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VIewPoIntDear readerTaken out of context, it wouldseem that the increases forpolicy year 2006 announced bythe P&I clubs are very different;some are high and some arelow. Without full knowledge ofthe underlying costs and riskexposure, you would be hardpressed to understand the logicbehind the figures.One of the goals of this club is ‘sound business operations’.This includes a policy stating that premiums should cover claimsand administrative costs. If we say we need a 5% generalincrease over last year’s premium levels, we actually mean 5%!Many appreciate Skuld’s policy of transparency and the factthat our communication with the market reflects the truesituation of our club. Skuld was the first of the InternationalGroup clubs to introduce quarterly reports and we still hopefor more clubs to follow this example. Higher transparencyamong clubs would no doubt make it easier for brokers andmembers to predict the future – and budget accurately.In the meantime, Skuld’s third quarter results 2005 havebeen published, showing free reserves strengthened by afurther USD 14.1 million.ContentsSkuld in Germany – why? 4member in focus:Hartmann Shipping:Following the right course 6On 8 November, Standard and Poor’s announced an upgradein Skuld’s rating to BBB+; outlook positive. This is certainlyrewarding and a tribute to the hard work of a dedicated staffand their commitment to the club’s long-term strategy.Our focus on service improvement is continuing. One element isthe implementation of digital documentation. At the upcomingrenewal, policies can be sent to members electronically, andwe are working on a solution which enables online charterdeclarations.Another element of service improvement is a more effectiveclaims handling process where we cut external legal costs andhandle more legal work in-house. We have recently increasedour claims staff (page 34) and knowledge sharing across officeand syndicate boundaries is being prioritised (page 32).loss prevention update:A good imagination goes a long wayloss prevention:The behavioural safety process can help you!loss prevention:Containers overboard04Last, but not least, this issue of Beacon is a tribute to ourGerman membership, brokers and other contacts in the area.We trust that our new German office in Hamburg will helpstrengthen our bonds with this important shipping market.Season’s Greetings and a very happy New Year!beacon (skuld magazine)is the official publication ofAssuranceforeningen Skuld(Gjensidig)Issue 186 December 2005addressP.O Box 1376 VikaN-0114 Oslo, NorwayTel: +47 22 00 22 00Fax: +47 22 42 42 22Douglas JacobsohnPresident & Chief Executive Officer beacon December 2005

ContentsPage 6 Page 10 Page 18 Page 22Hurricane Katrinalegal notes:A human tragedylegal notes:Navigating Danish watersSkuld School 2005Arbitration in SingaporeSMF-Skuld seminar86900Hunting high and lowSharing knowledgeSkuld seminars in Hamburg and LeerPersonnel newsContact SkuldSkuld news456e-mailIngeborg.berge@skuld.comvisit our websitewww.skuld.comeditor in chiefIngeborg S. Bergeeditorial staffLise LarsonlayoutTransmission ASrepro and printingGan Grafisk asEntire contents © 2005, all rightsreserved. Reproduction in whole orin part, without written permissionfrom Skuld, is prohibited. Opinionsexpressed by writers in Beacon arenot necessarily those held by Skuld.Skuld assumes no responsibilityfor unsolicited materialfront pageBrandenburg Gate, BerlinPhoto: Scanpixbeacon December 2005

Skuld in GermanyBy Ingeborg S. Berge, Skuld, in Hamburg, GermanyIn response to extensive activity in German shipping and a growing list of German members, Skuldrecently set up a new office in Hamburg. Working closely with brokers and members gives Skuldthe possibility of improving its service in this important geographic region.– This is an important market for Skuld,says Egil Gulbrandsen, Head of SkuldGermany. Considering all product linestogether, Germany represents Skuld’sthird largest market. – It has beenimportant in the past and we definitelyintend to keep it that way in the future.We want to provide high quality service toboth members and brokers in the area,and to succeed, it is vital that we keepclose contact with the market. We wantmembers and brokers to have our fullattention and service locally.Skuld’s markets have different preferenceswhen arranging insurance cover. In somemarkets, owners and charterers preferworking directly with Skuld and in others,brokers are favoured. In Germany, thereis a strong tradition for insurance cover viabrokers. Today, more than 80% of Skuld’sowner and charterer cover in the Germanmarket is settled through brokers.Consequently, the decision to be closer tothe market reflects an intention of providingbetter service to members and brokers.Germany has a very active shippingindustry in terms of owners, charterers,brokers, ship builders, liner agents andforwarders. A current boom in newbuildingprogrammes and a modern, highquality fleet, makes this a focus areafor Skuld. When choosing a location forEgil Gulbrandsen (left) and Jørn Keller are responsible for Skuld’s German office in Hamburgan office in Germany, Hamburg was anatural choice.City of Hamburg‘The Free and Hanseatic city of Hamburg’is the second largest city in Germanywith 1.7 million inhabitants. Set on theriver Elbe, which flows into the NorthSea some 90 km downstream, Hamburghas a long tradition as a trade centre andcommercial port.Also, in other respects, Hamburg is a city‘on water’. The river Alster forms lakesright into the city centre and there arelots of canals. For instance, did you knowthat Hamburg has over 2,000 bridges– more than Venice and Amsterdamcombined?HafenCity (Harbour city) is a giantdevelopment project transformingold warehouses and harbour area intoa new urban district, designed formixed residential, commercial andcultural use. This 155 hectare area iscurrently the largest construction sitein Europe.4 beacon December 2005

– why?Shipping going strongIn spite of the HafenCity project, shippingis still very much alive in the harbourarea. Hamburg has one of the largestcontainer ports in Europe and is a veryimportant transit point, particularly forGermany and Eastern Europe.Other important shipping areas inGermany include the major ports ofBremerhaven, Wilhelmshaven, Emdenand Cuxhaven, a major concentration ofshipping companies in Leer, Haren (Ems)and Emden and shipbuilding activities inRostock-Warnemünde, Wismar and Kiel.Setting up the officeThe decision to set up an office in Germanywas made early this year. Egil Gulbrandsen,50, former head of Syndicate 4 in Oslo (the‘German syndicate’), took responsibilityfor setting up the office and relocated toHamburg.Egil’s background includes economicsstudies and fourteen years’ seafaringexperience before joining Skuld in 1989.Since then, he has held claims and underwritingpositions and was the manager ofSkuld’s former tank department, beforeheading up Syndicate 4 in Oslo from 2000.Jörn Keller, 29, joined Skuld in October.Jörn is a former underwriter in marinehull at Allianz Marine & Aviation and laterworked for Mund & Fester UnderwritingAgency. – It is important to have aGerman at the office, someone with localknowledge and connections, who can beSkuld Germany’s next door neighbour, the City Hall, was built in 1897, the same year as the club was foundeda valuable contributor to the ‘SkuldGermany team’, says Egil Gulbrandsen.Skuld Germany GmbH has now settled intoits new offices in Neuer Wall, a bustlingshopping and business street right in thecity centre and close to the City Hall. – TheCity Hall, almost our next door neighbour,dates back to 1897. We think this is a nicecoincidence, says Egil Gulbrandsen.– It makes us feel like old friends as 1897is also the year Skuld was founded.beacon December 2005 5

member In foCusHartmann Shipping:Followingthe right courseBy Ingeborg S. Berge, Skuld, in Leer, GermanyDriving west from Hamburg, towards the Dutch border, we reach Leer. This small Frieslandtown is located by the river Ems to the south of the North Sea port of Emden and is home toHartmann Reederei.Tea timeAt Hartmann we are greeted by Mr. DietrichSchulz, Managing Director of HartmannShipping, and invited to a local afternoon‘tea ceremony’. – Traditionally, import oftea into Germany came through this area,and it is still very much a favourite drinkaround here, says Mr. Schulz. Followingtradition, he puts sugar in the cup first,pours the tea and milk and opens ourconversation with a friendly “Enjoy!” We do.The Hartmann storyHartmann Reederei was founded in 1981by Captain Alfred Hartmann. Hecompleted maritime training with twoother young men from around Leer,Mr. Roelf Briese and Mr. Hermann Buss.They all sailed as captains for variousGerman shipping companies before theyindependently started to develop theirown businesses.Hartmann Shipping is celebrating 20 years in the ‘House of Shipping’Leer was originally known for its herringfisheries and small boat traffic on theriver Ems. There were no large scaleshipping operations until Mr. Hartmannand his friends started theirs. Today, Leerhas a healthy cluster of shipping services,while still enjoying the advantages of alower cost of living as well as lessexpensive business operations comparedto larger cities, such as Hamburg.Haus der SchiffahrtIn 1985, ‘Haus der Schiffahrt’ (the Houseof Shipping) was built and five companies,including those of Captain Hartmann andhis old friends, moved in. The companieswere successful, and soon relocated toseparate offices in Leer. In 1998, Hartmanntook over the whole building, refurbishedit and turned it into the Hartmann groupheadquarters.Today, in addition to its operations inGermany, the group conducts business inCyprus and the Netherlands and tradesworld-wide. A holding company, AtlasReederei AG, was founded in 2002 and ischaired by Captain Alfred Hartmann.The Hartmann group is organised aroundfour major units; nautical-technical,financial, commercial management andinvestments. The managers of these6 beacon December 2005

The small Friesland town of Leer is home to Hartmann ReedereiThere were no large scaleshipping operaTions in leerunTil Mr. harTMann andhis friends sTarTed Theirsunits form the management board,together with Managing Director Schulz,who describes the day-to-day businessas ‘excellent team work’.The founder, Mr. Hartmann, now in his latefifties, keeps his office in the building complexand follows up on the business. Throughhis ‘father figure’ role in the company, hekeeps close contact with everyone.Germany to Cyprus and backManaging Director Schulz joinedHartmann in 1998. He was educated inshipping and spent eleven years workingfor a Cypriot shipping company, partlyin Hamburg and partly in Cyprus. Whenhe decided it was time for a change ofscene, he chose Hartmann and a quieterfamily life in Leer. With two small childrenand the prospects provided by a successfulcompany like Hartmann, the choice wasfairly simple. The family moved back toGermany and to Leer.However, contact with Cyprus is still veryclose as his Cypriot wife has close familyHartmann entered into the container trade with an order for two container vessels from Poland in 1999-2000ties to the island. Mr. Schulz tells us thatthe choice of where to spend their holidaysis somewhat limited. – It’s either Cyprus,Cyprus or Cyprus, he says with a laugh.A growing fleetToday, the Hartmann fleet consists ofsome 30 vessels based in Germany,together with another 80 to 90 vesselsbased in the Netherlands and Cyprus.The Hartmann vessels are a mix of gastankers, container vessels, bulk carriersand multi-purpose vessels. In addition,there is a newbuilding programme with29 vessels due for delivery to Germanybetween 2006 and 2009.The vessels will be delivered from China,Germany, Korea, Romania and Japanand will consist of altogether 16 containervessels, two suezmaxes and 11 gastankers.beacon December 2005

The coMpany is The nuMber onecarrier of eThylene gasin The world in Their segMenTvessel specification and design. During thebuilding period, Hartmann’s engineeringdepartment may actually take over projectresponsibility at the shipyard.Hartmann entered into the containertrade with an order for two containervessels from Poland in 1999-2000.According to Mr. Schulz, the timing wasnot ideal. However, business developedpositively and in 2003 another ninecontainer vessels were ordered as partof the current newbuilding programme.Seven of these are being delivered fromWismar and two from Emden.– You cannot always have rationalarguments for everything, says Mr. Schulz.– Sometimes you just have to go by yourgut feeling. This is what we did when weordered two suezmaxes with deliveryfrom Japan in 2008.Together with its affiliate, GasChem Services, Hartmann Shipping manages a pool of over 40 gas carriersOver the years, Hartmann specialised indry cargo and gas tankers, and definitelyintends to stay big within gas tankers.Today, the company is the number onecarrier of ethylene gas in the world in theirsegment and, together with its affiliatecompany GasChem Services, Hamburg,it manages a pool of over 40 gas carriers.Hartmann Shipping does not only operatethe vessels, but is involved right down toFrisian honourHartmann employs 65 staff membersonshore and approximately 400 at sea.Crews consist of one or two Germanofficers, plus occasional trainees, andthe rest are either Polish or Filipino. Asmany as 80% of the vessels have mixedcrews. Ten percent fly German flags,while the remaining vessels fly otherEuropean flags, such as the Cypriot flag.8 beacon December 2005

Like many shipping companies, Hartmannhas a special tradition when naming itsvessels. As a rule, names now start with‘Frisia’ in honour of the local Friesland area.Investments from withinAs new vessels come into the group, othersare sold, leaving an average ‘holding time’for vessels of only 4.5 years.Investments are important for the company,and this area is organised under aseparate entity, ‘Emission’, handlingHartmann’s investments internally.– In this way, says Mr. Schulz, investmentsare not driven by outside investors, butcan be managed by Hartmann Shippingaccording to our own preferred strategy.Hartmann Shipping views itself as ‘servantsfor cargo’ and first studies demand forcargo transportation before making anyinvestment decisions.Future strengthDay-to-day business seems to be wellorganised and running smoothly, but inHartmann Shipping there is also an eagerawareness of the future. Mr. Hartmannhas three children and there are alreadyplans for the future succession of theyounger generation. One daughter is stillstudying and another is an independentlawyer with an office in ‘Haus derSchiffahrts’. His son, Dr. Niels Hartmannis now preparing for a future as head ofthe Hartmann group.Skuld connectionHartmann’s history with Skuld is long termand almost goes back to the founding ofthe company.Hartmann has strict quality requirementsand there are few claims. Still, accidentsmay occur, such as the grounding of P&ONedloyd’s Capri off the Greek island ofKalymnos in March 2003. According toMr. Freerk Bernstorf, Fleet InsuranceManager at Hartmann, close contact withSkuld staff was helpful in this situation,including on-site aid from claims handlingand technical personnel.– We practically know everybody there,he says, referring to Skuld’s Syndicate 4– the so-called ‘German syndicate’ – andmentions claims handlers and technicaldepartment staff, as well as assistantshandling important documentation throughoutthe year.Hartmann’s membership in Skuld reaches back almost20 yearsFACT FILEHARTMANN SHIPPINGn Founded in: 1981n Founder: Captain AlfredHartmann, 58n Managing Director: Mr. DietrichSchulz, 42n Current fleet (Germany): About 30gas tankers/container vessels/bulkcarriers/multi-purpose vesselsn Newbuilding programme: 29 vesselsn Employees: 65 on shore/approx.400 at seaDietrich Schulz, Managing Director of HartmannShipping, standing outside the company’s headquartersbeacon December 2005 9

loss PreVentIon uPdate”Imagination is moreimportant than knowledge”Albert EinsteinA good imaginationgoes a long wayBy Morten Lyssand, Loss Prevention Officer, SkuldIt is a known fact that at least80% of all accidents at sea aredue to human error. But whatis actually being done to reducethis very high percentage?From Skuld’s databases, the club can verifythat this figure seems to be accurate.In addition, even though the total numberof accidents is decreasing, the numberof person-related accidents remain thesame or may even be increasing.We know from studies that most seafarersare more indifferent to risk thanthe average person. As a consequence,more emphasis should be placed on howpeople on board view and handle risks.Accidents caused by human error inevitablyoccur wherever people work. However,what is actually done to reduce thecauses of these accidents is the importantissue. What you are looking for arecompetent, motivated, well-educated andskilled seafarers. How do you know if aseafarer has the right qualities to do thejob safely and competently, thus avoidingtime-consuming and costly accidents?And where can you find these high-calibrepeople?It is my assertion that you already havethe right people. The answer is thatyou simply have to systematically train,motivate and educate them. And the mostimportant part from a safety-behaviouralA good imagination helps crew recognise hazards and reduce riskpoint of view is to educate them in imaginingand managing possible risks.It is impossible to see from a Standard ofTraining, Certification and Watchkeeping(STCW) certificate whether a personis careless when it comes to possiblerisks. You need to create a programmefor those on board that increases theircompetence and skills in imagining andavoiding possible hazards in day-to-dayactivities.Why emphasise this training?First of all, it is required by the ISM Code.The code specifies that you “shouldestablish safeguards against all identifiedrisks” (1.2.2.1). To accurately identifyknown risks and be able to imagineaccidents that have not yet occurred,adequate training is required.Secondly, training will motivate yourcrew, and a motivated crew is a loyalcrew. Experience shows that companieswith a loyal crew and low turnover havefewer accidents than other companies.And finally, it will improve your reputationas a company with fewer delays, feweraccidents and a higher all-round standardof service.Please read more on safety behaviourand how you should implement a trainingprogramme to achieve your goals on thenext page.0 beacon December 2005

loss PreVentIonBy Morten Lyssand,Loss Prevention Officer,SkuldThe behavioural safetyprocess can help you!Improving an organisation’s ability to manage and develop its competence is important when thevalue creation within an organisation relies heavily on its employees’ skills, attitudes and knowledge.This is especially true in the maritime industry with its many statutory requirements and multinationaloperations. The potential for improvement within most organisations is generally greatand the overall reward for implementing improvement programmes is safer and more efficientbusiness operations.To enhance good competence-buildingprogrammes you must set up measurablegoals and analyse what you want toaccomplish. For instance, if you have toomany crew injuries from mooring operations,your goal for the coming year may beto reduce this type of injury by 50%. Youwill then have a measurable goal andcan start analysing what training andeducational needs your crew has in orderto reduce the number of injuries.Behavioural safetyOne way of analysing what training andeducational needs your crew has is touse a process called ‘behavioural safety’or ‘behaviour-based safety’. Behaviouralsafety involves creating a process thatclearly defines a set of behaviours withinan organisation that:• Reduces the risk of injury/accidents• Identifies behaviour which causesinjury/accidents• Collects data on the frequency andconsistency of those behaviours• Identifies behaviour which reduces andstops injury/accidents• Ensures feedback and reinforcement tocreate support for these positive typesof behaviour.Crew Resource Management addresses the management of operational tasks, as well as stress, attitudes and riskbeacon December 2005

VIewPoIntPhoto: ScanpixThis process may be familiar to thosewho have worked with Crew ResourceManagement (CRM) or Bridge ResourceManagement (BRM), which include:• Leadership• Teamwork• Workload management• Communication• Situation awareness• Decision-making• Personal limitations• Stress and fatigueCRM addresses the management ofoperational tasks, as well as stress,attitudes and risk. CRM recognises thereare many contributing factors to jobeffectiveness and safety, such as individual,organisational and regulatory factors, andthat these factors must be anticipated andplanned for.The new element in behavioural safetyis that it involves all crew members aswell as office staff. In a behavioural safetyprocess, crew members usually conductobservations and provide feedback onsafety practices within their own workareas. These observations provide datathat are used as a basis for a competenceprogramme or as input for a ‘best practice’proposal.A team consisting of the crew andonshore staff takes responsibility forplanning and implementing behaviouralsafety. This team typically completes fivesteps in the implementation process:The new eleMenT in behaviouralsafeTy is ThaT iT involves all crewMeMbers as well as office sTaff• Design the observation and coachingprocess• Plan how the data will be used• Plan recognition and rewards insupport of the process• Plan the training and kick-off process• Plan for maintaining the processThe implementation of such a processrequires support and involvement fromemployees, management and health andsafety executive (HSE) staff.To motivate the crew and staff to continuetheir safety work, incentives normally needto be in place. Awards should primarily bebased on maintaining the safety processand a safe workplace, as measured byobservation data, such as lost-time accidents.Safety awards and positive reinforcementshould be significant enough to achievecompliance while small enough not togenerate false recordings.To learn more about behavioural safety,please see www.he-alert.org (ref: HE00445).MaerskHuman performance problems appear todominate risks in all hazardous industries.Maersk is one operator within the marinesector that has taken this fact very seriously,as shown by the following statistics:• Pre-CRM (1992)- One Nautical casualty per 30 ship years- 6.5 Lost Time Injuries per millionexposure hours per fleet• Post-CRM (1996)- One Nautical casualty per 90 ship years- 3.7 Lost Time Injuries per millionexposure hours per fleetMaersk satisfied its accountants with a15% reduction in insurance premiums forfleet and offshore installations in 1998 asa direct result of this initiative.The organisation’s CRM training for shipand rig crews contains the following basiccomponents:• Establish the occurrence and type ofhuman factor errors• Establish the target group• Establish appropriate measures toassess and measure the success of thetrainingCompetence management systemTo obtain the same excellent resultsas Maersk, you need to manage yourcompetence and training systematically.Not only should your safety efforts be putinto a competence management system,but also all training of your crew andemployees should be managed throughthe same system.The competence management systemis built upon a set of measurable goals.If the goals are not in place or are notmeasurable, you will have no indicationwhether the training is successful or not. beacon December 2005

Maersk achieved a 15% reduction in insurancepremiums for fleet and office installations in 1998through Crew Resource Management trainingThe Competence Management Systemshould at least include the followingelements:• A measurable goal. What is it you want toachieve and how should it be measured?As for Maersk, these goals were onenautical casualty per 90 ship years, downfrom one per 30 ship years and 3.7 losttimeinjuries per million exposure hoursper fleet, down from 6.5 lost time injuries• (Re-) define competence needs toreach the set goal(s)• Assess current competence. Whatcompetence does your organisationalready posses? Who possesses it?• Map competence gaps. If you knowwhat competence you need and whatcompetence you possess, you candefine the gap in competence you haveto fill to reach your goal• Carry out a training needs analysis.From the known competence gap, youcan see who needs training and whattheir needs are• Plan and implement training• Monitor, review and assess results tomeasure level of successThis can be put into the wheel (see diagram),which illustrates the never-ending effortneeded in order to be successful. If theresult of the project is positive, set newgoals, if not, redefine competence needsto try to achieve the previous goal(s).The coMpeTence ManageMenT sysTeM isbuilT upon a seT of Measurable goalsAs can be seen from Maersk’s project, ittook four years to reach the goal. It isunknown whether competence needs wereredefined or altered during this period.However, to summarise, you need to lookat this as a long-term project, apply aThe Competence Management System is never endingmanagement system, set measurablegoals and monitor them to see results.Sources: www.he-alert.org andwww.seaskill.combeacon December 2005

4 beacon December 2005Average container claim costs increasedby 447% from 1991 to 1999

By Chris Hall,Lawyer, Skuld (Far East) Ltd.,Hong Kongloss PreVentIonContainers overboardModern container shipping had its modest birth in April 956 when Malcolm McLean’s modifiedtanker carried 58 detachable truck trailers (with the wheels removed) from New York to Houston.Today, over 90% of the world’s cargo is shipped using containers.Although the container ‘revolution’ is widelycredited with a dramatic reduction in cargoclaims, the number of containers lostoverboard is estimated by the AmericanInstitute of Marine Underwriters (AIMU) atbetween 2,000 and 10,000 per year. It hasalso estimated that the average cost ofcontainer ship claims increased by 447%from 1991-1999. Accordingly, containerslost overboard is a large and expensiveproblem for the container trade industryand their insurers. Fortunately, there areways to reduce this cost.. Use the right vesselThe vessel must be suitable for the safeshipment of containers. For instance,containers under deck should be securedin ‘fixed guides’, which are vertical railspermanently fitted in the holds wherecontainers are stacked safely.The deck should be outfitted with permanentdeck shoes and container interlock fittings(i.e., twist locks) and an approved lashingsystem.The container securing system should beregularly inspected and maintained. Inparticular, the fixed guides, deck shoes,twist locks and lashing gear should becertified fit for the purpose (with certificateson board) and regularly examined forcracks, heavy rusting, distortions andsigns of general wear and tear.. Survey before the voyagea) Check container conditionThe strength of a container lies in thecontainer framework, which is designed toallow a maximum load on the corner posts.It is crucial that individual containers arefit for carriage, both to protect the cargowithin the container, but also in respectof their load-bearing capacity. For instance,if a container at the bottom of a stack hasa damaged corner post, it could collapseand cause the containers above to falloverboard. It is therefore advisable forcontainers to be inspected before loading.If there is any doubt about a container, itshould be rejected and replaced with asound container. Each container shouldalso have a valid container safety certificate,renewable every 2.5 years.b) Check container weightThe loading and placement of containerson a vessel requires careful planning andinteraction between the container lineplanners, the loading terminal planners/stevedores and the vessel’s crew. Theweight of an individual loaded containeris crucial in determining where it shouldbe placed.The first consideration is the grossweight of the ‘container stack’. Eachstack of, say, six containers on deck hasa maximum ‘stack weight’, as provided bythe given vessel’s standard loading plan.The planners must take care to ensurethat the total stack weight does notexceed the vessel’s maximum. If it does,the stack could place too much stress onthe lashing system and cause failure.The other consideration is the individualweight of a container within a given stack.The loading and lashing plans for a vesselare designed around strict parameters fora given container stack. Generally, heavycontainers must be loaded at the bottomof the stacks and lighter ones at the top.A vessel’s loading plan states the maximumweight for a given container position in thestack. The various position limits shouldnot be exceeded. If they are, it could throwstrain on the lashing gear, which in turncould cause racking and toppling forcesto affect the whole stack. Alternatively,exceeding the stated parameters couldcause strain on the twist locks, particularlytowards the bottom, which could causethem to work loose from their shoes. Bothof these possibilities could cause containersto be damaged or even lost overboard.One problem is that the shippers may(knowingly or unknowingly) incorrectlydeclare container weights. The variousplanners might then use incorrect dataweights in determining the proper positionof a given container. If, for instance, thevarious planners have assumed acargo weight of 10 tons for a containerbeacon December 2005 5

Payback time – ensure that security and lashingequipment is suitable and approved for the vesselMasTers should Take care To buy onlyproperly ManufacTured equipMenTfroM repuTable coMpanies, andobTain proper equipMenT cerTificaTesin a proper manner. Although all goodsystems have a built-in safety factor,any problem with any part of the systemcould place unacceptable forces on otherparts of the system, leading to containersbeing lost overboard.Photo: Courtesy of the USCGIf actual container weight varies from declared weight the original stacking plan may not workthat actually weighs 20 tons, the resultingincorrect placement could cause aproblem either with the maximum overallstack weight, or the maximum individualcontainer weight within the stack. Bothsituations could lead to containers beinglost overboard. Accordingly, membersshould, if possible, double check theweight of individual containers to ensurethat they are what the shippers havedeclared.. Properly secure the containersAs noted before, a container vesselshould be equipped with approved lashingand securing systems. Modern systemsare comprehensive and require all ofthe items within the system to be usedIn this respect, it is important that thesecurity and lashing equipment is of theproper type. Some owners have mistakenlybought ‘brown’ (or counterfeit) equipment,which may appear to function, but is of asubstandard quality. When such equipmentis put under stress, even within normallyacceptable limits, there may be failure.As such, masters should take care to buyonly properly manufactured equipmentfrom reputable companies, and obtainproper equipment certificates.The equipment should also be of a uniformtype to facilitate proper use. For instance,there are right-handed, left-handed andsemi-automatic ‘twist locks’. Vesselsshould only use one system to avoiderrors being made by stevedores/crew(such as “locking” a twist lock in thewrong direction).Further, (i) the various lashing barsshould be placed, tensioned and securedin a proper manner, (ii) the heights of thecontainer tiers should ideally be ‘even’,6 beacon December 2005

Over 200 vessels were run agroundby Hurricane Katrinaenvironmental guidelines in the rebuildingprocess. Employers will be faced with awide range of issues resulting fromthe displaced workforce, layoffs andabsenteeism, compensation and employeebenefits, and compliance with occupationalhealth and safety requirements.Katrina will have a far-reaching impacton the insurance industry. Preliminaryestimates of insured property and casualtylosses are USD 34.4 billion, excluding themarine and energy sectors. Flood lossesmay be largely uninsured. In addition toproperty and flood damage claims, therewill be claims for business interruptionand disputes over coverage and exclusions.Total economic losses are likely to amountto at least USD 100 billion.In spite of its destructive force, Katrina wasonly the third most powerful hurricane ofthe season, ranking behind HurricanesRita and Wilma in intensity. Rita hit theTexas/Louisiana coastline in September.Damage claims from the storm areestimated at USD 4.7 billion. In October,Wilma struck heavily populated areas onthe west coast of Florida. Losses may beas high as USD 12 billion.Like the Tsunami of 2004 and the Kashmirearthquake in October, HurricanesKatrina, Rita and Wilma are first andforemost humanitarian tragedies, andour thoughts and sympathies are withour friends, colleagues, their familiesand others affected by the devastation ofthese natural disasters.Photo: ScanpixKatrina had a devastating effect on the oil industry in the Gulf, disrupting oil production, importation and refiningbeacon December 2005

legal notesA human tragedyThis case dates back to a very tragic day in May 998, when David Andrews and his fellow crewmemberswere returning from their rotation duty aboard the R/V C-Searcher. It shows how memberscan be held liable for crewmembers’ medical expenses even though they are not negligent or at fault.And it shows the terrible price that David Andrews and his colleagues paid for an accident nobodycould have foreseen.The factsA regularly-scheduled crew change wasto take place on 7 May 1998 from theOceanographic Research Vessels Act(ORVA) registered vessel, R/V C-Searcher.Several of the crew from the vesseldeparted that morning via helicopter,which took them to Fourchon/Louisianaheliport. The seismic crew’s employerprovided a van from the company CentralDispatch, Inc. (CDI) to transport theiremployees from Fourchon to the NewOrleans airport.Passengers were six seismic employeesof Petroleum Geo-Services (PGS), thecharterer and Skuld’s member, andone was a crewmember (regular crew)of Edison Chouest, the vessel owner. Onthe way to the airport, when riding northalong Louisiana Highway 1 near GoldenMeadow, a dump truck with a load oflimestone veered across the centerlineon the highway into the oncoming van’slane, striking and causing it to flip androll several times before landing on itsroof. The dump truck struck the van justbehind the driver’s door, continuedin the same direction and ended in theBayou.InjuriesOne crewman was killed in the accidentwith the others suffering varying degreesof injury, the most serious involving DavidAndrews (PGS employee). David suffered afractured neck, spinal cord injury and braininfarct, which rendered him a ventilatordependentquadriplegic.News of the accident reached PGSExploration office in Houston and PGScorporate headquarters in Oslo, Norway,and the entire company was devastated bythe tragedy. The PGS Exploration seniormanagement immediately flew to thearea to co-ordinate, inspect and inform/take care of their employees and families.David Andrew’s careGiven the nature of David’s injuries it isperhaps not surprising that he did notdo well in the first general hospital towhich he was admitted. It was agreed totransfer him to a specialised institution inDenver, Colorado for further assessmentand treatment.Even though PGS knew that David’s carewould be expensive and that the commitmentwould last years, it never tried toshirk its legal responsibilities towardsDavid. Over the ensuing months, PGSensured that David received optimal carein various medical establishments beforearranging for him to be moved into hisown house with medical staff on call tosupport him.Lawsuits/legal responsibilitiesAll injured employees and the familyof the deceased employee retainedcounsel and filed suits in the Galveston,Texas Federal Court and some in theState Court in LaFouche Parish, LA. Thelawsuits were then gathered in Galveston.Initially, the plaintiffs in the case suedPGS, the van transport company and theowner of the dump truck.PGS’/Skuld’s lawyers took an activerole in the depositions to forestall anypotential liability claims against PGS forthe alleged negligent hiring of the vancompany. In fact, before any lawsuit wasfiled, an accident reconstructionist washired to capture the evidence at the sceneso that it could be used in anticipatedlitigation.In becoming involved proactively in thecase, PGS was successful in focusing theclaims against the van company and the beacon December 2005

By Ragnhild Rødsjø,Senior Claims Executive,Syndicate 4,Skuld OsloThe van landed on its roof killing one crewmember and injuring the othersdump truck owner, leaving PGS exposedfor maintenance and cure responsibilityonly. Since U.S. law allows a seaman’semployer to recover maintenance andcure benefits from third parties thatcause injury to an employee, therebytriggering the obligation to pay maintenanceand cure, PGS and the injuredworkers entered into a sharing agreementfor potential monies recovered andagreed to jointly prosecute the case toconclusion.Phase IMediation: On 22 June 1999, the partiesattended mediation in an effort to partiallysettle the matters in controversy. In themediation, David’s lawyer stated thatDavid would most probably need to be ona ventilator for the remainder of his lifeand, with assistance, should be able tospeak on a limited basis and operate awheelchair and computer through the useof a ‘puff tube’. He estimated that David’slife expectancy was approximately 30years and that for medical care, full-timenurses and the like he would needapproximately USD 20 million for lifetimecare. PGS asserted its entitlement torecover approximately USD 1.2 million ithad paid at that point in maintenance andcure for the injured crewmembers whosurvived the accident.During the negotiations, PGS, with Skuld’sconcurrence, decided to accept only a portionof that to which it was due when it acceptedUSD 200,000 in partial reimbursement outof a negotiated settlement fund ofbeacon December 2005

VIewPoIntUSD 3.1 million. However, it reserved itsright to recover the remainder of moniespaid, and to be paid the equivalent outlayfor maintenance and cure benefitsfrom other potentially responsible parties.Without PGS’ agreement to temporarilyforego its right to recover all moniescurrently due, any settlement wouldhave been impossible. This agreementallowed the case to proceed so that Davidand PGS could jointly prosecute theirclaims, seeking full reimbursement onall counts.The resolution of the case against theowner of the dump truck and the vancompany was termed Phase I becauseevidence revealed, both through theaccident reconstruction and witnessstatements during the early stage of thecase against the dump truck owners andthe van company, that there were goodgrounds to sue the dump truck manufacturer.Because the land-based insuranceprograms of the dump truck companyand van owners were limited, it dictatedan early settlement with those defendantsand provided a vehicle for the moreexpensive products liability action.David’s part of the Phase I settlement wasplaced in a Special Needs Trust to providesupplemental funds for his welfare.These funds later became an importantpart of the settlement arrangementsbetween PGS and David Andrews.Phase IIThe product liability case against themanufacturer was set for trial in Louisianaduring March 2001. There were two majorissues:1) A metal support extending from thedump truck’s gearbox to its tie rodfailed. The police believed that thisfailed at impact and did not cause theaccident, while the dump truck owners’expert believed that this part failed justbefore the accident, causing the dumptruck to veer into the van’s lane.2) The dump truck driver stated that itwas a typical workday as he travelledsouth on Louisiana Highway 1 whenhe felt a jolt and the truck began toveer uncontrollably into the oppositelane. He stated that he lost consciousnessand woke up immediately beforehis truck was entering the Bayou. Thedump truck driver testified with utmostconfidence that he was in his own lanewhen he felt the jolt and began crossingthe centerline of the highway.Although on balance the plaintiff had astrong case, it is not easy to predict how ajury will respond to evidence. Unfortunately,the jury in question issued a verdict infavour of the manufacturers. This wasappealed and before the appeal washeard, the parties reached an amicablesettlement.Structured settlement/annuitiesIn addition, in taking immediate steps tosecure David’s benefits under the AD&Dpolicy, foregoing its right of reimbursementunder the Phase I settlement andparticipating in the products liabilityDavid Andrew’s injuries have left him a ventilatordependentquadriplegiclitigation, both by incurring defence costsand by contributing beyond its contractuallimit to the expenses of the case, PGS/Skuld have provided David with stateof-the-artmedical care. From the dateof the incident through November 2003,when the case was finally settled, cureexpenditures had reached approximatelyUSD 2 million.During the case, PGS did not attempt toclaim that David had reached MaximumMedical Improvement (MMI) because ofthe fact that he was dependent on hisventilator. The weight of controlling USlegal authority held that David’s treatmentwas not merely palliative because theventilator kept his condition fromdeteriorating. This notion was also4 beacon December 2005

Contentssupported by the medical evidence givenby David’s treating doctor.There was also a serious question as towhether any US judge would decree Davidat MMI and terminate his cure benefits,which would effectively leave David onhis own to pay for his substantial care.Rather, PGS argued that once Davidbecame qualified for Medicare (publiclypaid health services), they were entitledto terminate his benefits, becausegovernment sources equivalent to theU.S. Public Health Service Hospitals wereavailable to him, as a seaman, such thatPGS’ obligations were extinguished underthe law. Bearing this in mind, the timehad come to bring the parties to the tableto discuss a structured settlement thatwould care for David’s future needs.During mediation set in November 2003,a final agreement was reached betweenDavid and PGS where PGS/Skuld agreedto pay a total of USD 500,000 to extinguishtheir respective future liabilities to Davidas of 31 December 2003. The settlementwas obtained by presenting David witha structured settlement that would paybenefits over his lifetime through thepurchase of an annuity.Most of the funds used for the annuitycame from the very monies PGS/Skuldhad agreed to forego in the Phase Isettlement, which had been depositedin David’s Special Needs Trust. Thatearly decision later became the basis bywhich any future cure exposure could beextinguished.Legal proceedings against the USgovernmentAs PGS/Skuld wanted to have the casefinalised at this point, it was necessaryto have the government acknowledgeresponsibility for David’s care. Because ofa conflict in the law about whether settlementfunds had to be set aside in favourof the government, and due to the factthat the government officials would notcommit to a definitive position, David andPGS sued the government of the UnitedStates of America, seeking a judicialdeclaration that the availability of suchMedicare benefits extinguished PGS’ cureobligation and that the settlement moniesdid not have to be set aside in a trust infavour of the government.The Complaint for Declaratory Reliefwas filed in Galveston on 10 December2003. In early January 2004, before thegovernment’s answer was due in court,the United States government agreed toaccept USD 25,000, a nominal amount fora set-aside trust based on the size of theexpected settlement for future care. Thegovernment also allowed David to put therest of the money in an annuity purchasedby his trust. Once the USD 25,000 isdepleted, Medicare can be billed directlyfor all of David’s future care.MosT of The funds used for TheannuiTy caMe froM The very Moniespgs/skuld had agreed Toforego in The phase i seTTleMenTCONCLUSIONSThis case shows that the potentialliabilities of an employer of crewserving on ORVA approved vesselswithin US jurisdiction are verysubstantial. P&I clubs will respondto off-vessel incidents as long assuch crewmembers are on contractand in transit to and from their work.Even when the employer is notnegligent or at fault, the maintenanceand cure obligations in the US remainindefinite until Maximum MedicalImprovement is reached, which couldbe throughout an injured person’slifetime.The final outcome of this case was aresounding result for all involvedparties, based on an immense teameffort, where the member supportedtheir injured employees 100% andSkuld fully backed its member’sposition. On top of this, PGS andSkuld obtained top-class legal supportfrom Houston lawyer Mr. Jeffrey R.Bale and the firm of Bale & Godkin,LLP, who did a remarkable job andhelped achieve a unique result for allparties. The legal implicationsstemming from the strategiesemployed in this case will representa new platform for similar personalinjury cases in the future, not least byclarifying the US authorities’obligations in case of future medicalsupport and care.beacon December 2005 5

NavigatingDanish watersOn 4 October 005, Skuld published a letter from the Danish Maritime Authority (DMA) tothe International Group of P&I clubs on its website. In this letter, the DMA advises that control ofshipping through Danish waters is increasing and vessels that ignore IMO recommendations(MSC resolution 8 (6)) are being reported to their respective flag states.Is there a duty to use a pilot through theGreat Belt or the Sound?No such duty exists, but both the Danishand Swedish governments encouragepilots and the IMO recommends it. Mostprobably, Denmark is not in a position toforce vessels flying foreign flags to usepilots. This is based on old internationalconventions and the fact that the Danishstraits, to some extent at least, areconsidered international waters. Aftergrounding, the authorities may, however,determine that further passage is nolonger ‘an innocent passage’ and, ifnorthbound to the Skaw, require the vesselto take on a pilot.Carrot and stickPreviously, a state’s interest in controllingthe passage of sea traffic through itswaters was based on national securityconcerns, rather than accident and pollutionprevention, as it is today.All 50 groundings in the Danish straits andbelts over the last seven years are confinedto vessels without pilots. In a safety studyfrom 2005, the Division for Investigationof Maritime Accidents under the DMAconcludes that none of the accidents werethe result of equipment failure. Rather, onevery occasion, the accident was due toinsufficient voyage planning and sub-standard navigation. The message is clear:if you run aground or collide without apilot, then you must concede control to theauthorities and pay the price.Northbound is dangerousWith the exception of one vessel, allgroundings relate to northbound trafficexiting the Baltic. Most vessels had enteredin ballast and then loaded a full cargo, thusbecoming much more vulnerable whennavigating in the shallow Danish waters.There is no such thing as a free groundingDanish law requires that all groundingsbe reported to the authorities. Onceaground, the vessel is automaticallydetained until it is allowed to continue.The vessel is now under Naval Commandauthority and must await the arrival ofpollution response ships. These vesselscost money and the meter starts runningwhen the vessels leave base.Is there a war?The authorities may decide that the riskof pollution from a tanker is high and callon navy helicopters to fly over the areaor, in some cases, order an F16 fighter tocomplete aerial surveillance.To the crew onboard the noise may resemblethat of a war movie, but to the shipownerPhoto: Danish Maritime AuthorityIf you collide or run aground without a pilot then controlof the vessel must be conceded to the authoritiesand the P&I club, it is rather the sound ofa cash register rapidly ringing up thecompulsory services and response measuresthat the authorities see fit to employ.The real selling point for the authoritieswhen marketing the use of pilots is, ofcourse, the rapidly multiplying figures ofany (threatening) oil pollution or damageto the vessel. However, even the lightgrounding of a non-tank vessel running ongas oil in a non-sensitive area will oftencome to at least USD 15,000 – the originalcost of pilots in and out of Danish waters.6 beacon December 2005

By Thomas Bjørn Larsen,Senior Lawyer,Skuld CopenhagenThe law is with the authorities!Danish law has the usual oil pollutionliability rules that are found in manycountries, i.e. strict liability on theregistered owner of the vessel. Inaddition, there are similar liability rulesapplying to the marine environment.Photo: ScanpixThe authorities calculate the costs oftheir vessels and equipment accordingto a daily average rate, including thedays when the resources stand idle. Sofar, Skuld has not been able to convincethe courts that the authorities shouldprovide better documentation. However,the courts indicate that authorities mustbe able to substantiate the figures theyclaim. Further, the extent of the responsemust be proportionate to the risk, ratherthan the ability of the shipowner or theirP&I club to pay. Naturally, Skuld ensuresthat any costs are in line with the club’sexpectation.Skuld’s positionSkuld supports recommendations issuedby the IMO concerning navigational safety.Pilot use in Danish waters is a grey area.On the one hand, Danish authorities andthe IMO strongly recommend pilots and onthe other, they have no real power to enforcethe recommendation. It is up to theindividual shipowner to decide on his ownpolicy for use of pilots in Danish waters.The Karen Danielsen struck the Great Belt West bridgeshortly after departing from Svendborg, Denmarkbeacon December 2005

Photo: Danish Maritime AuthoritySkuld’s response to a grounding or acollision in Danish watersAlthough Skuld prides itself on its highqualitymembership, Skuld-enteredvessels can still run aground or collide– with or without a pilot. In such a case,the team at the Copenhagen officeassists in taking statements, conductsdiscussions with the authorities, provideson-board assistance to the crew and theowners’ representatives, and generallyprovides support for as long as is needed.Most incidents take place within five toforty nautical miles from a coastal town,from where transport to the vessel can bearranged. There is always a launch orpilot boat (!) to obtain, or it may bepossible to hitch a ride with the boattaking divers to the vessel.Despite IMO recommendations, this bulk carrier was not carrying a pilot when it ran aground travelling northboundat Egholm FlakIt is true that piloting costs of USD 15,000are cheap insurance for getting safelyin and out of the Baltic. Any groundingin this area commonly lasts for about24 hours and allows for the responsevessels to arrive, inspection of the ship’sbottom, the ship to be pulled clear andclearance from Naval Command tocontinue sailing. In other cases, theprocess may take weeks.Skuld does not and cannot dictate members’policy, but suggests that the cost oftaking on pilots in and out of the Balticbe included when voyage calculationsare made.The club also suggests that membersconsider adding a clause in all timecharterparties that covers allocation ofpilot costs where they are recommended,but not compulsory. Consequently, thedecision to take on a pilot will be basedless on the issue of cost, but more on thewisdom of accepting the service or not.Denmark is a country where consensusand not confrontation is usually the rule.Rather than simply accepting orders fromthe authorities, or indeed flatly refusing todo what they say, it is Skuld’s experience,that better results and lower costs areachieved if dialogue and negotiations arebegun at a very early stage.We do like to have unexpected visitors, butplease do not run aground. If the worsehappens, however, it is imperative that theclub is involved as early as possible.Safe passage!For the letter from the DMA please see:www.skuld.com (News and Publications,Skuld News).For a report on grounding in Danish watersplease see www.dma.dk/sw8833.asp.8 beacon December 2005

By Lise Larson,Marketing & Communication Consultant,Skuld OsloSkuld School 2005Some of the delegates visit Oslo’s Vigeland’s Park• The conference was very wellorganised and run. Thank you for awonderful visit!• Skuld School is a wonderful platformfor knowledge to be seamlesslytransferred across all barriers• I thought all the presentations werevery good – well thought out andplanned• A great course for those who aresearching for a better understanding ofP&I insurance. I’ll definitely recommendit to friends and colleagues!Why in the world would a group of 8 people from 9 countriescome to Oslo in the middle of October – not the most hospitablemonth of the year? To attend Skuld School 005!The course was held 12-14 October withparticipants arriving from all over Europeand as far away as Togo, United States,Guinea Bissau, China, Bangladesh, India,Mexico, Singapore and the United ArabEmirates. More than half of those presentwere Skuld members while correspondents,brokers and marine insurers, as well asnew Skuld staff, constituted the rest ofthe participants.The course covers the rudiments of P&Iinsurance and provides an introductionto Skuld’s organisation. The fully-packedprogramme is not all hard work, however.There’s time to relax and have fun as well.A dinner at the Norwegian MaritimeMuseum, a morning sightseeing tour ofOslo for early risers (see photo) and anOpen House party at Skuld’s offices arealso part of Skuld School.These events give the group a chance toget to know each other informally, animportant aspect of professional networking.From comments receivedfollowing the course, participantsexpressed their appreciation for thisaspect of Skuld School in particular.Some examples of feedback received onthe course itself:From the beginningSkuld School was held for the first timein 1994 as a small in-house seminar forno more than 20 people. From year 2000,Skuld decided to market the course,unique in the P&I industry, to a wideraudience.In its present form, Skuld School is anintensive three-day course, resulting inthe award of a Certificate of P&I Insurance.The popularity of Skuld School has grownto such an extent that there is now a sizablewaiting list each year.Skuld School 006Next year’s course is held on 11-13October 2006. If you wish to attend, checkwww.skuld.com for information on thecourse, which is advertised in May/June.Invitations are also sent to members andassociates at that time. Please feel freeto contact us if you have any questions.beacon December 2005 9

VIewPoIntArbitrationin SingaporeSMF-SkuldseminarThe Singapore Maritime Foundation (SMF)and Skuld organised a joint seminar on29 September 2005 at the Raffles Hotel,Singapore.Entitled ‘Topical Issues in P&I Insurance’,the seminar covered three main topics:The signing ceremony: Lawrence Boo (left), SCMA, and Arthur Pilkington, Skuld, shake hands on the new agreementSkuld signs Memorandum ofUnderstanding with theSingapore Chamber of MaritimeArbitration.Facilitated by the Singapore MaritimeFoundation, Skuld signed a Memorandumof Understanding (MOU) with the SingaporeChamber of Maritime Arbitration on 27September 2005. Under the MOU, Skuldformally endorses Singapore as analternative dispute resolution centre totraditional locations like London. Skuldis the first P&I club to do so.Over 30% of Skuld’s total tonnageworld-wide comes from the Far East,making it a very important market forthe club. Skuld believes in an Asiansolution for Asian members. With itsgeographical location, reputation forimpartiality and probity as well as thequality of service providers there, Skuldconsiders Singapore ideally placed todevelop into a major international disputeresolution centre.Under the MOU, Skuld not only encouragesits members in Asia to use Singaporefor disputes, but also grants premiumdiscounts for Freight, Demurrage andDefence Cover to those Asian memberswho choose Singapore as their arbitrationvenue. With cost savings of at least 30%in comparison with London or NewYork, the centralised management ofarbitration cases for quicker resolutionand local time zone efficiencies,Singapore is uniquely placed to becomea leading location for the resolution ofmaritime disputes.Since the signing ceremony, at least oneother P&I club has agreed to endorseSingapore as an arbitration centre, andit is Skuld’s hope that others will dolikewise. Skuld wishes the SingaporeChamber of Maritime Arbitration everysuccess in the future.• The evolving role of P&I clubs interrorism risks and the challenges forshipowners• The potential multi-million dollarliabilities for shipowners with regard tocrew by-passing oily water separators• A comparison of maritime arbitrationcosts between London, New York andSingaporeSkuld was represented by Arthur Pilkington,Head of Defence Services and EmergencyResponse and Patrick Wang, Head ofSkuld (Far East), Hong Kong. Dato Jude PBenny represented SMF.The seminar concluded with a cocktailreception.The joint seminar was held at the Raffles Hotel0 beacon December 2005

Hunting high and lowSyndicate 4 in Oslo is keepingup its autumn tradition ofhunting and fishing on theNorwegian west coast. Thisyear, representatives frommembers and brokers inGermany, Finland and Hollandjoined in.Participants came in two groups, eachspending three days at Hitra, a fairly largeisland to the west of Trondheim. Homewas an old traditional fishermen’s village,The group stayed on the island of Hitra to the westof Trondheim, Norway, an excellent place for bothhunting and fishingTop picture: Maik Escherhaus, Hartmann ShippingBottom picture: Joachim Köppelmann, Brise SchiffahrtKvenvær, sheltered from the open NorthSea by the surrounding archipelago.From Kvenvær harbour, some of thegroup left for sea fishing in a 45-footcutter. The area has excellent fishing andthe catch was sufficient for both freshroasted mackerel and a special fish soup.The island Hitra has one of the largestpopulations of deer in all of Europe (morethan 3,000 animals) so there are alsogood opportunities for hunting. Deer areshy animals and quick to flee but, withthe help of local hunting guides, eachgroup still succeeded in shooting one.Evenings were spent enjoying traditionallocal food and drink, and the pleasantcompany of fellow colleagues and businessassociates.beacon December 2005

VIewPoIntSharing knowledgeThe winning teamcollect their trophiesThe group wassplit into teamsand given the samecase to solveThe agenda for the Claims seminarincluded an external speaker lecturing onnegotiating skills. For the remainingtime, the claims handlers had to do thejob themselves. They were split intoteams and all given the task of handlingone particular claims scenario. The winningteam would be the one with the bestSkuld claims handlers from all Skuld offices recently met for athree-day claims gathering, sharing knowledge and discussingclaims handling routines and legal matters.– It is so important that we meet anddiscuss matters of professional importance,says EVP Claes Westman, head of claimshandling in Skuld. – Sharing knowledgeacross the boundaries of syndicates andoffices, getting to know each other andbringing any problem we may have intothe open makes us all better prepared tohandle claims professionally and effectivelyfor the benefit of our members.In October this year, over forty Skuld claimshandlers from the Oslo, Bergen, Copenhagen,Hong Kong and Piraeus offices met for along weekend outside Gothenburg, Sweden.The only exceptions were those who stayedbehind to keep telephone lines open andemergency response operative.The claims gathering was held at Thorskogs Slott, Sweden beacon December 2005

ContentsSkuld seminars inHamburg and Leerpossible solution to the claim througheffective claims handling, a sound useof resources, positive team buildingand an ability to decide on the mostaccurate level of reserves.The different solutions were laterdiscussed and there were lessons tolearn for everybody. The winning teamwas presented with a huge trophy,now in their possession until the nextbi-annual claims gathering, whenall claims handlers will be put to thetest again.During the seminar, several referencegroups were set up for futureprofessional development of Skuld’sclaims handling. The groups cover 14different claims areas from ‘difficultjurisdictions’ to ‘general average’ and‘bills of lading’ to ‘crew matters,’ andwill be important for the day-to-dayknowledge management of Skuldclaims handling.Nearly 100 delegates attended the Hamburg and Leer seminarsTraditionally, over the last 15 years,Skuld has hosted an autumn seminar inHamburg. This year the club also offereda similar seminar to the local shippingcommunity in Leer.Seminars were arranged on 19 and 20October. Some 70 members, brokersand other interested parties attendedin Hamburg and some 25 in Leer. Skuldwas represented by top managementand staff from Oslo syndicate 4, whichhas traditionally handled claims andunderwriting matters for the Germanmarket. This year, Skuld was also happy tointroduce Egil Gulbrandsen and Jörn Kellerfrom Skuld’s new office in Hamburg.The programme included a managementupdate on Skuld’s current situation aswell as a presentation on the evolvingrole of P&I clubs in terrorism risks andthe challenges for shipowners in relationto the CLC/Fund, Athens, Bunkers, HNSand Wreck Removal Conventions.Both seminars were rounded off by drinksand a buffet dinner.beacon December 2005

Personnel newsSkuld GermanySkuld HellasSkuld OsloEgilGulbrandsen,50, the formerhead ofSyndicate 4in Oslo, isappointed Head of Skuld’soffice in Hamburg. Egil studiedeconomics at the NorwegianSchool of Management, has14 years’ seafaring experienceand two years as Underwriterin an insurance company,before joining Skuld as ClaimsExecutive in 1989. In 1998, hewas appointed Manager ofSkuld’s former Tank Department,and in 2000 became Head ofSyndicate 4.JørnKeller, 29,is the newMarketingManager inSkuld’sHamburg office. Following anapprenticeship in Insurance,Jørn finished Insurance BusinessSchool in 2004. He hasthree years’ experience underwritinghull insurance forAllianz Marine & Aviation andMund & Fester UnderwritingAgency.JohanGjernes, 33,is the newSVP Head ofPiraeusSyndicate.Johan has a nautical degree,has studied maritime law atthe University of Oslo and wasawarded a MBA from theNorwegian School of Economicsand Business Administration.In 1998, he started in Skuld asClaims Executive in the TankDepartment and was appointedUnderwriting Manager inSyndicate 4 in 2000.AthinaSirimi, 33,is appointedMarketingExecutive inSkuld Piraeus.Athina has studied for fouryears at the Department ofMaritime Studies, University ofPiraeus and received a Mastersdegree in International Transport(Marine Law & Insurance) fromthe University of Wales. Herexperience includes insuranceand claims handling with OceanFreighters Ltd. and TargetMarine S.A., and a position at alocal broking firm, before joiningSkuld Piraeus as UnderwritingAssistant in February 2002.ChristoferKobro, 30,is appointedClaimsExecutive inSyndicate 4.Christofer has two years’officer’s training in the Navyand seafaring experience fromMTBs and supply ships. Hefinished his law degree in 2003at the University of Oslo, whichincluded maritime law studies atthe University of Southampton.From 2003-2005, he worked asLegal Adviser in the NorwegianMaritime Directorate, where hewas responsible for preparationof regulations and legal in-houseservices, as well as representingNMD on national and internationalassignments.Cecilie Holm Nilsen, 26, isthe new ClaimsExecutive inSyndicate 2.Ceciliefinished herlaw degree atthe University of Oslo in spring2005. Last year she studiedContract Law at QueensUniversity in Belfast. Herworking experience is fromrelevant summer jobs.MortenSkomsøy, 30,is appointedUnderwriterin Syndicate 4.Morten hasa Master of Business andEconomics degree fromthe Norwegian School ofManagement, with a majorin Shipping Management.In addition, he finished LLMMaster of Laws in MaritimeLaw at the University of Oslothis autumn. Morten has fouryears’ working experience asSales Consultant, AccountingManager and Project Leader.SebastianWalldén, 31,is appointedClaimsExecutive inSyndicate 1.Sebastian has a BachelorsDegree in nautical scienceand has studied maritime lawand marine insurance law inaddition. He has several years’seafaring experience and hasworked for cruise companies,such as Royal CaribbeanInternational, where he servedas First Officer. For the pastfour years, he worked as ClaimsAdjuster for Atlantica/ModernInsurance in Stockholm.4 beacon December 2005

Contact SkuldSkuld BergenPer G.Thomassen,35, is appointedUnderwriterand ClaimsExecutive. Perhas a Bachelor of ManagementScience from Warwick, Englandand later joined the RoyalNorwegian Naval Academy.He was in the Norwegian Navyfrom 1996-2001, where heserved in MTB squadrons.After leaving the navy, hestarted work for Skuld Bergenas Claims Executive. Alongsidework, he completed a LLMMaster of Laws in MaritimeLaw at the University of Osloin 2004.New Laywer’s LicencesKjell IngeFrotvedt,Lawyer atSkuld Bergen,received hisNorwegianLaywer’s Licence in September2005.AlejandraHardissonSterri, Lawyerin Syndicate 1,Oslo andSkuld DefenceServices was awarded herSpanish Laywer’s Licence inOctober 2005.OsloAssuranceforeningen Skuld(Gjensidig)Ruseløkkveien 26P.O. Box 1376 VikaN-0114 OSLOTelephone: +47 22 00 22 00Telefax: +47 22 42 42 22E-mail: osl@skuld.comBergenSkuld BergenNedre Ole Bulls plass 3P.O. Box 75N-5803 BERGENTelephone: +47 55 30 18 60Telefax: +47 55 30 18 70E-mail: bgo@skuld.comCopenhagenAssuranceforeningen Skuld(Gjensidig)– Den Danske AfdelingFrederiksborggade 15DK-1360 COPENHAGEN KTelephone: +45 33 43 34 00Telefax: +45 33 11 33 41E-mail: cph@skuld.comPiraeusSkuld Hellas1-3 Filellinon StreetGR-18536 PIRAEUSTelephone: +30 210 459 4190-2Telefax: +30 210 459 4194E-mail: ath@skuld.comHamburgSkuld Germany GmbHNeuer Wall 35D-20354 HAMBURGTelephone: +49 40 309 9870Telefax: +49 40 309 98716/17E-mail: germany@skuld.comEmergency telephoneAll offices:+47 952 92 200Internetwww.skuld.comHong KongSkuld (Far East) Ltd.Room 2909,China Resources Bld.26 Harbour RoadWanchaiHONG KONGTelephone: +852 2836 3909Telefax: +852 2836 3219E-mail: hkg@skuld.combeacon December 2005 5

Skuld news‘BBB+’; Outlook PositiveStandard & Poor’s recently announced another upgrade of Skuld’s rating, this timeto ‘BBB+’; Outlook Positive. According to Standard & Poor’s, this reflects Skuld’s continuedstrong operating performance and improvements in capitalisation.rd quarter resultsResults as of 20 November show a surplus of USD 14.1 million.This is the 11th consecutive quarter where Skuld strengthens its free reserves.As a consequence, contingency reserves now stand at a record high USD 127.2 million,which equals USD 4.1 per GT.General increaseSkuld is now preparing for the 2006 renewals. Other P&I clubs have announcedgeneral increases in the range of -2.5% to 12%.In light of Skuld’s policy that premiums should cover claimsand administrative costs, the club is presenting a general increase of 5%.www.skuld.com6 beacon December 2005Return address: Assuranceforeningen Skuld, P.O. Box 1376 Vika, N-0114 OSLO