Newsletter December 2017

Staying ahead in a competitive market

A new format and a new website; new people in our team; Charterama keeps moving ahead. Flexibility is the key word. In this release, you will find some interesting issues on underperformance claims and some basics about charterers liability and the risk of voyage charters.

Many will agree that 2017 was yet another competitive year with premiums remaining under pressure. Obviously, we had to deal with that too, however, as per AJG’s Commercial P&I Market Review, Charterama managed to maintain the same premium income where others showed a decrease in volume. Also looking at the 5 years cumulative result Charterama heads the troops with a comfortable 38% growth.

Charterers Liability Insurance

The Basics

Charterers Liability insurance is a type of coverage which is mainly understood as very complex and probably one of the most overlooked risks. The shipping industry nowadays operates in a world where the liability environment becomes more and more legislative. One of the main reasons for this is an increasing amount of regulation.

Underperformance Claims

Frequently disputes develop under a Time C/P concerning the performance of the vessel. Charterers allege that the vessel sailed too slow or over-consumed bunkers whereas owners allege that, although this could be true, this was beyond their control.

The risk of GENCON

Voyage Charters: an underestimated risk

Chartering a vessel puts charterers in a position whereby they have a potential exposure to be held liable for unexpected and unforeseen incidents. The most frequent claims are damage to hull and cargo claims, however, third party liability like personal injury (or worse) and pollution are also real risks; exposures, which can run into millions of dollars.