MARASCO MARINE.BLOG

2011-01-10T03:58:00.000-08:00

PRINCIPAL AREAS OF CHARTERERS LIABILITY

Its not uncommon for most of the charterers -even the experienced ones- to have a vague understanding of their risk -liabilities-exposure towards head ship owners,disponent owners and other third parties under a CP or a Bill of Lading.

This message is writen with a purpose to offer you -the charterer- a clear 'picture' of your liabilities and risks you are exposed to and the necessity for a Charterers liabilities insurance P&I cover.

Safe port or Safe Berth Warranties

Both voyage and time charterers may assume the responsibility of nominating a safe port or berth at which cargo is to be loaded or discharged. The question of whether a port or berth is unsafe from a legal point of view in a particular case is usually hotly contested between owner and charterer. However, if the chartered vessel suffers physical damage, delay or detention or extraordinary expense as a result of such unsafety the charterer will often be liable for such losses and should financially reimburse the owners.

Usually the liability arises from the physical characteristics of the port, such as insufficient draught at the berth, or exposure of the berth to dangerous weather conditions, but also losses caused by the political situation at a port, such as an outbreak of war may also justify a claim against the charterer for breach of the warranty of safety.

Damage to the Vessel during Loading

Charter parties will often fix the charterer with liability for any damage caused to the vessel’s cranes, hatches, tank tops, etc., during loading operations, unless such damage can be categorized as for wear and tear.

As well as liability for repair costs the charterer may be faced with claims from the owner for losses arising from the detention of the vessel while repairs are carried out.

Bunker Quality

While under the terms of a voyage charter party the provision of bunkers remains the owner’s responsibility, time charterers assume responsibility for provision of bunkers for the time charter voyage or voyages. This responsibility may be discharged by the purchase of bunkers already on board the vessel at the commencement of a voyage originally purchased by the owner.

On the other hand, a time charterer may himself contract with bunker suppliers for the provision of bunkers required. If he does so, he will be assuming a measure of responsibility to the owner for the quality of bunkers supplied. If the bunkers are off specification, and cause damage to the vessel’s machinery, a charterer may find himself paying for the cost of repairs and detention thus incurred.

Stowage of Cargo

Under most charter parties, charterers will assume some responsibility for the loading and stowing of cargo. Negligent stowage of cargo may result in damage to, or even the total loss of, the chartered vessel, through the shifting of cargo or a collapse of stow. The resulting costs and expenses may be for the charterer’s account.

Dangerous Cargo

As the charterer is responsible for furnishing the cargo for the voyage, so he may have a responsibility for the condition of the cargo on loading. If the vessel is lost or damaged because of the dangerous condition of the cargo a charterer may find himself responsible for losses flowing from the casualty. Recent cases of spontaneous combustion of coal cargo, resulting on the total loss of chartered tonnage for which the charterer has been held liable, have received worldwide publicity.

General Average and Salvage

Unless the charterer can show that a general average incident arises from a breach by the owner of his obligation under the charter party, he may have a liability to the owner for general average contributions in relation to the value of any bunkers belonging to the time charterer that are saved and in relation to freight at risk.

Indemnity Claims by the Owner

Breaches of charter party obligations such as those indicated above may not only expose the charterer to claims by the owner himself for, perhaps, damage to his vessel, but also to indemnity claims by an owner who has to respond to a claim by a third party, when the claim arose out of a breach by the charterer. Thus, the loss of a vessel through the break by a charterer of his obligations to nominate a safe port might expose an owner to claims for a wide range of third party liabilities which are traditionally covered by the owner’s P & I Club. These might include claims for loss of or damage to cargo, claims for death or personal injury, pollution claims or, perhaps, claims for removal of wreck in the case of a total loss. Not only, therefore, may the charterer be faced with claims for actual damage to the vessel if the port is unsafe, but also to claims by the owner for indemnity against all the third party claims to which the owner has had to respond as a consequence.

Liability to Third Parties

In addition to the charterer’s exposure to claims by the owner under the terms of a charter party, as outlined above, there may also be an exposure to contractual or tortious claims by third parties.

Claims under Bills of Lading

In many cases a charterer will issue bills of lading in his own name, and assume responsibility under the bill of lading contract to cargo interests, either alone or jointly and severally with the owner of the vessel. Even in cases where an owner issues a bill of lading the charterer may, in some jurisdiction be held liable for loss or damage to cargo. As such, although a charterer’s exposure to a bill of lading claim may be limited by his rights of indemnity against the owner, depending on the terms of the charter party, he nevertheless has a requirement for insurance cover for cargo claims which is very similar to that of the owner himself.

Indemnities

The charterer being the party concerned with the cargo to be carried either on his own behalf or under contract to cargo owners will usually be expected by the owner to provide any indemnities required by port authorities or berth owners for the use of port facilities or to stevedores engaged by the charterers to load or discharge the cargo. It is often the case that there will be no right of recourse against the owner for liabilities that the charterer may sustain under these indemnities even though claims may arise as a result of acts of negligence by the master or crew of the chartered ship.

Claims in Tort

Claims by third parties who suffer loss as a result of negligence by the charterer whether or not such negligence exposes him to claims by the owner for breaches of his charter party obligation, will expose the charterer to liability in accordance with the normal principles of the law of negligence. If anything, the categories of a charterer’s liability cover a wider range than those of an owner. While his exposure may be reduced by charter party clauses giving him rights of indemnity from the owner or defenses against claims brought by the owner against him, the value of rights of indemnity of course depends on the capacity of an owner to respond. Even if a charterer appears to have a clear right of complete indemnity from the owner for a third party claim for example for loss of cargo, he may find himself completely unprotected if the owner is, financially unsound.

Therefore, even full rights of indemnity under a charter party for particular exposure are not an indication that a charterer does not require insurance cover for that risk; they are merely an indication of the probable level of exposure.

You may have a complete and firm offer for your liabilities insurance cover either by communication with MARASCO MARINE at info@marasco-marine.com or by filling our Charterer's Liabilities P&I proposal form at

www.marasco-marine.com from a wide selection of Mutual P&I clubs or Fixed annual cost Insurance Companies.

Sincerely yours

MARASCO MARINE,LTD.

Anastasios Maraslis

President/Insurance Broker since 1983.

http://www.marasco-marine.com/

info@marasco-marine.com

S.T.I.C BUILDING

3, Voudouri Str., Piraeus, 18537

GREECE

PIRACY, A SIGNIFICANT THREAT TO SHIPPING.

2010-12-07T00:47:00.000-08:00

PIRATES, STILL POSE A SIGNIFICANT THREAT TO SHIPPING.

‘Pirates attack vessels to take control of the vessel itself or to kidnap the crew and ask for ransoms.’

A total of 406 incidents of piracy and armed robbery have been reported in the 2009 annual piracy report issued by the icc international maritime bureau’s piracy reporting centre (imb prc).

The total number of attacks reported to the imb’s piracy reporting centre (prc), the first nine months this year (2010), is 289.

Somali pirates intensified attacks away from their own coast and were responsible for 44% of the 289 piracy incidents on the world’s seas in the first nine months of 2010, according to a report published by the International Chamber of Commerce International Maritime Bureau (IMB).

The IMB Piracy Reporting Centre’s worldwide figures show that in the past nine months pirates boarded 128 ships and fired at 52. A total of 70 vessels reported thwarting attacks. Pirates used guns in 137 incidents and knives in 66, killing one crew member, injuring 27 and taking 773 hostages.

Globally, the number of vessels hijacked was higher than the 34 recorded in the same period last year, despite a slight fall in the number of piracy incidents, down from 306 in the first nine months of 2009.

Pirates attack vessels to take control of the vessel itself or to kidnap the crew and ask for ransoms.

Ransom demands for a ship’s crew average usd 1m with the largest over usd5m settled.

To date over usd 30m have been paid in ransom monies.

In the Gulf of Aden attacks were greatly reduced, with only 44 reported this year compared with 100 for the same period of 2009. The monsoon weather that had been deterring piracy further out to sea ended in mid-September, opening the way for renewed attacks, warned IMB.

A new area of increased piracy is the South China Sea, which suffered 30 piracy attempts in the last nine months, resulting in 21 successful boardings. This is triple the number of incidents reported in the same period last year.

RED ZONE AREAS

gulf of aden, lagos, dar es salaam mogadishu, somalia, port of monrovia, liberia, hanish al kubra island, southern red sea, off oman coast, arabian sea, indonesia, bangladesh, malacca straits, south china sea, malaysia, philippines, vietnam, singapore straits, South China.

-MARASCO MARINE LTD AND WHAT COVERAGE THERE IS FOR YOU?FOR WE C

- You will be covered for the following events:

-hijack of vessel with demand for ransom in exchange for release of crew, cargo or ship.

-loss, seizure or destruction of a ransom during delivery

-covered losses

-ransom payment

-ransom payment lost, seized or destroyed

-additional expenses including, but not limited to:

--legal fees

--fuel costs

--cost associated with delivery of ransom

--port fees

Statistical information was gathered from IMB, ICC and various insurance gazettes.

I wold be delighted to share your comments and thoughts on the subject of mdern piracy as a threat to the shipping industry and the lives of inocent crew members.

Anastasios Maraslis

President/Marine Insurance Broker, Since 1983.

http://www.marasco-marine.com/
info@marasco-marine.com

'THE CREW FACTOR IN MARITIME CASUALTIES'

2010-12-05T01:47:00.000-08:00

CREW FACTOR IN MARITIME CASUALTIES

“80% of accidents are caused by human error”.

Admiral Sir N. Hunt.

Since the 1970s, maritime casualties have occurred to oil tankers, bulk carriers, general cargo vessels and passenger ships. These casualties have been met by the International shipping community with great astonishment and they have shown solitude for the establishment and implementation of the International Conventions and regulations.

After the tragic loss of the Ro-Ro ferry Herald of Free Enterprise, the I.M.O. adopted Resolution A.596(15) and started dealing with the role of the human element in maritime casualties and accidents. Since then the International community and the maritime industry have studied the issue and recognised that the great majority of maritime casualties and accidents were due to human error.

However casualties continue to happen very often and raise great concern and doubts in public opinion.

There is a growing realization in the world shipping community that the qualifications of the seafarers

manning the world fleet is the single most important issue in achieving higher safety standards on board

ships.

Considering a significant number of casualties at sea occurred lately and researches by P & I Clubs,

Classification Societies and Hull Underwriters, into the causes of accidents have established that

approximately as much as 80 per cent of all accidents are the result of human error.

Statistics reports from 1997-2007 show that human error was responsible for 50% of pollution, 65% of personal injuries, 80% of property damages, 90% of collisions and 50% of cargo claims. The causes found were: lack of knowledge and experience, overconfidence, recklessness in responding to commercial pressures, fatigue (related mainly to collisions), discomfort, boredom, anger, unhappiness, illness, confusion and lack of adequate communication.

Therefore a reduction in the human error ratio would result in considerable improvement in the safety of ships, lives at sea and to the economy of the Shipping Industry and specifically to the ship operator. The need and the importance of loss prevention is undisputed and can be achieved through crew training and careful selection of seamen. The qualifications of seafarers will therefore remain a key issue in shipping for years to come BUT EQUALLY IMPORTANT their ability to communicate adequately-something which can be taught, learnt and practiced-

Marasco Marine Ltd, and the undersigned, fully aware of the major importance of crew factor in Ships Economies and Safety co operates closely with a global network of Manning agents in training the crew members in the 'Art of effective Communication' which is the key element in accidents prevention.

Moreover Marasco-Marine team of experts step by step compliment Insurance Underwriters requirements for qualitative risk assessment, before issuing a policy, in a detailed and transparent way, that Underwriters remunerate such an effort in more favourable premiums for our shipping client companies and vessels.

Marasco Marine Ltd.

Anastasios A.Maraslis
ManagingDirector
info@marasco-marine.com

http://www.marasco-marine.com/

YOUR NEW SOURCE OF BRIEF, CLEAR CUT, SHIPPING & MARINE INSURANCE INFORMATION

2010-12-01T07:59:00.000-08:00

Considering the variety of information available in the market and YOUR limited time available, to go through and read whatever is 'thrown' at you, I have decided to put some extra effort in the word of service and make YOUR LIFE easier -I hope to manage my goal - particularly for you, the shipping professional, who wishes to be BRIEFLY and WELL informed, before a decision is made.

Any of you who receives tons of information every day, sometimes useful and other times useless, I can understand you and I fully agree on how important it is for anyone to have specialised and tested reliable information nowadays, in a few words.

In this respect and appreciating your valuable time I have created this blog, which will provide to you, this kind of information ONLY, alongwith its source -if not coming from the undersigned- and in a simplified manner, starting from the Headline which will be clear cut, right to the point of its subject of interest.

The information will be strictly Marine Insurance and Shipping related, which will probably have an effect in your day in and day out business working decisions and thinking.

I hope this effort to be supported by all of you who can see such an effort as a beginning to contribute collectively and make this blog a major source of information and advices for our joy and satisfaction.

This 'new & friendly, communication platform' , hopefully will earn your attention and that you will love it as your own, because, I truly believe that, each of you has something valuable to share, either from his daily business experiences, or through a reading which came across his desk.

I have to admit that my goal will not stand a chance without you, as anything else in life has no chance to survive, without any attention and support.

I welcome all good will friends and associates from both Shipping and Marine Insurance industries, to participate and share their valuable information, ideas and comments in this blog, by posting in here, or sending me by e mail their post.

Sincerely yours.

Marasco Marine Ltd.
Anastasios Maraslis
President/Managing Director
Marine Insurance Broker Since 1983.
http://www.marasco-marine.com/
info@marasco-marine.com
Tel :+30 210 4529500
Mobile:+30 6932 201053

VESSELS' MARITIME LIEN /CHRTS INSOLVENCY/THREAT VESSELS' ARREST/ CHRTS DEBT INSURANCE

2010-07-10T02:58:00.000-07:00

Dear friends and associates,

In such dire freight market conditions and declining margins, the last thing an owner needs is his vessel to be arrested! Vessels' arrests cause considerable trading disruptions and substantial financial damages.

The recent case of Korea Line petition for reorganization under Chapter 11 of the US Bankruptcy Code (Court protection from creditors) is giving me the opportunity to bring into your attention an insurance cover which costs very little but is NOT well known or bought by owners or disponent owners.

THIS INSURANCE (P&I EXTENSION COVER) IS PROVIDING THE NECESSARY FUNDS FOR OWNERS RECOVERY FROM FINANCIAL LOSSES RESULTED BY AN ARREST OR A CLAIM AGAINST A VESSEL DUE TO VESSEL'S CHARTERERS INSOLVENCY.

This is an open cover annual policy which covers all declared vessels within the year and covers any declared vessel for maritime liens or maritime claims which is alleged by the Claimant(s) for liabilities to pay:

a) the cost of bunkers,

b) the port charges,

c) stevedoring costs,

d) any costs incurred for the completion of the voyage which should have been paid
by the vessel's charterer

e) Any other third party claims ownrs suffer as a result of the charts insolvency.

However this type of insurance excludes claims for Loss of Hire, Freight, Dead freight, demurrage or running expenses,or business interruption losses in earnings which can be covered by a separate insurance policy i.e TRADE DISRUPTION & LOSS OF EARNINGS INSURANCE.

ANNUAL PREMIUM

================

As an indication only: about usd 5,000-7,000 per annum per vessel with a 10% rebate for fleet insurance.

SUM INSURED PER VESSEL/YEAR

============================

Annual Insured amount per vessel per year : Minimum USD 1,000,000 (can be increased upon request).

You may also have a complete and firm offer for your liabilities insurance cover either by communication with MARASCO MARINE at info@marasco-marine.com or by filling our Liabilities P&I proposal form at www.marasco-marine.com from a wide selection of Mutual P&I clubs or Fixed annual cost Insurance Companies.

Sincerely yours

MARASCO MARINE,LTD.

Anastasios Maraslis

President/Managing Director

Insurance Broker since 1983.

http://www.marasco-marine.com/

info@marasco-marine.com

S.T.I.C BUILDING

3, Voudouri Str., Piraeus, 18537

GREECE