Insight

A challenge for shipowners and their insurers engaged in international trade is to ensure that a common set of guidelines or standards for ship related liabilities apply across the different trading nations. Several IMO liability and compensation conventions require the shipowner and their insurers to accept strict liability, irrespective of fault, and with mandatory insurance cover in exchange for the right to limit liability to an amount set by the convention. The IMO’s clarification underlines there is a ’virtually unbreakable’ right to limit.  This is reflected in the adoption of the IMO’s unified interpretation by the relevant participating states.

Good nutrition plays a significant role in our lives. The food we eat impacts our health and wellbeing. Making healthy food choices that reflect good nutrition is a challenge in every aspect of life, and perhaps even more so for seafarers given the unique characteristics of life aboard ship. Responsibility for good nutrition at sea is a shared one – seafarers control their consumption, but it is the ship operator and crew managers who must procure and stock healthy food choices and ensure that the ship cook is well trained in planning and preparing nutritious meals. 

We recently published an article focusing on the toxicity of phosphine gas and the potential danger this poses to the crew when agricultural bulk cargoes and forestry products are undergoing in-transit fumigation with aluminium phosphide.  In that article, we very briefly mentioned another potential hazard that can arise at the initial stage of the process – phosphine gas explosions. In this article, our guest author, Dr Nicholas Crouch, focuses on the risk of explosion in port and the steps that can be taken to reduce the risk.

2023 ushers in a new era for the shipping industry with the introduction of the carbon intensity regulations. These are just some of the many regulations that enter into force this year.

The Inter-Club Agreement (ICA) was formulated by International Group of P&I Clubs in 1970. It is intended to provide a relatively simple mechanism whereby liability for cargo claims arising under New York Produce Exchange Form (NYPE) or Asbatime charterparties and contracts of carriage authorised under such charterparties, can be swiftly and fairly apportioned between owners and Charterers. The purpose behind the development of the ICA was to avoid costly and protracted litigation. Does Gard’s experience in handling cargo claims subject to the ICA match these intentions?

When you are enjoying the holiday season with your family spare a thought for those at sea.  We are all well aware that the sea is unpredictable and that seafaring can be a dangerous and stressful occupation. There are some things such as bad weather or sea conditions that are difficult to avoid but the lives of crew members and shipowning/management teams are also made far more stressful by situations caused by the failure of states to agree common policies or to implement them or treat seafarers with consideration and humanity. We will look at two of them with concrete examples of cases faced by our Members.

From 22 December 2022, ships trading to Chinese ports must record their energy consumption data in accordance with the requirements of their Ship Energy Efficiency Management Plan (SEEMP). Ships must also report the consumption data from their last voyage to the Chinese authorities prior to leaving a Chinese port.

Gard and the Norwegian Centre for Maritime and Diving Medicine have launched an innovative international digital medical guide to improve medical treatment onboard and potentially save seafarers’ lives.

Not long ago, a member’s vessel was detained at load port because the density of the solid bulk cargo being loaded exceeded the maximum allowable cargo density for that particular vessel. Recently, we were also approached by another member because the master of a capsize bulk carrier had refused charterer’s request for alternative hold loading due to serious concern about the ship’s safety.

There has been increasing interest in expanding existing domestic emission trading schemes to also cover international shipping. There is now agreement in the EU on how the EU’s emission trading system will be applied to shipping from 2024. Owners and charterers should start to think about how they are going to deal with its requirements.

IMO’s Carbon Intensity Indicator (CII) rating system for vessels is coming into force next year. It will be used to assess the efficiency with which a ship operates in terms of its CO₂ emissions. The CII regulation is likely to alter the traditional division of responsibilities between owners and time charterers, and may significantly change the way vessels are operated.

The IMO’s Carbon Intensity Indicator (CII) rating system for vessels is coming into force next year. It will be used to assess the efficiency with which a ship operates. It is the first carbon regulation from the IMO that is likely to alter the traditional division of responsibilities between owners and time charterers and may significantly change the way vessels are operated. For those less familiar with the CII regulations, see our accompanying article "The challenges of CII compliance - cooperation is key".

Many agricultural bulk cargos and forestry products are required to undergo fumigation on board ships to prevent infestation. However, to achieve the efficacy, the fumigation operation started at the load port often needs to continue in transit to the discharge port. Such “in-transit fumigation” may endanger the safety and lives of crew members and shore-based personnel if not handled properly. The toxicity of the fumigant makes it extremely important to raise awareness of the dangers of in-transit fumigation. 

The number of people with diabetes has nearly quadrupled since 1980 and the numbers grow year by year. According to the WHO, a large proportion of Type 2 diabetes can be prevented by a healthy diet, regular physical activity, maintaining a normal body weight and avoiding tobacco use. Prevalence of the condition has correspondingly grown in seafarer populations threatening their health and wellbeing.  November 14 is World Diabetes Day and a reminder to check your risk factors and take preventive action.

BIMCO has published a revamped version of the popular GENCON charterparty.  Our author, Helena Biggs, was a member of the drafting committee. She highlights the changes and the reasons behind them.

Christen Guddal, Gard’s global head of claims, recently gave a talk at the International Marine Claims Conference in Dublin titled “Putting the S in ESG”. We share some of his comments and observations.

During a voyage from Ishigaki to Manila aboard the tall ship Statsraad Lehmkuhl, our author glimpsed what it means to have wind in our sails. He will take you on that voyage and what we can learn from the master and the crew; the ship and the sea; and the wind and the sails as well as some lessons that will inform decisions toward upcoming carbon emission reduction targets. 

The Nordic Marine Insurance Plan is a collaboration between The Nordic Association of Marine Insurers (Cefor),  Danish Shipping, the Finnish Shipowners’ Association, the Norwegian Shipowners’ Association, and the Swedish Shipowners’ Association.

The IUMI 2022 Policy Forum Workshop in Chicago focused on the war in Ukraine and its impact on marine and war risk insurance.  At the workshop, Gard’s global head of People claims, Lene-Camilla Nordlie, turned her attention to seafarers and the challenges they face, not just due to the current geopolitical situation, but also generally due to the stresses and strains of their occupation. She shares some of her comments in today’s Insight.

MARPOL permits unprocessed food waste to be discharged into the sea from vessels proceeding at a distance not less than 12 nautical miles from the nearest land. Sounds straightforward? Unfortunately, it is not - all coastal states do not define their ‘nearest land boundary’ in the same way.