessel in a shipyard in Gdansk isnot so newsworthy. Drones will, intime, slot seamlessly into an everydaypart of operating ships. Smaller shipshave serviced bigger ships since timeimmemorial – in many ways, this isnot so very different.”
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INTERVIEW
The use of drones is set to grow. “It willbe a profitable market because it will respond to therequirements ofbusiness to save costsand reduce risk.”
We will see a quiet, steady proliferation of UAV activity in theshipping sector, in commercial operations, deliveries,surveillance and security monitoring.
Drones can be used for security•measures, such as monitoring shipsmoored illegally in shipping lanes, ordetecting and preventing crime. Butequally, pirates have successfully useddrones to monitor what’s going onwhere. And what are the legalrepercussions if a drone has beencontracted to carry out security and itfails to spot the Somali pirates’gunboat?
In port, if a ship is loading or•unloading, a drone buzzing around theoperational area represents a real risk.
Could a drone be hacked and•remotely controlled by a third partywith plans to cause a catastrophe?
Does the drone have a camera•attached? There are privacy rules toconsider. If the drone is potentiallycapturing footage in which peoplecan be recognised, this becomespersonal data and there are rightsattached to that. However, the use ofa drone to film, for example, an oilspill opens up the privacy vs publicinterest argument.
If an inspection drone fails to pick up•some damage and a ship later sinksas a result, who is liable?
Concerns
There are a host of otherconcerns, however. Thatdrone you can see mightindeed be moving toresupply a ship – but itcould be doing all sorts ofother things.
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LEGAL FD&D
According to OECD, the world’s totalspending on insurance premiumshas almost doubled since 2000. It isdifficult not to make the reflectionthat society is becoming increasinglyrisk averse. As a result, insurancefunded solutions in all areas,including shipping, are on the rise.As to the risk of being exposed forliabilities due to potentialwrongdoings, corporate entities arewell advised to review their E&Oinsurance policies. These polices willprobably not get any cheaper in thefuture.
Legal updateUse your headThere is an increasing trend to holdCEOs, board members and alsoaccountants liable for businessdisruption. The OW Bunker bankruptcyis no exception. The Danishbankruptcy administrator has suedOW’s management including the board,as well as the former accounting firmDeloitte and, notably, the private equityfirm that put OW Bunker on the stockexchange, for USD 470 million. There isalso an additional claim by 26investors for the sum of USD 120million. The expectation is to collectfrom the defendant’s Errors andOmissions (E&O) insurances. Whenconsidering that OW Bunker was listedon the Copenhagen stock exchange on
28 March 2014, and went bankrupt on7 November 2014 with an estimateddebt of USD 1.9 billion, the legalactions are not hard to understand.
The need for critical thinkingAlthough the OW Bunker case isextreme in many ways it is a reminderthat corporate governance issuesshould not be taken lightly. Whilst it iseasy to reduce compliance to a tickbox exercise we all need to maintain afree mind and a critical thinking andask questions like: Is this reallyrealistic? How does this work inpractice. Obviously, there does notseem to have been any reality checkon OW Bunker’s trading activities –certainly if there was, it did not make itto the prospectus for the stockexchange listing.
It is has often been said that policymakers tend to follow the money. On 18January 2017 the certificationrequirements under the Maritime LabourConvention (MLC) enter into force, and thedraftsmen’s intention was no doubt thatthere should be an insurance solution tothis. The clubs in the International Grouphave stepped up to the challenge and willassist their members in providing thenecessary certificates even though someof the risks are not covered by insurance.More about this process can be found atpage 18.
Although the OW Bunker case is extreme in many ways it isa reminder that corporate governance issues should not betaken lightly.
Review yourpolicies
Follow the money
By Anders Leissner, Director, Corporate Legal & FD&D
Earlier this year The Swedish ClubAcademy temporarily relocated to Asiawith the aim of bringing it closer to oneof its most important markets and tofocus on giving clients in the area betterservice. The open events, in-houseseminars and Maritime ResourceManagement (MRM) train the trainercourses in Hong Kong, Singapore andManila proved so successful that theAcademy has once again visited Asia foranother 'Academy Asian Tour'.
Martin Hernqvist, Managing Director ofThe Swedish Club Academy opened thetour with the Academy’s first MRM UserSeminar in Subic Bay, Philippines, on 26-27 October. The plan is to make this a
recurrent event, and both the highattendance and the enthusiasm of itsparticipants proved this to be a wisedecision.
The aim of the seminar was to bringtogether MRM users, and provide aforum for them to share theirexperiences, challenges and examplesof best practice. The event was openedby Capt. Peter Sars, Head of TrainingOperations at GigaMare Inc., hosts ofthe event, and we extend them ourthanks.
The guest speakers included Capt.Foong Yee Kuan from PSAM Academy,Capt. Caspar Graf von Spee from Harren
& Partner Ship Management GmbH &Co., and Capt. Jonas Engström fromWisby Shipmanagement AB.
Other highlights of the tour included anMRM Safety Seminar for the localshipping community in Singapore; andthe opportunity to present to members ofChina’s insurance community at TheSwedish Club’s Marine InsuranceSeminar in Zhuhai, China.
The tour concluded in mid-Novemberwith a speaking engagement at the CrewConnect Conference in Manila, during theevent’s ‘Leadership, Team Work andCommunication’ focus session.
We would like to extend a warm thankyou to all of our clients in Asia and lookforward to offering further MRM eventsin the future to create a platform whereall can contribute to our common goalof increasing maritime safety.
28 / Triton 3 2016
MARITIME RESOURCE MANAGEMENT
Contact us today and find outmore about the special MRMrates available to membersof The Swedish Club
email: [email protected]
Maritime Resource Management can help you:
Improve marine safety, efficiency and employee job satisfaction.
Minimise the risk of incidents by encouraging safe andresponsible attitudes.
Reward good management, teamwork and the willingness tochange behaviour.
✓✓✓
Karen Hester Ahl, Academy Coordinator, The Swedish Club Academy
Asia revisited
Workshop during the MRM User Seminar in Subic Bay 26-27 October 2016
We are pleased to report that interest inMRM courses continues to grow. Aftermany years of facilitating events, we areoverwhelmed with the positiveresponses and interest we receive fromcompanies worldwide. We believe thatone of the many reasons for this growinginterest is that the MRM approach offersa common ground that everyone wantingto increase safety and prevent accidentscan relate to.
Our seminars and workshops provide anaccessible platform to learn about MRM,as well as enabling participants to sharetheir experiences – both good and bad -with others who might benefit. This isthe part of the MRM course that cannotbe learnt through a video or handbook,and the engagement and discussionsare elements that can only beexperienced by attending an MRM event.
The knowledge that is gained from thisapproach comes not only from us, TheSwedish Club Academy, but also from allof our participants who share their
stories. The networking and sharing ofexperiences at an event helps bring theMRM materials and concepts to life. It isour clients and course participants thatgive added value to the MRM events.
Our attendees tell us that taking part inan MRM event is beneficial in manyways, whether you are new to MRM orhave been training MRM for many years. The MRM concepts are timelessand as long as we are a people basedindustry will never be obsolete. The needto deal with the issues covered by MRMare as relevant today as they were 50years ago.
Technology and safety issues may varythrough the years but maximisingresources to deal with these issues willremain a constant. Working towardsbetter safety is a continuous effort byeveryone and a job that is nevercomplete. We would like to extend ourthanks to all of our participants whoattended an event in 2016 and lookforward to supporting you in 2017.
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MARITIME RESOURCE MANAGEMENT
Our seminars andworkshops provide anaccessible platform tolearn about MRM, as wellas enabling participants toshare their experiences –both good and bad - withothers who might benefit.
By Martin Hernqvist,Managing Director,The Swedish Club Academy
Sharing stories and bringing MRM to life
Triton 3 2016 \ 29
Emergency Response Training from The Swedish Club
Be prepared
Are you equipped for a major incident?Has your emergency response plan been thoroughly tested?Do you know how you would cope in a real life situation?
We offer Emergency Response Training to our Club members free of charge
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CLUB INFORMATION
Following ratification from Finland in September, theInternational Convention for the Control and Managementof Ship’s Ballast Water and Sediment (BWM Convention) willenter into force on 8 September 2017.
The Convention, adopted in 2004, aims to prevent thespread of harmful aquatic organisms from one region toanother, by establishing standards and procedures for thecontrol of ship’s ballast and sediments.
Under the Convention, all ships in international traffic arerequired to manage their ballast water and sediments to acertain standard according to a ship-specific ballast watermanagement plan; to carry a ballast water record book; to
record when ballast is taken on board, circulated, treatedand discharged into the sea; and to have an internationalballast water management certificate.
Parties to this Convention undertake to ensure that portsand terminals where cleaning or repair of ballast tanksoccurs, have adequate reception facilities for the receptionof sediments.
The ballast water management standards will be phased inover a period of time, although concerns have beenexpressed over the challenges of retrofitting treatmentequipment to ships and the unilateral adoption by the U.S.of its own ballast water regulations.
Ballast Water Convention ready for launch
ASTRA wrongly decidedThe Court of Appeal in England has decided that punctualhire payment is not a condition which would enable anowner to withdraw the vessel and claim damagesfollowing even the smallest of hire shortfall. The Court ofAppeal overruled the previous decision on the issue by theCommercial court, which has caused turmoil in theshipping world for some time. As a result, it is now clearthat vessel owners do not have an automatic entitlementto damages for a loss of bargain where the timecharterers are in breach of the hire payment clause.
No package limitation forbulk cargoesIn its judgment in The Aqasia, handed down on 19October, the English Commercial Court has held thatpackage limitation under the Hague Rules (Article IVRule 5) does not apply to bulk cargoes. Resolving aquestion that has been open for more than 90 years, SirJeremy Cooke held that there is no limit of liability inbulk cargo cases, because there is no relevant ‘package’or ‘unit’ to which such limit can apply.
Notice board
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EU Operational Guidelines on Places of RefugeThe existence of international recommendations onplaces of refuge have not prevented this being asensitive issue, with possible political implications forgovernments facing the question of how to deal with adistressed vessel. However, failure to offer a suitablesafe haven is likely to prevent a successful salvageintervention, allowing a casualty’s condition to worsen,potentially leading to a major pollution incident (forexample if the vessel breaks up) that might otherwisehave been prevented. Such pollution could affect a farwider geographical area than would have been thecase had a place of refuge been provided.
The Member states of the European Union togetherwith the European Maritime Safety Agency (EMSA)have recently reviewed the framework for cooperationand coordination between States in case of maritimecasualties involving ships in distress, including wherean incident occurs on the high seas or outside of thejurisdiction of any one state.
As a matter of principle, each State involved in theresponse operation should assess its ability toprovide a place of refuge. A place of refuge is a placewhere a ship in need of assistance can take action toenable it to stabilise its condition; reduce the hazardsto navigation; and to protect human life and theenvironment.
The Guidelines support the requirement for nationalplans for the accommodation of ships in need ofassistance to include ‘procedures for internationalcoordination and decision-making’ in line with theDirective on Vessel Traffic Monitoring andInformation System (VTMIS) issued in 2002. Underthe terms of this Directive, each EU Member Statehad been required to designate ‘one or morecompetent authorities which have the requiredexpertise and power to take independent decisionson their own initiative concerning theaccommodation of ships in need of distress.’
High Court takes issue with AustralianpoliticiansThe High Court in Australia recently ‘corrected’ a political move by theAustralian Federal government to exempt foreign crews in the offshoreindustry from visa requirements. It is believed the government made thedecision in order to increase the country’s competitiveness in the offshoresector. The decision did however not go down so well with the unions, whocontested the decision. The High Court has ruled that the decision wasinvalid on formal grounds (Maritime Union of Australia & Anor v Minister forImmigration and Border Protection & Anor [2016] HCA 34).
Limitation broken for the firsttime in the UK The Admiralty court in England has held, presumably forthe first time, that a vessel owner is not entitled to limitliability under the Convention on Limitation of Liability forMaritime Claims 1976. The bulk carrier AtlantikConfidence sank after a fire off the coast of Oman inApril 2013 and the owners of the vessel sought toconstitute a limitation fund. Cargo interests opposed theapplication. In a detailed judgement owners were held todeliberately have set the vessel on fire, and sank her. Thejudgement is not believed to have softened the test forbreaking of limitation but instead the finding should beseen as a result of the unusually damaging evidence thatwas available in the case.
First Emergency ResponseTraining Set for the New YearLast month the Club ran an exercise to fine tune its newEmergency Response Training initiative. Visiting the JointRescue Coordination Centre (JRCC) in Sola, Norway, wecreated a scenario and brought together representativesof the key parties that would be involved as a real lifecrisis unfolded, including salvors, media representatives,lawyers, the port state authority and local coastguards.
Those taking part did not know in advance how eventswould unfold, and at each stage in the crisis each had theopportunity to explain what actions they would take, todiscuss how this interrelated with the priorities andresponsibilities of others around the table, and tounderstand more about how all parties can cooperate inthe different stages of a casualty.
A great deal was learned from this exercise and, beingfully prepared, we look forward to running a full scale trialin the New Year.
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On the agenda
Today’s unprecedented market conditions have meant a double impact for ourNorwegian office, where roughly half of our portfolio is related to the oil & gasprice and the other half to the world trade situation and transport markets.The shipping market has always been cyclical; diversifying into the oil & gasand related energy markets would normally help to iron out the downturns, butin this cycle, both markets are at historical low levels.
The forecast is for the market to pick up again in 2018, particularly in the oil &gas industry. Prior to that we expect to see a lot more consolidation and thatmeans both opportunities and challenges for the Club.
We must focus on our stand out qualities – our reputation for offering anexcellent level of service in all areas of the business. Many of our membersare financially constrained and have difficulties but still they prefer the bestservice provider rather than the cheaper alternative in the market.
Team Norway
Tore Forsmo, Area Manager
Team Asia
Ruizong Wang, Area Manager
We are working in an insurance market that is very competitive – prices arelow, perhaps the lowest ever on the hull side. This market situation andpricing level is not sustainable – but the amount of capital floating aroundthat needs a place to invest is driving down premium pricing.
We are keenly watching the freight market and the market for shipowners,where the situation is particularly bad for bulker and containerships but alittle better for tankers. We do have growth to report, despite the level ofscrapping. We are seeing both organic growth and business from newmembers, giving us a broader base for future growth.
The prediction is for the supply demand balance to be re-established in2018. We expect to see both new players and our operator members tobegin buying ships, providing an opportunity for us to gain new business.
We continue to get strong support from our members. We are competitivebut, more importantly, we believe our members appreciate the good servicewe provide.
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Team Gothenburg
Jacob Vierø, Area Manager
Despite the challenging insurance market, we remain confident in ourstrategy of providing selective capacity, and converting follow H&M lines tolead position, which is exactly where we as a team add the best value. Thepositive response to this has been very encouraging – it isn’t simply us‘selling’, but first and foremost it is our members ‘buying’, and that is basedon our reputation and presence in the market.
This loyalty from our members, is highly appreciated – and we endeavour topay back this loyalty in terms of added value and a focus on top tier levels ofservice. Meanwhile, our reputation in the market – our brand - is such thatwe can approach and win new and exciting accounts.
This quarter we have been extra busy with requests for legal advice followingthe Hanjin lockdown and a full programme of Club events. However, ourpriority has been to continue to do what we do best – listen to what themarket is telling us.
Team London
Lars Nilsson London Manager
The London office has had a busy and productive first year. Opened inSeptember 2015, with the commitment for the long-term, we have thestrategy to expand the Club’s presence over time. Our main aim is toenhance the relationship with the London market brokers.
Being local and visible is important and together with our Teams inGothenburg, Oslo, Piraeus and Hong Kong we look forward to expanding our business in London.
Providing a general view of the Greek shipping market is difficult. We stillsee shipowners taking delivery of newbuildings but there are also a lot ofsecondhand ships delivered to Greek owners.
Greek shipping is mainly about bulkers, containers and tankers. Only afew are running mixed fleets. Owners mainly stick to what they are usedto and what they know well.
It seems like prices for second hand vessels have reached rock bottom.Owners buying now have to run their vessels close to break even or less.As for any upturn, there is a view that we may see some improvements inthe second half of 2017.
Team Piraeus
Hans Filipsson, Area Manager
IUMI President Dieter Berg used hiskeynote address to emphasise theimportance of consistent technicalunderwriting in a changing andchallenging economic and commercialenvironment. He also stressed the needfor creativity and innovation as marineunderwriters’ response to changingmarkets.
With the world economy struggling togrow, uncertainty with Brexit, weakcommodity prices and freight ratesclose to all time low, IUMI presentedsome sobering statistics, revealing thatthe global marine insurance premium
volume was down some ten points from2014, to USD 29.9 billion in 2015.
In response to this a number of breakoutsessions were held to generate practicalideas on how to respond to the currentchallenges. Better catastrophe andaggregate modelling, wider use ofintelligent systems and big data werejust a few of the themes debated.
HullIn the marine hull segment, claimsfrequency is on a long-term positivetrend and the same can be said forrepair costs and the total loss frequency.However, workshop participants pointedout that major losses are still volatilefrom one year to the other and can thushave substantial impact. So far losses in
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IUMI 2016:Effective underwriting in a changing environment
Lars RhodinThe Swedish Club Managing DirectorLars Rhodin serves on the IUMIExecutive Committee as Vice Chairman.
The 142nd International Union of Marine Insurers (IUMI)conference was held this September in Genoa, Italy. IUMIattracts more than 500 leading marine underwriters to itsannual conference each year and with its maritime roots andmarine insurance history, Genoa this year created a splendidbackdrop for the event.
Workshop participants pointed out that major losses arestill volatile from one year to the other and can thus havesubstantial impact.
By Tore Forsmo, Area Manager, Team Norway
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In mid-September the Club’s ClaimsHandlers and Staff Surveyors gatheredin Gothenburg for the bi-annual ClaimsHandlers’ Conference. Running over twodays, the conference is a tradition which
goes back many years, offeringcolleagues in all the teams theopportunity to share experience andknowledge, as well as getting to knownew workmates.
This experience benefits members, withthe outcomes and enhanced workingrelationships being used to strengthenand develop the Club’s services formembers.
As an international organisation it is vitalthat team members deliver through theirdaily activities a level of service throughwhich members and associatesrecognise the core values of the Club,regardless of which office or team theyare dealing with.
The discussions were spread over a largerange of issues, from cost-efficiency andloss prevention support, to mediaintrusion in a casualty response. Thepresentations and workshops werecarried out in high spirits, and everyonewas convinced of the importance inmeeting face-to-face.
2016 have been low. However pastperformance is not a reliable indicator inestablishing predictions and theremainder of 2016 going into 2017 isstill uncertain. The group expressedconcern that the global hull premium isdeteriorating in line with the drop ininsured values while at the same timeexposure increases.
EnergyThe energy workshop concluded that inthis segment, premiums continue todrop substantially and a series of highprofile losses in 2015 have had asignificant effect, although hurricaneand weather issues have not made anyreal impact in recent years. With no
immediate expectation of the price of oilreturning to more sustainable levels theview was that the market will continueto be extremely demanding.
Legal and LiabilityThe legal and liability session providedinteresting insight into unmanned shipsand how they fit into the maritimeregulatory framework. With much ofautonomous technology already in placebut best practices in unmannedoperations yet to be developed, it was
felt that the challenge now is perhaps tocreate a new legal framework instead oftrying to adapt the existing one.
The conference ended on an optimisticnote, identifying the usefulness of bigdata as a leverage in future decisionmaking. With underwriters having tobalance speed of change, and the scaleand nature of data in addition toevaluating its reliability, the future ofmarine insurance belongs to those whoare able to adapt to changingenvironments through creativity andinnovation.
With underwriters havingto balance speed ofchange, and the scale andnature of data in additionto evaluating its reliability,the future of marineinsurance belongs tothose who are able toadapt to changingenvironments throughcreativity and innovation.
The Swedish Club’s Claims Handlers Conference
Tord Nilsson, Lars Nilsson and Tore Forsmo from The Swedish Club attending the IUMI conference.
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Out and aboutThe Swedish Club event at Trinity House in London on 27September was an evening not to be forgotten. Not only did LarsRhodin, Managing Director, and his management team presentthe Club’s latest positive results, but also took the chance topresent the Club’s new London ‘Underwriter’ Margareta Hammar.
This did cause many in the audience to raise their eyebrows insurprise and wonder until it became evident, during herextraordinary speech, that Margareta was, in fact, a Swedishcomedienne and a planted in the room as part of theentertainment.
The Club’s message to the London audience was that it willcontinue to focus on controlled growth, smart underwritingand to strengthen its presence in London. This commitment
was shown by the appointment of John D. Owen, SeniorConsultant, to the London office. As Lars Rhodin said: “TheSwedish Club will probably be the only P&I Club operating inthe European Union in the near future.”
Thank you to all who participated and to all staff at TrinityHouse, who did a wonderful job hosting the event.
"The only P&I Club in the European Union"
From left Stephen B. Gilbert of GasLog Ltd, Paul Agate of ARB International Ltd,Maria Yiassa of The Swedish Club and Terry Donovan, retired senior broker at JLT.
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SCOLSwedish Club OnLineGet 24 hour access to your:
Insurance documents•Claims•Records•Advanced frequency analysis•
This year’s autumn seminars in Oslo and Bergen focused onthe question - what makes The Swedish Club different fromother clubs? Following on from that contentious subject,members discussed fuel management & engine damage; thelatest news on Charterers’ Insurance; andsalvage and wreck removal offshore.
In Oslo the seminar took place atTjuvholmen Sjömagasin, and in Bergen,Grand Selskapslokaler. Following awelcome and business update from ToreForsmo, Area Manager Team Norway,speakers from The Swedish Clubincluded Lars A. Malm, Director StrategicBusiness Development & ClientRelations, Claes Åman, TechnicalConsultant, and Marcus Lindfors, ClaimsManager.
Senior lawyer Hermann Steen from Wikborg Rein then joinedthe panel with a talk on offshore salvage and wreck removal,with an emphasis on the consequences of choices made atthe time.
Sharing knowledge and reflections at the Club lunch seminars in Oslo and Bergen
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Kleopatra joined Team Gothenburgon 10 October 2016 as SeniorClaims Executive, P&I on atemporary basis. She is a familiarface to staff and members, havingworked for the Club for almost 15years, both in Gothenburg andPiraeus.
Staff news Team Gothenburg
Kleopatra GeorgantziFrida was appointed ClaimsExecutive, Marine, for TeamGothenburg, on 1 October 2016.She was already a member of theteam, having previously held therole of Assistant Underwriter.
Frida RhedinPeter will re-join the Club in February2017 as Senior Technical Advisorand support all teams with technicalmatters, casualties and LossPrevention projects. He has spentthe last eight years working in theoffshore sector for BW Offshore,GVA Consultants and Aibel. Prior tothat, Peter held a position as AreaManager in The Swedish Club.
Peter Stålberg
The Swedish Club visited both Zhuhai, China and Piraeus,Greece to welcome delegates to the latest series of MarineInsurance Seminars. Both seminars were well attended andfeedback from participants was very positive.
The Swedish Club is one of the very few insurers to support inthis way. Run over two days, a full complement of delegatesrepresenting China, Hong Kong, Taiwan, Singapore andVietnam participated in the wide ranging programme.
The event in Piraeus has always proved popular and this yearwas no exception. The Greek marine insurance communitycame out in force and a productive and enjoyable time washad by all.
Topics covered this year included P&I, FD&D, H&M and theClub’s loss prevention initiatives including a discussion on theimportance of the right attitude in the work place. The Clubruns seminars in Asia every three years and the seminars inGreece are held annually.
Marine Insurance Seminarsin China and Greece
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1 – What does ECDIS stand for? 1. Electronic Chart Display Information System X. Electric Cabin Dimmer Inside Ship2. External Chart Display and Infotainment System
2 - What is the origin of the term‘mayday’ for an emergency radio call?1. From LatinX. It is unknown2. From the French phrase “M’aidez” – meaning “Help me”
3 - What does the shipping term VLECstand for?1. Very Large Eco Carrier X. It is most likely a misspelling 2. Very Large Ethane Carrier
Mail your answer to [email protected] first correct answer pulled out of the hat will win a prize.
Winner of Club Quiz 2 – 2016
Congratulations to the winner of Club Quiz No 2-2016,Brij Goel, SCUA South Europe Lda, Alcabideche, Portugal,who has been awarded a Club give-away.
The right answers to Club Quiz No 2-2016 are:
2 Royal Marine Ship (What did RMS stand for before Titanic’s name?)X Cosco CS (Which company owns the first ship to transit the new Panama Canal?)2 …---... (What is the Morse code for SOS?)
Club Quiz Club Calendar 2017
Board Meeting London30 March
Member LunchPiraeus26 April
Club DinnerIstanbul27 April
Club EveningHamburg3 May
Club EveningBremen4 May
Marine Insurance CourseGothenburg8-12 May
Board MeetingGothenburg14 June
AGM eventsGothenburg14-16 June
London International Shipping Week London11 September
Board MeetingLondon7 December
Annual General MeetingGothenburg15 June
Voices from the Industry
The shipping industry is the backbone of international trade,bringing benefits to people around the world. Yet to themajority, shipping is the invisible industry.
The people within our industry make the world go around.Maritime professionals, they are strong characters withinteresting backgrounds – and of course, interesting jobs.
Listen to them now for some new insights.
Voices from the industry. Listen on:http://www.swedishclub.com/news-circulars/voices-from-the-industry/
Board MeetingDubai5 October
The Swedish Club is a mutual marineinsurance company, owned and controlledby its members. The Club writes Protection& Indemnity, Freight, Demurrage & Defence,Charterers’ Liability, Hull & Machinery, WarRisks, Loss of Hire insurance and anyadditional insurance required byshipowners. The Club also writes Hull &Machinery, War Risks and Loss of Hire forMobile Offshore Units and FPSOs.
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Head Office GothenburgVisiting address: Gullbergs Strandgata 6, 411 04GothenburgPostal address: P.O. Box 171, SE-401 22 Gothenburg, SwedenTel: +46 31 638 400, Fax: +46 31 156 711E-mail: [email protected]: +46 31 151 328
Piraeus5th Floor, 87 Akti Miaouli, 185 38 Piraeus, GreeceTel: +30 211 120 8400, Fax: +30 210 452 5957E-mail: [email protected]: +30 6944 530 856
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OsloDyna Brygge 9, Tjuvholmen N-0252 Oslo, NorwayTel: +47 9828 1822, Mobile: +47 9058 6725E-mail: [email protected]: +46 31 151 328
LondonNew London House, 6 London StreetLondon, EC3R 7LP, United KingdomTel: +46 31 638 400, Fax: +46 31 156 711E-mail: [email protected]: +46 31 151 328
Contacts
www.swedishclub.com
