News

In our Half Year Report, it was noted that the Club had delivered a Combined Ratio of 106.4%, representing an underwriting deficit of US$ 6.17 million. This represented a deficit marginally higher than budget, with claims in the year at a higher level than 2016 and 2017 and development of those years being slightly worse than anticipated.

In 2011, following the outbreak of civil war in Libya and subsequent human rights violations, the UN and the EU imposed sanctions on Libya.

The Environment Protection Department of the Government of Hong Kong Special Administrative Region recently issued a press release which stated that their Legislative Council has approved the Air Pollution Control (Fuel for Vessels) Regulation (Cap. 311AB) (“the Regulation”) thereby applying a 0.5% sulphur limit for ships visiting their ports from 1 January 2019. This effective date precedes the implementation of the IMO’s Global Sulphur Cap 2020 by one year.

Drones can carry out a wide range of commercial and leisure functions, but their primary advantages are just like any other mode of air transport, they provide height, speed and reach.

The Managers are aware that, from time to time, Members have been offered contractual terms with counterparties that require the shipowner to provide a continuing warranty of seaworthiness for the entire duration of the voyage.

Reference is made to circular issued in May 2016 referring Members to the Inter-Club New York Produce Exchange Agreement 1996 (the “ICA”), as amended in September 2011, that provides a mechanism whereby liability for cargo claims arising under the New York Produce Exchange Form (NYPE) or Asbatime…

In an attempt to maintain the principles established under the JCPOA framework, to facilitate the continuation of trade activities between European businesses and Iran, and to counteract the extraterritorial effect of U.S. secondary sanctions, the European Union has replaced the annex to Council Regulation (EC) No 2271/96, otherwise known as the Blocking Regulation.

Managing stress and sleeping well at sea is an integral part of positive health and wellbeing on board. In partnership with ISWAN, the Club has produced this information booklet as part of their series of Good Mental Health Guides for seafarers.

In accordance with the Solvency II regulations the Club has produced its Solvency & Financial Condition Report (SFCR) as at 31 December 2017.

The Shipowners’ Club recently had the great pleasure of holding a day seminar on the topic of Autonomous Ships & the City. The full day event, which was held in conjunction with Maritime London, aimed to identify and examine the increasing autonomy of vessels.

The decision by President Trump announced on 8th May, 2018 to cease the US participation in the JCPOA and to begin re-imposing US nuclear-related sanctions which were lifted to implement the JCPOA, is likely to have significant ramifications for maritime trade with Iran and the insurance of such trade.

From 20 March 2017, the discount rate applied when calculating compensation for future losses in personal injury claims reduced from the 2.5% rate set in 2001 to -0.75%.

You will be aware of the decision by President Trump, announced on 8 May, to withdraw the United States (U.S.) from its participation in the JCPOA

Further to our circular on 26 April 2018 concerning the designation of Rusal to the US Specially Designated Nationals List (‘SDN’) list, the US has issued two licences permitting parties until 23 October 2018 to wind down ongoing transactions with Rusal. Further detail is provided in this article, courtesy of Freehill Hogan and Mahar LLP.

On 6 April 2018, a number of Russian entities and individuals were placed on the United States Specially Designated Nationals List (‘SDN List’).

In partnership with International Seafarers’ Welfare and Assistance Network (ISWAN), the Club is pleased to present the latest addition to the Good Mental Health Guides series: ‘Managing stress with relaxation techniques’.

The marine transportation of containers is a dynamic operation which requires close supervision from the moment the containers are taken under the Member’s care until such time when they are safely delivered to the receiver. It comes as no surprise that the nature of this trade gives rise to a considerably large volume of claims, many of which could have been easily avoided had greater oversight and diligence been exercised.

In partnership with the International Seafarers’ Welfare and Assistance Network (ISWAN), the Club is releasing a series of Good Mental Health Guides to better mental wellbeing on board. This includes guidance on how to maximise Psychological Wellbeing at Sea.

The Mission to Seafarers, and the project founder Steven Jones, have released the first edition of the Seafarers Happiness Index (SHI).

The General Data Protection Regulation (GDPR) is set to come into force on 25 May 2018. This new regulation will have direct effect in the EEA/ EU and will change the way in which businesses and public sector organisations worldwide, handle the personal information of European Citizens.

As a provider of P&I insurance for vessels trading worldwide, the wellbeing of seafarers serving on Member’s vessels remains a key focus of the Club’s Loss Prevention department.

In November 2017, the Club held a webinar on Managing in a Crisis. The webinar, held in partnership with Steven Jones and Louise McWatt of McWatt and Jones, covered key crisis management aspects such as how to react to an emergency, respond to a crisis and deal with affected stakeholders.

Following our recent Update on piracy attacks, the International Chamber of Shipping, BIMCO and Intertanko have published an Interim Guidance on Maritime Security in the Southern Red Sea and Bab Al-Mandeb which is to be followed in conjunction with Best Management Practices for Protection against Somalia Based Piracy (BMP 4).

Automation presents a set of unique challenges to designers, insurers and operators of ships. In this article, Keir Gravil, a naval architect at Frazer-Nash Consultancy in Bristol, UK discusses some of the key issues that could face automated ships of the future from a design perspective.

Members will be aware from the Club’s Circulars issued in June 2016 and October 2016, concerning the implementation of financial certification requirements in accordance with the amendments to the Maritime Labour…

When it comes to the placing of P&I risks, we know that Members and their brokers have several choices. The long tail nature of P&I claims must never be underestimated and therefore the long-term stability of a mutual P&I Club and the partnership forged between the Member and the Club in understanding the risks associated with their individual operations is essential.

In partnership with the International Seafarers’ Welfare and Assistance Network (ISWAN), the Club is releasing a series of Good Mental Health Guides to better mental wellbeing on board.

For almost fifty years, the Club has insured a large number of tugs operating in Latin America, performing a variety of towage tasks including harbour towage (assisting in the berthing and un-berthing of other vessels), coastal towage, and towage of barge convoys through inland waterways.

President Trump has agreed to waive sanctions lifted by the United States (US), as part of the JCPOA (‘the deal’). These sanctions must be waived every 120 days to keep them from coming back into force under the deal.

Autonomous marine systems are becoming ever more popular across a range of industries including defence, science and offshore energy. While the adoption of Autonomous Underwater Vehicles (AUVs) happened some years ago, attention has now turned to Autonomous Surface Vehicles (ASVs) to aid, and in some cases, fully replace traditional manned vessels.

The Mayflower Autonomous Ship project (MAS) is an innovative new venture to design, build and sail the world’s first, fully autonomous unmanned vessel across the Atlantic Ocean.

On 1 January 2018, the Oil Companies International Marine Forum’s (OCIMF) Tanker Management and Self Assessment (TMSA) version 3 will come into force. The TMSA programme provides companies with a means to improve and measure their own safety management systems.

Last month, the Club announced that it would be extending its partnership with the International Seafarers’ Welfare and Assistance Network (ISWAN) to deliver a series of Good Mental Health Guides. The second guide in the series provides proactive Steps to Positive Mental Health.

Our series of Autonomous Vessels articles have highlighted the changes afoot in the maritime industry and legal environment. Developments continue apace and leading industry players expect to start seeing remotely operated vessels in commercial operation by 2020, if not before.

Unmanned and autonomous vessels are a hot topic in the shipping industry at present, but whilst rapid advances are being made on the technical side, is the liability regime keeping pace and what are the implications for P&I cover?

Increased investment has resulted in exponential advancements in autonomous vessel technology. Such funding has made way for more autonomous designs to be realised and there is a distinct possibility that in the future, when choosing new vessels to replenish or expand their fleet, Members will consider the acquisition of vessels which incorporate some level of autonomy.

Following the success of our Crew Health campaign, the Club is pleased to announce that it will extend its partnership with the International Seafarers’ Welfare and Assistance Network (ISWAN) to provide a series of articles on Psychological Wellbeing at Sea.

“Dominated by small enterprises and owner operators, heavily regulated, playing a critical role in the movement of goods and facing the uncertainty of a future where automation and unmanned operation will fundamentally change the nature of the industry.” That’s a description warning those with in the trucking industry in the USA of change but it could equally apply to the small and specialist vessel market.

The Shipowners’ Club is the leading global insurer for small and specialist vessels. Having provided ship owners with comprehensive liability protection, on a mutual basis, since 1855. Since our conception, the Club has bared witness to the seemingly infinite evolution of the shipping industry and has always endeavoured to remain at the forefront of developments.

On 4 December 2017, Hong Kong will apply legislative amendments to Schedule 2 of the Merchant Shipping (Limitation of Shipowners Liability) Ordinance (Cap. 434).

Reducing Members’ exposure to claims is central to the function of the Club’s Loss Prevention department. The department is able to fulfil this mandate by proactively addressing areas of concern which are identified by the Club or within the industry.

Further to our advisory bulletin on Renewed piracy attacks off Somalia, the Club would like to remind Members of the risk of exposure to attacks while transiting high piracy areas.

Collision incidents in narrow channels or bends of the Hidrovía, South America, have been recorded recently by the Club. During investigations, it has been identified that a common contributing factor to such incidents is the position of the vessel whilst performing passing manoeuvres.

Following on from our articles on Implementing risk assessments and Risk assessments for passenger vessel operations the Club has produced the next article in the series which  focuses on risk assessments from mooring and unmooring operations.

Sleepiness and long term fatigue are now recognised as major factors impacting accidents at sea and seafarer health.

The Club has continued to record a significant number of oil pollution claims that have occurred during cargo and bunkering operations.

As a mutual P&I Club specialising in providing a liability insurance solution to smaller and specialist vessels, we are aware that many owners wish to access the value-added benefits associated with being a member of a P&I Club but, due to their particular operations, prefer the premium approach adopted by the commercial market, which charges fixed premiums with no exposure to supplementary or overspill calls.

Adopted in 2004 the Ballast Water Management, BWM Convention (the ‘convention’), is the International Convention for the control and management of ship’s ballast water and sediments. The aim of the convention is to remove, render harmless or avoid uptake or discharge of harmful aquatic organisms and pathogens within ballast water sediments by mechanical, physical, chemical and biological processes (either singularly or in combination).

A vessel owner that arranges P&I insurance through a mutual solution with an International Group P&I Club can boast ultimate insurance protection limits of up to US$ 8 billion against (non-pollution/passenger) third party property losses.

The Club has recently dealt with several claims involving access to vessels, some of which have unfortunately resulted in injuries and even fatalities.

To understand release calls it is necessary to appreciate how Club’s view Club membership and in particular, the use of estimates which under-pin the ETC method of funding.

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.

The term ‘overspill’ means that a loss has spilled over, or exceeded, the limits of liability available through the General Excess of Loss Reinsurance Programme which protects Mutual Members of the International Group of P&I Clubs.

In June 2017 the 98th session of the Maritime Safety Committee (MSC) approved MSC-FAL.1/Circ.3 Guidelines on Maritime Cyber Risk Management.

On 2^nd August 2017 President Trump signed into law H.R. 3364, Countering America’s Adversaries Through Sanctions Act.  The new Act introduces economic sanctions legislation which builds upon existing sanctions imposed by the US against Iran, Russia, and North Korea.

Exponential advances in digital technologies, hyper-connected societies, and the rise of the global citizen are driving change across the operational landscape of the maritime industry.

Many vessel owners join a Mutual P&I Club to access limits of liability that are generally unavailable in the commercial fixed premium market. The highest limits are provided by the International Group of P&I Clubs, a collection of 13 mutual P&I Clubs, including the Shipowners’ Club.