News

The Club would like to inform Members that the Malaysian Maritime Enforcement Agency (MMEA) recently launched ‘Operation Jangkar Haram’, pursuing vessels which are anchored illegally in the eastern waters of Johor as reported by our correspondents Spica Services Malaysia.

This circular informs Members of the approval by the International Group of P&I Clubs (the Group) of the TradeLens eBL system.

A large majority of the claims handled by the Club involve crew illness or injury, with this in mind, the Club seeks to inform Members that understanding the basis of a Shipowners’ liability and how international conventions may apply is of vital importance to them in their operations.

When I spoke to the Club CEO, Simon Swallow, last week we reflected on the strange year we’ve all been through and I congratulated him and all of the Club’s staff for the way in which they had adapted and shown remarkable dedication in the new working environment forced upon them.

This Circular provides information on the recent designation by the Government of the United States of Venezuela’s Maritime Authority (Instituto Nacional de los Espacios Acuaticos – “INEA”).

The fines for causing pollution in Turkey have rien once again by 9.11%. This is in accordance with the declaration by the Ministry of Environment and Urbanisation in Turkey, which was published in the Official Gazette dated 24 December 2020, numbered 31318. With effect from 1 January 2021.

The latest Seafarers Happiness Index report, published by The Mission to Seafarers, reveals that small investments can make a tangible difference to the lives of seafarers.The survey, with the support of the Shipowners’ Club and Wallem Group, reports on the experiences of seafarers between October and December 2020.

Drug trafficking is a global illicit trade involving the cultivation, manufacture, distribution, and sale of substances which otherwise are prohibited by law. It is a fact that considerable proportion of drug trafficking occurs by sea because of favourable circumstances for transportation. In 2020, there has been a rise in the number of reported incidents involving drug seizures on board ships calling in South American ports and on ships bound for United States (U.S.) or European…

In November 2020 the Club issued a circular concerning efforts by the United States to enhance sanctions targeting the construction of the Nord Stream 2 (NS2) and Turkstream 2 (TS2) pipelines, and those who provide vessels and services in connection with either project.

Members are informed that the International Group (IG) Clubs have considered the potential impact on cover for pollution risks of this new legislation.

At the 2020 half year stage, the Club reported a Combined Ratio of 102.2%, with an underwriting deficit of US$ 2.2m. Whilst this represented a deficit in line with expectations, this result is against the turbulent backdrop of COVID-19. As a result of the pandemic, the Club has experienced a lower incidence of claims, which in most cases was due to reduced vessel operations. This reduction however, was offset by some sizeable claims as a result of COVID-19 outbreaks on board vessels.

This Circular concerns efforts by the United States to enhance the sanction provisions targeting the construction of the NS2 and TurkStream pipeline projects and those who provide vessels and services in connection with either project. The recent efforts are mainly focused on two pieces of legislation – the Countering America’s Adversaries Through Sanctions Act (CAATSA) and the Protecting Europe’s Energy Security Act (PEESA).

The International Group and its 13 constituent P&I Clubs, which are in turn mutually owned and governed by their shipowner and charterer Members, have become extremely concerned about the detrimental effect upon the mental well-being of seafarers as a result of the prolongation of their contracts of employment due to the pandemic.

Members are advised that new fines will be applicable in California from 1 January 2021 for ship sourced oil pollution damage in Californian State waters.

Bunkering is one of the most common operations carried out on board, regardless of the vessel type or size. Despite it being a routine operation, disputes may arise, such as those regarding the quantity or quality of bunkers and in some cases the legality, if careful planning is not implemented. The consequences of such situations can vary from machinery breakdowns, to Port State Control (PSC) detentions, to delays, arrests and significant financial and reputational losses. As the shipping…

A new revision to the PRC Law on the Prevention and Control of Environmental Pollution by Solid Wastes (new Revision), which becomes effective on 1^st September 2020,  imposes joint and several liability on both the carrier and importer for the return and disposal of the solid waste where the solid waste is prohibited and/or proper license has not been obtained, and significantly increases the fines that can be imposed for violations.

One of the key elements of the International Convention for the Prevention of Pollution from Ships (MARPOL) is the accurate record keeping of movements and/or discharges of shipboard substances and materials that are considered hazardous to the environment.

The shipping market continues to experience a prolonged period of downturn, especially in the offshore sector. We have seen owners and operators often being compelled to lay up tonnage.

At their meeting of the 21 May 2020 the Board considered the open policy years and in particular the 2017 policy year, which is now three years old.

On 14 May 2020 the US issued a Global Maritime Advisory (Guidance) aimed at a range of industry sectors including marine insurers such as P&I clubs and shipowners and charterers.

The International Group of P&I Clubs, International Chamber of Shipping (ICS), BIMCO and InterManager (the international industry organisations) draw Members’ attention to the series of recent ship detentions and crew arrests in Mexico and, in the case of the UBC Savannah, the lengthy and continuing detention in custody of the ship’s Master without any formal charges against him, following the discovery of illegal narcotics on board.

In line with their legal and regulatory obligations, all Clubs in the International Group maintain sophisticated sanctions compliance programmes and procedures. The rules and procedures developed by Clubs to manage sanctions risks take account of the guidance provided by bodies such as the UN Security Council (UNSCR), the UK Office of Financial Sanctions Implementation (OFSI), the US State Department and the US Office of Foreign Assets Control (OFAC). Through its system of circulars and news…

This circular is an update on the Democratic People’s Republic of Korea (DPRK) sanctions enforcement circular that we published in 2019. It has been updated following the recently published 2019/2020 UN Panel of Experts of North Korea Sanctions Report.

The Shipowners’ Club, the leading mutual P&I insurer in the smaller and specialist vessel sector, has reported results for the year ended 31 December 2019.

Adverse weather enhances the risks for yachts and their crews, not only in open waters, but also in bays, anchorages, ports and marinas.

The global Coronavirus (COVID-19) pandemic has brought about exceptionally challenging trading conditions and the Club is committed to supporting Members through this difficult time. To this end, the Club has produced the following guidance which addresses some of the most frequently asked questions from our experience to date.

The ongoing development of COVID-19 requires that we regularly review our day to day operational practices. From 6 April, following Government instruction, the Singapore branch of the Club will temporarily close with all staff working remotely. This follows the temporary closure of our London branch last month.

The Club understands that in view of the ongoing Coronavirus (COVID-19) situation, owners and managers are facing challenges in meeting various statutory requirements.

From 16 March, following UK Government advice, the London branch of the Club will temporarily close with all London staff working remotely. Despite the London branch closure, it remains very much business as usual with all staff able to service our Members and their brokers remotely. Our focus will remain towards offering the highest service levels and fundamentally supporting our Membership with their claims, operational liabilities and providing their insurance solutions.

As reported in our previous circular, Pollution Fines in Turkey published in September 2019, fines for causing pollution are imposed under the Turkish Environment Code dated 1983, number 2872. With effect from 1 January 2020, the level of fines have been revised to reflect increases of approximately 23% from the previous year. This update outlines the revised amounts.

Due to recent changes in Greek environmental law, higher pollution fines have been imposed by the authorities with effect from 31 December 2019. This update outlines the increases in the event of oil pollution, as well as providing guidance on what Members should do if a pollution incident occurs.

As part of the renewal of the International Group’s General Excess of Loss Reinsurance Contract for the policy year 2020/2021, the excess War Risks P&I cover will also be renewed for a period of 12 months, with the costs included in the total rates charged to shipowners.

On 20 December 2019, President Trump signed the National Defence Authorisation Act 2020 (the Act) into law. The Act contains numerous sanctions related elements, including Russia-related sanctions targeting certain vessel types engaged in pipe-laying at depths of 100 feet or more below sea level for the construction of the Nord Stream 2 and Turkstream pipelines, and on companies supplying those vessels. The U.S. Office of Foreign Assets Control (OFAC) have issued guidance through FAQs which…

An additional benefit of being a Member to the Shipowners’ Club is that all vessels entered are automatically enrolled with the International Tanker Owners Pollution Federation (ITOPF). The cost of ITOPF membership is paid for by the Club on behalf of all Members. ITOPF is there to assist and advise in the event of a spill or threat of a spill of oil, chemicals or other substance in the marine environment.

The Club wishes to remind Members of its previous publications regarding the implementation of the global sulphur cap which is due to come into force on 1 January 2020. In addition to this advice, Members should also be aware of the potential amendments they could make to charterparties, in order to help minimise their exposure to contractual disputes relating to the sulphur cap.

The Shipowners’ Club hosted its first webinar on the topic of Sanctions: ‘What to watch out for in a fast changing world’.

At the 2019 half year point, the Club reported a Combined Ratio of 105.9%, with an underwriting deficit of US$ 5.7m. This represented a deficit marginally higher than budgeted, which was determined to be largely the result of the increased quantum of claims in both 2018 and 2019 when compared with 2016 and 2017.