mArcH 2013 / issuE 204
President & cEo
A good sTArT
To THE yEAr
Welcome to a promising 2013. Business is thriving. At renewals we have
set a new-business tonnage record for skuld group. Furthermore, in
spite of high claims levels from the international group pooling system,
skuld will deliver robust results for the last financial year, yet again.
skuld has made significant gains in the offshore and energy markets
and our new office in singapore is already making further progress.
Although it hasn’t been long since we introduced fixed premium P&i
and yacht insurance, we have already signed up a sizeable amount of
new business. in addition, our lloyd’s syndicate skuld 1897 goes from
strength to strength and will be well positioned to deliver results in
accordance with the long-term plan.
in this Beacon, we examine the Arctic. This ‘new frontier for exploration
and development’ is a fascinating region, which challenges the developed
world’s ability to combine opportunity with sustainability.
BEAcon mArcH 2013 / issuE 204
news feATure: The ArcTic
6 unlocking the Arctic
9 know your Arctic
10 key changes for nsr regulation
12 Arctic trading
14 on thin ice?
16 cold reality
18 Testing the ice
20 The Arctic and me
21 stowaway with a mission
23 skuld opens new office
25 Personnel news
in January, russia introduced ‘new
rules of navigation on the northern sea
route’. The rules can be seen as a great
leap forward for facilitating navigation and
commercial shipping on the nsr.
my thanks again for your hard work and support during 2012 and, as
spring approaches; i look forward to growth and success for us all.
PHoTo: sciEncE PHoTo liBrAry
PHoTo: ©loWEll gEorgiA/corBis
navigating icy waters is challenging and can
be more costly than expected.
mArcH 2013 / issuE 204
beAcon (skulD MAgAzine) is the official publication of Assuranceforeningen skuld (gjensidig)
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marte nordli Andersen, inger margrethe Holm lAyouT Transmission As repro AnD prinTing
07 group fronT pAge The russian nuclear-powered icebreaker yamal. ©Peter guttman/corBis
bAck pAge yacht. Entire contents ©2013, all rights reserved. reproduction in whole or in part,
without written permission from skuld, is prohibited. opinions expressed by writers in Beacon
are not necessarily those held by skuld. skuld assumes no responsibility for unsolicited material
As the Arctic opens up, the prospect of increased
commercial opportunity for shipping is an exciting one.
However, with increased access comes increased risk and
responsibility. meeting these responsibilities and assessing risks
present challenges to owners, charterers and insurers alike.
Job title, skuld
nEWs FEATurE lEgAl
THE ArcTic issuEs
THE Ar cTic
The seattle-based cutter Healy is the us coast
guard’s newest and most technologically
advanced polar icebreaker. it’s shown here
breaking ice in the Bering sea.
LargeLy unexpLored, the arctic – 6% of the earth’s surface area –
is a treasure chest of resources. oiL, gas, mineraLs, precious metaLs,
gemstones, fresh water – they’re aLL there. the question is: in opening
it, can we baLance nature’s fragiLity with our materiaL needs? with arctic
ice receding and technoLogy improving, vesseLs now saiL to, from and
through easier than at any point in history. in this feature, we take a
Look at some of the issues around accessing the frozen north.
PHoTo: © 1-imAgEs.no
BEAcon / MArch 2013 5
/ THE ArcTic
THE ArcTic /
TschuDi shipping AnD The high norTh
unlocking THE ArcTic
once described as a vast inaccessible wasteland, the Arctic has become a new frontier for exploration
and development. There’s a lot to play for. The Arctic contains around one tenth of the world’s oil
and a quarter of its natural gas. mineral deposits include gold, uranium, copper, nickel, tungsten
and diamonds. The problem has always been how to get at them or, more precisely, how to get
at them economically.
With growing demand for resources, rising commodity prices, political
change, improved technology and the effects of climate change the
playing field is now very different from even a decade ago. Felix Tschudi,
chairman of Tschudi shipping company, saw the opportunities early on.
breAD for The people
in the late 1980s, Felix Tschudi was working for the Vienna-based trading
and finance house AWT, specialising in countertrade with Eastern
Europe and the soviet union. soon after the Berlin Wall fell in 1989, he
returned to norway and put his trading experience to good effect.
“Although norway has several borders, the only really interesting one
is the 196 km border with russia,” says Felix Tschudi. “When the soviet
union disintegrated, the difference in living standards was enormous,
with real hardship on the russian side. it provided opportunities for trade
in foodstuffs and white goods. our business developed and at the point
of the rouble’s devaluation in 1998, we owned a large bakery just across
the russian border in murmansk producing 13–14,000 loaves of bread
a day. unfortunately, the devaluation forced a move out of this business.”
As hydrocarbon and mineral exploration increases in the high north and popularity of the
nsr grows, so will expected use of Tschudi group’s kirkenes industrial logistics Area.
PHoTo: TscHudi sHiPPing comPAny
kirkenes was an ideal location for the continuation of Tschudi’s Arctic
enterprise. it’s an industrial centre inside the Arctic circle and an entry
point into norway from russia. its port is large, deep, ice-free and well
protected from the weather. kirkenes Transit, now named Tschudi
Arctic Transit, was formed to help facilitate russian bulk exports, such
as steel and oil products, from Archangel and ports in the White sea to
kirkenes and beyond. “due to shallow waters and ice in many russian
ports, it is often more economical to transship cargoes to conventional
vessels in ice-free, deep waters for further transportation. This is
where Tschudi Arctic Transit comes in. using its bases in kirkenes
and Honningsvåg it offers clients transshipment services,” explains
At first sight it might not appear an obvious fit, but the purchase of the
sydvaranger iron ore mine in 2006 underlines Felix Tschudi’s belief in
the high north and the opportunities it holds. The draw was not so
much the mine – it had been closed for several years – but the
infrastructure around it: deep-water quays, storage facilities and the
potential for development of a large new port facility. The fact that the
mine is now listed on the Australian stock Exchange and is again
producing iron ore is an added plus.
As Felix Tschudi says, “Trans portation is the key to unlocking resources
in the Arctic”, and with the investment in kirkenes it means the
Tschudi group is well placed to offer logistics for hydrocarbon and
mineral development in the region and, of course, to facilitate use of
the northern sea route (nsr).
The norThern seA rouTe
The nsr, historically known as the northeast Passage, links the
Atlantic and Pacific oceans in the high north. First developed in the
1920s as a shipping lane by the soviet union, it wasn’t officially opened
to foreign shipping until 1991. not that there was a great rush when it
did open. it’s only recently that its commercial viability looks promising.
The Ob River was the first lng tanker to use the northern sea route. it cut almost 20 days off its journey to yokohama compared to sailing through the suez canal.
Tschudi group made history in 2010 by chartering the MV Nordic Barents
to make the first passage by a foreign commercial vessel between two
non-russian ports. “We were interested in opening up the nsr to
commercial traffic for some time”, says Felix Tschudi. “There were
clear benefits – it saves time, fuel, emissions and eliminates piracy
risk. in 2010, we and the centre for High north logistics instigated a
meeting between several potential stakeholders. it was attended
by 27 people, including representatives from brokerages, shipping
companies, law offices, dnV, skuld and, most importantly, Atomflot,
which operates the russian nuclear-powered icebreakers that guide
vessels through the nsr.”
one very important issue under discussion was the cost of using
the route. For it to be economical, rates had to be comparable to those
of the suez canal. “russia wanted it to happen,” continues Felix
Tschudi. “Atomflot’s representative said ‘We want to compete with
suez’. From this point, people really began to believe it could work.”
some time after this meeting,
Tschudi shipping took the initiative
by chartering the MV Nordic Barents
from nordic Bulk carriers to ship
41,000 tons of iron ore from
sydvaranger mine to Xingang in
northern china. it was the first
non-russian vessel carrying nonrussian
cargo transiting the nsr
between two non-russian ports.
it helped establish the route’s
economic viability in the ice-free
season and was one of four
commercial vessels that year to
use the nsr. in 2011, the number
rose to 34 and, in 2012, it rose
again to 46.
“The nsr saves time, fuel, emissions and
eliminates piracy risk,” says Felix Tschudi.
6 BEAcon / MArch 2013
BEAcon / MArch 2013 7
/ THE ArcTic
THE ArcTic /
To the western coast of USA
To the Gulf of Mexico
NORTHERN SEA ROUTE
cenTre for high norTh logisTics lAunches new
ArcTic inforMATion DATAbAse
/ graduate from the royal norwegian naval Academy
/ Previously sub-lieutenant in the royal norwegian navy
/ Has a second mate’s certificate from uk merchant navy colleges,
a Bsc (Econ) from london school of Economics and an mBA from
/ Joint managing director of Tschudi & Eitzen from 1992 until 2002
/ From 2003, chairman of Tschudi shipping company As, the holding
company for Tschudi group
/ chairman of the centre for High north logistics, a non-profit
organisation focusing on transport solutions in the Arctic
/ Board member of maritimt Forum oslofjord and the norwegian
publishing house Aschehoug & co.
/ member of the World Economic Forum’s global Agenda council
on the Arctic
/ member of skuld’s committee since 2002
knoW your ArcTic
The northern sea route joins the Atlantic and Pacific oceans along the russian coast of
siberia and the Far East. it crosses five Arctic seas: the Barents sea, the kara sea, the
laptev sea, the East siberian sea and the chukchi sea. Here, it is shown in comparison
to the route through the suez canal.
The most alternative noteworthy international vessel trade sailing route the for cargoes nsr in and 2012 mobilisation was the Ob River,
the first during lng favourable tanker to ice use season this route. Arctic Bulk Ag, a venture between
the trading company Prominvest sA and Tschudi Arctic Transit, assisted
distance from Northern Europe to China and vice versa, approx. 40% shorter
the gazprom-chartered ice-class 1A lng tanker in its voyage. it
than via the Suez Canal or 60% shorter via the Cape of Good Hope
departed south korea and sailed the nsr from its most easterly point
to its substantial most westerly reductions point in transportation only six days. time, After fuel taking consumption delivery of lng
at statoil’s environmental melkøya emission plant near and piracy Hammerfest risk in northern norway, it
returned using the same route. savings are estimated at almost 20
longer season – amount of ice reduced by 40% over the last 30 years
days on the laden voyage and 40 on a round-trip basis compared to the
alternative route via the suez canal.
Russian ports in 2010
Felix Tschudi believes in the nsr’s future. “As activity in the Arctic
gradually Arctic increases, Bulk is associated so will with use Tschudi of the nsr. Shipping There Company will be in greater Oslo need
for ice-class vessels of all kinds, particularly larger vessels for carrying
bulk cargoes in transit, but also for specialised shuttle vessels serving
Whatever the vessel, it needs to comply with nsr regulations. russia
has recently introduced new legislation that aims to shorten and simplify
transit approval procedures and make ice-class and escort requirements
dependent on ice conditions. “We also need to recognise that precautions
taken when using the nsr make it a safe alternative”, says Felix Tschudi.
“in which other ocean can you get an escort with navigational expertise,
towing capability and hospital capacity?”
so what advice would you give to others contemplating using the nsr?
“i’d suggest that they contact Arctic Bulk Ag. not only for general
guidance, but also to see if there are opportunities for return cargoes,”
continues Felix Tschudi. “And then there’s the centre for High north
logistics and the wealth of information it makes available through its
databases. These are two good starting points. The nsr may be a
niche route, but it can be a very profitable one for many shipping
companies,” replies Felix Tschudi.
NORTHERN SEA ROUTE
– the shortcut between Asia and Europe
TschuDi shipping coMpAny As
/ Holding company for the Tschudi group
/ Three main areas: shipping, logistics, offshore
/ roots back to 1883
/ Formed in 2003 after a demerger of Tschudi & Eitzen As
/ represented by subsidiaries, joint ventures and associated companies
in norway, Finland, denmark, netherlands, Belgium, uk, russia,
Estonia, lithuania, latvia, ukraine and switzerland
/ Particular focus on infrastructure and logistics in the high north, Baltic
region, russia and central Asia.
norThern seA rouTe vs. suez cAnAl – possible sAvings (AuTuMn 2012)
/ lng tanker: reduced costs in usD for 21.4 days saved 1)
lng from melkøya, northern norway to yokohama, Japan: 147,000 cbm
Full round voyage spot market rate: usd 15/mmBtu
1. Time charter per day usd 150 000 2) x 21.4 x 2 usd 6,420,000
2. Bunkers burn off lng 0.1% per day x 21.4 x 2 usd 2,200,000
3. suez canal round voyage cost usd 150,000
4. nsr tariff usd 5 X 70 000 mt + usd 2.5 x 113,000 3) (usd 632,000)
possible savings (full round voyage) usD 8,138,000
/ panamax iron ore bulk carrier: reduced costs in usD for 18 days saved
iron ore from kirkenes, northern norway to shanghai, china
1. Time charter per day usd 15 000 2) x 18 usd 270 000
2. Bunkers fuel 33 x 700 x 18 usd 416,000
3. insurance usd +/- 4)
4. Ports n/A
5. suez canal voyage cost usd 250,000
6. nsr tariff usd 5 x 75 000 mt (usd 375,000)
possible savings (one-way voyage) usD 560,000 5)
1. Based on an average speed of 13 knots.
2. day rates taken from brokerages’ daily reports during Autumn 2012.
3. displacement tons.
4. insurance can be lower or higher dependent on vessel, crew experience,
track record, weighting of piracy threat, etc.
5. gives a per-ton saving of usd 7.50.
in January, the centre for High north logistics (cHnl) launched its long-awaited ArcTis
database at the Arctic Frontiers conference in Tromsø, northern norway.
“ArcTis is a dynamic and searchable online database on shipping,
transportation infrastructure, mineral and energy resources and
innovative logistics solutions in the Arctic,” says dr. Bjørn gunnarsson,
managing director of cHnl. “one aim is to help companies make
better-informed decisions when operating in the Arctic. We do this by
providing easy access to hundreds of relevant articles, reports and
sTrucTure AnD quAliTy
Easy access are the key words. The database is broken down into eight
main categories and close to 50 sub-categories, with summaries for
each document. if a report is large and covers several areas, cHnl’s
editorial team breaks it down and places sections under relevant
categories with links to the original document. The database is free
and users are encouraged to nominate new articles and data entries
to help its expansion.
“Quality of information is naturally important,” says Bjørn gunnarsson.
“We are building a highly qualified team of 40 editors that review documents
and pass them fit for the database. We largely avoid duplication by
selecting the most up-to-date and relevant literature on each subject.
From our own research and feedback at the launch, people are very
positive to it. We expect its popularity to grow as the Arctic opens up
further,” he continues.
cenTre for high norTh logisTics
cHnl was established as an international non-profit foundation in
may 2009. it’s the result of an initiative by Tschudi shipping company in
collaboration with the norwegian ministry of Foreign Affairs and det
norske Veritas (dnV). cHnl’s mission is to build an international
knowledge network together with key businesses, research institutions
and public authorities on Arctic resources, transport and logistics.
Apart from ArcTis, it also runs the Arctic logistics information office
(Arclio) in murmansk, which provides practical information on shipping
and logistics along the northern sea route (nsr), promotes joint
research, such as its long-term nsr project with south korea’s
youngsan university, and runs workshops and seminars. in 2013, two
nsr-themed workshops are planned in Tokyo and sapporo, Japan.
ArcTis provides easily accessible, well-structured and high-quality information on the
Arctic for organisations operating in the high north.
cHnl’s managing director,
dr. Bjørn gunnarsson, was an
Associate Program chair and
Faculty at Johns Hopkins university,
usA, and founder and rector of
the school for renewable Energy
information is classified under eight
key topics in the ArcTis database
/ Arctic energy and mineral resources
/ marine transport and logistics
/ Arctic sea routes
/ People, industries and institutions
/ maps and charts
/ Arctic sea ice and climatology
/ Arctic policies and governance
users can register free through
8 BEAcon / MArch 2013
BEAcon / MArch 2013 9
by konstantin krasnokutskiy
Jurinflot international law Firm, moscow
russiA ADopTs ‘new rules of nAvigATion on The norThern seA rouTe’
kEy cHAngEs For
in January, russia introduced ‘new rules of navigation on the northern
sea route’. The rules can be seen as a great leap forward for facilitating
navigation and commercial shipping on the northern sea route (nsr).
Previously all vessels had to follow 1990 rules, with their timeconsuming
and bureaucratic procedures, to obtain permission from
the northern sea route Administration to navigate in the russian
Arctic zone. now, a new administration for the northern sea route
will be established to consider applications and issue vessel permits.
The new regulation also includes a more precise legislative definition
of the nsr, which is now strictly limited to the 200-mile exclusive
A novelty for increasing navigation safety on the nsr is the introduction
of ice pilots, who have specialist knowledge and experience of ice
navigation. They must be russian citizens with permission from
russian state authorities to offer ice-pilot services on the nsr.
ice pilots are compulsory only if the master of the vessel navigating
the nsr does not have ice navigation experience.
The new nsr Administration will also monitor hydro-meteorological,
ice and navigation conditions, and provide information to the public. it
is obliged to publish a significant amount of information on its website,
including 72-hour weather and ice forecasts, 30- and 90-day ice-condition
forecasts, recommended navigation routes, current information about
vessels navigating the nsr and other information.
Enactment of by-laws for establishing and operating the nsr
Administration is somewhat delayed, but it is hoped to see the
Administration and its website functioning by April 2013.
Although nsr navigation permits are still required from the russian
authorities, the process of obtaining them is now faster and less
complicated compared to the old legislation.
A shipowner must send a navigation permit application by e-mail to
the nsr Administration 15 to 120 days prior to the planned day of
transit through the nsr. The application must include the vessel’s
class certificate and other documents, which can now be attached to
only russian-flag icebreakers can provide assistance to vessels transiting the nsr. All
russian icebreakers are nuclear powered and operated by state enterprise ‘rosatomflot’.
The nuclear reactor shown in the photograph fuels the russian icebreaker Rossiya and
is one of two on the vessel. The second is for back-up.
“A novelTy for
The nsr is The
of ice piloTs”
the electronic application in
PdF format. Permission or
rejection must be given by the
nsr Administration within ten
working days of the date the
application was accepted for
consideration. All navigation
permits must be published on the
nsr Administration’s website.
The new rules do not provide for
icebreaker assistance as a standard
condition for navigating the nsr.
icebreaker assistance now depends
PHoTo: sciEncE PHoTo liBrAry
russia operates the world’s largest nuclear icebreaker fleet – four nuclear ‘Arktika’-class ice-breakers and two nuclear shallow-draft icebreakers. Picture shows the Rossiya.
its helicopter is checking whether the ice ahead is thin enough to be broken by the ship’s hull.
on the time of year, section of the nsr in question, ice conditions and
the vessel’s ice class.
According to the new rules, only russian-flag icebreakers can be used
to render icebreaker services to vessels transiting the nsr. russia’s
nuclear icebreaker fleet is operated by state enterprise ‘rosatomflot’,
which provides assistance according to rates set by the russian
government. These depend on tonnage and the vessel’s ice-class,
route and period of navigation.
Through the nsr’s history, major losses in the area have been limited.
From 1950 to 1990 only four vessels were lost, while on average 250
vessels navigated the nsr annually. since 1990, there has been no
major incident on the nsr at all.
“new rules Do
noT proviDe for
despite legislative efforts to
promote commercial navigation
on the nsr, it’s still a route
through a harsh and remote
wilderness with little infrastructure
and support services. consequently,
commercial insurance of H&m
and P&i risks in the Arctic will
remain a challenge for both P&i
clubs and underwriters for many
years to come.
PHoTo: sciEncE PHoTo liBrAry
10 BEAcon / MArch 2013
BEAcon / MArch 2013
/ THE ArcTic
THE ArcTic /
by christian ott
Head of claims, skuld singapore
PHoTo: © loWEll gEorgiA/corBis
new coMMerciAl venTures bring chAllenges
for operATors AnD insurers
As the Arctic opens up, the prospect of increased commercial opportunity for shipping is an exciting
one. However, with increased access comes increased risk and responsibility. meeting these
responsibilities and assessing risks present challenges to owners, charterers and insurers alike.
where’s The chAllenge?
There are several factors that increase the challenge of sailing and
trading in the Arctic:
• Territorial and jurisdictional boundaries are not yet fully settled
• legal regimes are under development for new areas opening up,
both at national and international level. Arctic council member and
observer states are increasingly busy, while russia is developing
domestic legislation independently of the group
• infrastructure in remote northern regions may be basic or, in some
• Vessels can easily sustain damage and crew can suffer injury and
illness quickly in extreme temperatures. Help may be far away!
• dealing with a casualty and/or pollution can be particularly
challenging in the Arctic
how cAn skulD help?
skuld is best placed to help members before the voyage takes place.
The more known at the outset, the better the club can assist.
For example, skuld can:
i. Help assess possible risks
ii. consider insurance cover limits and advise on possible
iii. Assist with contracts before fixing
iv. source external experts
v. Act as a ‘sounding board’ for new ideas
vi. intervene more effectively during the voyage if necessary
And remember – if in doubt please contact us!
the prospect of increased
commercial opportunity for
shipping in the arctic is an
geT AheAD before you sTArT
members will no doubt recall the cruise ship MS Explorer in 2007.
The vessel was designed for Arctic and Antarctic service, yet became a
casualty after submerged Antarctic ice ripped a large gash in her hull.
Fortunately, help arrived quickly and the 154 passengers and crew
were rescued safely.
This case helps to illustrate the perils of Arctic sailing and the importance
of being prepared. The following checklist is a useful starting point.
(A) know what voyage you are planning and the conditions you are
likely to encounter
(B) make sure you have the right vessel and that it’s fully seaworthy
for the proposed voyage
(c) officers and crew should be trained for the conditions. key
personnel must have ice-sailing experience
(d) shore support must be in place and, in particular, have ready
access to accident and emergency plans
(E) Be up to date with the latest political, legal and practical
developments, and know who the marine and port contacts
are in the area the vessel will pass through
(F) understand the contract before it is signed – who will be responsible
for what, especially if unusual or special risks are involved
The ArcTic council
/ The ottawa declaration of 1996 formally
established the Arctic council as a high-level
intergovernmental forum providing means of
promoting cooperation, coordination and
interaction among Arctic states on common
issues. involvement of Arctic indigenous
communities and other Arctic inhabitants
/ only states with Arctic territory can be members.
There are also permanent and ad-hoc observer
countries and ‘permanent participants’, such as
the sami council and inuit circumpolar council.
/ Arctic council member states:
canada, denmark (including greenland and
Faroe islands), Finland, iceland, norway,
russian Federation, sweden, us.
/ countries with permanent observer status:
France, germany, netherlands, Poland, spain, uk.
/ countries/bodies with ad-hoc observer status:
china, Eu, italy, Japan, south korea.
sources: www.arctic-council.org, Wikipedia.
BEAcon / MArch 2013 13
/ THE ArcTic
THE ArcTic /
by katinka Mørch granberg
client servicing and marketing Executive, skuld offshore
Do ToDAy’s sAfeTy regulATions sufficienTly proTecT
ships operATing in The ArcTic?
on THin icE?
Arctic safety is regulated by different international conventions.
unlike the Antarctic, the Arctic is not covered by a treaty dealing with
the region as a whole.
during the past 15 years, the international community has increased
focus on law – mainly safety regulations – motivated by the Exxon Valdez
oil spill off the Alaskan coast in 1989. The international maritime
organisation (imo) began work on a navigation code in polar waters, today
known as imo’s ‘guidelines for ships operating in Arctic ice-covered
Waters’. its intention was clear from the outset; a vessel operating in
the Arctic can face different technical requirements from Arctic states’
own legislation. The need for common Arctic legislation has increased
along with global warming and exploitation.
The lAw of The seA convenTion
Today’s legal regime consists mainly of unclos (the law of the sea
convention), solAs (safety of life at sea) and mArPol (prevention of
pollution from ships). unclos sets limits for coastal states’ jurisdiction
at sea, measured from the baseline of the continent. in territorial
waters, coastal states have full sovereignty, meaning their law must be
followed. The Arctic consists of three different sea zones: territorial,
exclusive economic zone and high sea.
The Arctic’s coastal states (canada, russia, norway, united states and
denmark) can refer to articles 21, 56 and 194, which apply to all seas,
to protect the Arctic marine environment. The aim is to protect against
pollution within the territorial and economic exclusive zones. According
to these articles, coastal states should take measures to prevent
pollution in these areas. These articles must be read together with
article 234, which specifically mentions Arctic waters.
According to article 234, coastal states have the right to “adopt and
enforce” laws and regulations in Arctic waters. This means it is up to
each Arctic coastal state to decide on safety regulations, but these
regulations need to be considered as safety or environmental measures
and cannot be discriminating. legal interpretation of coastal state
jurisdiction in ice-covered waters based on Article 234 is not easy under
international law. coastal states can therefore adopt different security
rules in Arctic waters “within the limits of the exclusive economic
zone”, which gives them extended legal authority in their exclusive
The Arctic ocean also consists of a relatively small expanse of remaining
‘high seas’, which is covered with very substantial ice and is almost
motivating factor – The Exxon Valdez oil spill prompted work on a navigation code, known
today as imo’s ‘guidelines for ships operating in Arctic ice-covered Waters’.
impossible to operate. Here, flagstate
iMo guiDelines for ships
operATing in ArcTic ice-covereD
Today, imo’s guidelines have no
binding status; they are only
recommendations. However, there
is reason to believe the guidelines
can form a treaty. They are more
precise than today’s regulations
and promote safe navigation and
prevent pollution from shipping in
Arctic ice-covered waters. The
guidelines take into account the
Arctic’s challenging climate and
have developed rules regarding
vessel construction, special
equipment required onboard and
PHoTo: © nATAliE FoBEs/corBis
imo guidelines have their own ice-class, which is used by dnV for classifying vessels operating in the Arctic today, even though the guidelines are not yet mandatory.
since Arctic climate is harsh, normal safety equipment needs to be
improved. For example, crew requires extra-warm clothes, lifeboats
need thicker hulls and every vessel should be equipped with Ais
(automatic identification system). However, since navigation is more
challenging in the Arctic and rescue operations are very difficult, imo’s
guidelines recommend that Ais is mandatory for all vessels.
imo guidelines also have their own ice-class, which is used by dnV for
classifying vessels operating in the Arctic today, even though the
guidelines are not yet mandatory.
The Arctic needs one treaty that regulates safety. A common safety
legal system will reduce some potential risks in the future and clarify
today’s situation for operators. However, under unclos, Arctic coastal
states’ sovereignty stands strong, so it is difficult to ask them to give
up some of their sovereignty and accept an international convention
that applies in their territorial and exclusive economic zones. Both
russia and canada already have very strict and specific rules for their
waters. As it stands today, it’s more or less up to coastal states to
agree on an international convention, which answers both legal and
This article summarises Master’s degree thesis ‘La sécurité dans
l’Arctique: comparaison entre l’article 234 de la Convention des Nations
Unies sur le Droit de la meret le Code Polaire’.
uniTeD nATions convenTion on The lAw of The seA (unclos)
/ Article 234: coastal states have the right to adopt and
enforce non-discriminatory laws and regulations for the
prevention, reduction and control of marine pollution from
vessels in ice-covered areas within the limits of the
exclusive economic zone, where particularly severe climatic
conditions and the presence of ice covering such areas
for most of the year create obstructions or exceptional
hazards to navigation, and pollution of the marine
environment could cause major harm to or irreversible
disturbance of the ecological balance. such laws and
regulations shall have due regard to navigation and the
protection and preservation of the marine environment
based on the best available scientific evidence.
/ Territorial waters: Extend to at most 12 nautical miles
(22 km) from the baseline. The territorial sea is regarded
as the sovereign territory of the state, although foreign
ships (both military and civilian) are allowed innocent
passage through it; this sovereignty also extends to the
airspace over and seabed below.
/ exclusive economic zone: Extend to a distance of 200
nautical miles (370 km) out from its coastal baseline.
A coastal nation has control of all economic resources
within its exclusive economic zone, including fishing, mining,
oil exploration and any pollution of those resources.
14 BEAcon / MArch 2013
BEAcon / MArch 2013 15
/ THE ArcTic
THE ArcTic /
by captain binoy kumar Dubey
senior Executive, risk Assessment and claims
The chAllenges of ArcTic nAvigATion
geTTing A Tow
if propellers or rudders are damaged, the vessel may need towing. if
there isn’t an ice escort, this may be easier said than done. specially
designed icebreakers with notches in their stern are needed. such
notches allow the bow of the vessel under tow to come in close contact
with the icebreaker’s stern. A simple towing arrangement may not be
sufficient, since fluctuating resistance caused by varying amounts of
ice in the water causes sudden acceleration or deceleration. needless
to say, costs of such operations are substantial.
it is very easy and very dangerous to underestimate the force of ice.
navigating icy waters is challenging and can be more costly than
expected. recently, skuld has received several high-value claims for
rudders and propellers, the most vulnerable parts of the vessel.
Propeller and rudder damage from ice milling or impact with ice
occurs when a vessel is not fully laden or is in ballast, as it is most
vulnerable to surface ice at these draughts. Almost always, damage is
inflicted when vessels try to manoeuvre astern in ice-prone waters
without due caution. Accidents include bending of propeller tips,
rudders and rudder stocks. more often than not, master and crew are
surprised at the extent of the harm done.
Passage planning and vessel preparation for ice navigation necessitate
much more advanced planning than for open-water sailing. inadequate
training and poor planning, coupled with inexperience of handling
ships in ice-prone waters, can result in very expensive claims.
Vessels need to be kept in optimum operational condition for sailing
in icy seas. When backing a vessel, a number of precautions should
• respect the ice – even if the vessel is ice strengthened – but don’t fear
it. Be prepared to go full astern on engines should the need arise
• manoeuvring astern or backing in ice is very risky and should only
be attempted with extreme caution. A careful watch should always
be kept on ice conditions and the distance of the ice edge from the
• Ensure the propeller is fully immersed and there is sufficient water
depth over its tip
• never ram astern unless the vessel is suitably designed for this
purpose, e.g. in double-acting ships where reinforced sterns are
used to break ice
• if the vessel is hemmed in by ice, it is important to keep the stern
ice-free. ‘Propeller turning at slow speed ahead with rudder
midship’ is one of the most practical ways to achieve this
• if the vessel has to attempt astern propulsion, it should give
‘minimum astern on engine ensuring that the rudder is always kept
midship’. However, please note this may not apply in an ice convoy
where maximum astern propulsion can be required to avoid collision
with the vessel ahead
members are advised to contact skuld’s ‘Arctic group’ for further
clarification and advice on sailing in ice-covered waters.
“respecT The ice
– even if The vessel
is ice sTrengTheneD”
PHoTo: © rAlPH lEE HoPkins/nATionAl gEogrAPHic sociETy/corBis
manoeuvring astern or backing in ice is very risky and should only be attempted with
extreme caution. A careful watch should always be kept on ice conditions and the distance
of the ice edge from the vessel’s stern.
cApTAin binoy kuMAr Dubey
/ Extra master mariner with
/ Employed in skuld since
2010. recently relocated to
/ gained extensive ice-navigation
experience as master for
Fednav ltd. canada
/ Has authored the book ‘ice
navigation managing cold
/ skuld’s expert on ice navigation
and Arctic routes
16 BEAcon / MArch 2013
BEAcon / MArch 2013 17
/ THE ArcTic
THE ArcTic /
by Dr. nicola beer
Technical Adviser, iToPF ltd.
oil spill response in The ArcTic: TechnicAl opTions
AnD prAcTicAl chAllenges
TEsTing THE icE
As Arctic sea ice diminishes, northern shipping routes are becoming commercially attractive. Whilst there
are undeniable advantages in reduced transit times between the Atlantic and Pacific, there is growing
concern over the potential for an oil spill. oil spill preparedness and response capability in the Arctic is
unproven, and given the logistical challenges in such a remote and harsh environment, a response may
not always be possible or reasonable.
DeTecTion AnD TrAcking of spilT oil
Arctic conditions affect the fate and behaviour of spilt oil in a number
of ways, some aiding and some hindering its removal (see table and
figure). standard oil spill fate and trajectory models do not apply in icy
waters; oil trapped within or under fast ice is likely to remain relatively
stationary as fast ice does not drift with surface currents or wind, and
under-ice currents are minimal. However, in the highly dynamic
pack-ice zone, oil drift may be considerable and unpredictable. detection
and tracking of oil in ice is one of the major technological challenges
facing the Arctic spill response community, as although various
techniques have proven successful in certain conditions, there is
currently no universally applicable tool.
effecTs of ArcTic conDiTions on oil fATe AnD behAviour
factor effect implications
reduces rate of natural
weathering processes, such as
evaporation and biodegradation;
increases oil viscosity
dampens wave energy and
reduces natural dispersion and
oil may become encapsulated
within or trapped under ice
oils are more persistent, but
the window of opportunity for
response may be increased
increased window of opportunity
for chemical dispersion and
in-situ burning , although
dispersion will be restricted by
reduced wave energy
difficult to detect, track and
remote sensing of oil in open water is possible because oil dampens
wind-generated capillary waves on the sea surface, thereby reducing
the radar backscatter signal. However, ice has a similar effect to oil
and confuses the output.
clear skies, necessary for satellite systems, are not the norm in
the Arctic. Airborne sensors, such as side-looking Airborne radar,
fly under cloud cover, but are limited by airspace regulations, pilot
availability, operational health and safety considerations, communications
challenges and a general shortage of suitably equipped aircraft in
the far north.
The most promising technique for detection of oil in or under ice is
ground-penetrating radar (gPr). surface-carried units afford better
penetration than airborne, but are large and heavy, and a trade-off
must be made between penetration and resolution. gPr can detect oil
accumulations greater than roughly 2.5 cm in thickness, but not thin
slicks or oil trapped under new ice, young ice, first-year ice, rafted ice,
rubbles or ridges, or thick ice. High-sensitivity ethane sensors can
detect volatile compounds evaporating from freshly spilled oil and
trained dogs may be able to reliably detect relatively small volumes
of oil under ice or snow, although further field testing is needed.
oil in or
unDer ice is
responDing To oil spills
The main at-sea response options
for the Arctic are mechanical
recovery, chemical dispersion
and in-situ burning. mechanical
recovery is physically challenging:
the presence of ice is likely to
prevent boom use; extreme cold
may hinder operation of skimmers
and pumps; and viscosity of oil
increases in Arctic conditions.
However, containment of oil in ice
and limited weathering – especially
reduced emulsification – may aid
its recovery. specialised skimmers
and ‘winterised’ pumps and power
packs claim to operate efficiently
in Arctic conditions. However,
mechanical recovery is unlikely to
be efficient above approximately
30% ice cover, and is always
dependent on availability of suitable
vessels and facilities for storage and
disposal of recovered oil.
spilled oil reacts very differently in ice-covered seas compared to open water.
dispersants are widely used to respond to oil spills at lower latitudes
and have the advantage of treating oil in situ rather than recovering it
for subsequent disposal. specific formulations are being developed for
the Arctic, where the window of opportunity for application may be
expanded to days or even weeks, due to limited oil weathering and less
chance of emulsification. However, dispersion only occurs if dispersants
come into contact with the oil/water interface and the dampening
effect of sea ice means that artificial mixing, e.g. through propeller
wash, may be necessary. dispersant use is not currently pre-approved
for the Arctic and approval may be difficult to obtain in shallow,
nearshore waters or in the vicinity of sensitive benthic resources or
fish spawning grounds, for example.
in-situ burning of oil was trialled extensively during the Deepwater
Horizon response, as it is potentially capable of removing large volumes
of oil from the water surface with minimal waste generation. A minimum
slick thickness of 3–4 mm is required to sustain an efficient burn of
crude oil. in the Deepwater Horizon response, this was achieved by
containment within fire-resistant booms or use of chemical herders, but
in the Arctic, containment by ice may suffice. Whilst experimental
burns have reported oil removal efficiencies of more than 90%, a thick,
tar-like residue may remain that has the potential to sink as it cools
and may need recovering. The toxicity of such residues on Arctic flora
and fauna has not yet been tested. in Arctic conditions, or with more
heavily weathered or higher viscosity oils, ignition or combustion aids
may be required to start and sustain a burn. in-situ burning is not a
pre-approved response technique for Arctic oil spills and the dense
smoke plume generated will restrict burns in close proximity to
settlements and sensitive coastal resources.
Although oil recovery/removal techniques are proven in laboratory and
controlled field experiments in Arctic conditions, they are yet to be tested
in a full-scale incident, or on non-crude oils. As iToPF is increasingly
called upon to attend bunker oil spills from non-tanker vessels, this is
an important area for future research.
18 BEAcon / MArch 2013
BEAcon / MArch 2013 19
By lena Holm saxtoft
claims Executive, Skuld copenhagen
By rachel wong
claims Executive, Skuld Hong Kong
A personAl view on GreenlAnd’s development
well-prepAred stowAwAys cAuse repAtriAtion difficulties
tHE arctic aND ME
Being half Greenlandic and half Danish, i am part of two wonderful cultures. Both nations’ strengths
are now being tested as Greenland faces great opportunities and challenges from increasing
interest in the arctic.
WitH a MiSSiON
i usually refer to Greenland as my home and the centre of the world.
But is it really that important? When talking about global warming and
new shipping opportunities, it seems that most industries see russia
as the main arctic power. However, when considering arctic strategy,
Greenland’s importance is greatly underestimated.
it is often said that Greenland is rich with ‘gold’: black gold (oil), green
gold (raw materials needed for green economies) and blue gold (fresh
water 1 ). in other words, it has all the assets necessary to attract anyone,
particularly powers wanting to reinforce their position in the arctic and
those looking for natural resources.
“the fear i have is that Greenland is abused and a ‘ruined Klondike’ replaces my home.”
i am Greenlandic, live in Denmark and am the daughter of a Greenlandic
mother and Danish father. i have spent equal amounts of time in both
countries, but if you ask me where i come from, i answer proudly that
i am from Greenland.
While studying law in Denmark, i spent most summers working in
Greenland and holidaying with family, fishing or simply enjoying the
spectacular nature that i took for granted.
During those special summers, i realised that when escaping from
Nuuk, a small city with only 15,000 inhabitants, but nevertheless the
capital of Greenland, it was a pleasure to stand entirely alone on a
mountain, letting my eyes follow the beautiful landscape feeling smaller
and more unimportant to the universe than ever.
Greenland is still part of the Kingdom of Denmark, but in 2009 it signed
the Self-Government act, which provides extended self-government
and empowers it to make many of its own decisions. Due to its huge
size – at 2,166,086 km² Greenland is nearly half the size of the European
union – and its population of a mere 57,000, it is still considered necessary
for Denmark to run foreign and security policy, thus maintaining a close
relationship between the two nations. Many say present developments
are part of a state-building process and, with rapidly increasing focus
on the arctic, the creation of the state of Greenland has to be carried
out carefully and wisely.
Greenland’s capacity to manage an increasing number of foreign interests,
coming notably from North america, Europe and the asia-Pacific
region, remains unclear. Managing interests from the largest world
economies requires enormous strength.
With arctic raw material extraction comes increasing shipping activity.
this means risk taking in remote and unexplored areas. Shipowners
face challenging conditions, including extreme cold, prolonged periods
of darkness, remote locations and rapidly changing weather.
Being Greenlandic and working in shipping, i’m ambivalent to the
growing interest in my beautiful homeland. i hope that raw material
exploration and increased shipping activity grow slowly and with
respect for Greenland’s vulnerable and fragile nature. the obvious fear
i have is that the new state of Greenland is abused and a ‘ruined
Klondike’ replaces my home. So far, however, it seems that countries
participating in various arctic forums show great passion, but in a
humble manner, and that this hopefully allows development to come in
a natural and carefully considered way.
1) Greenland holds around ten percent of the world’s fresh water reserves,
which will make the territory’s strategic importance even greater in the future.
www.bmp.gl (Bureau of minerals and petroleum)
www.dma.dk (danish maritime Authority)
the stowaway managed to board the ship as part of a gang of stevedores.
Stowaways continue to prove a problem in these difficult economic times with unwanted
passengers from africa being particularly troublesome. One in particular stands out, due to
the steps he took to shield his true identity.
in South africa, a stowaway recently made his way on board a member’s
vessel while in port. He is discovered soon after departure and freely
tells the crew that he wanted “to go to asia for a good life”.
He had done his ‘homework’. By surfing the internet and speaking
with local agents, he successfully identified our member’s vessel as
flying an asian flag and that she would call at a nearby port. He boards
along with a gang of stevedores.
the difficulties began when he claimed to be of South Sudanese origin
and refused all attempts at disembarkation.
20 BEacON / mArcH 2013
BEacON / mArcH 2013 21
skulD increAses iTs presence in souTh AsiA wiTh
new brAnch office in singApore
“he fell inTo The TrAp
of noT reseArching
souTh suDAn AnD wAs
To Answer bAsic
quesTions AbouT his
independence at a price – sudan is still recovering from years of conflict and has not yet
established diplomatic relations with many countries.
souTh suDAn – The worlD’s youngesT counTry
south sudan is a landlocked country that became independent on
9 July 2011. After many years of civil war, the split of sudan into the
Arab north and the muslim south has created the republic of south
sudan. it is a region still recovering from many years of conflict and
has not yet established diplomatic relations with many countries.
When contacted, the issue of ship-bound stowaways was a new and
challenging one to its south African consulate staff and we received
the impression that successful disembarkation and repatriation would
be very problematic.
Assessing The sTowAwAy’s genuine nATionAliTy
doubts arose regarding how truthful the stowaway was in his declaration
of nationality. As part of the process, the stowaway completed a
questionnaire that included questions specifically designed to test
knowledge of his homeland. results were very revealing.
He fell into the trap of not researching south sudan and was therefore
unable to answer basic questions about his ‘home’ country. representatives
from the kenyan embassy questioned him further and he was subsequently
identified as a kenyan.
With the help of skuld’s correspondents, repatriation was arranged via
mozambique. When he arrived in kenya the local authorities promptly
lessons To leArn
To maximise their chances of a better life, stowaways can be surprisingly
well prepared in their attempts to gain access to a vessel and to make
the process of repatriation as difficult as possible. crew members
need to be extra vigilant to stay ‘one step ahead’.
skuld in singapore. Back row from left: lars dueled, cpt. Binoy kumar dubey, simon smith, gregory Thomas, kjell-Åke Augustsson, christian ott. Front row from left: Bernt Hellman,
claes lindh, douglas Jacobssohn, kay Williams, Janice choy.
skuld oPEns nEW oFFicE
skuld has opened a branch office in singapore to spearhead further expansion in south Asia.
The launch party was held on 17 January at the East garden of the Fullerton Hotel, singapore.
q1. what are the colours of your country’s flag?
He answered black, white, red and green.
The correct answer for south sudan is black, white,
red, green, blue and yellow.
His answer corresponded to the kenyan flag.
q2. what is your permanent address in your country?
The address he gave does not exist in south sudan.
q3. what is the name of the capital?
He could not answer correctly. The answer is Juba.
q4. which currency is used in your country?
He had no idea. The answer is the south sudan Pound.
south sudan flag
With over 250 guests listening to speeches from President & cEo
douglas Jacobsohn and the norwegian Ambassador, skuld was put
firmly back on the map in singapore.
The office is located in the middle of the business district on six
Battery road. it’s led by kjell-Åke Augustsson who rejoined skuld in
september 2012 from the swedish club’s Hong kong office, where he
was deputy managing director since 2005. He was previously senior
underwriter with skuld for ten years.
in singapore, skuld offshore is led by gregory Thomas who joined
skuld in 2008 to build the offshore liability product. gregory has
developed skuld offshore to become recognised worldwide for its
service and comprehensive cover. He remains head of the offshore
unit within skuld P&i.
christian ott, a lawyer from skuld’s office in Hong kong, runs the
claims service in singapore and is already very well known to members
“We have had growth of around 15% in Asia over the past few years
and i have complete confidence that kjell-Åke, greg and christian will
significantly strengthen our presence and increase demand for
skuld’s comprehensive range of products”, says President & cEo
Asian markets are growing rapidly, with a number of shipowners,
charterers and offshore operators expanding their presence in the
region. skuld has operated from Hong kong for 23 years. With the
new singapore office, it integrates further into south Asia.
22 BEAcon / MArch 2013
BEAcon / MArch 2013 23
currEnT From left to right: ken littlejohn of
FP marine risks, Peter murphy of Holman
Fenwick Willian, d. shunmugam of
stephenson Harwood, n. Vasudevan of
Precious shipping, Binoy kumar dubey
of skuld singapore.
skuld President & cEo douglas Jacobssohn.
1 / krester krøger kjær
AssisTAnT vice presiDenT,
krester, 38, joins skuld copenhagen
as assistant vice president,
Lawyer. previously, krester
worked as associate and Lawyer
for danish law firms gorrissen
federspiel and horten, specialising
in maritime, transportation,
international trade, insurance/
re-insurance and international
arbitration. he has a master in
Law from the university of
2 / Maria fouska
maria, 35, joins skuld hellas as
office assistant. previously, she
spent three years working for
newsphone hellas in the same
role. she also has secretarial
experience from altec group and
worked as customer support
representative for simplex
3 / keith parker
svp heAD of uk operATions
keith, 46, joins skuld London as
svp head of uk operations from
Jubilee underwriting. he previously
worked with Lloyd’s and svb
syndicates Ltd., among others,
in roles ranging from coo to
consultant and project manager
to managing director. keith has
an mba from henley management
college, england, and is a fellow
of the chartered insurance
4 / fergus Draper
execuTive, fixeD p&i AnD yAchTs
fergus, 26, is appointed executive,
fixed p&i and yachts. before
fergus started the skuld yacht
and skuld fixed p&i facilities
together with nigel oakley, he
worked as assistant underwriter
for two years on several portfolios,
including yachts. he has also
taught french and science at
private schools in the uk. fergus
has a bachelor’s degree in
chemistry from durham
6 / heidi Troberg
heidi, 30, is appointed it executive.
previously, she worked for
norway’s directorate for emergency
communication as it head
engineer. she also has it experience
from norwegian airport operator
avinor and oslo university hospital
ullevål. heidi has a bachelor’s
degree in information technology
from vestfold university college,
7 / carin elisabet Andal
carin, 42, joins skuld as senior
executive, knowledge management.
she comes from kpmg in oslo
where she was responsible for
the company’s data-management
system. she was previously a
researcher for aftenposten, one
of norway’s biggest newspapers.
she has a bachelor of arts degree
from the university of oslo.
froM skulD offices
ArounD The worlD
new eMployees & proMoTions/chAnges
From left to right: Trace yim of risk Exchange, ohtsubo namio of celeste Holdings,
masatoshi ito and T. inoue of lead insurance services.
From left to right: claes lindh of skuld, norwegian Ambassador Tormod c. Endresen,
mark sachs of Thomas cooper.
5 / Aase naaman Jensen
senior clAiMs execuTive
aase has accepted a position
as senior claims executive at
skuld’s new york office. aase
joined skuld copenhagen
Part of marsh’s singapore team, including James Addington-smith (left) and Hans
/ More ThAn Ten yeArs
eMployeD in skulD
24 BEAcon / MArch 2013
BEAcon / DeceMber / MArch 2013 2008 25
currenT cAses AnD oTher skulD news
8 / Magne Andersson
svp unDerwriTing AnD
magne, 58, joins skuld as svp
underwriting and marketing in
syndicate 2. through his earlier
role as managing director of
marine practice in marsh, he is
known to many in skuld. prior to
marsh, he worked for polaris/uni
storebrand for many years as
reinsurance and as senior
underwriter and director for
international hull business.
he is a qualified actuary from
the university of oslo.
9 / simone vitzthum
simone vitzthum is seconded to
oslo syndicate 2 from hamburg
for two years and will return in
september 2014. simone joined
skuld hamburg in 2008.
10 / kay kaur-williams
kay, 46, is appointed office
manager. earlier, kay held a similar
position with the shipowners
mutual p&i association in
singapore. she has extensive
experience in office management
and executive support. kay has a
bachelor of Law degree from the
university of London and a
masters in human resource
management from curtin
university, australia. she
previously worked with swire
pacific offshore and delta
airlines, where she helped to set
up its singapore office in 1994.
11 / christian ott
synDicATe heAD of clAiMs
christian is newly appointed vice
president, syndicate head of
claims in skuld singapore.
christian joined skuld hong
kong in 2010.
12 / binoy kumar Dubey
risk AssessMenT AnD clAiMs
binoy moves from skuld hong
kong to skuld singapore
as senior executive, risk
assessment and claims. binoy
joined skuld in 2010.
13 / Alex Martinez
alex, 24, joins skuld 1897 as claims
adjuster. he previously worked
as claims broker for marsh and
hsbc insurance brokers. alex
has a certificate in insurance
from the uk’s chartered
14 / Amanda wenborne
amanda, 25, joins skuld 1897 as
underwriting assistant. she has
over five years’ experience in
underwriting support and comes
from the travelers syndicate at
Lloyd’s. she is currently working
towards her acii and holds a
certificate in insurance from
the uk’s chartered insurance
15 / stephen wait
stephen, 47, is the third new
member of skuld 1897.
before accepting his position of
underwriting operations manager,
he built up more than 30 years’
insurance industry experience.
stephen comes directly from
randall & quilter investment
holdings where he provided
quality control services.
skuld now covers ports and terminals.
/ skulD exTenDs iTs cover
skuld P&i now offers skuld yacht.
This is a specially designed product
for super yachts with full all-in
nigel oakley will be joining skuld
to head the fixed premium P&i
and super yachts business. nigel
will be working closely with Fergus
draper and robert Johnston to
develop the business, which has
started very positively.
skuld Fixed is a new product from
skuld P&i covering fixed liability. it
has its own terms and conditions
and naturally includes skuld’s
renowned service and access to
the club’s significant international
Please contact skuld’s london
P&i team for more details.
skuld offshore – number of units (Tw)
/ who covers The cover?
skuld holds owner’s P&i cover for
a vessel that discharged its cargo
on to a trailer at the u.s. port
of kalaeloa Barbers Point. The
cargo was a nacelle, which is a
cover-housing that holds engines,
fuel or equipment on an aircraft or
wind turbine. As the nacelle
caused the trailer to list towards
the vessel the driver asked to
adjust the cargo and, after several
movements, the load was
repositioned on the trailer.
unfortunately, the trailer’s dunnage
began to crack, which caused the
nacelle and trailer to tilt until the
nacelle rolled off. The manufacturer
considers the nacelle to be a
constructive total loss.
in the booking note, the carrier
has the ultimate say on loading,
stowing and discharge of the cargo.
due to this important provision,
together with the arbitration and
law and jurisdiction clauses in the
Bill of lading, the u.s. carriage of
goods Act is unlikely to be upheld.
/ pirAcy in The gulf of guineA
Piracy and armed robbery in the
gulf of guinea – a busy expanse of
water and an emerging trade hub
– is of increasing concern to local
coastal states and the shipping
industry. While somalia has seen
a decline in hijackings over recent
months, incidents are on the rise
in West Africa. it is suspected that
nigerian pirates have expanded
operations into a wider geographical
area, including ivory coast waters.
by Bimco, the international
chamber of shipping, intercargo
and intertanko. other subjects
covered include voyage planning,
trading in the area and employment
of armed guards.
/ skulD ADDs peMe clinics
skuld members now have access
to clinics in odessa, ukraine, and
cebu, Philippines for Pre-entry
medical Examinations (PEmEs).
skuld PEmEs help members
select a healthy crew by going
beyond the standard examination.
skuld established the programme
in co-operation with nigel griffith
of marine medical, singapore in
2008. The odessa and cebu clinics
come in addition to five established
clinics in india and one in manila,
Philippines. updates and a full
clinic list are available on skuld’s
nor-shipping will bring the maritime community to oslo in early June.
2009 2009 2010 2010 2011 2011 2012 2013
1 half 2 half 1 half 2 half 1 half 2 half 1 half renewals
source: skulD group
updates, practical guidance and
useful links are found on skuld’s
website under the heading ‘Piracy’.
information includes guidance
from recent publications, such
as interim guidelines for owners,
operators and masters for
Protection Against Piracy in the
gulf of guinea region issued
skuld is one of the main sponsors
of this year’s nor-shipping, a
leading maritime event week. With
a top-quality exhibition, high-level
conferences and prime networking
opportunities, it attracts the
international maritime industry to
oslo every other year. in addition,
skuld is participating in ocean
Talent camp 2013, a norwegian
recruiting initiative with a longterm
perspective. The first part
takes place at oslo’s city Hall
Plaza from 3 to 7 June, when
nor-shipping is in full swing.
26 BEAcon / MArch 2013 BEAcon / MArch 2013 27
ouT sepTeMber 2013
skuld has increased its pace of innovation in
recent years. the last months are no exception,
with several new covers further diversifying the
club’s portfolio – skuld fixed p&i, skuld yacht,
ports and terminals and a number of unique
loss-of-hire products from skuld 1897’s partnership
with transmarine. the next issue will examine the
markets, the clients and the covers themselves.
The skulD group provides marine and
energy insurance to shipowners and clients
worldwide. liability insurance is provided by
skuld P&i and skuld offshore, while skuld
1897, a syndicate at lloyd’s, provides further
marine, energy and cargo covers. The head
office for global operations is located in oslo,
with additional offices in Aberdeen, Bergen,
copenhagen, Hamburg, Hong kong, london,
new york, Piraeus and singapore.
+47 952 92 200
call this number if you have
an emergency where skuld
beAcon bAck issues
For back issues of Beacon, please reference
our online library located at the foot of our web
pages or go to www.skuld.com/Beacon.
december 2012 / i Sue 203
SeTTling over 100,000 claimS / 12
going Slow / 20
Previous editions are available
for download in PdF format.
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