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Casualty Towage P&I Coverage During Post -Casualty Towage

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Casualty Towage P&I Coverage During Post -Casualty Towage The Swedish Club No. 1 - 2011 April Owners have to reconsider their measures Page 14-17 Six steps towards improved Safety Page 22-23 All vows renewed! Page 13 The comings and goings of DRUGS Page 6-8 THE SWEDISH CLUB TRITON 1-2011 Content | No. 1 - 2011 April Leader | On solid ground! 3 The Swedish Club is a mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight, P&I | P&I coverage during post-casualty Demurrage & Defence, Charterers' Liability, Hull & towage 4-5 Machinery, War risks, Loss of Hire insurance and any | The comings and goings of illegal additional insurance required by shipowners. drug and chemical precursors 6-8 Head Office Sweden MarketING & | Visiting adress Gullbergs Strandgata 6 BUSINESS DEVELOPMENT | A business built to last 9 411 04 Göteborg Postal address P.O. Box 171 SE-401 22 Göteborg, Sweden Tel +46 31 638 400 Fire | To allocate responsibilities and Fax +46 31 156 711 reduce risk 10-12 E-mail [email protected] Emergency tel +46 31 151 328 | Underwriting All vows renewed 13 Greece 5th Floor, 87 Akti Miaouli GR-185 38 Piraeus, Greece Piracy | Somali piracy today 14-17 Tel +30 211 120 8400 Fax +30 210 452 5957 E-mail [email protected] Loss prevention | The Aqaba corn case Emergency tel +30 6944 530 856 – a study of a cargo claim 18-19 Hong Kong Suite 6306, Central Plaza | Demolishing an unused dolphin 18 Harbour Road, Wanchai, Hong kong – an incident to punish or reward? 20-21 Tel +852 2598 6238 Fax +852 2845 9203 | Six steps towards improved safety 22-23 E-mail [email protected] Emergency tel +852 2598 6464 Legal | The new Turkish commercial code 24-25 Japan Room 103, 6-1, 1 Chome, kaigan, Minatu-ku | Tokyo 105-0022, Japan The Swedish Club New MRM training providers 26 Tel +81 3 6459 0870 Academy | Out and about with MRM 26-29 Fax +81 3 6459 0871 E-mail [email protected] Emergency tel +81 3 6459 0870 Club information | Staff presentation: Norway House of Business, 6th floor | Hans Filipsson 30-31 Postal address Tjuvholmen Allé 3 | Joakim Enström 32-33 N-0252, Oslo, Norway Tel +47 9828 0514 Mobile +47 9486 1205 | News from Team Oslo Energy 34-35 E-mail [email protected] | Emergency tel +46 31 151 328 Notice Board 34-35 | News from Asia 36 The Swedish Club Triton is published three times a year and distributed free of charge. The Swedish | News from Piraeus 37 Club Letter is an editorially independent newsletter and opinions expressed by external contributors are | News from Team I 38 not necessarily those of The Swedish Club. Articles | herein are not intended to provide legal advice and News from Team III 39 the Club does not accept responsibility for errors | Basic facts / New members 40 or omissions or their consequences. For further in- formation regarding any issue raised herein, please | Bohus fortress 40-41 contact our head office in Göteborg. Editorial Advisory Board Peter Andersson, | Out and about 41-42 Susanne Blomstrand, Henric Gard, Birgitta Hed, | Anders Leissner, Lars A. Malm, Lars Rhodin, In Memoriam 43 Tony Schröder, Carola Weidenholm. | Staff news43 Production co-ordinator Susanne Blomstrand. | Club calendar 44 PR-consultant TRS Public Relations Ltd., London. Layout Eliasson Information, Göteborg. Cover photo IStockPhoto. Print PR Offset. 1104PR5200B © The Swedish Club. Articles or extracts may be quoted provided that The Swedish Club is credited as the source. www.swedishclub.com 2 THE SWEDISH CLUB TRITON 1-2011 Leader | MD Lars Rhodin On Solid Ground! PHo T o: Jonas Ahlsén Dear members and associates, 2010 was a year both of anniversary celebrations and of change for the Club. Great anniversaries, as we have a rich history to celebrate – 100 years of P&I, and 30 years of our office in Greece. Those occasions represent important milestones in our 139-year Lars Rhodin journey. Change, because we adapt and move in Managing Director tandem with the changes taking place in shipping, this diversification and, in addition, it fits in well in the insurance and the regulatory environment. Obviously, revised risk management plan. The market response successful companies do not merely keep abreast has been positive within the broking community as of development – they foresee changes down the well as among owners. The Club stands for strong line. We take our core value “proactive” to heart and values; there is reliance on the Club’s following endeavour to do our best to stay ahead of the game. through on long-term strategy. For members, the most important aspect is to have The European Commission’s investigation into the a club ready to act – to respond to casualties and International Group continues. Claims-sharing and other urgent insurance needs. Last year we the joint reinsurance arrangement are under scrutiny experienced a rather benign claims distribution, but and so is the mechanism for release calls. The current nevertheless we had our fair share of casualties during system is not perfect – no system is! The fact remains certain periods. A casualty seldom comes alone! that it provides for unparalleled cost benefits to the Some had the real potential to develop adversely, to consumers, i.e. the shipowners, at the same time as say the least. Fortunately, events turned our way and third parties and society at large stand to be the real that of the shipowners, even though the exposure beneficiaries. There may be behaviour within clubs was challenging. Insurance means being prepared for that needs to be improved. I am rather sure that the unknown, hence the importance of having a club there will be some positive contributions emerging ready to respond. from this probe, but there are some fundamentals at In early December we passed 30 million GT of play. So, please raise your voice in support through owner’s P&I entered with the Club. Whilst volume your respective channels! We shall do our part in in isolation is not a target, we see this as a token of safeguarding the benefits derived from the system. confidence. The Club is its members. It starts with quality. When that is in place, results will be generated yours sincerely, from which growth will follow. The Club had a net combined ratio of 87% in 2010, adding a significant surplus from the insurance operation to the total result of USD 29.5 million. Team Oslo Energy is now up and running, and we have established an office in central Oslo in the Tjuvholmen district, next to Aker Brygge. Reinsurance has been fitted into our consolidated programme structure, and, as of 20 February 2011, we got the “pen”. We see synergies with our existing business by 3 THE SWEDISH CLUB TRITON 1-2011 P&I | Post-casualty Towage P&I coverage during post -casualty towage In the ordinaRy and customary contract – but it is always the member who course of any merchant vessel’s trading, is the contractual party – not the Club. vessels proceed in and out of ports and to Under Norwegian Hull Conditions, the and from berths to load and or discharge cost of removal of the vessel, meaning the cargo. This is all in the natural pattern Tony Schröder towage, is covered, as are costs relating to of ships movements. Liability relating to Area Manager the preparation of the tow. Importantly, if towage which forms part of the ordinary Team Göteborg I additional insurance needs to be taken out and customary course of trading is, for that by the member, such as Shipowners’ Liabil- reason, covered by P&I clubs. considered liable - res ipsa loquitur, i.e. “the ity Insurance, that premium will be regard- However, towage is in many cases more thing speaks for itself”. ed as removal expenditure and is covered. related to a casualty, or post-casualty, tow- age, usually following engine breakdown Cargo onboard - the Himalaya Clause Towage Certificate of Approval or damage to the rudder or propeller ren- The member must ensure that the Con- Unless the towage is of a very limited dering the vessel immobile; the vessel is tract of Affreightment (COA) contains an character, a Certificate of Approval must be thus in need of assistance to be removed to adequate Himalaya Clause. The Himalaya obtained following inspection of the a repair facility. Towage that does not form Clause ensures that the member’s right of towing tug and all towing equipment as part of the vessel’s ordinary and custom- limitation and contractual defences also well as the vessel to be towed. The Certifi- ary trading is excluded from cover - unless apply in favour of the tug owner. The pur- cate of Approval should be issued by a pre- the contract for such towage has been pre- pose of the Himalaya Clause is a contrac- approved organisation by the Club. The approved by the Club. tual provision expressed to be for the organisation chosen should be consulted benefit of a third party who is not a party before any tug is contractually committed, Legal considerations for tug and tow to the COA. If there is no Himalaya in order to safeguard that inter alia mini- post-casualty Clause, third parties may go against the mum bollard pull, towing gear, passage plan It is not uncommon that the post-casualty tug in tort; which in its turn can turn to and other performance records are met. towage has been preceded by a salvage the tow (the vessel) under the COA. For situation and that the vessel is subsequent- example, a cargo owner may try to cir- Greatest exposure lies with P&I ly at a “place of safety” – i.e.
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