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North of England P&I Association (ID: 32035)
sequences of which are un-conducive to the enhancement of maritime security and the promotion of maritime traffic, the IMO has issued a Circular providing guidance to masters, companies, and duly authorised officers detailing the recommended requirements relating to submission of security-related information prior to port entry. For full details of the IMO advice click on the following link. MSC Circ. 1130 (12/14/04) Printer-Friendly Page - Industry News - IMO TO TACKLE RESTORATION OF MARINE INFRASTRUCTURE DAMAGED BY INDIAN OCEAN TSUNAMI IMO TO TACKLE RESTORATION OF MARINE INFRASTRUCTURE DAMAGED BY INDIAN OCEAN TSUNAMI 6 Jan 2005 The restoration of important maritime infrastructure damaged by the Indian Ocean tsunami has been identified as an important priority by the International Maritime Organization, which has begun to co-ordinate efforts designed to repair serious damage in the affected areas. For full details of the IMO press release click here . Printer-Friendly Page - Industry News - INDIAN SHIPPING MINISTRY ASSISTS WITH RELIEF EFFORT INDIAN SHIPPING MINISTRY ASSISTS WITH RELIEF EFFORT 6 Jan 2005 It has been reported by Fairplay that India's Shipping Ministry has directed all major ports to accord priority berthing to ships carrying relief materials and also to waive port charges to such vessels. According to shipping secretary D T Joseph, the waiver will be subject to producing a certificate from the relief commissioner. The ministry has estimated the losses to port and shipping assets in Andamans at over Rs10Bn ($230M), with Port Blair alone accounting for Rs1.5-2Bn. Printer-Friendly Page - Industry News - ICS REVIEW 2005 AND COMMENT ON THEIR INVOLVEMENT ON LIABILITY AND INSURANCE ISSUES ICS REVIEW 2005 AND COMMENT ON THEIR INVOLVEMENT ON LIABILITY AND INSURANCE ISSUES 4 Jan 2005 This brief review covers discussions at the United Nations Commission on International Trade Law (UNCITRAL) on a new draft instrument on liability for the carriage of goods to replace the Hague/Visby and Hamburg Rules. CMI's ongoing revision of the 1994 York Antwerp Rules. Recent revisions of the London insurance market s hull and machinery policy wordings, officially known as the "International Hull Clauses 01/11/03" and the EU and Japan's ongoing preparations to implement the new IMO Protocol to the Athens Convention, which allows states to introduce increased levels of shipowner liability for personal injury on passenger ships. For full details of the ICS's expanded comments on these issues and full details of it's annual review please click on the following link. http://www.marisec.org/ics-isfkeyissues2004/yearinreviewtext.htm#liability%20&%20insurance Printer-Friendly Page - Industry News - REVISED LOAD LINES PROTOCOL ANNEX ENTERS INTO FORCE 1 JANUARY 2005 REVISED LOAD LINES PROTOCOL ANNEX ENTERS INTO FORCE 1 JANUARY 2005 1 Jan 2005 Regulatory amendments enter into force 1 January 2005 for full details of the changes click here . Printer-Friendly Page - Industry News - TSUNAMI DISASTER - PORT UPDATE AND EFFECT ON SHIPPING TSUNAMI DISASTER - PORT UPDATE AND EFFECT ON SHIPPING 31 Dec 2004 Please click on the following link to view a recent update on how the Tsunami has effected ports and what the long term effects on shipping in the Indian Ocean area may be. http://www.mgn.com/newsletter.cfm?#story4957 Nepia - Press Releases - Articles Industry News | Press Releases Archive for2004 2 Jul 2004 Bill Thomson becomes chairman of North of England P&I club 12 Jan 2004 North of England P&I club warns of further increases in shipping claims 14 Jun 2004 North of England P&I club continues strong relationships in Greece 27 Jan 2004 Scandinavian members endorse local North of England P&I club 12 Feb 2004 North of England P&I club highlights commercial impact of new security code 10 May 2004 North of England P&I club publishes expert guide To Collision Regulations 25 May 2004 ISPS will make stowaways a bigger problem, says North of England P&I club 17 Jun 2004 North of England P&I club free reserves reach US$ 133.5 million 12 Jul 2004 Shipowners need to speak with one voice, says North of England P&I club 2 Mar 2004 North of England P&I club approaches 50 million GT at renewal 21 Jul 2004 North of England P&I club launches new website and extranet service 22 Jul 2004 North of England P&I club hosts major Indian loss prevention seminar 20 Jul 2004 North of England's sister hull club reaches a record 5.5 million GT 13 Aug 2004 North of England P&I club continues conservative, service-driven approach 31 Aug 2004 Enclosed-space death toll continues to rise, says North of England P&I club 14 Sep 2004 Shipping Industry needs more positive image, says North of England chairman 30 Sep 2004 North of England P&I club launches hard-hitting safety poster campaign 27 Oct 2004 P&I club highlights dangers of using crews in unfamiliar roles 29 Oct 2004 P&I club publishes CD on how to avoid collisions in restricted visibility 11 Dec 2004 North of England P&I club opts for 12.5% general increase at next renewal 22 Dec 2004 Phil Anderson moves on after 25 years in P&I Archives: 2004 | 2003 | 2002 | 2001 Nepia - Risk Management - Education and Training - Distance Learning Course Overview | Condition Survey | Education and training | Publications Distance Learning Course | Recent events | Forthcoming seminars & conferences | In-office This is the fourth edition of a unique Distance Learning Course, which has been completely rewritten and restructured to embrace modern technology and training ideas, to run as a Computer Based Training (CBT) Course with extensive support materials. The course provides not only an introduction to the fascinating subject of marine liability insurance but also lays an excellent foundation to many aspects of maritime law. The CBT course in P&I Insurance is self-contained and the material supplied contains everything needed to complete the training programme. The course is run jointly by North of England P&I and South Tyneside College - successful completion of the course can also lead to entry into a post graduate programme in International Trade Law - leading to a post graduate certificate, diploma or Master of Laws - LLM - degree. To view the demo and download the enrolment form you will need the macromedia flash player available here . The course is divided into four modules with each module being split into a number of separate lessons General Module History and background to marine liability insurance Structure of the P&I industry Outline of risks covered and the basis of cover The principles of P&I Underwriting The principles of FD&D insurance Cargo Module Overview of international trade and sale contracts Contracts of carriage Carriage liability regimes Scope of P&I cover Charterparties People Module Personal injuries and illnesses Stowaways Diversions Ship Module Collisions Damage to property Pollution Each module comprises an interactive CD-ROM, which contains the CBT lessons as well as a wide range of supporting material in electronic form, a set of study notes as well as supporting books, videos and other material to provide in-depth coverage of the topic area. The electronic lessons take the student through the topic step by step - referring to the study notes and accompanying material as appropriate. Extensive use is made of interactive self assessment tests which the student will attempt as he or she progresses through the lesson. A personal tutor will be assigned on registration to be available for help and support which might be needed. At the end of each module the student will be invited to submit a detailed assignment for marking by the designated tutor. The results of that Tutor Marked Assessment will count towards the final award. There are additional advantages to both the student and the employer in studying by Distance Learning: Since attendance at college or seminar is not necessary there are: No travelling costs No accommodation costs No disruption to work Upon enrolling for the course, the student will be assigned to a personal tutor. The tutor will be available to assist the student throughout his or her studies by: telephone, fax, e-mail or post. Staff at North of England P&I will also be available to assist and advise as necessary. A marking scheme will be in place according to the following schedule: Distinction Over 85% Merit 65% - 85% Pass 50% - 65% Fail Below 50% For satisfactory completion of the course, the student will be required to achieve at least a "Pass" in each TMA. The average overall result at the end of the course will be included on a "Certificate of Achievement" which will be issued to the Student by North of England P&I Association and South Tyneside College. Duration No time limit set - however it is unlikely that a student could realistically complete the course in less than six months. An average student should, however, be capable of comfortably completing one unit per month. Format Distance Learning - with full tutorial support from South Tyneside College. Location Anywhere - at home, in the cabin, in the office. No attendance at college or seminars required. Suitability Ship and shore staff of shipping companies, P&I Clubs and correspondent staff, lawyers, surveyors and consultants Capacity No limit on the number of students who can enrol Fees Members Non-Members The full four module course £850 £980 The General Module + one other module £500 £599 Each additional module £210 £249 If you would like to enrol on the Distance Learning Course please contact the Loss Prevention Department at the address below for an Enrolment Form or download your enrolment form from this link . Alternatively a form may be downloaded from the demo. The completed enrolment form should be sent to the South Tyneside College in accordance with the details on the form. Please also remember to provide a means of payment of the course fee plus the carriage by courier as detailed on the form. For further information please contact: Risk Management Department North of England P&I Association Ltd The Quayside Newcastle Upon Tyne NE1 3DU United Kingdom Tel: +44 191 232 5221 Telex: 53634/537316 Fax: +44 191 261 0540 Email: firstname.lastname@example.org Nepia - Risk Management - Publications - Books Index Overview | Condition Survey | Education and training | Publications North of England P&I has produced a unique collection of practical, handy Loss Prevention guidebooks to help the master and his officers deal with problems with confidence before they become claims. Bills of Lading Bridge Procedures Guide Bunker Claims Prevention Cargo Stowage & Securing COLREGS A Guide to Good Practice Draught Surveys Hatch Cover Maintenance and Operation The Mariner's Guide to Dry Time Charterparties The Mariner's Guide to Marine Insurance The Mariner's Role in Collecting Evidence Personal Injury Prevention Port State Control A Seafarers Guide to ISM A Seafarers Guide to ISM - Comic strip book Shipboard Petroleum Surveys Steel Preshipment Surveys Tugg's Loss Prevention Hints - cartoon book Nepia - Risk Management - Publications - Signals Newsletter Index Overview | Condition Survey | Education and training | Publications Signals is North of England P&I's loss prevention newsletter and is distributed to all Members, their ships, correspondents, brokers and other individuals on our mailing list. Copies of the Signals brochure and other related material are posted on this website at the time of distribution of the hard copies. Signals is unique in the loss prevention field. Not only does it summarise recent case law, report on changes in legislation and identify problematic commodoties, but it also examines the implications and consequences of these developments for shipowners and operators. Some versions are in PDF format. You will need Acrobat Reader to view these files. PDF Versions Signals Archive Issue 58, January 2005 (pdf) Issue 48, July 2002 (pdf) Supplement, January 2005 (pdf) Issue 47, April 2002 (pdf) Issue 57, October 2004 (pdf) Issue 46, January 2002 (pdf) Issue 56, July 2004 (pdf) Issue 45, October 2001 (pdf) Issue 55, April 2004 (pdf) Issue 44, July 2001 (pdf) Issue 54, January 2004 (pdf) Issue 43, April 2001 (web version) Issue 53, October 2003 (pdf) Issue 42, January 2001 (web version) Issue 52, July 2003 (pdf) Issue 41, October 2000 (web version) Issue 51, April 2003 (pdf) Issue 40, July 2000 (web version) Issue 50, January 2003 (pdf) Issue 39, April 2000 (web version) Issue 49, October 2002 (pdf) Issue 38, January 2000 (web version) Issue 37, October 1999 (web version) Issue 36, July 1999 (web version) Issue 35, April 1999 (web version) Issue 34, January 1999 (web version) Issue 33, October 1998 (web version) Issue 32, July 1998 (web version) Issue 31, April 1998 (web version) Issue 30, January 1998 (web version) * Issue 29, October 1997 (web version) Issue 28, July 1997 (web version) * Nepia - Risk Management - Publications - Videos Overview | Condition Survey | Education and training | Publications Signs & Symbols Training Video Bunkering Operations The Mariner's Role in Collecting Evidence Personal Injury Prevention - Safety Needs You Bunkering Operations Video I. The Human Factor Nine out of ten accidents at sea, including oil spills, are due to human error: lack of attention, fatigue, taking shorcuts, improper training and preperation. In bunkering operations, where fuel oil is pumped from ship to ship, the human factor is critical. II. Transfer Tips Bunkering Operations is a 20 minute video training programme setting forth 10 basic steps necessary for safe fuel transfer. The programme shows actual ships' personnel at work in transfer operations, and includes a series of transfer tips derived from professional expertise and experience. III. Safety Regulation Guidelines Bunkering Operations is a unique training programme produced with the co-operation and participation of the international shipping industry, the United States Coast Guard and the Washington State Office of Marine Safety. The programme illustrates safety regulations and guidelines with shipboard scenes and expert commentary, offering a fast-paced, informative and watchable educational programme. Members can obtain additional copies of the video from North of England P&I Association. Non-members can obtain the video direct from: Maritime Training Services, Inc 1326 5th Avenue Suite 632 Seattle Washington 98101 USA Tel: + 1 206-467-8458 Fax: + 1 206-467-0128 To obtain a copy of this publication please download the Loss Prevention Order Form from this link The Mariner's Role in Collecting Evidence Liability claims are costing the shipping industry in excess of US$ 2,000,000,000 each year. Whether or not these claims can be defended depends almost exclusively on the quality of the evidence. In 1989 the North East Branch of the Nautical Institute produced a book 'The Master's Role in Collecting Evidence'. This book made a major contribution to assist not only Masters but all those potentially involved in the collection of evidence to better understand what evidence should be collected, how the evidence should be collected and to what use the evidence would be put. The book quickly became a standard reference across the inustry. The book has now been revised and updated and the second edition has undergone a slight name change - 'The Mariner's Role in Collecting Evidence'. This video is not intended to replace the book, but rather to complement it. The video explains, using many real life examples, why it is important to collect the evidence. The Admiralty Judge stressed the importance of the subject and the contribution made by the video in the following words; "Courts depend upon criticism. Contemporary evidence is of the utmost importance. It is vital to make a note or report of any incident immediately if possible while it is still in progress. Photographic or video evidence is of particular assistance to the judge or arbitrator in trying to establish the true facts. The video underlines that truth". The Hon Mr Justice Clarke Admiralty Judge Admiralty Court Royal Courts of Justice London Members can obtain copies of the video form North of England. Non-members can order direct from; The Nautical Institute 202 Lambeth Road London SE1 7LQ Tel: 0171 928 1351 Fax: 0171 401 2817 Personal Injury Prevention - Safety Needs You North of England has long recognised the value of training videos to promote safety and loss prevention in the shipping industry. In the past year the Club has worked with Maritime Training Services (MTS) of Seattle, USA to distribute videos to Members entitled 'Port State Control' and 'Bunker Operations'. 'Personal Injury Prevention - Safety Needs You', based on the Club's loss prevention guide 'Personal Injury Prevention - A Guide to Good Practice' written by Richard Bracken, has now been distributed to all Member companies and all entered ships. The video adopts the now proven North of England syle of using the international language of humour to convey the serious safety messages. Actors bring to life the Mr Good and Mr Bad cartoon characters that feature in the Club's Safe Work Accident Prevention Posters (SWAPP) series. Focusing on the importance ofgood and effective safety management, the video first considers work planning, ISM Code implications and how to develop a safety culture as well as identifying the six basic items of personal protective equipment. The second part of the video highlights five specific areas: tools and machinery workshop safety working on deck lifting equipment emergency procedures The video concludes by reminding seafarers that effective shipboard safety regimes require the individual to take responsibility for his or her own safety. Members can obtain copies of the video from North of England. Non-members can order direct from Maritime Traning Services in Seattle; Maritime Training Services 1326 5th Avenue Suite 637 Seattle Washington 98101 USA Tel: +1 206 467 8458 Fax: +1 206 467 0128 STCW Training - Signs & Symbols Safety Signs and Symbols have the potential to save us from injury or even death. North of England's training package, comprising of a video / CD-Rom or VCD and a set of posters, is designed to be used as part of a ship operator's onboard familiarisation training programme. It will also assist ship operators to meet their obligations under the STCW Code and the ISM Code. To obtain an STCW pack, download the Loss Prevention order form from this link COLREG CD This is a cd-rom training package that takes the watchkeeper through the Collision Regulations and how they can be applied in restricted visibility. The three sections help a watchkeeper to revise their knowledge of the regulations and their application, use case studies and radar simulation to show how techniques can be applied in practice, and then provide simulated radar situations to assess their own performance. Nepia - Risk Management - Publications - Signals Experiences Index Overview | Condition Survey | Education and training | Publications North of England P&I handles thousands of accidents and incidents every year. We recount selected ones in the form of case studies - Signals Experiences - from which the entire Membership can learn useful lessons. Each one page study is based on an actual incident, accident or claim, but is written so that the identities of the actual ships, companies or people involved are not revealed. Index cards are provided for Members to keep Signals Experiences filed. Cargo Personal Injury Collisions Pollution Damage to Property Stowaways Miscellaneous When an accident or incident occurs which results in a claim no-one really benefits from the experience. The person who has been injured may receive financial compensation - but only after a lot of suffering, possibly mental as well as physical; his family, freinds and work are also likely to have been affected by the event. When two ships collide - even where there are no personal injuries involved - there will often follow quite serious mental and stress problems with the masters and officers of the watch on each ship and indeed others. Considerable inconvenience will be caused to the shipowners, and possibly the charterers, cargo owners or passengers whilst the ship is taken out of her intended service either to investigate the incident and/or the physical damage caused, or to affect temporary or permanent repairs which may entail dry dock. The same could be said for a whole range of incidents. In addition to the pain and suffering and inconvenience casued there are also the significant financial implications; often involving claims on insurers, loss of hire, etc. It may be true that we can never avoid accidents and incidents of this nature completely but we can perhaps reduce their frequency significantly. One way in which we can understand why accidents occur, and as a consequence what can be done to prevent them happening again, is to learn from the mistakes of others. Indeed this is possibly one of the few positive features which we can draw from all these unfortunate accidents and incidents. There will be seven categories of incidents that will form the subjects of the case. Each case study will be kept brief and to the point but will be based on an actual incident. The case study will examine what happened, what went wrong and, most important of all, what lessons we can learn such that we can personally take steps to ensure that it does not happen to us! The case studies will be drawn from various sources such as our own claim files, the Nautical Institute MARS (Marine Accident Reporting Scheme) reports, the reports of the MAIB (Marine Accident Investigation Branch) of the United Kingdom Department of Trade. Other Sources may also be used if considered appropriate. However, in all cases the names of the ships, the shipping companies and any individual concerned will be kept anonymous. Members or indeed other readers of Signals are encouraged to submit their own "experiences" for possible inclusion as a case study. Please send these to North of England Risk Management Department. Nepia - Risk Management - Publications - Checklists and Questionnaires Overview | Condition Survey | Education and training | Publications Stowaway Questionnaires PPE Slide Guide Stowaway Search Checklist Cards Stowaway Questionnaires North of England P&I Club has produced a set of multi-lingual questionnaires to help its Members conform to International Maritime Organisation guidelines on resolving stowaway incidents. It is part of a series of initiatives by the Club to combat the continued increase in potentially difficult and costly stowaway incidents being encountered by the world's merchant shipping fleet. Download the checklists in pdf format. You will need Acrobat Reader to view these files. >> Stowaway prevention and action checklists Checklist Stowaway questionnaires Arabic Chinese English French Portugese Swahili Laminated and punched copies which can be kept in a file on board ship and photocopied when needed are available from the Risk Management Department of the Association. Stowaway Search Checklist Cards Stoways not only create considerable inconvenience to a crew, but also expense. As well as the cost of guarding and repatriation, if the stowaway escapes there can be fines and penalties. These checklist cards will help provide an efficient and systematic procedure for searching for stowaways prior to sailing. They will also be helpful in demonstrating to vthe relevant authorities that the ship's personel did all that was reasonably practical to detect stowaways should one be found subsequently. Stowaway Search Checklist Cards Personal Injury Prevention PPE Slide Guide The personal injury prevention slide guide is an easy-to-use loss prevention tool which enables the user to identify the personal protective equipment required for specific shipboard duties. The slide guide considers some 19 shipboard working activities including: anchoring bunkering cargo work catering department work cleaning electrical maintenance handling chemicals mooring operations operating hand tools operating machine tools painting/spraying storing using lift equipment welding or burning work in machinery spaces working aloft (above 2m) working in lifeboats working on deck working over side. The guide which identifies the essential personal protective equipment which must be used and aditional equipment which may be required. It also identifies appropriate chapters in North of England loss prevention "Personal Injury Prevention - A Guide to Good Practice" for the user seeking further reading and information. To order a PPE Slide Guide, download an Order Form Nepia - Risk Management - Publications - Signals Experiences Index Overview | Condition Survey | Education and training | Publications When a particular topic deserves exclusive attention, we produce a special issue of Signals devoted to it. Topics covered have included - Entry into Enclosed Spaces, Bunkering, Personal Injuries, Safe Navigation and Crew illness and injury - Focus on the Philippines. Some of the links are in in PDF format. You will need Acrobat Reader to view these files. No 8 - Ship Security, January 2003 No 7 - Migrants, September 2001 No 6 - Stowaways, March 2000 No 5 - Crew Illnes & Injury, August 2000 No 4 - Safe Navigation, February 2000 No 3 - Personal Injury, February 1999 No 2 - Bunkering, December 1997 No 1 - Enclosed Spaces, February 1997 Nepia - Risk Management - Publications - Signals Experiences Index Overview | Condition Survey | Education and training | Publications North of England P&I produce Signals Index to help find articles more quickly, this index is produced annually and covers 4 issues of Signals. Some of the links are in in PDF format. You will need Acrobat Reader to view these files. Number 13, Issues 48-51 (PDF) Number 12, Issues 47-50 (PDF) Number 11, Issues 43-46 (PDF) Number 10, Issues 39-42 (PDF) Number 9, Issues 35-38 Number 8, Issues 31-34 Number 7, Issues 27-30 Club Circulars - Protection and Indemnity risks Rules | North News | Management Report | Club Circulars | Risk Management WAR RISKS RENEWAL 2004/2005 - Protection and Indemnity risks 23 April 2004 CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS Further to the Association's Circular of 20th January 2004 advising Members that the limit of liability for all claims under Rule 2 Part D (Protection and Indemnity risks) was to remain £325,000,000 or equivalent each Entered Ship any one accident or series of accidents arising out of any one event, the agreed equivalent amounts are now as show below. The limit of liability for claims under Rule 2 Part D is therefore, £ 325,000,000 US$ 500,000,000 Euros 425,000,000 Can $ 650,000,000 according to the currency of the insured values and amounts declared by the Member for the purposes of Rule 2 Parts A and B and Rule 3. WJM DOUGLAS MANAGER - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - ClassIII War Risks - Insured values and amounts Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL WAR CLASS MEMBERS, BROKERS AND DIRECTORS 5 April 2004 CLASS III WAR RISKS - INSURED VALUES AND AMOUNTS | WJMD/MA The Association is aware that as a consequence of the strong freight market in certain shipping sectors many Members may have made changes to the insured values and amounts on their hull and machinery placings and we would like to take this opportunity to remind Members of the requirements of the War Class III Rules in this regard. The values and amounts declared for the War Risks Class must be the same as the corresponding values and amounts applying to the equivalent non-War hull and machinery insurance placings. Rule 1.2 requires that the value declared for Rule 2 Part A (Queen's Enemy Risks) will be the total marine value, that is to say the total sum for which the ship is insured for total loss (whether in conjunction with or independently of partial damage cover) under marine policies. The effect of Rule 1.3 is that the value declared for the purposes of Rule 2 Part B (non-Queen's Enemy Risks) and other related sections shall also be the amount for which the ship is insured for total loss (whether in conjunction with or independently of partial damage cover) under marine policies, unless part of the total loss value of the ship is insured against the risks of disbursements, increased value, hull interest, freight interest or for premiums in which case Rule 1.4 applies. Rule 1.4 requires that the sum insured declared for the purposes of Rule 3 (Total Loss Interests) shall be the sum insured for the corresponding risk under marine policies, and the nature of the cover should be identified. The overall effect of these Rules is that the value declared for Rule 2 Part A will be the total value and amount of all the marine market insurances in respect of hull and machinery and total loss interests such as disbursements and increased value. The value declared for Rule 2 Part B is the value of marine market policies on hull and machinery or full conditions and finally the amount declared for Rule 3 will be the amount of any marine market insurances in respect of total loss interests, disbursements, increased value and the like. Members are reminded that Rule 1.4.2 requires that the amount declared for Rule 3 must not exceed 50% of the value declared for Rule 2 Part B. Please contact the undersigned if any further explanation is required. WJM DOUGLAS MANAGER - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - Bio-Chem Risks Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS ATTENTION INSURANCE DEPARTMENT March 2004 BIO-CHEM RISKS Members will be aware that most War Risk Hull and P&I policies issued since February 2003 include a Bio-Chem. Exclusion and will continue to do so for the foreseeable future. The 2004 Excess War Risks P&I cover provided by International Group Clubs for $400 Million in excess of an entered vessel's proper hull value also contains a Bio-Chem. Exclusion with the result that most, if not all, Members have no cover for War P&I risks which are caused either directly or indirectly from a chemical, biological, bio-chemical, or electro-magnetic weapon, or from the use of any computer or computer system as a means for inflicting harm. All International Group Clubs (except for the moment the Japan Club) have now decided that they should provide limited cover for two risks through the Group's Pooling arrangements for which there would otherwise be no cover. With effect from noon on 15 March 2004, the risks which are to be covered through the Group's new Pooling facility will be in respect of the Member's liability:- (1) To pay damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman (including diversion expenses, repatriation and substitute expense and Shipwreck unemployment indemnity), and (2) for the legal costs and expenses incurred solely for the purpose of avoiding or minimising any other P&I liability arising from a Bio-Chem. event (other than under the Omnibus Rule). The detailed terms and conditions of the Pooling facility are set out in a Supplemental Agreement to the 2004 Pooling Agreement. Its principal provisions are that:- (1) Cover, which will attach automatically for all Members, will be from the ground-up (in excess of a Member's usual deductible), but limited to $20 million any one event or occurrence (or series of occurrences arising from the same event) each vessel. (2) Individual Clubs will retain the first $5 million of any one claim, with the $15 million excess over $5 million being Pooled as if any other Pool claim. (3) The limit of cover ($20 million) will apply to all interests for each vessel in aggregate regardless of the number of interests and regardless of whether or not they are entered in different P&I Clubs (e.g. Owners, charterers and sub-charterers). (4) To avoid excessive aggregation of risk, cover will have a cancellation provision (48 hours notice), and areas of particular sensitivity may also be the subject of geographical exclusions (e.g. the Athens Olympics). (5) No premium will be charged for the cover, although premium may be charged for specific risks which may arise and which may be the subject of a premium notice if cover is to be maintained or varied. So far as the Japan Club is concerned, it is their intention to participate in these arrangements along with all other Group Clubs once they have had regulatory approval to do so hopefully by June 2004. A copy of the Bio-Chem Clause setting out the details of the cover is attached herewith. JP CRICHTON Joint Managing Director - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Bio-Chem Clause 1.1 Subject to the terms and conditions and exclusions set out herein, cover is extended to include the liability of the Member: (a) to pay damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman (including diversion expenses, repatriation and substitute expense and shipwreck unemployment indemnity), (b) for the legal costs and expenses incurred solely for the purpose of avoiding or minimising any liability or risk insured by an Association (other than under the Omnibus Rule) 1.2 where such liability would be recoverable under either (a) cover provided by the Club for such liabilities, costs, losses and expenses as would be covered under the Rules but for the exclusion of war risks in Rule , or (b) any other policy of insurance providing equivalent cover, 1.3 save only for the operation of an exclusion of liabilities, costs, losses and expenses directly or indirectly caused by or contributed to by or arising from (a) any chemical, biological, biochemical or electromagnetic weapon (b) the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system, 1.4 other than liabilities, costs, losses and expenses arising from (i) explosives or the methods of the detonation or attachment thereof (ii) the use of the entered ship or its cargo as a means for inflicting harm, unless such cargo is a chemical or bio-chemical weapon (iii) the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. 2 Excluded Areas 2.1 Unless and to the extent the Directors may in their discretion otherwise decide, there shall be no recovery in respect of any liabilities, costs, losses and expenses directly or indirectly caused by or contributed to by or arising out of any event, accident or occurrence within the ports, places, zones or areas or during such period as are specified below: The area bounded by the NW entrance to the Corinthian Canal, encompassing all of the Corinthian Canal and Saronikos Kolpos and the region bounded by a circle drawn 33 nautical miles from position 37 deg 54’N 023deg 51’E during the period from 0001 GMT 1st August 2004 to 2400 GMT 15th October 2004. 2.2 At any time or times before, or at the commencement of, or during the Policy Year, the Club may by notice to the Member change, vary, extend, add to or otherwise alter the ports, places, countries, zones and periods specified in Clause 2.1 from a date and time specified by the Club not being less than 24 hours from midnight on the day the notice is given to the Member. 3 Cancellation Cover hereunder may by notice to the Member be cancelled by the Club from a date and time specified by the Club, not being less than 24 hours from midnight on the day notice of cancellation is given to the Member. 4 Limit of Liability 4.1 Subject to Clause 4.2 the limit of the liability of the Club under this extension of cover in respect of all claims shall be in the aggregate US$ 20 million each ship any one accident or occurrence or series thereof arising from any one event. 4.2 In the event that there is more than one entry by any person for Bio-Chem cover as provided herein in respect of the same ship with the Club and/or any other insurer which participates in the Pooling Agreement or General Excess Loss Reinsurance Contract, the aggregate recovery in respect of all liabilities, costs, losses and expenses arising under such entries shall not exceed the amount stipulated in Clause 4.1 and the liability of the Club under each such entry shall be limited to such proportion of that amount as the claims arising under that entry bear to the aggregate of all such claims recoverable from the Club and any such other insurer. 5 Deductible The deductible shall be the deductible applicable to the relevant cover set out in the Certificate of Entry. 6 Law and Practice This clause is subject to English law and practice. Click here to return to Club Circulars Club Circulars - USA – New Automated Manifest System Regulations Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS FEBRUARY, 2004 ATTENTION INSURANCE DEPARTMENT Dear Sirs USA – NEW AUTOMATED MANIFEST SYSTEM REGULATIONS Members operating ships which trade to the United States will shortly be required to comply with new Automated Manifest System (AMS) regulations. In order to do so, those concerned will also need to obtain a Standard Carrier Alpha Code (SCAC) and an International Carrier Bond (ICB). The requirements enter into force on 4 March 2004. In view of the very short lead time, it is important that Members take action without delay. Background The US Maritime Transportation Security Act was introduced to improve the security of cargo shipments entering or leaving the United States by sea, air, rail or truck. The Act passed into law in 2002 and requires the mandatory submission of cargo manifest information by electronic means. The US Bureau of Customs and Border Protection (CBP) was charged with implementing the new law and a Final Rule was published a short time ago setting out the details. To view the whole circular click here Click here to return to Club Circulars Club Circulars - War Risks Renewals 2004/2005 Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS 20 January 2004 WAR RISKS RENEWALS 2004/2005 Advance Contribution Rates The Directors have determined that the Class III rates for the 2004 policy year will remain unchanged and accordingly the advance Contribution rates for the coming year will be as follows. Cruise ships All other ships British ships 0.066% 0.0165% Flagged out ships 0.07095% 0.0176% Entered Ships which are limited to a Restricted Trading area are entitled to pay 50% of the above rates. The Restricted Trading rate applies if it trades exclusively in one of the following areas: (a) Europe (not south of Gibraltar and excluding the Mediterranean and Black Sea). (b) U.S.A. and Canada (excluding Panama Canal Transits). (c) Australasia. The advance Contributions will be payable in one instalment which will be due on 1 April 2004. Alterations to Terms of Entry Members will be aware that certain changes were introduced to the 2003 terms of entry in respect of nuclear devices, chemical, bio-chemical and electromagnetic weapons and computer viruses in order to comply with requirements of reinsurers. Unfortunately a further change is required for 2004 and accordingly the certificates of entry for 2004 will be endorsed with the following amendments to the Rules. The relevant wordings are quoted in full, but the only material change is the addition of the reference to biological weapons. 1. Rule 4.D.3 is deleted and replaced by the following wording. Exclusion of Nuclear Risks and Chemical, Biological, Bio-chemical and Electromagnetic Weapons The Association shall not be liable for any losses, liabilities, costs or expenses directly or indirectly caused by or contribution to by or arising from:- ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter, with the exception of radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored or used for commercial, agricultural, medical, scientific or other similar peaceful purposes; any chemical, biological, bio-chemical or electromagnetic weapon, PROVIDED ALWAYS that:- this exclusion shall not apply to any claim in respect of losses, liabilities, costs or expenses arising out of or in consequence of the emission of ionising radiations from, or the radioactive, toxic, explosive or other hazardous or contaminating properties of, "excepted matter" as defined under the Nuclear Installations Act 1965 or any amendments thereto or regulations made thereunder, being carried as cargo in the Entered Ship. 2. The undernoted wording will be added to the terms of entry. Exclusion of Computer Viruses The Association shall not be liable for any losses, liabilities, costs or expenses directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer virus. Additional Premium Areas The Additional Premium Areas with effect from noon 20 February 2004 until further notice, will be as follows. (A) Persian or Arabian Gulf and adjacent waters including the Gulf of Oman North of 24° North. (B) Angola (including Cabinda). Israel. (D) Lebanon. (E) Libya (including Gulf of Sidre/Sirte). (F) Eritrea. (G) Somalia. (H) Congo, Democratic Republic of (formerly Zaire). (I) Liberia. (J) Sri Lanka. (K) Sierra Leone. (L) Gulf of Aqaba and the Red Sea. (M) Republic of Yemen. (N) Pakistan. (O) Oman. (P) Syria. (Q) Algeria. (R) Egypt (including Suez Canal). (S) Indonesia excluding transiting vessels. (T) Ivory Coast. (U) Nigeria and the Bakassi Peninsula. Notice must be given to the Association before an Entered Ship proceeds into an Additional Premium Area. The Association will endeavour to provide indications of additional premium levels at any time, but firm quotations will not normally be available until the Entered Ship is within 48 hours of arrival into the Additional Premium Area. Insured Values and Sums Insured Members are reminded of the need to review the Insured Values and Sums Insured which should be the same as those for which the Entered Ship is insured for total loss under marine policies, normally the insured value on Hull and Machinery, plus where applicable any amount insured on Disbursements and/or Increased Value or Freight. Any interest which is insured against total loss risks only under marine policies should be declared under Rule 3 so that the War risk insurances exactly reflect the non-War risk insurances for the same interests. The same rate would apply to both Rule 2 and Rule 3 interests. The maximum value or amount insured under Rule 2 and Rule 3 in the aggregate will continue to be £325,000,000 or equivalent any one Entered Ship. Members are also reminded of the provisions of Rule 11 whereby the Secretary of State for Transport may restrict the Insured Value of the Entered Ship for Queen's Enemy Risks in certain circumstances. Protection and Indemnity risks The Association's limit of liability for all claims under Rule 2 Part D (Protection and Indemnity risks) is to remain £325,000,000 or equivalent each Entered Ship any one accident or series of accidents arising out of any one event, except as stated below. If any member considers that these limits provide insufficient cover, additional cover, excess of the sums covered by this Association, may be available from his P&I Club. Alteration of risk Members must advise the Association prior to any change in the port of registry of an Entered Ship as this may affect rating and terms of cover. Any Member who intends to use an Entered Ship for accommodation purposes or passenger carrying in Greece during the period of the Olympic Games or any associated sporting event should give prior notice to the Association as restricted terms and conditions may apply. WJM DOUGLAS MANAGER - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - United States Oil Pollution Cover Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL ALL TANKER MEMBERS ATTENTION INSURANCE DEPARTMENT January 2004 UNITED STATES OIL POLLUTION COVER 2004/2005 POLICY YEAR Clubs whose Members are carrying persistent oil to or from the United States will again have to pay an increased contribution towards the cost of the International Group Excess Loss Reinsurance Contract. This additional cost will be passed on to the Members concerned. For the 2004/2005 policy year the surcharge for ships without segregated ballast tanks (as defined below) will amount to 13.60 US cents per gross ton per voyage; for ships with segregated ballast tanks the surcharge will be 11.90 US cents per gross ton per voyage; in each case there will be a maximum charge or "cap" of twenty voyages. The surcharge will apply to all tankers carrying out a US voyage, as defined below, and carrying persistent oils, also as defined below. Tankers of 1,000 gt or less will have the option of either making voyage declarations in the same way as tankers over 1,000 gt on a flat contributory tonnage of 1,000 gt, or of paying a single annual premium of US$2,719 (US$2,399 for ships with segregated ballast tanks). The following special provisions will apply to parcel tankers for the 2004/2005 policy year: 1. Parcel tankers which never carry more than 5,000 mt of persistent oil on any voyage may either pay a single annual premium of US$8,140 (US$7,180 for ships with segregated ballast tanks) or may make voyage declarations, in which case the tonnage on which the surcharge will be calculated will be 3,000 gt. 2. Parcel tankers which carry between 5,001 mt and 10,000 mt of persistent oil must make voyage declarations in which case the surcharge will be calculated on a fixed contributing value based upon 7,500 gt. 3. Parcel tankers which sometimes carry more than 10,000 mt of persistent oil must make voyage declarations, in which case the surcharge will be calculated on the full gt of the ship except on voyages where 10,000 mt or less of persistent oil are carried, when the surcharge will be calculated on 7,500 gt (if between 5,001 and 10,000 mt) or on 3,000 gt (if 5,000 mt or less). The amount of the surcharge will be halved in respect of cargoes exclusively discharged at LOOP (Louisiana Offshore Oil Port) or exclusively transferred to another ship at a place approved by the US Coast Guard and in the exclusive economic zone ("EEZ") as defined in OPA 1990. Declarations It will again be necessary to follow a procedure whereby the Club is regularly advised of US voyages in order that the surcharge may be applied. It is proposed, therefore, that unless prior arrangement is reached, the Club's cover for all tankers will incorporate the following Exclusion Clause with effect from 20 February 2004. "Excluding any and all claims in respect of oil pollution arising out of any incident to which the US Oil Pollution Act 1990 is applicable". The above Exclusion Clause will apply unless the Member agrees to undertake: 1. to make quarterly declarations in arrears, at the latest within 2 months of each quarter ending 20 May, 20 August, 20 November and 20 February as to whether the tanker has made any cargo voyages to or from the USA or to US waters and, if so, the number of such voyages and the nature of cargo (persistent oil or other cargo) and the port or place of loading or discharging; and 2. to pay such additional premium in respect of such voyages as may be agreed between the Association and the Member. Members requesting removal of the Exclusion Clause will again have to provide declarations which will have to be returned to the Club within 2 months of the end of each quarter, failing which US Coast Guard Certificates will be withdrawn without further notice. JP CRICHTON JOINT MANAGING DIRECTOR - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Definitions: Parcel tanker: A ship constructed or adapted primarily to carry cargoes of noxious liquid substances in bulk, and capable of carrying at least ten grades simultaneously, having been issued with an international certificate of fitness for the carriage of dangerous chemicals in bulk. Segregated ballast tanks: A ship will be deemed to have segregated ballast tanks if it is equipped in accordance with the requirements of Regulation 13 of Annex I to MARPOL 73/78. US Voyage: Any cargo voyage involving loading or discharging cargo at any port or place in the USA or within the EEZ as defined in the OPA 1990. USA includes District of Columbia, Puerto Rico, Guam, American Samoa, US Virgin Islands and Northern Marianas. Persistent Oils: All hydro-carbon mineral oils other than those falling within the definition of non-persistent oils described below. Non-Persistent Oils: Oils which consist of hydro-carbon fractions:- (a) at least 50% of which, by volume, distils at a temperature of 340 degrees C; and (b) at least 95% of which distils at a temperature of 370 degrees C when tested by the ASTM Method D 86/78 or any subsequent revision thereof. For your guidance, the following oils are non-persistent: LNG LPG Gasolines (AVGAS/MOGAS) White Spirit Kerosenes (Domestic, tractor, aviation, No.1 fuel) Distillates (Gas oil, heating oil, auto diesel, No.2 fuel) Gasoline blending components (naphthas) Click here to return to Club Circulars Press Releases - North of England P&I club publishes expert guide to Collision Regulations Industry News | Press Releases North of England P&I club publishes expert guide to Collision Regulations 10 May 2004 Contact: Steven Jones or Tony Baker +44 (0)19 1232 5221 The North of England P&I club has published an authoritative illustrated guide to the main ‘rules of the road’ for shipping to help reduce the significant annual losses suffered by the industry due to collisions and other avoidable navigational errors. An international survey by the Nautical Institute last year* revealed nearly 50% of seagoing officers believe navigational errors are due to ignorance or disregard of the IMO International Regulations for Preventing Collisions at Sea, 1972 (Colregs). Institute president Captain Robbie Middleton has thus strongly supported the new publication, which he believes ‘provides a valuable text to re-establish good practice’. In his foreword Captain Middleton says: ‘For experienced officers there is an opportunity to work through the text as a refresher and to use the booklet as a training aid when coaching junior officers and cadets on watch.’ The 30-page ring-bound booklet is based on the popular series of Colregs posters published by the North of England since 2001. The posters cover the 10 most widely used rules with a reminder of the rule text and a good-practice illustration. ‘The Colregs poster are supplemented in the booklet by brief but expert guidance on how to implement the rules and avoid the pitfalls,’ says Steven Jones, risk-management executive at the North of England. Much of the text is written by Captain Roger Syms who, since 2002, has been heavily involved with the Nautical Institute’s strategic Colregs project and is thus directly aware of world-wide experience and failings of the regulations. The UK Government’s Marine Accident Investigation Branch has also contributed a number of the ideas in the guide. The North of England has distributed the publication this month to all members and ships entered in the 50 million GT club. Copies are also available to non-members, price £30, from the club’s distributor Anchorage Press, 275 St Margarets Road, Twickenham, TW1 1PN, UK, telephone +44(0) 20 8892 9905, email email@example.com, web www.anchoragepress.co.uk. – ends – * Syms, R. J. Improving The Application Of The Colregs, International Command Seminar, May 2003. A review copy of ‘Colrges – A Guide to Good Practice’ accompanies this release. Electronic copies of this and other releases can be obtained from the club’s website at www.nepia.com. Archives: 2003 | 2002 | 2001 Click here to return to current Press Releases Press Releases - North of England P&I club approaches 50 million GT at renewal Industry News | Press Releases North of England P&I club approaches 50 million GT at renewal 2 March 2004 Contact: Paul Jennings or Alan Wilson +44 (0)191 232 5221 Tonnage entered in North of England P&I club reached nearly 50 million GT following the annual renewal on 20 February 2004. This continues the club's achievement of steady development over the past 10 years or so, a period in which the entered fleet has grown significantly. As in previous years most of the growth over the past twelve months was achieved from existing members prior to renewal, however eight new members – four from North America and four from Europe – added over 2 million GT at renewal. This was offset by renewal terms not being offered to some 20 members and a further 10 or so members not renewing, resulting in a net tonnage increase at renewal of nearly 1 million GT. ‘More significantly, our proportion of owned tonnage has increased, rising from approximately 35 million GT last year to 40 million GT’ says underwriting director Paul Jennings. ‘Chartered tonnage is projected to be close to 10 million GT during the forthcoming year’. Jennings also points out that the decision not to renew a number of members has changed the club's profile. ‘Despite the headline tonnage, we now have some 325 member groups, 50 or so fewer than 18 months ago, while the total number of ships remains little changed at 2750. This means we can continue to provide our high level of service to members even more cost-effectively than last year'. Finance director Alan Wilson says negotiations at renewal were tougher than in previous years despite the buoyant freight market. ‘We nevertheless believe we have achieved a solid underwriting basis for the year ahead, with increased rates and deductibles across the board,’ he says. ‘We have entered a period of rising claims, fuelled partly by the growth in the freight market, a raft of new and revised liability conventions and a continuing weakness in the US dollar, and we need to be fully prepared for this,’ says Wilson. The club has consolidated its financial position over recent years and last month retained its A- financial strength rating from Standard & Poor's. It remains the only P&I club and one of only very few European insurance businesses that the agency rates as having a 'positive outlook'. – ends – Archives: 2003 | 2002 | 2001 Click here to return to current Press Releases Press Releases - North of England P&I club highlights commercial impact of new security code Industry News | Press Releases North of England P&I club highlights commercial impact of new security code 14 February 2004 Contact: Mark Robinson or Steven Jones +44 191 232 5221 The North of England P&I club has warned its members that the International Maritime Organisation’s new ship-security rules could have a significant impact on the commercial aspects of their operations when it comes into force on 1 July 2004. In the latest issue of its loss-prevention newsletter Signals, the 45 million GT club says all existing and future contracts relating to ships’ operations – including charterparties, bills of lading and crew contracts – will need reviewing in the light of new obligations and risks created by the International Ship and Port Facility Security (ISPS) Code. ‘One of the main objectives of the ISPS Code is to prevent ships being used by terrorists,’ says FD&D department lawyer Mark Robinson. ‘That means that shipowners and manning agents will need to look more carefully at the people they employ or allow on board – which in turn will require new procedures and contractual arrangements.’ The club says the increased risk of delay in ports due to security issues will also need to accounted for in charterparties and bills of lading. ‘Charterparties and bills will need to specify which party bears loss of time for delays under ISPS rules, which party bears any additional costs and what the respective parties obligations are with regard to provision of documents and information,’ says Robinson. An issue of particular concern in voyage charters, for example, is the effect that events relating to security may have on laytime, says the club’s maritime security expert Steven Jones, who joined the club last year from Marine Risk Consulting and Investigations – one of the UK’s leading maritime security organisations. ‘For instance, if a ship is delayed getting into a port because of security issues, where and when can notice of readiness by given and when does laytime start? Unless these issues are addressed now, shipowners run the risk of suffering delays, problems and expense that have not been planned or budgeted for,’ says Jones. The North of England currently insures a 45 million GT fleet of 2600 ships entered by 350 members from throughout the world. Last month the club retained its A- financial strength rating from Standard and Poor’s and remains the only P&I club and one of only seven European insurance businesses rated with a ‘positive outlook’. – ends – Archives: 2003 | 2002 | 2001 Click here to return to current Press Releases Press Releases - Scandinavian members endorse ‘local’ North of England P&I club Industry News | Press Releases Scandinavian members endorse ‘local’ North of England P&I club 27 January 2004 Contact: Paul Jennings or Richard Bracken +44 191 232 5221 Much of the 45 million GT North of England P&I club’s success during the past 10 is due to its low-cost head-office location mid-way between the Scandinavian and London shipping markets. Scandinavian ship owners now account for 10% of the club’s tonnage and this week warmly endorsed what they see as one of their ‘local’ clubs. Atle Bergshaven, chairman of Norwegian ship-owning and ship-management company Bergshaven AS and a director of the North of England since 1997, says in the latest issue of the club’s newsletter North News that he particularly enjoys his visits to the club’s head office Newcastle-upon-Tyne as they have enabled him to re-establish his personal connections with the city in which went to university. ‘ We joined the North of England in 1994 because we could see it provides considerable added value. It’s extremely good to be a member and the staff can feel proud of their successes over the past 10 years,’ he says. As to the future, Bergshaven hopes the shipping industry will not suffer a repeat of last year’s major casualties, which he says have had a direct impact on all P&I clubs and their members. ‘However, as one of the strongest clubs, the North of England is well-placed to ride out any rough weather that might lie ahead,’ he says. Jens Lauritzen, president of Copenhagen-based bulk-carrier operator Lauritzen Bulkers AS and a director of the North of England since 2000, says the club’s ‘star attraction’ is its freight, demurrage and defence (FD&D) department. Around 50 of the company’s fleet of predominantly handysize vessels are currently entered for both P&I and FD&D cover. ‘ As we are more of an operator than an owner, legal expenses cover becomes even more important. We looked for the best combination of individual lawyers and overall legal team strength – and we believe we have found this at the North of England,’ he says. The A- rated club’s Scandinavian team is headed by FD&D director Stephen Purvis, who joined in 1989 from Gard. ‘We have a particularly special relationship with Norway,’ he says. ‘In addition to there being three Norwegian speakers on the staff, we also have a 10-year cooperation with the Norwegian Insurance Academy to provide the P&I module of its diploma and degree programmes,’ he says. The North of England currently insures a 45 million GT fleet of 2600 ships entered by 350 members from throughout the world. In addition to Bergshav and Lauritzen, Scandinavian members include Comet Shipping, KG Jebsen, DS Norden, Star Shipping, Tschudi & Eitzen and Viken Ship Management. The club maintains an A- financial strength rating and positive outlook from Standard and Poor’s. - ends - A copy of the latest issue of North News accompanies this release. Electronic copies of this and other press releases can be obtained from the club’s website at www.nepia.com. Archives: 2003 | 2002 | 2001 Click here to return to current Press Releases Press Releases - North of England P&I club warns of further increases in shipping claims Industry News | Press Releases North of England P&I club warns of further increases in shipping claims 12 January 2004 Contact: Paul Jennings or Richard Bracken +44 191 232 5221 12 January 2004 Ship owners, operators and their P&I clubs face ever-increasing claims over the next few years, according to the 45 million GT North of England P&I club. Growth in the freight market, a raft of new and revised liability conventions and weakness of the dollar are exposing the industry to greater financial risk and continuing hikes in P&I insurance. According to joint managing director Rodney Eccleston: ‘Both the value and number of cargo claims have soared in recent months due to unprecedented freight rates, sometimes exceeding cargo values, and because ships and crews are working flat out. While shipowners can takes steps to control the frequency and severity of cargo claims, it’s the market that determines the freight element – and there’s no sign of it cooling off yet.’ The A- rated club says P&I claims values are also increasing due to weakness of the US dollar, which has fallen substantially against most major currencies recently. ‘P&I business is generally transacted in dollars whereas the value of a claim is often initially determined in another major currency. A cargo valued in Euros, for example, now costs 25% more in dollars,’ says Eccleston. The North of England also points out that owners and operators are facing significantly increased liabilities from several new or revised conventions. Most recent are 1992 protocols to the ‘CLC’ and ‘Fund’ oil-pollution conventions, under which liabilities increased around 50% in November 2003. ‘A further substantial increase is likely within the next 12 months as a consequence of the optional third-tier arrangements set out in the May 2003 Fund protocol,’ says the club’s associate director Colin Trappe. According to Trappe, a 250% jump in marine claims liability is also now imminent as nine of the necessary 10 states have signed up to the 1996 protocol to the ‘LLMC’ convention, including the UK. ‘Add in the all-new 1996 ‘HNS’ hazardous substances convention, the 2001 ‘Bunkers’ convention and the 500% increase in passenger liability proposed by the 2002 protocol to the ‘Athens’ convention and it’s clear that owners, operators and their P&I clubs are facing a wave of higher claims,’ he says. Eccleston is convinced that the P&I clubs have the necessary resources and experience to protect their members from the onslaught but says it is critical they remain properly funded. ‘The clubs cannot afford any further erosion in their free reserves so it is important that the general premium rises being sought this year are achieved.’ The North of England’s directors set a general increase of 17.5% for the annual renewal on 20 February 2004. ‘We believe this will enable the club to continue its unrivalled record of maintaining its free reserve, which is vital to protect all members from the increasing risk of suffering a multi-million dollar claim,’ says underwriting director Paul Jennings. In the face of higher claims exposure the club is also increasing the resources and funding of its high-profile risk-management team headed by Dr Phil Anderson. The North of England currently insures a 45 million GT fleet of 2600 ships entered by 350 members from throughout the world. The club maintains an A- financial strength rating from Standard and Poor’s. - ends - Archives: 2003 | 2002 | 2001 Click here to return to current Press Releases Club Circulars - Policy Year 2004/2005 P&I Class Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS, BROKERS & DIRECTORS December 2003 ATTENTION INSURANCE DEPARTMENT JPC/SC Policy Year 2004/2005 P&I Class Although recent months have seen a recovery in the level of investment returns it is apparent that the level of premiums currently generated by the P&I industry remains insufficient to cover anticipated expenditure and in particular the continuing high level of claims that has prevailed in recent years and which shows little sign of abating. With this in mind, and being conscious of the importance of maintaining the Association’s financial stability, the Directors have decided that a general increase of 17.5% should be applied to P&I premiums for the 2004/2005 policy year plus any increase in the cost of the International Group reinsurance programme and also that deductibles below $50,000 should be subject to a 10% increase. The claims performance and risk profile of individual members will, as usual, be taken into account when formulating renewal proposals which will be sent to members during the next few weeks. Premiums will be collected in 4 equal instalments during the policy year on 1st April, 1st June, 1st September and 1st December 2004. FD&D Class The claims position of the Class is potentially volatile and whilst the finances remain satisfactory the Directors have decided that a general increase of 12.5% should be applied to FD&D premiums. Again individual claims performance will be taken into account when assessing renewal proposals. Premiums will be collected in 2 instalments on 1st April and 1st September 2004. JP CRICHTON JOINT MANAGING DIRECTOR - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - FD&D Class Policy Year Accounts Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS, BROKERS & DIRECTORS October 2003 FD&D CLASS POLICY YEAR ACCOUNTS At their meeting on 30 September, 2003 your Directors considered the FD&D Class policy year accounts and made the following decisions: 2000/2001 - to be closed without supplementary call. 2001/2002 - the policy year is developing satisfactorily and no supplementary call is anticipated. The Managers' assessment of release fees is 5%. 2002/2003 - the policy year is developing satisfactorily and no supplementary call is anticipated. The Managers' assessment of release fees is 10%. 2003/2004 - this policy year will be reviewed for the first time in October 2004. The Managers' assessment of release fees is 20%. JP CRICHTON JOINT MANAGING DIRECTOR - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - Policy Year Accounts Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL P&I CLASS MEMBERS October 2003 ATTENTION INSURANCE DEPARTMENT JPC/JI POLICY YEAR ACCOUNTS At their meeting on 30 September, 2003 your Directors reviewed the position of the P&I Class policy year accounts and made the following decisions: 2000/2001 - to be closed without further supplementary call. (NB final call 100% of the original projected estimated total call). 2001/2002 - position to be reviewed in October 2004. No further calls anticipated. (NB expected final call 100% of the original projected estimated total call). The Managers' assessment of release fees is 5% of Advance Call. 2002/2003 - position to be reviewed in October 2004. No further calls anticipated. (NB expected final call 100% of the original projected estimated total call). The Managers' assessment of release fees is 10% of Estimated Total Call. 2003/2004 - the policy year will be reviewed in October 2004. (NB expected final call 100% of the original projected estimated total call). The Managers' assessment of release fees is 20% of Estimated Total Call. The Directors believe that the decisions ensure that the policy years remain adequately funded. A decision with regard to the general premium increase to be applied for the 2004/2005 Policy Year has been deferred until the projected costs for the year are more certain. JP CRICHTON JOINT MANAGING DIRECTOR - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - Additional Premium Areas Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL WAR CLASS MEMBERS, BROKERS & DIRECTORS 14 August 2003 ADDITIONAL PREMIUM AREAS In accordance with the provisions of Rule 19.4 we hereby give you notice that your Directors have determined in exercise of their powers under Rules 19.3 and 19.3.1 that the Additional Premium Areas shall be amended as follows. The following area is deleted: (S) Indian Ports North of 18 degrees North, West of 73 degrees East. The remaining items are re-numbered accordingly. The following area is added: (U) Nigeria and the Bakassi Peninsula This notice is effective from 2400 hours GMT on 15 August 2003 and on the expiry of 7 days thereafter, effective from 2400 GMT 22 August 2003, your terms of entry will incorporate the foregoing amendment and additions. For your guidance, as from 2400 GMT on 22 August 2003 the full list of Additional Premium Areas will be as follows: (A) Persian or Arabian Gulf and adjacent waters including the Gulf of Oman North of 24° North. (B) Angola (including Cabinda). Israel. (D) Lebanon. (E) Libya (including Gulf of Sidre/Sirte). (F) Eritrea. (G) Somalia. (H) Congo, Democratic Republic of (formerly Zaire). (I) Liberia. (J) Sri Lanka. (K) Sierra Leone. (L) Gulf of Aqaba and the Red Sea. (M) Republic of Yemen. (N) Pakistan. (O) Oman. (P) Syria. (Q) Algeria. (R) Egypt (including Suez Canal). (S) Indonesia excluding transiting vessels. (T) Ivory Coast. (U) Nigeria and the Bakassi Peninsula. Notice must be given to the Association before an Entered Ship proceeds into an Additional Premium Area. The Association will endeavour to provide indications of additional premium levels at any time, but quotations will not normally be available until the Entered Ship is within 48 hours of arrival into the Additional Premium Area. WJM DOUGLAS MANAGER - North Insurance Management Limited As Managers on behalf of the North of England P&I Association Limited Click here to return to Club Circulars Club Circulars - Bills Of Lading - Delivery Of Cargo - The Republic Of Korea And The People's Republic Of China Rules | North News | Management Report | Club Circulars | Risk Management CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS July 2003 BILLS OF LADING - DELIVERY OF CARGO - THE REPUBLIC OF KOREA AND THE PEOPLE'S REPUBLIC OF CHINA Members will be aware that liability arising from delivery of cargo under a negotiable bill of lading without production of that bill of lading will not ordinarily be covered under the Rules of the Association, unless the Committee in its sole discretion should decide otherwise. In February 2001, we issued a Notice to Members No.1 2001/2002 Circular recommending revised wordings of Standard Form Letters of Indemnity and Bank “Join In” agreements for use by Members in circumstances where they are requested to deliver cargo without production of a negotiable bill of lading. Since that time, a number of Clubs have noted that Members have experienced problems discharging and delivering cargo at ports in the Republic of Korea and the People's Republic of China, where, following discharge and pending collection by the receiver, the cargo is placed in a bonded warehouse or a Customs controlled holding area. The purpose of this Circular is:- A. to remind Members of the following : (i.) that they should not deliver cargo carried under a negotiable bill of lading without production of that bill of lading since any liability costs and expenses arising from such action will not ordinarily be covered under the Rules of the Association. If Members nevertheless choose to deliver cargo without production of the original negotiable bill of lading they are advised only to do so if they have received a Standard Form Letter of Indemnity and Bank Join In agreement as recommended in our February 2001 Notice to Members. In that latter event, Members are reminded to ensure that they are fully satisfied with the financial standing and authority of those who are to issue and sign the required indemnities. (ii.) It is not uncommon for Members to be requested by charterers to agree clauses in charter parties which expressly provide for the delivery of cargo without production of bills of lading against letters of indemnity. Members are strongly advised not to accept such clauses and it is recommended that Members seek advice from the Managers before responding to such requests. (iii.) Members are advised not to accept any personal guarantees offered by a charterer or sub-charterer in exchange for allowing cargo to be delivered without production of the bill of lading and not to make delivery against copies of a negotiable bill of lading. B. To provide additional guidance to protect Members discharging cargo at ports in the Republic of Korea and the People’s Republic of China. 1. The Republic of Korea At ports in the Republic of Korea, cargoes are often discharged from vessels and placed in a bonded warehouse pending collection by the cargo owner. The bonded warehouse may be owned either by the consignee, a so-called "self use" bonded warehouse, or by an independent company unrelated to the consignee. In either case, it is the responsibility of the carrier to be presented with an original negotiable bill of lading before delivering the cargo. Under Korean law, delivery takes place when control of the cargo is surrendered by the carrier or his agent to some other party, except in the case of CY/ CY (container yard/container yard) cargo when delivery occurs when the cargo leaves the container yard. Accordingly, in the case of a "self use" bonded warehouse, since control of the cargo is effectively surrendered when the cargo leaves the carrier's custody, usually at the ship's side, delivery takes place at this point. In the case of an independent warehouse company, control of the cargo is not surrendered by the carrier until it leaves the warehouse, at which time delivery takes place. In a number of cases, cargoes have been released from both independently owned and “self use” warehouses without production of the bill of lading. In certain of these cases, although the consignee has taken delivery of the cargo he has not been the bill of lading holder. Subsequently, the bill of lading holder, usually a bank, has claimed against the carrier when it has been unable either to obtain payment from the consignee or to recover the goods themselves. There are a number of steps that a carrier can take to protect himself. (i.) If the carrier is asked to surrender control of and, accordingly, deliver the cargo without production of the bill of lading, he should only do so subject to the provision of a Standard Form Letter of Indemnity and Bank “Join In” agreement as referred to above. (ii.) A carrier is not obliged to discharge cargo to a “self use” warehouse. If there is an alternative, the carrier can insist that the cargo be discharged into an independently owned warehouse. Alternatively, the carrier may retain custody of the cargo until production of the bill of lading or until a Standard Form Letter of Indemnity and Bank “Join In” agreement security is provided (iii.) Where the carrier discharges cargo into an independently owned warehouse, he is advised to contract with the independent warehouse owner on terms which provide that the warehouse owner shall not deliver the cargo without production of the bill of lading or without the carrier's consent and that the warehouse owner shall indemnify the carrier should cargo in fact be delivered without production of the bill of lading or the carrier's consent. However, if that indemnity is not enforceable in practice, the Member may have to bear the loss, since P&I cover may already have been prejudiced. Again, Members should be aware that ultimate enforcement of an indemnity depends upon a variety of factors, including the continued solvency of the party offering the indemnity. Where a "notify" party is named in the bill of lading, often the cargo owner or a bank, that party should be consulted before the carrier surrenders control of the cargo. Members are also warned not to deliver cargo at Korean ports against the presentation of a negotiable bill of lading without first having verified that it has been endorsed in favour of the holder. The Managers are aware that, in the past, Korean banks have been prepared to release an original bill of lading to the local receiver without endorsement in his favour in order to facilitate discharge and delivery, whilst at the same time providing extended credit terms. The Korean Courts have found such delivery by a carrier to be wrongful. 2. The People's Republic of China At ports in the People's Republic of China, cargoes are often discharged from vessels to Customs controlled warehouses or holding areas pending collection by the cargo owner, against surrender of the bill of lading. In a number of cases, forged bills of lading have been used to obtain delivery of cargo, possibly with the knowledge of Customs officials, agents' clerks or employees of the terminal operators. In at least one case, a high level anti-corruption investigation was conducted resulting in a number of Customs officials being arrested. Since effective control over the cargo in ports in the People's Republic of China may be difficult for a carrier to monitor followi