FORSEEABLE CONSEQUENCES FOR MARINE INSURANCE Impacts of Climate Change on the Maritime Industries...

FORSEEABLE FORSEEABLE CONSEQUENCES FOR CONSEQUENCES FOR MARINE INSURANCEMARINE INSURANCE

Impacts of Climate Change on the Maritime Impacts of Climate Change on the Maritime IndustriesIndustriesPreparatory WorkshopPreparatory Workshop7 – 8 June 2007 7 – 8 June 2007 World Maritime University, MalmöWorld Maritime University, MalmöPatrick DonnerPatrick DonnerAssociate Academic DeanAssociate Academic DeanWorld Maritime UniversityWorld Maritime University

Patrick Donner, World Maritime University

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IMPACTS ON SHIPPINGIMPACTS ON SHIPPING Regulatory impactsRegulatory impacts

– New / revised international and national New / revised international and national regulationsregulations

– E.g. MARPOL Annex VI – emissionsE.g. MARPOL Annex VI – emissions– Reactive measuresReactive measures

Technological impacts on shipsTechnological impacts on ships– Need for and proliferation of ice-classed shipsNeed for and proliferation of ice-classed ships– Methods for ballast water exchangeMethods for ballast water exchange

Commercial impactsCommercial impacts


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MARINE INSURANCEMARINE INSURANCE

Navigation provisionsNavigation provisions– International Hull Clauses (01/11/03) define navigation limits International Hull Clauses (01/11/03) define navigation limits

(clauses 10 and 32), where the vessel “shall not enter, navigate or (clauses 10 and 32), where the vessel “shall not enter, navigate or remain”remain”

– Underwriters may give prior permission subject to amended terms Underwriters may give prior permission subject to amended terms and additional premiumand additional premium

– Previous definition: Institute Warranty Limits (I.W.L.)Previous definition: Institute Warranty Limits (I.W.L.)

Norwegian Marine Insurance Plan (2007 version compared to 2003 Norwegian Marine Insurance Plan (2007 version compared to 2003 version)version)

– Small changes in East Asian waters (part of “Excluded trading area” Small changes in East Asian waters (part of “Excluded trading area” changed to “Conditional trading area)changed to “Conditional trading area)

– Conditional trading areas in the Baltic the period has been extended!Conditional trading areas in the Baltic the period has been extended!


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Excluded Trading Areas NMIPExcluded Trading Areas NMIP


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Conditional Trading Areas: BalticConditional Trading Areas: Baltic


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Conditional Trading Areas: BalticConditional Trading Areas: Baltic

Limitation areas and periods in NMIP 1996/2003:Limitation areas and periods in NMIP 1996/2003:– The Gulf of Bothnia north of the line Umeå - The Gulf of Bothnia north of the line Umeå -

Vasa during the period 15 December - 15 AprilVasa during the period 15 December - 15 April– The Gulf of Finland east of 25° 45’ east The Gulf of Finland east of 25° 45’ east

longitude during the period 8 January - 15 Aprillongitude during the period 8 January - 15 April– The waters east of the line Dagerort - Lyserort The waters east of the line Dagerort - Lyserort

during the period 1 January - 31 Marchduring the period 1 January - 31 March Limitation period in NMIP 2007Limitation period in NMIP 2007

– 15 December – 15 May, both days included15 December – 15 May, both days included


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Conditional Trading Areas: BalticConditional Trading Areas: Baltic Limitation areas and periods in International Hull Clauses Limitation areas and periods in International Hull Clauses

(01/11/03):(01/11/03):– The Gulf of Bothnia north of the line Umeå - Vasa The Gulf of Bothnia north of the line Umeå - Vasa

during the period during the period 1010 December - December - 2525 May May– The Gulf of Finland east of 28° 45’ east longitude The Gulf of Finland east of 28° 45’ east longitude

during the period 15 December - 15 May for vessels < during the period 15 December - 15 May for vessels < 90,000 dwt90,000 dwt

» Vessels greater than 90,000 dwt may not enter at any time!!!Vessels greater than 90,000 dwt may not enter at any time!!!

– Gulf of Bothnia, Gulf of Finland and adjacent waters Gulf of Bothnia, Gulf of Finland and adjacent waters north of 59° 24’ north latitude between 8 January – 5 north of 59° 24’ north latitude between 8 January – 5 May, except for calls at Stockholm, Tallinn or HelsinkiMay, except for calls at Stockholm, Tallinn or Helsinki

– Gulf of Riga and adjacent waters east of 22° east Gulf of Riga and adjacent waters east of 22° east longitude and south of 59° east longitude between 28 longitude and south of 59° east longitude between 28 December and 5 MayDecember and 5 May


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CURRENT SITUATIONCURRENT SITUATION


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CURRENT SITUATIONCURRENT SITUATIONhttp://www.smh.com.au/articles/2003/10/24/1066631611744.htmlhttp://www.smh.com.au/articles/2003/10/24/1066631611744.html


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Charter PartiesCharter Parties Time-charterparties refer to International Time-charterparties refer to International

Navigational Limits or I.W.L. Navigational Limits or I.W.L.

Define (geographical) limits for the use of Define (geographical) limits for the use of the vesselthe vessel

– “…“…always within I.W.L…”always within I.W.L…”

If wider geographical areas become If wider geographical areas become accessible and the insurance definition of accessible and the insurance definition of excluded and conditional trading areas do excluded and conditional trading areas do not adapt, charterers run greater risk of not adapt, charterers run greater risk of breach of contractbreach of contract

THANK YOU !THANK YOU !

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FORSEEABLE CONSEQUENCES FOR MARINE INSURANCE Impacts of Climate Change on the Maritime Industries...

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