Presentation

On

Maritime Risk Management Charterers Perspective

At the invitation of

What are P&I Clubs

Mechanism by which shipowners insure each others liabilities

Managed by third party professionals

Run on a “non profit” basis

Committee/Board of Directors

ManagersU/W, Accounts, Claims

Brokers

Members individually

Structure of a P&I Club

P&I Clubs in existence today

• American Club• Gard Club• Skuld Club• Britannia Club• Japan Club• London Club

• North of England Club• Shipowner’s Club

• Standard Club• Steamship Mutual Club

• Swedish Club• UK Club• West of England

The International Group of P&I Clubs

Charterers Liability Covers

What is it?

What types of risks are involved?• Class 1 (P&I)• Class 2 (FDD)• Damage to Hull (DTH)

How are these risks covered?

Owners P&I Cover1. Protection and Indemnity (P&I)

Cargo Crew Fixed & Floating Objects Collision Wreck Removal Oil Pollution Fines, Penalties

2. Freight, Demurrage and Defense (FDD)

Legal expenses for non Class 1 / DTH matters

3. Damage to Hull of the chartered vessel (DTH)

Charterers P&I Cover

P&I risks Cargo

• Directly to the receiver under the B/L• Charterers own B/L• “Carrier” in certain jurisdictions even if Owners B/L• Insolvency of the shipowner• Ineffective “identity of carrier” clause

• To the shipowner under the C/P• Inter Club Agreement (ICA) incorporated in C/P• Any other C/P provisions

P&I risks

Personal Injury• To Ships crew due to stevedore negligence• To stevedores during cargo work• Ships crew or stevedores due to hazardous or

dangerous cargo• Consequential losses from unsafe port / berth• US jurisdiction - all pockets pay

P&I risks

Oil Pollution• Unsafe port• “Operator of the vessel” pays• US jurisdiction - all pockets pay

Fines• Customs and other authorities in certain

jurisdictions

P&I risks

General Average• freight / hire at risk• Time Charterers bunkers

Salvage • Charterers contribution to Salvage award

Legal Expenses

FD & D risks

C/P disputes• Freight and laytime statements• Hire• Any other non Class 1 / DTH covered issue

Damage to Hull (DTH)

Unsafe Port• Damage to ship• All other consequential losses

Contaminated Bunkers Stevedore damage Vessel damage caused by cargo eg.

dangerous cargo etc

Some examples of Claims

Aegean Sea

Tasman Spirit

End of presentation

Any questions?