Emerging (casualty) trends
Svend Leo Larsen, 24 October 2013
Agenda
• Claims statistics - Less major claims……why…
• Surveyors input to emerging casualty trends
- New-building quality
- Fuel oil quality vs. environmental regulations
- Crew & Shore management competence / diligence
- Fire safety awareness
- Geographical influences (Piracy, Panama Channel expansion etc)
- Salvage / wreck removal
- Lack of maintenance (“Cash is still king” )
• Sufficient repair/shipyard capacity for the future?
H&M claims per claim type 2003-2012
Frequency of H&M claims 2003-2012
Slight increase in number of claims in Q2 2013 as in 2010
to 2012 but a sizeable drop in severity
Frequency of machinery claims
2 stroke versus 4 stroke (2002 – 2011)
5000
10.0 %
4500
9.0 %
4000
8.0 %
3500
7.0 %
3000
6.0 %
2500
5.0 %
2000
4.0 %
1500
3.0 %
1000
2.0 %
500
1.0 %
0
0.0 %
2002
2003
2004
4 Stroke - no. of vessels
2005
2006
2 Stroke - no. of vessels
2007
2008
2009
4 Stroke - claim frequency
2010
2011
2 Stroke - claim frequency
SCUA Far East
New-building quality vs. supersizing?
New-building quality vs. supersizing (2)
New-building quality vs. supersizing (3)
Fuel prices vs. slow steaming trends
•
Fuel oil / Environmental issues
Fuel oil quality issues
Fuel oil quality issues (2)
Somebody commented that claiming “bad fuel” is the new
alternative to crying “crew negligence”. I think we are seeing
spurious claims alleging bad fuel….
Fuel oil quality issues, or more lack of adeqate onboard fuel oil
treatment management?
….but experts point to a flurry of bunker alerts last year
following the introduction of the North American ECA. Issues
included high water content, high density, low flash point and
excessive catalytic (cat) fine content
Crew & Shore management competence /
diligence
Quick in promoting junior
Difficulties finding qualified
officers….
officers these days….
Lack of training/
Experience
Failure of the crew to read &
understand oil quality results
We will continue to hear the stories from Chief
Engineers and other crew members “…I am sorry
but this was done by the previous Chief
Engineer…”; or “… I only joined 3 weeks ago and I
do not know what was being done before…”.
Fire safety awareness
We have recently been involved on a few cases (4) where ship
repairers have ACCIDENTALLY caused fires while carrying out hot
work at lay-by berths. Although the hot work permit was properly
issued, it appears that procedures for said works were not properly
followed.
Geographical influences
Panama channel expansion (April 2015): The Third set of
Locks will allow dimensions of 427 metres (vs. 304.8m) x 55
metres (vs. 33.53m) x 18.3 metres (vs. 12.08 m draft).
The main difference for vessels is the way the vessel will
operate within the New Locks; which is by means of pulling by
tugboats (vs. 6 to 8 electric locomotives at present). We
believe from an Emergency Casualty Trend view that the new
larger vessel (New Panamax – up to 12,000 TEU) combined
with the new operations (tugboats) will cause at least initially
a spike in accidents during the Panama Canal Transit…..
Geographical influences (Other)
Lack of suitably qualified ,
competent and experienced
surveyors in certain areas.
Lack of suitable diving
companies equipped to
West Africa
carry out underwater
surveys and repair facilities
Some Classification Societies
have now restricted the areas
where certain class surveys
can be carried out
Increase in frequency of piracy
attacks in Gulf of Guinea
Salvage / Wreck removal
Governments/Administrations: It seems to be a universal
trend that local administrations get involved in casualties
(especially if the casualties have some kind of public
exposure) with increasingly expensive requirements and
demands, especially regarding environmental and health
and safety issues
The trend towards bigger ships (particularly Cruise and
Container) will lead to massive salvage and wreck removal
claims ?
Lack of maintenance, “Cash is still king”
Ship Owners are hurting badly, operating on slim or negative
margins. In this climate, they seem prone to make claims for
the smallest of things,more “small claims
There are more claims occurring due to lack of maintenance
e.g. failure to do routine items like changing fuel injectors
Stretching of overhaul intervals, immission of reccomended
consumable renewal
…Owners/vessel managing companies are so desperate
to save money wherever possible that not only the quality
of the crews suffers but also quality of the operation of the
vessel from shore
Sufficient repair/shipyard capacity for the
future?
Greener Shipping - The future......