Beacon No. 1 2004 - Skuld

Chicken Run – killer viruses, 

now and forever 

PAGE 10 

The risks of stowaways 

PAGE 16 

On the clock 

PAGE 24 

beaconNO SKULD magazine 

1 May 2004 

Skuld flies 

the Greek flag 

PAGES 4-9

EDITOR’S corner 

Conditions for shipowners 

always seem to be under 

debate, no matter the 

jurisdiction. Norway is no 

exception. This spring, one of 

the hot topics has been the 

White Paper on conditions for 

the shipping industry 

(‘Skipsfartsmeldingen’), issued 

by the Norwegian Parliament in 

April. The paper was welcomed 

by the industry. We now see an ambition to bring Norwegian 

taxation systems for shipowners in line with the more 

favourable EU regulations, and to increase the 

competitiveness of the NIS-NOR ship registers. 

Many are dependent upon shipping world-wide. A recent 

campaign in the Norwegian media, sponsored by Skuld and 

many others, draws attention to the importance of the 

maritime industries, their long tradition and the vast amount 

of competence built up over the years. In Skuld, we enjoy 

being part of this heritage and hope to be surrounded by a 

healthy maritime industry for many years to come. 

Another important maritime country is Greece. In this issue 

of Beacon, we present Skuld Hellas, our office in Piraeus, 

and one of its members, Target Marine S.A., courtesy of its 

founder Mr. Anthony Comninos. Another of its members, 

Allied Maritime Inc., shares its secret formula for protecting 

rice cargoes. See pages four to nine. 

Contents 

The U.S. Maritime Transportation 

Skuld Hellas – local expertise for 

a growing market 4 

Targeting Target Marine 6 

LOSS PREVENTION: 

Rice cargo protection 9 


Infectious diseases: Chicken Run 

– killer viruses, now and forever 10 


Counting the dead 14 

‘Coming up short’ deals with handling of oil shortage 

claims. On other occasions, too much oil is the problem. 

‘Counting the dead’ covers the issue of bird mortality from 

oil spills. 

Oil shortages and spills are only two of many issues faced by 

the industry every day. This edition looks at others, including 

infectious diseases, stowaways and salvage, before providing 

us with an important reminder on the ISPS Code. 

I hope you all have an enjoyable summer. 

Ingeborg Berge 

BEACON (SKULD MAGAZINE) 

is the official publication of 

Assuranceforeningen Skuld 

(Gjensidig) 

No. 1 May 2004 

Issue 183 

ADDRESS 

P.O Box 1376 Vika 

N-0114 Oslo, Norway 

Tel: +47 22 00 22 00 

Fax: +47 22 42 42 22 

2 BEACON

CONTENTS 

PAGE 6 

PAGE 10 PAGE 16 PAGE 27 


The risks of stowaways 16 

Skuld salvage seminars 20 

Smit and the world of salvage 21 

THE ISPS CODE: Are you ready? 22 

LEGAL NOTES: 

On the clock 24 

LEGAL NOTES: 

Coming up short 27 

Personnel news 30 

Contact Skuld 31 

VIEWPOINT: 

Staying power 32 

E-MAIL 

Ingeborg.berge@skuld.com 

VISIT OUR WEBSITE 

www.skuld.com 

EDITOR IN CHIEF 

Ingeborg Berge 

EDITORIAL STAFF 

Lise Larson 

Sara Gillingham 

LAYOUT 

Transmission AS 

Entire contents © 2004, 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 

FRONT PAGE 

The Olympics return home. 

Picture shows Greek athlete 

Konstadinos Kederis celebrating 

his gold medal victory at the 

2001 World Championships in 

athletics. Photo: Scanpix 

REPRO AND PRINTING 

Gan Grafisk as 

BEACON 3

In the last issue of Beacon we presented our 

Copenhagen office. Now the time has come 

for a presentation of Skuld Hellas and of 

one of our local members, Target Marine. 

Skuld Hellas 

– local expertise for 

By Ingeborg S. Berge, Skuld, in Piraeus, Greece 

Skuld Hellas was established in 2000 due to the heartfelt need for a dedicated office closer to the 

Greek shipping community. We wanted to serve the Greek and Cypriot members in a better way, 

and there was an eagerness to play a more active role in this dynamic and challenging market. 

Closeness to members 

– We are very well acquainted with the 

Greek Shipping Community, says Lily 

Karaiscos-Samellas, head of Skuld’s 

Piraeus office. – Closeness to members 

means more flexibility and an added value 

for the member. Our service shall be 

flexible, and when required, tailor-made to 

the needs of each member. This is 

achieved by maintaining a very good 

working relationship with our members 

and by always keeping open the channels 

of communication. 

– We want to gain members’ trust so that 

they can lean on us and have confidence 

that we will sort out their problems in the 

quickest and most effective way. In the 

four years that our office has been open, 

feedback from members has been 

positive. They appreciate having a full 

service office on their doorstep. 

The Greek shipping community 

Today, Greek shipowners control one of 

the world’s largest ocean-going fleets and 

the fleet continues to expand. Greek 

owners place high priority on fleet renewal 

and a record number of newbuilding orders 

have been placed. 

– The Piraeus office operates within this 

highly competitive and demanding market, 

which is an inspiring challenge to all of us, 

says Mrs. Karaiscos-Samellas. 

– Being based locally, you know the unique 

qualities of the market and of each single 

member. This makes for smoother sailing 

as we go about our daily business of 

serving members. 

A competent staff 

Skuld Hellas has a staff of eight with 

considerable experience of Greek shipping. 

Lily Karaiscos-Samellas, Head of Office, is 

born and bred within the local shipping 

community. Prior to setting up Skuld’s 

Piraeus office in 2000, she was Managing 

Director of her familiy business, 

Close co-operation between syndicates help to ensure 

that members gain from the full experience of the Club. 

From left: Egil Gulbrandsen, Oslo, Anders Ulrik, 

Copenhagen and Lily Karaiscos-Samellas, Piraeus 

a company diversified in ship and cargo 

insurance representation, acting as P&I 

Clubs’ correspondent, etc. 

Underwriting is handled by Athina Sirimi, 

a maritime studies graduate from the 

University of Piraeus with a Masters 

degree in International Transport (Marine 

Law & Insurance) from the University of 

Wales. Her experience includes insurance 

and claims handling with a shipping 

company and a local broking firm, before 

joining Skuld in 2002. 

Claims handling requires legal expertise 

and we are well equipped in this respect. 

Michael Boje-Larsen and Elina Souli hold 

LLM degrees in Maritime Law from the 

University of Southampton. Michael is a 

Danish lawyer and has been with Skuld 

Hellas since it was established in 2000. 

Elina is a member of the Athens Bar 

Association and has worked in shipping 

litigation before she started working for 

Skuld. Skuld Hellas’ English Solicitor, Ken 

Stewart, has experience from both Skuld 

Hong Kong and the head office in Oslo, 

before joining the Piraeus office in 2003. 

This summer Michael Boje-Larsen will be 

returning to Skuld Copenhagen. He will be 

replaced by Maria Tierris, a Greek lawyer 

and qualified Solicitor, with an LLM degree 

from the University of Southampton. 

4 BEACON

a growing market 

She is familiar with the Greek shipping 

community after working as a Senior Claims 

Executive for Thomas Miller’s office in 

Piraeus for the last six years. Read more 

under ‘Personnel news’ on page 30. 

– All day-to-day underwriting and claims 

work for current members is handled at 

the local office. Our staff also has the 

competence and necessary authority to 

handle all new requests originating from 

Greece and Cyprus. 

We are dedicated to providing the best 

service possible in a swift and effective 

manner, says Lily Karaiscos-Samellas. 

Future events 

Posidonia, the bi-annual shipping conference 

in Piraeus, is coming up in June. This 

means additional opportunities to meet 

members and other contacts, and a separate 

Skuld pre-Posidonia dinner party is being 

arranged. This autumn there will also be a 

local Skuld seminar for Greek members. 

Skuld Hellas. From left: Ken Stewart, Michael Boje-Larsen, Lily Karaiscos-Samellas, Elina Souli and Athina Sirimi 

A case example: containers overboard 

By Michael Boje-Larsen, Claims Manager, Skuld Hellas 

In March 2001, a Target Marine vessel ran into a storm in the North Atlantic on its way from 

Le Havre to New York. A total of 120 containers was lost overboard. 

When the first call came in from Target 

Marine to Skuld, steps were immediately 

taken to contact our correspondent in New 

York, Anchor Marine. They sent lawyers 

and surveyors to meet the vessel on arrival 

in New York. The remaining containers – 

some smashed or damaged – were lifted 

off the vessel and, within a matter of days, 

the initial cleanup had been finalised. 

Quickly it became clear that the shipowner 

and Skuld would face huge cargo claims 

from various container owners and their 

cargo underwriters. To avoid costly and 

lengthy litigation in the US, a strategy for 

claims handling was set up between Skuld 

Hellas and the head of Target Marine’s 

legal department. The offices are literally 

five minutes apart and the close cooperation 

between our two companies 

meant a lot through these meetings. The 

strategy ensured that cargo claimants were 

dealt with fairly and costly court appearances 

were avoided. 

Early contact between Anchor Marine and 

Target Marine’s US lawyers established a 

good working environment with cargo 

claimants’ lawyers in New York. At the 

same time, Skuld arranged an 

apportionment with charterers, whereby 

any cargo settlement in the US would be 

split between charterers and owners in 

a pre-determined way. This avoided a 

potentially expensive legal battle over 

the correct apportionment under the 

charterparty. 

A case that could have become substantial 

was trimmed down to a manageable size. 

The closeness between club and member 

facilitated the drawing up of an initial strategy, 

as well as later adjustments, and proved to 

be decisive for the outcome of the case. 

BEACON 5

Targeting Target 

By Ingeborg S. Berge, Skuld, in Piraeus, Greece 

Concentrating on modern tonnage and carrying out an extensive renewal programme has 

brought Target Marine S.A. to the forefront of Greek shipping. Its Manager, Anthony Comninos, is 

free-spoken as he tells us the story of the company and his opinion on some of the challenges 

facing a major shipowner today. 

Close to the sea in Kastella, the most 

picturesque area of Piraeus, lies a 

beautiful, neoclassical building. This 

building, together with a modern 

extension, houses the offices of Target 

Marine S.A. 

Target Marine was founded in 1986 and 

has, over the years, become a wellestablished 

and reputable shipping 

company known world-wide. 

The Chairman and founder of Target 

Marine is Mr. Anthony Comninos, a 

prominent figure in the Greek shipping 

community. Mr. Comninos is married and 

has a daughter. He grew up in Piraeus and, 

despite living in the Athens suburbs, still 

retains a strong bond to Piraeus. 

Currently, it is home to Target Marine and 

a large part of Mr. Comninos’ private art 

collection. Art is very important to Mr. 

Comninos and he is an eminent collector 

of artwork depicting the Greek War of 

Independence against the Ottoman Empire 

in 1821. 

Family business 

Mr. Comninos’ family entered shipping in 

1938, following his father’s involvement 

with coastal vessels. – I began my shipping 

career in 1960 during vacation time as an 

office boy in my father’s company, says Mr. 

Comninos with a smile. 

In the 1960's, he joined his brother Costas 

and two others in a partnership managing 

mainly tanker vessels. The next step was a 

new venture with his brother set up in 

1972, the Comninos Brothers Co. The 

company developed into one of the largest 

and best-known reefer management 

companies in Greece. In 1986, Anthony 

Comninos set up his own business, Target 

Marine. The company has grown into a 

well-managed organisation with a mixed 

fleet of container vessels, reefers and bulk 

carriers. Several product tankers are also 

under construction. 

The neoclassical building, dating back to 

the 19th century, used to be the first 

Admiralty house of Greece and is listed by 

the Greek state as a building of historical 

value. At the end of the 1980’s, the building 

was close to collapse when Anthony 

Comninos purchased it and began 

renovation. He then put substantial 

resources into bringing it back to its 

original style. 

6 BEACON 

Anthony Comninos pictured in his Piraeus office

Marine 

bulk carrier and tanker vessels. – This 

has been the right time for growth and 

development. We are building a fleet for 

the next twenty years, says Mr. Comninos. 

Quality and newbuildings 

Target Marine has established a 

reputation in the international shipping 

industry for maintaining a fleet with high 

standards of performance, reliability and 

safety. 

So far in his career, Mr. Comninos has 

handled more than 200 vessels. 

At the headquarters in Piraeus, there is a 

team of 50 highly qualified and experienced 

staff members, working in the technical, 

operational, financial and legal fields. At 

sea, Target Marine employs around 1,000 

people. Officers are mostly Greek, but 

some other nationalities are also 

represented. The lower crew is mainly 

from the Philippines and Ukraine. 

Fleet 

Since 1986, Target Marine has purchased 

and/or managed more than 70 vessels. 

The fleet has varied between 20-25 ships 

in any given period. 

Target Marine concentrates on modern tonnage, such as the Leda, built in 2001 

Reefers used to be the big business. 

However, in 1993 Mr. Comninos entered 

the container sector and has since 

acquired a total of 15 container vessels. 

Seven of them are in the current fleet, 

along with eight reefers and two bulk 

carriers. – Our business is diversified 

today as in the past, says Mr. Comninos. 

– We want a stability of earnings and 

controllable cash flow in the long run, 

and so far we have achieved both. 

A majority of the tonnage runs on 

medium or long-term contracts to first 

class charterers. The company is 

presently growing through investments in 

a newbuilding programme, and sees a 

shift away from reefers into container, 

The company now concentrates on 

modern tonnage and has carried out an 

extensive renewal programme. In 2001, 

the company acquired four highspecification 

newbuilding panamax bulk 

carriers (75,000 dwt.) from Korea’s 

Samho-Hyundai. In August 2004, two 

high-specification handymax bulk carriers 

(54,000 dwt.) will be delivered from 

Onomichi Shipyard in Japan. 

There are plans for more. Two product 

tankers (46,000 dwt.) will be delivered 

from STX Shipyard in Korea in 2005 and 

four clean panamax tankers (75,000 dwt.) 

are due in 2007 from the same yard. 

Future 

How do you picture the future? – We are 

happy the way we are, for now, says 

Mr. Comninos. – We have created a solid 

and flexible organisation, well equipped 

to progress further and provide its 

employees with a secure and motivating 

working environment. 

BEACON 7

FACT FILE: 

TARGET MARINE S.A. 

FAMILY BUSINESS FOUNDED: 1938 

TARGET MARINE S.A. FOUNDED: 1986 

HEAD OFFICE: PIRAEUS, GREECE 

NUMBER OF EMPLOYEES: 

ON SHORE: 50 

AT SEA: APPROX. 1,000 

FLEET: 

8 REEFERS 

7 CONTAINER VESSELS 

2 BULKERS 

NEWBUILDING PROGRAMME OF 8 

VESSELS (2 BULKERS IN 2004 AND 

6 TANKERS IN 2005/2007) 

The historical Greek Admiralty building, now home to Target Marine 

On the crewing of ships 

What are the current challenges faced by a 

shipowner? – One of the tricky points 

today, says Mr. Comninos, is the crewing of 

ships. We would like to see more Greek 

officers, but to find enough qualified 

officers in our own country is hard. We 

have hopes that the private education 

scheme the new government intends to 

introduce will certainly assist. Our vessels 

are modern with good facilities, but things 

are different today and unfortunately young 

people are not attracted to the sea the 

same way they used to be. 

That is also the main reason why a lot of 

vessels are trading under foreign flags. 

Flying the Greek flag means that a good 

proportion of the total crew, both officers 

and crew members, has to be Greek, 

which is not easy to fulfil. 

On the environment 

Mr. Comninos has a real love of the sea. 

His office overlooks a small beach in 

Kastella and one of his greatest pleasures 

is to spend time among the Greek islands. 

Consequently, he holds strong views on 

the issue of clean seas. 

– The community cannot afford oil spills, 

whether in Greek waters or anywhere else, 

he says. In Greece we have two legs to 

stand on, shipping and tourism. If shipping 

cannot keep our waters and beaches 

clean, this will eventually mean the loss of 

one of our two main sources of income. 

Emergencies – owners’ concerns 

A shipowner has many responsibilities. 

Things can go wrong and there may be 

emergencies. What are Mr. Comninos’ 

experiences? – I have experienced two very 

difficult moments in my career, says Mr. 

Comninos. 

The first was in 1990, when the vessel 

Milos Reefer was caught in bad weather 

outside Alaska. She had to find a refuge 

port, but before succeeding, she grounded 

and there was fear of losing the ship and 

entire crew. We stayed in the office for 48 

consecutive hours, with an open line of 

communication with the US Coast Guard, 

the P&I club and families of the crew, who 

were gathering in the office scared for 

their husbands and fathers. It was tough 

for everybody, because we mainly feared 

for the lives of the crew on board, fighting 

extreme weather conditions at freezing 

temperatures. Fortunately, in the end all 

went well. 

We lived through a second agony in 2001, 

when one of our container vessels ran into 

ferocious weather in the North Atlantic 

losing over 120 containers overboard. Read 

more about the handling of this case on 

page five. 

– In the handling of such emergencies, 

active involvement by both the member and 

the P&I club is required, and closeness 

between them becomes an advantage. 

– In this case, Skuld really assisted 

tremendously, says Mr. Comninos. – They 

have a good team here in Piraeus, headed 

by Mrs. Karaiscos-Samellas. If there is a 

problem, they are always available to 

assist, fighting the problem, to the best of 

their abilities. They have been protecting 

us a lot. 

Olympic attitude – we always complete! 

As we are about to end the interview, 

Mr. Comninos is the one to pose a question: 

Aren’t you going to ask me about the 

Olympics? This is an important issue for 

Greeks these days, and another issue 

where Mr. Comninos has a clear opinion. 

He is planning to watch certain events and 

is confident that Greece is going to do well. 

– This is our history coming back to us and 

we are looking forward to having friends 

from abroad coming here to watch history 

happening. 

– We know there is a fear of terrorism, but 

I tell you, everyone will be completely safe, 

says Mr. Comninos. Greece and Greek 

people have no enemies. 

Construction work is proceeding in Athens 

and people are working around the clock. 

Highways and arenas are getting ready, 

but will they be ready in time? Anthony 

Comninos is not worried. 

With a big laugh he says: – Everything will 

be ready on time. Even if it may be at the 

last minute – we always complete! 

FLYING THE GREEK FLAG MEANS THAT 

A GOOD PROPORTION OF THE TOTAL 

CREW, BOTH OFFICERS AND CREW 

MEMBERS, HAS TO BE GREEK... 

8 BEACON

LOSS PREVENTION 

Photo: Scanpix 

Condensation damage could be a problem solved 

Rice cargo protection 

One of our Greek members, Allied Maritime, has developed a new procedure for the protection of 

bagged rice cargoes, a type of cargo often exposed to the threat of condensation damage. 

According to Dimitris Marinis, Manager of 

Allied Maritime Inc., they have been 

experiencing several incidents of damage 

to rice cargoes. Most commonly, this is 

caused by ship sweat during freights 

between South East Asia and West Africa. 

In this area, the substantial variance in sea 

water temperatures increases the danger 

of condensation. 

Traditionally, rice cargoes are protected 

through the use of bamboo mats and 

sticks. However, bamboo is known to 

absorb ship sweat. Sometimes the bamboo 

itself is too fresh, meaning that the bamboo 

contains humidity. Both scenarios give an 

increased risk of cargo damage. 

The secret of success 

So what is Allied Maritime doing to protect 

their cargos? Quite simply, they’ve overcome 

condensation damage by using a mix of 

kraft paper, plastic and styrofoam. 

The three materials are used as follows: 

• Kraft paper and plastic at tank tops and 

hopper tanks 

• Styrofoam on the ship’s sides, on the 

forward bulkhead of no.1, on the engine 

room bulkhead and under the deck 

between the hatch covers 

• Kraft paper on all other bulkheads 

In addition to the above, it is recommended 

that cargo is placed within the corrugated 

bulkheads. In this way, the problem of bags 

falling from the top and bursting, resulting 

in cargo shortages at the first ports, is also 

eliminated. 

Allied Maritime’s experience 

– After starting this new practice, we have 

seen a considerable improvement, says 

Mr. Marinis. – Successive use of these 

materials, and especially the styrofoam, 

shows that condensation damage is 

significantly reduced. The reason is that 

temperature differences within the holds 

become much lower, and they no longer 

reach the levels seen when bamboo mats 

and sticks were used. 

A good example is the discharge of 890,000 

bags of rice at Buenaventura by our 

managed vessel, M/V Aventurero dos. This 

cargo was loaded in Thailand and protected 

by craft paper, plastic and styrofoam. The 

result was 226 bags very slightly affected by 

condensation. For us this is really a miracle. 

We are fully convinced that these materials 

should be the preferred method of 

protection for rice cargoes. Provided all 

crew members take good care of 

ventilation, condensation damage will 

no longer occur in this trade. 

Joint benefit 

Allied Maritime strongly believes that this 

new practise should be made known for the 

greater benefit of the shipping community. 

– After all, the purpose of the steps taken is 

to protect the trade and owners in general. 

The lesser the relevant claims, the better 

renewal rates the P&I clubs can offer, ends 

Mr. Marinis. 

SUCCESSIVE USE OF THESE MATERIALS, 

AND ESPECIALLY THE STYROFOAM, 

SHOWS THAT CONDENSATION DAMAGE IS 

SIGNIFICANTLY REDUCED. THE REASON 

IS THAT TEMPERATURE DIFFERENCES 

WITHIN THE HOLDS BECOME MUCH 

LOWER, AND NO LONGER REACH THE 

LEVELS SEEN WHEN BAMBOO MATS AND 

STICKS WERE USED. 

BEACON 9


By Chris Hall, Skuld (Far East) Ltd., 

Hong Kong 

Infectious diseases: 

Chicken Run – killer v 

10 BEACON 

Return to sender – Asian poultry has been banned by 

many ports world-wide

iruses, now and forever 

First there was mad cow disease, then there was SARS, and now there is bird flu. Unfortunately, 

such viral threats are unlikely to disappear. What are shipowners and charterers to do? 

Avian influenza, or ‘bird flu’, is a 

contagious viral disease that normally 

infects only birds. The most deadly strain 

has a bird mortality rate of nearly 100%, 

often killing birds the same day that 

symptoms appear. One strain, ‘H5N1’, 

has jumped the species barrier causing 

at least 23 deaths in Thailand and 

Vietnam this year. Fortunately, human 

infection is rare and is often traceable 

to contact with diseased birds. 

Bird flu hits cargoes 

Last year, Asia dealt with SARS (Severe 

Acute Respiratory Syndrome). Although 

SARS caused great public concern, 

its ultimate impact on shipping was 

relatively modest, mostly in the form 

of increased vessel and port health 

monitoring, and consequential delays 

and costs. In contrast, bird flu has not 

caused as much public alarm, but has 

caused economic havoc, particularly in 

the shipping industry. The main reason 

for this difference is that bird flu affects 

bird cargoes directly. 

As a result of bird flu outbreaks, chicken 

exports from Cambodia, China, Indonesia, 

Japan, Laos, Pakistan, South Korea, 

Thailand, Vietnam, Canada, the 

Netherlands and the United States, 

among other places, have been banned 

at various times this year by nations 

around the world. Some countries, such 

as Australia, have even imposed 

restrictions on vessels from Asia 

carrying poultry and bird eggs in the 

vessels’ stores. Many vessels were 

forced to return their cargo of infected 

birds to the port of origin, such as 

Thailand, where authorities then had 

problems in storing and destroying the 

birds. Conversely, other bird-exporting 

nations, such as Brazil, have enjoyed a 

windfall, rushing in to fill the demand 

for exported birds. 

Warnings of further outbreaks 

World health and agricultural authorities 

have warned that further outbreaks are 

likely. Indeed, Canada and Cambodia are 

dealing with relatively new outbreaks. 

Experts believe that humans can only 

catch bird flu from infected birds. There 

is serious concern that the virus might 

mutate, however, allowing bird flu to pass 

from person-to-person. This would be 

a world-wide catastrophe, especially 

as the human mortality rate for bird 

flu is very high (between 60-80%). 

Unfortunately, such viral threats are 

unlikely to disappear. What are 

shipowners and charterers to do? 

Prevention is better than cure 

Be informed 

Experts. The best sources for monitoring 

viruses and diseases are the World 

Health Organisation (WHO) at http://www. 

who.int and the US Centre for Disease 

Control (CDC) at http://www. cdc.gov. 

Both provide information and updates 

about infectious diseases and viral 

outbreaks, and normally include lists 

of affected countries. If the WHO lists a 

country, then owners and charterers 

should either avoid such a country, or, 

at least, take care when trading there. 

Port authorities. Members should also 

check with port authorities as to health 

issues in the relevant port. Many ports 

now maintain regularly updated websites, 

which often provide current shipping 

notices. For instance, the Hong Kong 

Marine Department site is http://www. 

info.gov.hk/mardep; and the Maritime 

and Port Authorities of Singapore is 

found at www.mpa.com.sg. Members 

may also find relevant ports by checking 

an Internet port directory, such as 

Sea-ex at http://www.seaex.com/ 

marine.services/worldports.htm 

or by a simple ‘Google’ search at 

http://www.google.com. 

BEACON 11


Local agents 

Port agents should know of any local 

viral outbreaks, as well as any special 

procedures imposed on vessels. Such 

procedures may include vessel and crew 

screening and quarantining, advance 

health reporting and shore leave 

restrictions. As with SARS, noncompliance 

could potentially result in 

heavy penalties and even imprisonment. 

Members should therefore contact local 

agents well in advance of arrival for 

details and be prepared for delays. 

Protect the crew 

Owners should be aware of potential 

virus ‘hot spots’ and the nature of 

emerging health threats. If possible, the 

vessel should avoid affected ports. If this 

is not possible, then owners/crews 

should learn whether certain medicine 

(e.g. antibiotics or vaccinations) and 

equipment (such as face masks) are 

recommended to prevent a certain virus. 

If so, then owners should provide such 

medicine/equipment prior to the vessel’s 

arrival at an infected port. 

Be clean 

As future viruses will often be unpredictable, 

and as cleanliness helps to combat all 

viruses to some degree, owners and 

crew should strive for good hygiene and 

sanitation practices, such as handwashing 

and disinfecting key areas of the vessel 

regularly. Owners should train their 

crews in disease prevention and control 

practices, including how to quarantine 

an affected crew member. 

The WHO and CDC websites provide 

information on personal hygiene and 

institutional sanitation that are generally 

applicable to crew and ships. In addition, 

the WHO maintains a fact sheet on ship 

sanitation and health at http\\www.who.int\ 

mediacentre\factsheets\sf269\en\print.html 

and should be publishing a revised 

‘Guide to Ship Sanitation’ shortly. 

Limit vessel and crew 

contact with affected port 

If a vessel must call at an affected port, 

crew members should avoid going ashore 

and should limit their contact with local 

people and objects. During and after the 

call, the vessel and crew should maintain 

strict hygiene and sanitation practices. 

After departing, the Master and crew 

should be vigilant in watching for any 

signs of the virus among crew members. 

Owners/crew must be aware of the 

expected symptoms for a given virus. If 

symptoms emerge, the owners/Master 

should consult with a doctor as soon as 

possible. 

Protect the cargo 

In some cases, such as infected chicken 

cargo, there is little owners can do to 

protect already contaminated cargo. 

There are cases, however, where owners’ 

liability might be involved. With mad cow 

disease, some cargoes (such as steel 

products) were rejected because they 

were covered with soil residue that was 

suspected of being from an affected rural 

area. Owners should take care that cargo 

in their control does not become 

contaminated with a potential medium 

for the virus, or with other contaminated 

cargoes on board. 

Similarly, shippers and charterers should 

make sure that cargoes delivered to 

owners are ‘clean’ as well. Again, during 

the mad cow disease epidemic, there 

was some concern that local authorities 

might reject dirty-looking containers on 

the presumption that they might have 

been contaminated with affected farm 

soil. 

Be prepared for potential disputes 

A virus has the potential to cause 

economic problems and disputes. A 

partial list of potential legal liabilities 

includes: 

• cargo rejection 

• cargo damage 

• delay 

• deviation 

• extra storage and handling costs 

• liabilities for sick or dead 

crew members and passengers 

• quarantine costs 

• disinfection and preventative costs 

• civil and criminal penalties 

• loss of hire 

• loss of profit 

• consequential damages, such as 

lost business 

As with most disputes, the outcome will 

depend on the charterparty/contract, the 

applicable law and facts of the case. In 

general, charterparties usually place 

risks related to the crew and vessel on 

12 BEACON

Bird flu has jumped the species barrier and caused over 

23 deaths in Thailand and Vietnam since January 

owners, whereas port and ‘inherent’ 

cargo risks typically fall on charterers. 

Such broad allocations of risks, however, 

are often altered or shifted by contractual 

agreement. Moreover, the relevant facts 

of a virus-related dispute may determine 

the result. 

An example 

Three stowaways are found hidden in 

cargo several days after sailing from a 

virus-affected port. The stowaways are 

secured but have regular contact with 

some of the crew over a couple of weeks 

while the owners try to land the stowaways. 

It turns out that the stowaways were 

infected with the mystery virus and that 

they, in turn, infected the crew. Who 

should pay for the repatriation and 

medical costs of the crew? If the 

charterparty contains a clause making 

the charterers responsible for stowaways, 

then the liability may fall on charterers, 

even though owners are usually 

responsible for crew illnesses. If, 

however, the facts later show that the 

stowaways snuck on board due to the 

negligence of the crew, then a court or 

tribunal could view the case differently, 

and decide against the owners. If the 

port was rife with a virus, might owners 

be able to argue it was an ‘unsafe port’ 

in any event and that charterers should 

be responsible? 


Conclusion 

As with all potential legal disputes and 

P&I matters, we strongly suggest that 

members contact Skuld at the first sign 

of a problem so that the matter might be 

investigated to best protect the members’ 

interests. 

Further, if members routinely trade to 

areas of potential or frequent viral 

outbreaks and/or deal with either virussensitive 

or virus-prone cargoes (such as 

livestock), then they should review their 

charterparties to see if any clauses 

should be amended, or special clauses 

added, to improve their position in the 

event of a viral outbreak. As always, 

Skuld is happy to assist members with 

their specific trade and charterparty 

needs. 

...IF MEMBERS ROUTINELY TRADE TO 

AREAS OF POTENTIAL OR FREQUENT 

VIRAL OUTBREAKS AND/OR DEAL 

WITH EITHER VIRUS-SENSITIVE OR 

VIRUS-PRONE CARGOES (SUCH AS 

LIVESTOCK), THEN THEY SHOULD 

REVIEW THEIR CHARTERPARTIES... 

If stowaways infect crew members, who picks up the bill? 

BEACON 13


Counting the dead 

By Dr. Ted Tomasi, ENTRIX, Inc. 

We’ve heard often enough of the difficulty of placing a value on human life. Does it get any easier 

with bird life? The impact of an oil spill on local bird populations can be devastating. How do we 

count the dead? This is a critical question when costs per mortality range from a few hundred to 

tens of thousands of US dollars. 

Effects of oil spills on bird populations 

are often a major cost associated with an 

oil spill. Depending on time of year and 

location, even small spills can have 

significant effects. Images of oiled birds 

trigger emotional public responses – and 

if rare or endangered species are involved, 

the stakes are that much higher. Costs 

associated with compensatory 

Photo: Courtesy of the U.S.Coast Guard 

restoration actions range from a few 

hundred dollars per bird to USD 30- 

60,000 dollars per bird if endangered 

species are impacted. 

How does one estimate total bird 

mortality following a spill? Typically, the 

carcasses found after a spill represent a 

fraction of the total mortality, and estimation 

of mortality requires modeling. The accuracy 

of the estimate depends critically on how 

responders organize to collect bird data. 

In our experience, unless someone 

familiar with the model directs a targeted 

and coordinated effort, mortality 

estimates tend to be inaccurate, and 

usually too high. 

One modeling approach is called the 

‘Beached Bird Model’. The number of 

carcasses collected on shorelines is less 

than the true mortality since birds can 

sink before they reach the shore, birds 

can be removed by scavengers before 

searches, and birds on the shore can be 

overlooked by searchers and not found. 

The combination of these effects is 

estimated in the beached bird model, 

and leads to a multiplier for collected 

carcasses. For example, if 75% of the 

birds sink, are scavenged or are 

overlooked, then the multiplier is four 

and 100 dead ducks on the shore is 400 

dead ducks in total. 

Sinking 

Data from open, rough water indicate 

that almost all birds float for at least 

three days after they die, and that about 

90% of birds float for two weeks. After 

that, the rate of sinking increases 

dramatically. 

Birds dying near-shore will probably float 

to land, depending on local winds and 

currents. Knowing the influence of these 

factors is crucial. If birds are transported 

offshore, or if birds die offshore, sinking 

will be a factor. Hydrodynamic models 

can be used to simulate the fate of birds; 

if the trajectory is such that landfall 

doesn’t occur within two weeks, sinking 

will increase multipliers. 

In our experience, having good aerial 

observations of where oil is moving 

relative to bird densities may significantly 

reduce uncertainties about the sinking 

factor. 

Bird carcasses found after a spill are only a fraction of the total mortality 

14 BEACON


Spill responders shouldn’t replace dedicated, trained bird searchers 

Scavenging 

Dead birds may be removed from the 

shoreline by scavengers before searchers 

arrive. Small carcasses (under 500 grams) 

can be scavenged by mammals and birds, 

such as ravens, and removed from 

shorelines quickly (perhaps 66% on the 

first day). Large carcasses cannot be 

removed by birds or small mammals; 

scavenging of large carcasses tends to 

occur at night, at rates of less than 8% 

per day. 

The longer the period between searches 

at a location, the more likely it is that a 

bird will be removed by a scavenger 

before the next search. Greater search 

frequency means a smaller multiplier. It 

is vital to have systematic, frequent bird 

searches, and to document all search 

effort, even informal effort, such as that 

by the public, SCAT teams, or clean-up 

crews. 

All spill responders should be told to 

look for bird carcasses, to search oiled 

wrack before its disposal, and to document 

observations. But as this is not responders’ 

primary function, they should not 

substitute for trained, dedicated bird 

searchers, distinct from wildlife 

rehabilitators, who tend to focus on 

live birds. 

Background deposition 

Carcasses unrelated to the spill need to 

be netted out of mortality estimates. Five 

to ten percent of the carcasses are due 

to ‘background deposition’. The condition 

of each bird collected should be photodocumented. 

For high multiplier birds, 

it is appropriate to fingerprint oiled 

feathers and have them necropsied. 

Implications 

During spill response, bird data collection is 

often inadequate or poorly documented. 

This leads to insufficient or underestimated 

search effort, increased uncertainties 

about sinking, the inclusion of carcasses 

not related to the spill, and higher 

mortality estimates. 

These pitfalls, and the USD 30,000 to 

USD 60,000 costs that can be associated 

with the assumed death of a single 

endangered bird, can be avoided. In the 

United States and areas affected by the 

Oil Pollution Act, knowledge of these 

factors and rapid response efforts can 

help avoid overly conservative estimates 

of bird mortality. 

For more information, please contact 

Dr. Ted Tomasi at ttomasi@entrix.com. 

Searcher efficiency 

Not all birds on a shoreline are found 

during a search. Birds in the wrack line, 

small birds hidden in the rocks, and even 

birds on open sand can be hard to find. 

Bird size and coloration, as well as 

shoreline substrate will affect search 

efficiency. Experiments suggest that 

small carcasses (less than 300 grams) 

are found about 60% of the time, while 

carcasses over 1,000 grams are found 

over 80% of the time. More highly trained 

and experienced searchers are more 

efficient, serving to lower multipliers. 


DURING SPILL RESPONSE, BIRD DATA 

COLLECTION IS OFTEN INADEQUATE OR 

POORLY DOCUMENTED. THIS LEADS TO 

INSUFFICIENT OR UNDERESTIMATED 

SEARCH EFFORT, INCREASED 

UNCERTAINTIES ABOUT SINKING, THE 

INCLUSION OF CARCASSES NOT RELATED 

TO THE SPILL, AND HIGHER MORTALITY 

ESTIMATES 

Experiments show that birds over 1,000 grams are 

found 80% of the time. The smaller the bird, the more 

likelihood of it remaining unfound 

BEACON 15


By Nicola Mason, Vice President, Deputy Head of Skuld’s 

Hong Kong syndicate 

The risks of stowaways 

Stowaways pose a threat to the vessel, its crew and – as highlighted by recent terrorist attacks 

– national security. Financial costs are often substantial, with potential fines against both the 

Master and the owners adding to the burden. How do you stop stowaways getting on board and 

how will ISPS help? 

There have been many reports in recent 

years regarding stowaways. For example: 

The News (Monrovia) (www.allafrica.com, 

8 April 2004): 

"Four teenagers believed to be Liberians 

are reportedly being treated for malnutrition 

after an incredible sixteen-day voyage to 

Argentina inside a ship’s anchor 

compartment". 

Debka Mideast News, 14 June 2002: 

"Container Stowaway Terrorists Steal 

into America. In the two last months 

between 75 and 125 operatives of the 

fundamentalist terror network al Qaeda 

are known to have illegally penetrated 

the United States, mostly through 

American ports." 

Xinhua news report Beijing, 24 March 2004: 

"Chinese police captured a total of 5,286 

stowaways and 444 human traffickers in 

a five-month campaign from October 

2003 to March this year". Human 

traffickers are not confined to China. The 

Xinhua News Report of 24 March 2004 

goes on to state "the police in northeastern 

Jilin Province arrested eight 

human traffickers, including one from 

the US and two from the Republic of 

Korea". 

16 BEACON 

It’s a lucrative business, with human 

traffickers making substantial sums. 

CNN news reported on 14 January 2000 

that Chinese gangs were thought to 

"generate $10 billion a year in organised 

crime." 

Threat leading to the vessel and crew 

A stowaway or group of stowaways can 

pose a physical threat if they become 

violent. Assuming the stowaway(s) can be 

contained in a cabin, if they cannot be 

discharged quickly at a convenient port, 

and they have to remain on board the 

vessel for a substantial period of time, 

this can also cause psychological 

distress to the rest of the crew. 

In a recent case handled by Skuld, six 

stowaways entered the vessel at Douala 

in December 2003. The stowaways hid in 

the trunk of cargo crane no. 4 and were 

discovered several days after leaving 

port. Advice was sought from fifteen 

countries on the vessel’s sailing schedule 

as to whether the stowaways could be 

discharged in any of their ports. Of the 

countries approached, the only ones that 

seemed positive were Dakar, Ivory Coast 

and Portugal (with limitations). The six 

stowaways were confined in a cabin, 

causing inconvenience to the crew and 

the Master. Every time the vessel came 

near a port, the stowaways would 

become agitated and rowdy. 

The expense to the owners in 

maintaining the stowaways, making 

enquiries to have the stowaways 

discharged at various locations and 

appointing guards where necessary was 

considerable. In addition, the crew was 

distressed and was working in an 

environment where they felt physically 

threatened by the stowaways. 

After two months, in February 2004, the 

six stowaways were successfully 

discharged from the vessel at Dakar and 

thereafter repatriated. 

There is also a further risk to the crew 

that should be considered. A stowaway 

could have an illness and by coming into 

contact with the crew, could pass that 

illness on (see also article on p.11). 

Xinhua news reported on 5 June 2003 

"Fevered stowaway deported after being 

cleared of SARS at Tianjin port." 

Handle with care – stowaways can 

infect crew members


A stowaway from the Dominican Republic, injured in a 

scuffle with crew members on the Cypriot-flagged cargo 

ship Columbia One, is lowered off the ship in Miami 

Potential for terrorism 

A headline in the Boston Globe on 26 

March 2004 read, "FBI denies link 

between terrorist, LNG tankers". The 

article referred to an accusation that 

terrorists had entered Boston as 

stowaways on LNG tankers from Algeria. 

Although the FBI concluded that the 

stowaways had no terrorist links, this 

does highlight the danger from 

stowaways if their motive is terrorism. 

Even where the stowaways are not found 

to have any terrorist motives, they can 

still present difficulties to members if 

they come from designated high-risk 

areas. In early 2001, well before the 9.11 

terrorist attacks in the USA, two Iraqi 

stowaways were disembarked at a port in 


the USA. The US Immigration Authorities 

detained them in a federal prison. A 

charge of USD 100 per day was levied 

against owners for the stowaways. The 

stowaways are still in detention and, 

given the present political climate, are 

not expected to be released in the near 

future. 

Costs involved 

The stowaway represents a financial 

burden to both owner and charterer. In 

the present market, where owners have 

a better bargaining position, they may 

negotiate clauses into their charterparties 

that place liability for the cost of 

stowaways on charterers, or share the 

cost burden depending on how the 

stowaway got on board. 

If a stowaway cannot be discharged at 

the next convenient port, he will have to 

be maintained on board the vessel with 

food, clothing and water. This results in 

extra overtime for the crew if they have to 

act as guards. Most ports require the 

Master to declare that a stowaway is on 

board the vessel. Some ports may 

require that guards be employed on the 

vessel to ensure that the stowaway does 

not escape. 

Fines may be levied against both the 

Master and the owners. Depending on 

the location, the fines could be 

substantial. 

The South African Immigration Authority 

has a pure fine (non-refundable) of 

around Rand 2,500 (about USD 300) per 

stowaway. Should the Master of the 

vessel fail to declare the presence of a 

stowaway, a further non-refundable fine 

of Rand 10,000 (about USD 1,200) will be 

imposed. In Australia, under section 229 

of the Migration Act, a maximum penalty 

of AUD 10,000 (about USD 6,700) can be 

levied regardless of whether the 

stowaway escapes or remains on the 

vessel. It is an offence to bring a noncitizen 

that does not hold a visa into the 

country. 

How to stop stowaways getting on board 

High risk areas 

South Africa, Morocco, Tanzania, Algeria, 

West Africa, Eastern Europe, Colombia 

and China are high-risk areas where 

total vigilance is required. 

Container ships 

There is an organised criminal industry 

dedicated to the trafficking of humans. 

Container vessels are vulnerable to 

stowaways and extra care must be taken. 

• Examine empty containers and softtop 

containers. If the container has 

holes on the top or sides, this may be 

an indication that the cargo is human 

• Where the vessel is required to remain 

at port longer than usual and receives 

cargo during that period, enquiries 

should be made and a detailed inspection 

carried out of the containers received 

• The crew should focus attention on the 

seals to ascertain whether they have 

been tampered with, look unusual or 

are missing 

BEACON 17

18 BEACON 

Photo: Courtesy of the U.S.Coast Guard

The U.S. Coast Guard prepare to search a suspicious 

container for stowaways 

• Consider whether to employ private 

guards, especially at sensitive ports 

Generally 

Check the cargo stow thoroughly, 

storerooms, cabins, crane cabins, 

Master’s houses, engine room bilges, 

forecastle, anchor chains and chain 

lockers. 

Stevedores 

Stevedores in poor countries are also 

likely stowaway targets. Thus, check 

stevedores’ identity and the number of 

stevedores for each shift, possibly 

retaining their identity cards until the 

shift ends. 

Know who is coming on board 

Make sure that only authorised personnel 

gain entry to the vessel. Check and, 

where possible, retain and record the 

identity documents of each person 

entering the vessel. If the identity 

documents look suspicious, contact your 

P&I representative, since there have been 

reports of stowaways posing as authorised 

agents and visitors to gain access. 

If you find a stowaway on board 

Remember to use caution. The stowaway 

may be armed and dangerous. Notify the 

Master immediately. Always have more 

than one crew member approach the 

stowaway. This is for the crew’s own 

safety and to protect the crew/owners 

against false accusations of crew 

brutality. 

• Disarm the stowaway and remove 

drugs and other items that could cause 

injury to the stowaway or the crew 

• For the vessel’s safety, place the 

stowaway in a secure area/cabin with 

limited secure portholes 

• The stowaway should be given food 

and water and be treated humanely 

• Get as much information from the 

stowaway as possible 

What information should you get? 

Identity details and travel documents if 

available. 

Ask the stowaway his age, nationality, 

family history, how and when he boarded 

the vessel, if he had help from anyone, 

last employment or education if any, etc. 

Any information, if not false or misleading, 

may help identify where the stowaway is 

from. 

Photograph the stowaway and e-mail to 

the club/owners. This allows the club to 

start the process of identifying the 

stowaway and getting him disembarked 

at the next possible port. 

The ISPS Code 

The ISPS (International Ship and Port 

facility Security) Code will come into force 

on 1 July 2004. For a detailed analysis of 

the Code please refer to separate articles 

in this issue of Beacon and in issue no. 2, 

2003. 

As the provisions of the Code apply to the 

security of both ships and the port 

facilities, there is a debate whether this 

code will alleviate the problem of stowaways. 

Historically, criticism was levied at 

Governments and port facilities for a 

perceived inadequacy in security 

arrangements and the prevention of 

access by unauthorised personnel to 

port facilities and vessels. 

Does ISPS affect stowaways? 

Under the ISPS Code, contracting 

Governments will have to approve ship 

and port facility security plans. Indeed, 

one of the functional requirements of the 

Code is to prevent unauthorised access to 

ships, port facilities and their restricted 

areas. Measures taken by all parties to 

comply with the Code should at least 

assist in eradicating the ‘opportunist 

stowaway’. However, it may be more 

difficult, to eradicate the possibility of 

stevedores who decide to stowaway. It 

may also be difficult to eliminate the 

stowaways that enter a container vessel 

on board a container, as greater checks 

will be needed at the place of stuffing the 

container, which may not necessarily be 

the same as the port facility. 

Conclusion 

This writer, an eternal optimist, hopes 

that with time and the measures taken 

by all relevant parties to comply with the 

ISPS Code, the problem of stowaways 

will be relegated to the history books. 

BEACON 19

Skuld Salvage seminars 

In March 2004, Skuld, in co-operation with the Norwegian Hull Club (NHC), organised two full day 

salvage seminars, one in Oslo and the other in Bergen. In addition to speakers from Skuld and 

NHC, there were guest speakers from Smit Salvage in the Netherlands. The audience consisted of 

members, NHC and Skuld staff, students and other contacts. 

Casualties – the role of P&I 

Skuld’s Arthur Pilkington chaired the Oslo 

seminar and lectured on how P&I is 

involved when casualties occur. P&I covers 

the member’s liabilities in seven main 

areas after a casualty: 

Injury/loss of life – rules 7-10, liabilities 

for injury or death of crew, passengers or 

other persons 

Collision liabilities – rule 12, liabilities for 

loss or damage to another vessel/fixed or 

floating objects 

Damage to/loss of property – rule 13, 

liabilities for loss or damage to property 

not covered elsewhere in the rules 

Pollution – rule 14, liabilities arising out of 

pollution or in order to avoid or minimise 

pollution 

Wreck removal – rule 15, liabilities for 

obligatory wreck removal or marking of 

wreck or cargo/equipment lost 

Obstruction – rule 16, liabilities to owners 

of harbours, wharves, other vessels, etc. if 

entered vessel causes obstruction after 

casualty 

Salvage, Special Compensation – rule 22, 

liabilities for awards under Article 14 of 

Salvage Convention 1989 or under Special 

Compensation P&I Club Clause (SCOPIC) 

Casualties – the role of Hull & Machinery 

Jostein Egeland from NHC lectured on 

how Hull & Machinery is involved in 

casualties. 

The primary role of the hull club in a 

casualty situation is to secure the 

shipowner’s financial risk regarding the 

vessel. Priority is given to securing the 

safety of the vessel by utilising all salvage 

contacts and expertise available to NHC. 

Experience gained from casualties NHC 

has been involved in is normally only 

shared with members. During the March 

salvage seminars, Jostein Egeland was 

able to share some of this knowledge with 

a broader audience. 

The Bergen seminar was chaired by Per 

Thomassen of Skuld’s Bergen office who 

also presented the P&I and Hull & 

Machinery papers. 

Skuld’s Oslo salvage seminar in progress 

20 BEACON

Around 60% of Smit Salvage’s 

work has environmental 

protection as its goal 

Smit and the world of salvage 

By Tony Redding, Director, Smit Salvage/TRS reprise 

SMIT Salvage B.V. traces its origins back to 1842. Today, it is a member of a group providing 

global services in the areas of salvage, harbour towage, terminals and heavy transport/heavy lift. 

Salvage includes emergency response, wreck removal and environmental protection tasks, such 

as the removal of pollutants from wrecks. 

The contractual basis of salvage 

Many salvage and towage operations are 

performed under lump sum or daily hire 

arrangements. Standard agreements are 

widely used as they are ‘neutral’ and do not 

favour any party. SMIT Salvage Commercial 

Director Geert Koffeman told seminar 

delegates that these contracts are 

appropriate when there is no acute 

emergency. However, if there is an active 

threat of vessel loss and/or pollution, 

salvage contracts such as Lloyd’s Form 

(LOF) are important. He said: "LOF 2000, 

the latest edition, is a Lloyd’s document 

and is designed for instant response. When 

LOF is agreed, financial issues are set 

aside for resolution at a later date. Instead, 

the focus is on solving the immediate 

problem. The responsibility passes to the 

salvor, who must use his ‘best endeavours’ 

to salve ship and cargo and prevent 

environmental damage." 

Responsibilities are set out in The Salvage 

Convention 1989. A new system of salvage 

remuneration was introduced in 1999. 

It is known as SCOPIC – the Special 

Compensation P&I Club clause. This 

largely supersedes the 1989 Convention’s 

Article 14 Special Compensation 

arrangements. SCOPIC is a ‘safety net’, 

designed to prevent the salvor suffering 

heavy financial loss in high risk/low value 

situations. This safety net is required in 

around 20% of cases. 

Aspects of operational response 

Cape Town-based Dave Main is General 

Manager of SMIT Salvage, South Africa. He 

told the seminar that modern communications 

transformed the business of salvage. 

"Today, salvage is usually agreed in 

discussions between the salvor’s office and 

the offices of the owners and insurers. The 

objectives have also changed. Around 60% of 

our tasks now have environmental protection 

as the main aim." He then gave a vivid account 

of a practical example, the grounding of a 

ro-ro vessel on the South African coast. 

Major salvage and wreck removal cases 

During the seminars, SMIT Senior Salvage 

Consultant Bert Kleijwegt presented an 

overview of several challenging salvage 

operations, i.e. the chemical tanker Levoli 

Sun, the submarine Kursk, the vehicle 

carrier Tricolor and the tanker Prestige. 

Media and communication management 

The Oslo and Bergen seminars concluded 

with an interactive session led by casualty 

response and media specialist Tony Redding. 

His message to the delegates was the 

following: "It is important to be 

straightforward and avoid appearing 

evasive. It is best to concentrate on the 

measures being taken to deal with the 

emergency. It is dangerous to speculate 

and appear over-confident in a situation 

that is still developing." 

It is possible for an owner to be at the 

centre of a major marine accident and spill 

and receive relatively little media attention. 

The news focus may be on other parties. 

However, a high-profile case can impose 

extreme communications workloads. There 

may be a need to provide 24-hour service 

to the international media, for a significant 

period." 

(Please note that this is an abridged version 

of the original article.) 

BEACON 21

By Jørgen Rasch, Vice President, Deputy Head of Syndicate 2, 

Skuld Copenhagen 

THE ISPS CODE: 

Are you ready? 

The entry into force of the ISPS code is just around the corner. If you are not ready by 1 July, you 

are likely to see your vessels lying idle in one of the most prosperous markets in living memory. 

Do not let this happen! 

We are still guessing what effect these 

new regulations will have on our 

members. As ample time has been 

allowed by the IMO to get geared up for 

these new regulations, we do not foresee 

any possibility that enforcement of 

vessels is postponed, although it is 

possible that some countries will not 

have certified ports by the deadline. 

You may recall that we formed a task 

force to answer expected inquiries. One 

person within each of the syndicates was 

chosen to deal with day-to-day matters 

and, at each of the Copenhagen and Oslo 

offices, an ISPS officer was appointed to 

co-ordinate the response and to offer 

educational workshops to local members. 

In addition, one officer was appointed to 

deal with ISPS issues at management 

and inter-club levels. 

It fell upon me to have the overall 

responsibility for this organisation and 

the training of ISPS officers. This, in turn, 

led to membership of the subcommittee 

formed by BIMCO to draft their ISPS 

clauses. 

Recommendations to owners 

We recommend all owners to include the 

BIMCO clauses in their contracts. Owners 

with vessels of less than 300 GT should 

check with the flag state whether the 

ISPS code, or any part of it, applies to 

their vessels. Such owners may consider 

developing a vessel security system 

using the Code as a guideline. 

The main elements of the Code that may 

be of use are: 

• Appointment of a Company Security 

Officer – a superintendent would be 

ideal 

• Development of a Ship Security Plan 

that sets out guidance for: 

1. Access to the ship 

2. Restricted areas on the ship 

3. Handling of cargo, stores and 

visitors 

• Appointment of a Ship Security Officer 

– for example a Senior Deck Officer 

• Maintenance of a security log – 

recording the ports of call, security 

drills and other security matters 

Increased monitoring and control is one result of the 2002 US Trade Act 


22 BEACON

Don’t let the ISPS Code put your business on hold – July 1 is rapidly approaching 

We have drafted a ‘small tonnage ISPS 

clause’ to protect the interests of owners 

with vessels of less than 300 GT. If you 

need a copy, please contact your Skuld 

syndicate. 

Owners of vessels operating in the US 

container trade may consider joining two 

voluntary schemes, i.e. Customs and 

Trade Participating against Terrorism 

(C-TPAT) and the Sea Carrier Initiative 

Agreement (SCI). 

The main impact for operators will be to 

ensure that the vessels they charter are 

in full compliance with the Code. 

Consequently, we recommend the use of 

the BIMCO clauses in their contracts. 

The Code has added a new dimension to 

‘safe port and berth’ obligations and we 

further recommend operators to review 

their routines to cater to this. The focus 

should be on the security aspects and 

checks could include: 

2. Having the necessary information 

about the ports of call – details of the 

PFSO, security level of the port and 

routine security checks carried out on 

board vessels. Such details may be 

obtained from the local agent of the 

vessel or local Skuld correspondent. 

3. Having details of the shippers and 

cargo to be carried; not just the 

sub-contractor or freight forwarder. 

Recommendations to operators 

Requirements in the code for operators 

are limited to giving their contact details. 

The BIMCO clauses extend these to 

provide contact details of their subcontractors. 

1. Having the necessary information 

about owners and the vessel – details 

of CSO, SSO, ISSC and trading of the 

vessel prior to delivery. Such details 

may conveniently form part of a prefixture 

questionnaire. 

Calling at a US port 

THE ISPS CODE HAS ADDED A NEW 

DIMENSION TO ‘SAFE PORT AND 

BERTH’ OBLIGATIONS 

For further reference, please see ‘Are you 

prepared for the ISPS Code?’ by Jørgen 

Rasch in Beacon no. 2, 2003. 

In their efforts to fight international 

terrorism, the US Congress amended 

the US Trade Act 2002 (the Act), the 

implementation of which on 4 March 2004 

took many owners and operators by surprise. 

The aim of the Act is to prevent terrorists 

from bringing weapons, ammunition or 

materials that may be used as such into 

the US. Implementation means the US 

authorities will: 

1. Monitor the Carriers 

2. Identify and monitor the Shippers 

of cargoes 

3. Identify the Receivers (consignees) 

of cargoes 

4. Monitor the goods or cargoes 

The key difficulty for carriers – a term 

which is not defined in the Act but may 

include owners and operators – is to find a 

way to electronically deliver the required 

information to the Customs Authorities 

(CBP), in many cases prior to loading. 

Other problems include obtaining a 

carrier code (SCAC) and a bond facility 

(ICB). These are no longer available 

through the local port agents and must 

be provided by the carrier. 

We refer you to more detailed articles 

and circulars on www.skuld.com. 

BEACON 23

LEGAL NOTES 

By Anne Liversedge, Partner, Thomas Cooper & Stibbard, London 

On the clock 

Article III, rule 6 of the Hague-Visby Rules states: 

"… the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is 

brought within one year of delivery of the goods or the date when the goods should have been delivered." 

The clause time bars cargo claims if suit has not been commenced within one year from the date the 

goods were delivered or should have been delivered. 

24 BEACON

Suit 

For the purposes of English law, suit is 

commenced as follows: 

High Court: 

Issuing of Claim Form 

County Court: 

Issuing of Claim Form 

Arbitration – 2/3 man: 

Appointment of an Arbitrator, notice of 

the appointment being given to the 

respondent and calling upon them to 

appoint their Arbitrator. 

Sole Arbitrator/LMAA Small Claims: 

Calling upon the respondent to agree 

a sole Arbitrator. 

Who is protected by the time bar? 

There has been significant discussion as 

to who can claim the protection offered 

by the time bar. We do not have time to 

consider this in any detail, suffice it to 

say that the ship and its owner will be 

protected in relation to cargo claims 

brought under bills of lading and those 

brought under charterparties that 

incorporate a Clause Paramount. While 

the charterer as the carrier under a bill 

of lading will also be able to rely on the 

time bar, the charterer cannot rely on it 

when facing an owner claiming against 

them in relation to cargo, even if the 

charterers are the carrier under the 

relevant bill of lading. 

It’s all in the delivery – when, where and to whom 

What starts the clock 

It is important for all parties to know 

from what date the 12-month period 

runs. At first glance, the rules answer 

that question – it is the date of delivery 

or the date on which the goods should 

have been delivered. However, it is not 

always as simple as it sounds; not least 

because of the reliance placed on the 

clause regarding the question of delivery. 

Delivery -v- discharge 

There seems to be no consensus on what 

constitutes delivery, save that it is an 

entirely different concept than that of 

discharge. Discharge is a purely physical 

act. Delivery is a legal concept. Despite 

its importance to the rules, neither the 

Hague nor the Hague-Visby Rules define 

it. According to Carver on bills of lading, 

delivery is "ordinarily taken to refer to the 

transfer of possession to a consignee, or 

to the consignee’s agent". Voyage 

Charters by Cooke et al. also links 

delivery to the passing of actual or 

constructive possession. Given the 

importance placed on the passing of 

possession, it is, therefore, implicit that 

the goods have been discharged into the 

possession of the person entitled to the 

goods (so, for example, delivery will 

usually be taken as delivered if the cargo 

was discharged against presentation of 

an original bill of lading). Where there is 

misdelivery, there will be no delivery for 

the purposes of Article III, rule 6. 

Place of delivery 

The usual scenario is for cargo to have 

been shipped from A to B. Complications 

can arise where, for example, the owner 

carries cargo from A to B, but following 

rejection of the cargo by the receivers, it is 

then carried to C where it is finally 

delivered. Whilst cargo was eventually 

delivered at C, it should have been 

delivered at B sometime earlier. This is 

particularly a problem where a cargo 

claim is brought under a charterparty as 

opposed to a bill of lading. In this 

situation, the 12-month period could 

either run from the date the cargo should 

have been delivered at B or the date when 

the cargo was actually delivered at C. 

This was the dilemma faced by the owners 

and charterers of the Sonia. Charterers 

alleged cargo was damaged whilst on 

board the ship en route from A to B and, 

following its rejection at B, charterers sold 

the cargo at a lower price for delivery at C. 

Charterers paid additional freight to the 

owners to carry the cargo and deliver it at 

C. They then sought to claim their losses 

from owners. They commenced 

proceedings within 12 months of delivery at 

C, but outside the 12–month period if it 

were calculated from the date when the 

cargo should have been delivered at B. 

Owners sought summary judgment that 

charterers’ claim was time barred and the 

High Court Judge agreed with owners’ 

case. He held that the one-year period ran 

from the date the goods should have been 

delivered at B. 

BEACON 25

This seems reasonable. The suit stems 

from the rejection of an off-specification 

cargo at B and is not contingent on any 

event occurring thereafter. Obviously, there 

was no delivery at port B, but the Rules 

themselves provide a second start date 

from the date the cargo should have been 

delivered. In this case, the Judge held the 

12-month period ran from the date the 

cargo would have been delivered at B, but 

for its rejection. 

The usual premise is that a limitation 

period runs from the date the cause of 

action accrued; however, the Rules relate 

the time bar specifically to the concept of 

delivery. The alternative point of view as put 

forward by charterers was that there was 

delivery of the cargo, albeit at C not at B, 

and in accordance with the Rules the 12- 

month period should commence when 

delivery was completed at C. Charterers 

appealed the decision of the First Instance 

Court and the Court of Appeal agreed with 

charterers’ arguments 1 . Whilst accepting 

that charterers’ cause of action (i.e. the 

contamination of the cargo) accrued prior 

to arrival at B, the Court of Appeal held 

that neither the nature of the claim nor the 

date the cause of action accrued is relevant 

to the question of deciding where delivery 

took place for the purposes of Article III, 

rule 6. The Rules related the time bar 

purely to the concept of delivery and all 

that was necessary to consider was where 

and when that delivery took place. 

In finding for the charterers that delivery 

was at C, the Court took into consideration 

a number of factors including the fact that 

the cargo remained on board the Sonia and 

was essentially the same cargo as was 

shipped. Owners discharged the cargo at C 

pursuant to the order of charterers to 

receivers nominated by those charterers, 

albeit at a different destination than 

originally anticipated. The voyage from B to 

C was necessary because of the problems 

both parties faced as a result of the 

rejection of the cargo (regardless of the 

cause of those problems) and arose out of 

the circumstances of the original 

charterparty with no new bill of lading 

being issued. In addition, owners owed a 

duty of care in respect of bailment from the 

time the cargo was shipped at A until the 

cargo was delivered at C. 

The case does not provide authority in 

every situation where there is a failure to 

deliver the cargo at the originally intended 

port, there will always be delivery at C, and 

it will always be important to examine the 

circumstances of each case where there is 

such on-carriage. However, the case 

should serve as a warning to owners and 

charterers of the pitfalls that can arise with 

the Hague-Visby time limits. 

CONCLUSION 

When considering from what date the 12- 

month period should be calculated from, 

the flow chart shown here may be of use. 

Reference: 

1. The Sonia [2003] 2 Lloyd’s Law Rep. 201. 

Cargo claims timebar 

No 

Was there 

delivery at C? 


12 months from the date the cargo 

should have been delivered at B 


12 months from date delivery 

completed at C 

Was there 

delivery at B? 

Yes 

12 months 

from date 

delivery 

completed 

at B 

Yes 

Was there an entirely separate 

and distinct transaction for 

the oncarriage? 

Yes 

12 months from date the cargo 

should have been delivered at B 

for claims arising on that voyage 

12 months from date of 

delivery at C for claims arising 

on voyage B to C 

26 BEACON

LEGAL NOTES 

Ronny Larsen, Claims Executive, Syndicate 4, Skuld Oslo 

Coming up short 

Oil prices have been on the rise for some time and in the wake of these increases follow claims for 

shortages. Even if some operators are facing all time high markets, close attention should be paid to these 

claims to avoid charterers, cargo shippers and receivers making claims for shortage against the owner. 

Paper shortages are a common result of 

what we would describe as an ‘overstated’ 

bill of lading. By overstated, we mean 

that the quantity described in the bill of 

lading exceeds that which was actually 

shipped. There can be many reasons why 

an overstated bill of lading is issued. One 

example, which led to numerous shortage 

claims, is the custom of some ports to 

issue the bill of lading in accordance 

with the shore tank figures and then 

present it to the Master for signature by 

the shipper. The shipper wants to comply 

with his obligation under the sales contract 

and any discrepancy between the shore 

tank readings and the quantity that the 

shipper says he has received might be 

money out of his own pocket. 

Considerable pressure may be brought 

on the Master to have the bill of lading 

signed. Sometimes the Master agrees 

to sign the bill of lading in return for the 

shippers/charterers giving a letter of 

indemnity. However, this is a dangerous 

Shortage claims have increased in the wake of higher 

oil prices 

BEACON 27

The Master and crew should keep a close watch to ensure ROB 

surveys are conducted in accordance with MARPOL regulations 

practice and Masters/owners should be 

cautious to accept a letter of indemnity. 

When an indemnity is given in unlawful 

circumstances, such as when the Master 

knows the figures are incorrect and an 

innocent third party will rely on the 

statements, this is equivalent to fraud. 

Such an Indemnity would be unenforceable 

under English law and has no value, 

even where the charterers knew of the 

inaccuracy ref: "NOGAR MARIN" [1998] 

Lloyd’s rep. 412. Further, the owners will 

prejudice the P&I cover as a bill of lading 

known to contain an incorrect description 

is excluded from cover, ref. rule 5.2.5. 

Challenging bill of lading figures 

How can owners challenge the bill of 

lading figures? In the New Chinese 

Antimony Co. Ltd. v Ocean Steamship Co. 

Ltd. [1917] 2 KB 664, the Master had been 

unable to satisfy himself as to the weight 

or quantity of cargo loaded on board the 

vessel and in order to protect owner’s 

interests, he endorsed the bill of lading 

with the words, "weight or quantity 

unknown". The Court decided that the 

...THE OWNERS WILL PREJUDICE THE 

P&I COVER AS A BILL OF LADING 

KNOWN TO CONTAIN AN INCORRECT 

DESCRIPTION IS EXCLUDED FROM 

COVER, REF. RULE 5.2.5. 

bill of lading was not prima facie 

evidence against the shipowner of the 

quantity shipped and the burden of proof 

was on the cargo owner to prove what, in 

fact, was shipped. However, owners 

should bear in mind that under English 

law this does not afford complete 

protection if the discrepancy between the 

vessel’s figure and the shore figure is so 

great that this would have been obvious 

to the Master, ref. Conoco Ltd. and Others 

v Limni Maritime Co. Ltd. (the Sirina) [1988] 

2 Lloyd’s rep. 613. 

Clausing the bill of lading 

Other jurisdictions may not follow the 

approach adopted by the English Courts 

and qualifying clauses as ‘weight, quantity, 

etc. unknown’ are often ignored completely. 

However, the recommendation is to clause 

the bill of lading as necessary, either by 

inserting the ship figure and/or with 

qualifying words such as weight…unknown 

or similar. 

Should the owners want to challenge the 

figures inserted in the bill of lading 

before signing, some helpful guidance 

can be found in the English Court 

decisions, the Boukadora [1989] 1 Lloyd’s 

rep. 393. This was addressed in Beacon 

no. 2, December 2003, page 13. However, 

in short the Court said that, even if the 

charterparty requires the Master to sign 

bills as presented, this does not mean 

that the Master is bound to sign bills "in 

whatever terms the charterer chose to 

demand". "There is…a basic and implied 

requirement that the bills as presented 

should relate to the goods actually 

shipped and shall not contain 

misdescription of the goods…" The Court 

held that the owners were entitled to 

recover their loss from the charterers. 

...THE RECOMMENDATION IS TO 

CLAUSE THE BILL OF LADING AS 

NECESSARY, EITHER BY INSERTING 

THE SHIP FIGURE AND/OR WITH 

QUALIFYING WORDS SUCH AS 

WEIGHT…UNKNOWN OR SIMILAR. 

Trade allowance 

It is common to counter any claim for 

shortage with the loss is within the 

‘customary allowance’ of 0.5%, often 

referred to as the ‘trade allowance’. 

However, English law is clear on this 

issue and does not accept this custom 

unless the ‘trade allowance’ is referred 

to in the contract of carriage. The Court 

will consider the evidence placed before 

it, and with the expert evidence 

presented in a particular case, they will 

decide whether any allowance for transit 

loss should be made. In the Indian Oil 

Corporation Ltd. v Greenstone Shipping SA 

(the Ypatianna) [1987] 2 Lloyd’s Rep. 286 

the court accepted a 0.55% tolerance 

comprised of 0.30% with respect to water 

and sediment in the crude oil cargo and 

0.25% with respect to vapour loss. 

28 BEACON


U.S. Courts adopt a similar approach 

with respect to the 0.5% trade allowance, 

unless such a trade allowance is referred 

to in the contract of carriage. 

My view is that the phrase ‘customary 

allowance’ is misleading. The 0.5% 

figure originally stems from the cargo 

underwriter’s insurance deductible. 

The 0.5% would be better described 

as ‘measurement allowance’ since 

measurement of bulk liquid is not an 

exact science and many of the shortages 

have arisen out of inaccurate measurements. 

We would recommend that owners try to 

include a trading/measurement allowance 

into the contract. 

ROB 

Another type of shortage claim is the 

Remaining on Board (ROB) claim. There 

can be many reasons why the ship is 

facing an ROB claim. For instance, there 

can be problems with the vessel’s 

equipment that makes it difficult to 

pump out the remainder of the cargo. 

However, the Club is more concerned 

with the number of claims resulting from 

...THE CLUB IS MORE CONCERNED 

WITH THE NUMBER OF CLAIMS 

RESULTING FROM THE CHARACTERISTICS 

OF THE CARGO RATHER THAN CLAIMS 

RELATED TO THE VESSEL AND ITS 

TECHNICAL EQUIPMENT. 

the characteristics of the cargo rather 

than claims related to the vessel and its 

technical equipment. It is important to 

determine the characteristics of the 

cargo to enable owners to defend an 

ROB claim under the Cargo Retention 

clause in the charterparty. Charterers 

and/or receivers may accept that some 

crude oil may become non-liquid during 

the voyage and that some cargo remains 

in the tanks as it is not reachable by 

vessel’s pumps. However, the dispute 

would be on the quantity of cargo left in 

the tanks, whether it is liquid or not and 

whether the cargo is pumpable and 

reachable by vessel’s pumps. 

Upon completion of discharge, a surveyor 

will perform an ROB survey and issue an 

ROB certificate. This can make it difficult 

to fight the claim if the certificate issued 

is inaccurate. The crew should closely 

monitor how the survey is performed and 

protest as necessary. For instance, in 

compliance with industry standards, the 

surveyor should take measures from at 

least four positions in the tanks. Should 

the surveyor only measure from one 

point, the crew should protest and insist 

on the surveyor taking four dips. MARPOL 

regulation, Annex 1, regulation 13(b) (2) 

requires the vessel to have four locations 

for measurements. 

If remaining cargo is found, investigations 

should be conducted to establish 

whether the cargo is liquid, pumpable 

and reachable by vessel’s pumps. 

Summary 

Fighting shortage claims may be an 

uphill struggle and each case will 

ultimately depend on its own facts. 

However, it goes without saying that 

accurate records of the loading and 

discharging operation need to be kept to 

enable owners to defend the claim made 

for shortage. One should also keep in 

mind that the Courts do not look 

favourably upon the ‘customary 

allowance’, but will only rely on what can 

be proven. The owner will defend the 

claim based upon the ship documentation 

such as, but not limited to, the OBQ 

report (On Board Quantity) prior to 

loading, ullage report after completing 

loading and prior discharge, Quantity 

report after completion of discharge and 

dry tank certificate on completion of 

discharge, preferably signed by consignees. 

Accurate records should be maintained 

of all in-tank transfers during the voyage. 

A log should also be kept during 

stripping operations listing the 

procedures followed and when suction 

was lost. 

Should any problems arise during 

loading or discharge, please contact the 

Club or its correspondent for assistance. 

ACCURATE RECORDS OF THE LOADING 

AND DISCHARGING OPERATION NEED 

TO BE KEPT TO ENABLE OWNERS TO 

DEFEND THE CLAIM MADE FOR 

SHORTAGE. 

BEACON 29

Personnel news 

OSLO Wenche Dejligbjerg, 

OSLO Ragnhild Rødsjø, 

OSLO Christopher Walker, 

PIRAEUS Maria Tierris, 35, will join 

Syndicate 1, was promoted to 


Defence Services/Syndicate 1 

Skuld Hellas in summer 2004 as 

Senior Claims Executive 


was promoted to Senior 

Claims Manager. She replaces Michael 

1 January 2004. Wenche has 

1 January 2004. Ragnhild has 

Lawyer 1 January 2004. 

Boje-Larsen, who returns to Skuld 

worked in Skuld since 1967. 


He has worked as a Lawyer in 

Copenhagen this summer after four 

Previous experience includes 

Skuld since 1999. 

years in Greece. 

17 years at sea as a Radio 

Officer. 

Maria Tierris is native Greek and 

married with two children. She has a 

Law Degree (Distinction) from the 

University of Thrace, Greece and an 

LLM degree in Maritime Law from the 

University of Southampton, UK. She 

became a Lawyer in 1994 (Athens Bar 

Association) and a Solicitor in 1996 

(London). 

Maria’s experience includes positions 

OSLO Unni Johansen, 

OSLO Marion Carlmar, 

OSLO Harald Harlem, Business 

in several law firms in Athens and 



Control and Investments, was 

London, handling shipping and 



promoted to Senior Investment 

commercial litigation and insurance 

1 January 2004. Unni has 

1 January 2004. Marion has 

Controller 1 January 2004. 

law disputes. From 1996-1997 she 



Harald has worked in Skuld 

worked for Thomas Miller P&I in 

Previous experience includes 

since 1999. 

London and returned to Greece as a 

ten years at sea as a Radio 

Senior Claims Executive for Thomas 

Officer. 

Miller’s office in Piraeus in October 

30 BEACON 

1997.

Contact Skuld 

HONG KONG Christian R. W. Ott 

started as a Lawyer in Skuld Hong 

Kong 5 January. Christian studied 

law at Southampton University in 

the UK, LLM Marine Insurance at 

University College, London, and 

received his Legal Practice Course 

Commendation at BBP Law School, 

London from 1999-2000. After 

finishing his studies in 2000, he 

worked as Trainee Solicitor at 

Holmes Hardingham for two years, 

qualifying as a Solicitor in 2002. 

The last year before joining Skuld 

he worked for Holmes Hardingham 

handling marine insurance, cargo 

and charterparty matters. 

Oslo 

Assuranceforeningen Skuld (Gjensidig) 

Ruseløkkveien 26 

P.O. Box 1376 Vika 

N-0114 OSLO 

Telephone: +47 22 00 22 00 

Telefax: +47 22 42 42 22 

Emergency telephone: 

+47 952 92 200 

E-mail: osl@skuld.com 

Bergen 

Skuld Bergen 

Nedre Ole Bulls plass 3 

P.O. Box 75 

N-5803 BERGEN 

Telephone: +47 55 30 18 60 

After office hours: +47 90 50 49 07 

Telefax: +47 55 30 18 70 


+47 952 92 200 

E-mail: bgo@skuld.com 

Copenhagen 

Assuranceforeningen Skuld (Gjensidig) 

– Den Danske Afdeling 

Frederiksborggade 15 

DK-1360 COPENHAGEN K 

Telephone: +45 33 43 34 00 

Telefax: +45 33 11 33 41 


+47 952 92 200 

E-mail: cph@skuld.com 

Hong Kong 

Skuld (Far East) Ltd. 

Room 2909, China Resources Bld 26 

Harbour Road 

Wanchai 

HONG KONG 

Telephone: +852 2836 3909 

Telefax: +852 2836 3219 

Telex: (802) 69571 SKULD HX 


+47 952 92 200 

E-mail: hkg@skuld.com 

Piraeus 

Skuld Hellas 

1-3 Filellinon Street 

GR-18536 PIRAEUS 

Telephone: +30 210 459 4190 

Telefax: +30 210 459 4194 

Telex: (601) 21 24 98 SKLD 


+47 952 92 200 

E-mail: syn.ath@skuld.com 

Internet 

www.skuld.com 

BEACON 31

VIEWPOINT 

Douglas Jacobsohn, 

President and Chief Executive Officer, 

Skuld 

Staying power 

Dear reader 

I have stated earlier that Skuld is at a 

crossroads where we are seeing clear 

signs of recovery. I have also stressed the 

importance of patience. 

By 20 February, we could confirm that 

renewals were satisfactory. In addition, 

the ‘red’ figures are behind us as we 

present very positive preliminary results 

for 2003. It is a great pleasure to see that 

we even outperform the market’s 

expectations following our positive third 

quarter results. 

First and foremost, it is the hard and 

enthusiastic work by our staff in all 

offices around the world that has made it 

possible to deliver such positive results. 

Not to mention all the members who 

stayed with us patiently and loyally 

throughout these past several years, 

thereby demonstrating real staying 

power. It cannot be stated enough how 

important this is for a mutual 

organisation like ours. 

The renewal season is behind us and, 

although we more or less got what we 

wanted in terms of a general increase 

and a robust business volume of 

altogether 55 mill. GT, I must admit that 

we would have liked to see a bit more 

new business coming our way. We are, 

however, quite certain that our members 

will now help spread the good news of 

Skuld’s healthy financial position and 

balanced underwriting results. This 

should provide for a stable and positive 

starting point for expansion with qualityminded 

shipowners who want to be a 

part of our excellent service concept. 

This edition of Beacon is dedicating quite 

a lot of space to the Greek market and a 

presentation of one of our Greek 

members. It is no coincidence that we 

focus on this important market. After all, 

the biggest shipping cluster in the world 

is here. Its attraction not only comes 

from the many likeable individuals 

behind these well-known shipping 

companies, but also because they have 

shown the world the stamina and 

willingness it takes to improve shipping 

standards. We see a growth of quality 

tonnage here that we would very much 

like a chance to quote on. 

Coming up soon is the bi-annual 

Posidonia exhibition in Piraeus. We look 

forward to meeting members – and 

potential members – at our pre- 

Posidonia dinner party. Soon after, this 

year’s Skuld Committee meeting takes 

place in Malta. It seems like there will be 

a pretty hectic period before the summer, 

culminating with the Olympic Games – 

finally back in Athens where it all started. 

I would like to wish everyone a pleasant 

summer season and, for our Greek 

friends, all success with the games 

– and many medals too. 

If you would like to see Norwegian flags 

waving, your best chance is to come to 

Norway on the 17th of May*! 

Douglas Jacobsohn 

* Norway's national day 

32 BEACON Return address: Assuranceforeningen Skuld, P.O. Box 1376 Vika, N-0114 OSLO

Beacon No. 1 2004 - Skuld

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