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Emerging (casualty) trends

Emerging (casualty) trends. Svend Leo Larsen, 24 October 2013. Agenda. Claims statistics - Less major claims……why…

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Emerging (casualty) trends

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  1. Emerging (casualty) trends Svend Leo Larsen, 24 October 2013

  2. 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?

  3. H&M claims per claim type 2003-2012

  4. 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

  5. Frequency of machinery claims2 stroke versus 4 stroke (2002 – 2011)

  6. SCUA Far East

  7. New-building quality vs. supersizing?

  8. New-building quality vs. supersizing (2)

  9. New-building quality vs. supersizing (3)

  10. Fuel prices vs. slow steaming trends

  11. Fuel oil / Environmental issues

  12. Fuel oil quality issues

  13. 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

  14. Crew & Shore management competence / diligence Quick in promoting junior officers…. Difficulties finding qualified 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…”.

  15. 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. 

  16. 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…..

  17. Geographical influences (Other) Lack of suitably qualified , competent and experienced surveyors in  certain areas.   Lack of suitable diving companies equipped to carry out underwater surveys and repair facilities West Africa 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

  18. 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 ?

  19. 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 …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 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

  20. Sufficient repair/shipyard capacity for the future?

  21. Greener Shipping - The future......

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