INTERNATIONAL SALVAGE UNION
October 2023
New President for ISU The Annual General Meeting of the International Salvage Union was held in Fort Lauderdale, Florida, 12 October 2023. At the conclusion of the meeting, Mr John Witte Jr. Donjon Marine, USA, became the new President of the ISU. Mr Witte succeeds Captain Nicholas Sloane, Resolve Marine, USA, who will continue as a member of the ISU Executive Committee. Captain Sloane said: “It has been an absolute honour and privilege to have been the President of ISU these past two years, and to represent the interests of all our members as we have tackled the major issues facing our industry. The ISU’s own statistics show that our members are facing difficult economic times but we are a vibrant industry and we continue to provide vital services. The ISU members are critical partners for insurers and owners to help meet their ESG requirements. “In the past two years we have made good progress on issues such as the SCOPIC rates and the creation of new guidelines for Special Casualty Representatives and on the BIMCO 2023 Wreckstage contract. We have maintained good relations with the clubs, owners and property insurers. “I am delighted to be handing over to John Witte who comes from a family with a long and proud tradition in salvage. John has
much experience of the industry - both as a salvage master and operational manager - and has demonstrated great commitment to marine salvage and the ISU of which he is a past President and I am sure the leadership of our association will be in good hands.” Commenting on his appointment, Mr Witte said: “I would like to thank Nick for all that he has done for the ISU over the past two years: he has shown great dedication to the role. For my part it is a great honour to be the President of the ISU and I look forward to leading the association as it continues to address the current challenges, in particular, enhancing the reputation of the industry and strengthening further our relationships with shipowners and insurers.” Mr Witte has worked for Donjon since 1982, starting in its marine salvage activities. Over more than 40 years of service with Donjon Marine, Mr Witte has worked in and directed virtually all of its present marine and related activities. He has day-to-day operational and corporate oversight of all of Donjon Marine’s various businesses and operations. In addition, Mr Witte is also director, and provides oversight and guidance, to Donjon Shipbuilding and Repair, a full-service repair and vessel new build facility located on Lake Erie in Erie, Pennsylvania. Mr Witte is a past President of the International Salvage Union
(ISU) and is also a past President of the American Salvage Association (ASA). At the same time, Captain Leendert Muller, Managing Director of Multraship Towage & Salvage, The Netherlands, was confirmed as the vice President of the ISU. Captain Muller is a certified Master Mariner and acting Senior Salvage Master who has dedicated nearly 40 years to the shipping industry, having started his career at sea in 1984, serving as a Captain on board Multraship tugs for 12 years before moving into operational, commercial and management roles. He has served as President of the ISU and as Chairman of the European Tugowners’ Association.
ISU Annual General Meeting 2023 report The ISU's 69th AGM considered and approved a revised set of Articles of Association and Rules for the ISU. The most important revisions relate to ensuring that ISU complies with the requirements of international competition law and also include some “tidying up” of drafting. The meeting also approved Captain Leendert Muller as vice President of the ISU (see story above) and new members
of the Executive Committee, Dominique Caillé and Li Chang. Mr Caillé is a former senior French Navy officer and is managing director of Les Abeilles, France. Mr Chang is the senior salvage adviser to China Rescue and Salvage and Director in of charge of business, marketing and commercial in Guangzhou Salvage. ISU members were updated on legal matters by ISU legal adviser, Richard Gunn, and communications and 1
administration by secretary general James Herbert. The external speaker was Michael T Moore of Moore and Co, a Florida marine and aviation law practice and Chairman Emeritus of the International SeaKeepers Society. Mr Moore outlined his long experience in shipping law and outlined some of the issues connected with the superyacht business.
ISU AGM 2023 report continued ISU past president, Richard Janssen, described the work to conclude the revisions to the BIMCO Wreckstage contract and there was a general discussion about current issues. At the conclusion of the meeting, outgoing President, Captain Nick Sloane of Resolve Marine, brought down the ISU’s
much cherished ceremonial gavel (picture in montage below) which is made from the timbers of the Swedish ship RIKS-WASA built in 1599 and wrecked 1623. He then welcomed incoming President, John Witte of Donjon Marine (see story front page). Mr Witte thanked Captain Sloane for his hard work and commitment to the association during his presidency.
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As well as the formal meeting there were visits to the Nova Southeastern University Oceanographic Research Centre and historic sites in Fort Lauderdale. The annual ISU golf match was played at Fort Lauderdale Country Club, and a gala dinner was enjoyed in the Conrad Beach Hotel.
Rapid response to the FREMANTLE HIGHWAY fire The 18,549 dwt car carrier FREMANTLE HIGHWAY experienced a significant fire while passing north of the Dutch island of Ameland in July this year. It is a UNESCO World Heritage Site which previously witnessed the MSC ZOE incident and ISU members MULTRASHIP and SMIT joined forces to deal with the incident. Multraship’s ERTV GUARDIAN was immediately dispatched to the casualty when the distress call came in. Tug HUNTER and fast rescue vessel HURRICANE from Rederij Noordgat, contracted by the joint salvors, also immediately responded from Terschelling. HURRICANE was first on scene and resucued two of the crew. Lifeboats from the Royal Dutch Lifeboat Association (KNRM) also attended. The fire spread so rapidly that the crew was left with no alternative but to jump from the ship. Tragically, one crewmember lost their life and several were severely injured and taken to hospital. While the firefighting response was underway, Multraship and Smit were appointed as co-contractors for the salvage operation under Lloyd’s Open Form (LOF). Working in tandem, Multraship and Smit’s teams worked with a range of specialist partners to help douse the flames and stabilise the vessel and its cargo of 3,700 cars. This critical step required not only skilful firefighting/boundary cooling, but also strategic planning to ensure the structural integrity and stability of the vessel was not compromised and that the cargo and bunkers onboard, as well as the firefighting water, were safely contained. Extensive effort and analyses were carried out for the specific risks associated with the batteries of the electric and hybrid vehicles onboard. And there was assessment of possible places for shelter and ports of refuge to take the vessel for further stablisation and the next steps in the operation such as discharge and storage of the cargo, disposal of pollutants onboard. There was also liaison with authorities and other stakeholders about the impact on the immediate surroundings and environment. Once the fire was subdued after burning for nearly a week, attention shifted to safely towing the vessel to Eemshaven, which was designated by the Dutch
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Ministry of Infrastructure and Water Management as the Port of Refuge. The salvors said that it is “thanks in large part to the strong relationships and trust that the we had with the various authorities and other stakeholders that a port of refuge was provided at all, given the risks and the unknowns that this type of incident held.” Under intense media scrutiny, the casualty was towed towards Eemshaven, by Multraship's MULTRATUG 20, assisted by its tugs GUARDIAN and MULTRASALVOR 4, as well as FAIRPLAY 30, of ISU member Fairplay Towage Group, BARNEY of Herman Sr. and WATERLINES of Wagenborg Towage, also an ISU member, and which were coordinated by the salvors’ experienced salvage and tow masters in conjunction with local pilots. The towage was performed very carefully and the salvage team continuously monitored the casualty’s condition and any changes - ready to adjust their response plan as necessary.
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Once safely in port and with all of the necessary inspections completed, focus shifted to removal of bunkers and firefighting water and cargo recovery, the scale of which the salvors said was “quite remarkable” and involved the washing and unloading of over 900 cars from the lower decks alone. Multraship and Smit said that their extensive experience and their “shared determination to deliver worldclass support” was evident as the teams, assisted by specialists, meticulously prepared and executed the extraction of the cars from the vessel, including the water-affected, unstable EVs. The salvors said: “That the vessel was safely redelivered to her owners after just over six weeks is testament to the unwavering commitment and cooperation shown by all. The successful salvage operation of the FREMANTLE HIGHWAY demonstrated on the world stage the critical role salvage companies play in maintaining maritime safety and safeguarding the environment and serves as an important reminder to industry of the value of engaging quickly and cooperatively with salvors.”
Members’ News ISU welcomes the following new full member: Serivmagnus, Argentina Servimagnus is a leading company in salvage and wreck removal operations, scrapping, heavy lift, maintenance of aids to navigation, dredging and hydraulic work throughout Argentina and South America. It provides innovative and high-quality services with a profesional staff and highly trained crew committed to its activities, but also with a diversified fleet of large equipment such as the two biggest floating cranes in the region, tugs, workboats and dredgers (picture right). Address: Av. Ramon Castillo 850 Buenos Aires Argentina (ZIP C1104) Tel: +54 11 5263 3200 Email: info@servimagnus.com.ar Web: www.servimagnus.com.ar Tsavliris Nicolas A Tsavliris received the "President's Award", the highest distinction awarded by Athens College, for his “invaluable services” to the institution. Mr Tsavliris was honoured for his 50year involvement and contribution to the success of Athens College (HellenicAmerican Educational Foundation). Mr Tsavliris said he accepted the "Life Achievement Award" with great pride and emotion. Nicolas Tsavliris graduated from Athens College in 1966 and upon completion of his studies in 1973, he formally joined the family business,
Tsavliris Maritime Group. Separately, INTERMEPA, the International Marine Environment Protection Association, representing national MEPAs worldwide, unanimously elected Ms Semiramis Paliou (HELMEPA Chairperson) and George Tsavliris (CYMEPA Chairman) as Chairperson and Vice-Chairman of INTERMEPA, for the next two years. The high-level Steering Committee, comprising the Chairpersons and Directors of the MEPAs, including CYMEPA (Cyprus), HELMEPA (Greece), NAMEPA (North America), NIMEPA (Nigeria), PHILMEPA (Philippines), TURMEPA (Turkey), UKRMEPA (Ukraine), and URUMEPA (Uruguay), elected the new heads of INTERMEPA.
Mr George Tsavliris has served as INTERMEPA Chairman in the past. Ms Semiramis Paliou is the first woman Chairperson (picture below). Mr Tsavliris said: “Amidst the challenges presented by the recently revised IMO GHG strategy, aiming for net zero GHG emissions from shipping by 2050, INTERMEPA emerges as a prominent point of reference for sustainable development initiatives worldwide.”
Salvage and Wreck Conference The Seatrade Maritime Salvage & Wreck conference is slated for 6 – 7 December at London’s Leonardo Royal Hotel London City. The organsisers say there are more than 30 speakers and that the conference will “deliver a comprehensive industry update while providing an abundance of opportunities to network with both new and familiar faces.”
President, John Witte, Donjon Marine, will give the opening address. Discounts are available to both full and associate members of ISU: • Full members can save 40% when using VIP code FKT3882IMISUFM • Associate members can save 20% when using VIP code FKT3882IMISUAM
ISU members will be well represented as speakers and panelists. New ISU
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To register visit: https://informaconnect.com/salvagewreck-removal/purchase/select-package/ Once you have added your ticket(s) to your basket, you will be prompted for a “VIP code” to the right of the page, in line with “Items in your basket”. Please use the discount code as provided above.
Donjon Smit responds to Port Newark ship fire Late in the evening of 05 July 2023 a fire broke out on deck 10 of the RoRo vessel GRANDE COSTA D'AVORIO while at Pier 16 in Port Newark, NJ, USA. The vessel's crew and the local fire department attempted to combat the fire, however two firefighters unfortunately lost their lives in the line of duty. In the early hours of 06 July the owners of the ship activated the vessel response plan and professional salvors, Donjon-SMIT were then engaged under a Lloyd's Open Form (LOF) salvage contract. The salvors immediately mobilised a substantial array of resources to join the on-scene local resources of the Fire Department of New York and other local fire departments. Over 70 marine firefighters and salvage professionals were mobilised with firefighting pumps from various key Donjon-SMIT depots including Hillside, New Jersey; Erie, Pennsylvania, Houston; Miami and New Orleans.The fire was officially declared extinguished on 11 July after 6 days of round-the-clock offensive firefighting operations.
Additional salvage services included engineering system restoration, general vessel caretaking and security, cargo removal - 134 containers offloaded along with 480 damaged vehicles - removal of some 800 tonnes of heavy fuel oil to a fuel tank barge; tow preparations and towage to Croatia by the Boskalis tug
SOVEREIGN for onward refit and repairs. The project was overseen by a Unified Command which comprised of Port of New York and New Jersey, the Owners' Qualified Individual, and the US Coast Guard. Ongoing investigations are being conducted by the competent authorities.
bow and forepeak. On the Tsavliris refloats bulker bulbous starboard side, this resulted in a rupture On 3 September 2023, the bulk carrier CARAVOS LIBERTY - 63,301 dwt and laden with 60,500 tonnes of steam coal in bulk - grounded some 50 miles south of Balikpapan, Indonesia. The vessel was en route from East Kalimantan, Indonesia, to Magdalla Port, W.C. India. On 4 September, Tsavliris despatched the AHTS NMS BRAVERY - BHP 5,200 and 80 tonnes BP - from Balikpapan, Indonesia, arriving at the casualty’s position the following morning. Additionally, Tsavliris mobilised two utility vessels to transport the salvage team and their equipment to the casualty. The salvage team, comprising a senior salvage master, two salvage engineers, a naval architect, a rigger and a diving team of seven, boarded the casualty in adverse weather and strong currents. Once conditions improved, the AHTS NMS BRAVERY came alongside and underwater inspections were carried out revealing significant damage to the foremost area bottom plates of the
and a hole approximately 3 x 3 metres in size. The frames, pillars and stiffeners inside the forepeak tank’s internal structure were bent inward/upwards approximately 4m from the bottom and were tangled. Two cracks were found on the port side bottom plate, as well as a smaller hole on the portside. Inside the forepeak tank, a significant quantity of broken rock and sand was observed. A refloating plan was submitted to the local authorities with efforts to refloat the casualty scheduled for next spring tides, between 16-20 September. On 17 September, the Tug SYUKUR 52 towed the Barge SYUKUR 53 alongside the casualty. The plan involved a combination of ballasting forward ballast tanks to keep the vessel in position, lightering about 1000 tonnes of cargo, pressurising with compressed air and ballasting/deballasting several compartments to adjust the vessel's trim and achieve the desired draft at the bow. On 18 September, the casualty was successfully refloated and the lightered 5
cargo was reloaded. On 19 September, the vessel, escorted by the Tug MNS BRAVERY, arrived safely at Balikpapan anchorage area ''A''. The scope of temporary repairs to enable the vessel to resume her voyage was determined and approved by Class. They consisted of Brocco underwater holes (crack arrestors) to stop crack propagation, the cropping of protracted bottom plate and connection of ship air supply to pressurise the forepeak tank. The five week salvage operation was completed successfully and the casualty resumed the voyage to her destination.
Associates’ and Affiliates’ News ISU welcomes the following new Associate Member: Liberty Gasturbine Holland BV Baardmeesweg 23 3898 LD Zeewolde The Netherlands Tel: +31 36 5359300 + 31653204598 (mobile) Email: Sales@libertygasturbine.com web address: www.libertygasturbine.com Liberty Gasturbine has been in business for 34 years and specialises in innovative methods for suppressing fires, washing down and diluting gases and smoke, and cooling tanks and other objects. Its products are gas turbine driven. The TRS STEAMEXFIRE systems are high flow inert gas generators with capacities up to 25 M3 inert gas per second, mixed with steam. They have unlimited production as long as water, fuel and fresh air is available and are for all fires in enclosed environments like mines, tunnels and vessels.The RS FOG system is a high flow fog (foam) generator capable of producing up to 180 meters of throw length. There is high capacity for cooling tanks, boundary cooling, washing down smoke and diluting gasses. The firm says the advantages of jet-driven, high-flow inert gas generators and high flow aerosol generators mean that boundary cooling for vessels is six times more effective because of its fine water droplet size. MFB Solicitors MFB Solicitors has announced the arrival of casualty specialist and Master Mariner Martin Dalby, who joins the
Wakashio report The Japan Transport Safety Board has completed its investigation into the grounding of the bulker WAKASHIO off Mauritius. The vessel spilled about 1,000 tonnes of fuel oil into the water near a protected lagoon, prompting an extensive cleanup effort. According to the JTSB, the accident occurred because the crew had passed too close to the coastline in an attempt to get cell phone coverage. In July 2020, the bulker was under way in the Indian Ocean on a voyage to Brazil when the master ordered its course changed to bring it within five
partnership. Mr Dalby is well known in the market having worked in shipping law for 25 years, 15 as partner in leading firms. Before coming ashore, he served in tankers, bulkers and RoRos for 10 years, up to Chief Officer, and in bulk liquids terminals in operational roles. Mr Dalby has extensive experience working for contractors and respondents in LOF salvage, common law salvage and wreck removal, including taking evidence in more than 40 salvage cases worldwide and taking many claims to arbitration.
The guide will suit on board deck and technical officers; those training or providing training in liquefied gas transportation and anyone engaged in the transportation of liquefied gas by sea. This new edition is priced at £470 and is available in print and ebook. Visit https:// publications.ics-shipping.org
International Chamber of Shipping ICS has published the fourth editon of its Tanker Safety Guide (Liquefied Gas). It has been developed and reviewed by senior industry experts with direct experience in the field and is described by ICS as a “comprehensive guide presented in a user-friendly and modernised format, with a significant upgrade in the visual representation of technical information, including infographics and flow diagrams.” New content includes • Alignment of the ship/shore safety checklists with ISGOTT 6. • Emphasis on simplifying the human element processes on board to reduce the chance of root cause accidents attributed to human element. • New elements on bunkering and simultaneous operations. • Expanded guidance on rollover, enclosed spaces and mooring. • Updated section on reliquification to incorporate new technologies. • Useful and relevant annexes pulled into the main body of the guide for easy reference.
nautical miles of Mauritius so that the crew could connect to terrestrial cell reception. According to JTSB, the crew had previously approached the coast of Mauritius - and other countries - for the same reason. Then captain did not order detailed marine charts for the coastal waters where the ship would navigate and the water depth along this part of the coast was less than 20 metres, too shallow for the 100,000 dwt bulker. As the WAKASHIO approached the island, the crew again changed course to navigate to within about two nautical miles of the coast. The captain and the first officer were preoccupied with the strength of their cell phone signals as the vessel approached a shoal and the VDR 6
ASA 2023 Annual Meeting The American Salvage Association Annual Meeting will take place on 30 November 2023 at New Orleans, LA, USA at the Morial Convention Center. It has been scheduled to coincide with the 2023 International WorkBoat Show also taking place at the venue the same week. ASA says the agenda for the 2023 Annual Meeting will include a series of informative government and industry presentations in addition to member updates and has been organised to allow for ample networking opportunities for all attendees. There will be a reception after the close of the meeting. Visit http://www.americansalvage.org/ calendar.html
record suggests that they were discussing the balance and activation of their SIM cards up until the time that the ship went aground. Bad weather and local delays meant a salvage tug took days to reach the scene. The ship's hull suffered continued damage in this period and released about 1,000 tonnes of fuel into the water. The engine room flooded and the hull begun to buckle. The ship eventually broke up on the reef leading to a lengthy wreckremoval process. The findings are similar to previouslyannounced investigation reports, including one by shipowner, MOL, and another by the flag state, Panama.
Smit completes FSO SAFER oil transfer In August Smit announced that it had removed all cargo from the FSO SAFER, located off the coast of Yemen in the Red Sea. During this United Nations (UN) coordinated operation, over 1.1 million barrels of oil were successfully transferred to a safe and modern replacement tanker moored alongside the FSO SAFER. The successful completion of this complex operation has averted a disaster that could have had serious humanitarian, environmental and economic consequences. Before the transfer of the oil, the salvage team conducted a number of preparatory activities. The Boskalis multipurpose support vessel NDEAVOR arrived at the site of the FSO SAFER in late May and the salvage team conducted a thorough inspection of the vessel and its cargo. In addition, various measures were taken to ensure a safe working environment. Preparations were then made to transfer the oil to the replacement Very Large Crude Carrier (VLCC) purchased by the UN. The VLCC was moored alongside the FSO SAFER on 23 July with support from two Smit Lamnalco tugs and oil screens were installed on the bow and stern between the two tankers as a precautionary measure. Following this mooring operation, oil transfer hoses were connected between
the FSO SAFER and the VLCC on 25 July and hydraulic pumps were installed to transfer the oil to the VLCC. The final activities of the successful operation included washing of the tanks, after which all of Smit’s resources were demobilised from the site. The departure of the salvage team from Yemen marks the end of a complex salvage operation that began in late May and a journey that began more than two and a half years ago. FSO SAFER will now be prepared for transport to a recycling yard under the responsibility of the UN. Almost at the same time as the FSO SAFER operation, Smit colleagues on the other side of the Atlantic were working on two other major salvage operations. In Mexico, a RoRo vessel - which was also carrying a cargo of hundreds of cars - was refloated after it ran onto a reef. Both the
coral and wildlife were threatened by the casualty. To make the salvage possible, a large number of cars were moved around inside the vessel to distribute the weight better. The ballast conditions were also adjusted and then the vessel was refloated with the help of three tugs. Elsewhere Smit was involved with two major vessel fires, the FREMANTLE HIGHWAY off the Dutch coast and the GRANDE COSTA D'AVORIO at the Port of Newark in the US. See separate stories in this edition of Salvage World. Smit also reports that it has been “continuously busy with several other complex projects for oil and gas and renewables clients (environmental and wreck removal and recovery operations) around the world which are progressing well.” Several started in Q1 and Q2 of this year and will continue into the next quarter and into 2024.
25 years of UK SOSREP system The UK Maritime and Coastguard Agency used World Maritime Day to mark the 25th anniversary of the creation of the role of SOSREP – the Secretary of State’s Representative for Maritime Salvage and Intervention. The widely praised role uses legal powers to minimise pollution impact at sea during major incidents. It was formed after the SEA EMPRESS oil tanker disaster in 1996 when around 72,000 tonnes of oil was released into the UK’s waters. The incident was badly managed and to ensure it never happened again the SOSREP role was created. It gives one individual ultimate control and power to make the final decision during national maritime emergencies, with an overarching aim of reducing the risk to safety and marine pollution. Stephan
Hennig (below right) has been in the SOSREP role since 2018 and says the power to intervene in major incidents is “the opportunity to avoid the worst outcomes and to provide the best solution under any given circumstances”. The deputy SOSREP is Lisa McAuliffe. The 2007 MSC Napoli incident, which saw a container ship deliberately run aground on the instructions of the SOSREP to avoid an environmental disaster, also demonstrated the effective powers of the role in tackling pollution. “This was a true test of the system,” Mr Hennig said. “The SOSREP had to make a decision and that decision was to deliberately beach the vessel. No one was happy about it at the time, but in the years that have followed, almost everyone 7
agreed that it was the right decision. “The thoughts at the time were - do we ground the ship or do we allow it to just break apart in the channel? It will sometimes feel a bad decision and the hardest to make, but those decisions have to be made in often uncertain circumstances.” Aware of the responsibility he holds with this role, Mr Hennig added: “There is a pressure but that is just the way it is in the industry we’re in. Making a decision someone has to do it."
IUMI publishes its 2022 statistics IUMI has published its statistics for 2022 and reports that there is: “positivity for marine underwriters but uncertainty for future sustainability remains.” Total global premiums for 2022 were USD $35.8 billion, representing an 8.3% increase on the previous year. Global income was split by region: Europe 47.7%, Asia/Pacific 28.4%, Latin America 10.3%, North America 8.5%, Other 5.1%. By line of business, the largest share was from transport/cargo at 57.3% followed by global hull 23.4%, offshore energy 11.5% and marine liability (other than P&I covered by IG clubs) 7.7%. Astrid Seltmann, Vice-Chair of IUMI’s Facts & Figures Committee, said: “Marine underwriters have suffered poor returns over several years but from 2020 results started to improve. 2021 and particularly 2022 have shown a relatively strong growth in the global premium base across all lines of business. In combination with a benign claims impact, this has translated into a much better performance in terms of loss ratios, specifically for hull and cargo. “The reasons are complex but are likely due to the post-pandemic rebound in global trade coupled with reduced market capacity, particularly for hull. We’ve seen a continued strong performance from Europe after many years of decline but, while still increasing, Asian market growth appears to be slowing. “But overall, the general trend for global premiums continues to be upwards. For sustainability, claims trends need to be monitored, being coupled with vessel activity, value accumulation, natural catastrophe impact, the use of new technology and inflation impact on repair costs. In addition, fires continued to be a concern in 2022 and also into 2023.” Cargo insurance returned a global premium base for 2022 of USD $20.5 billion but cargo underwriters continue to be concerned with a number of persistent challenges such as mis-declared cargoes, vessel fires, accumulation of risk in single locations, climate change, and political tensions. And a return to pre-pandemic activity,
Above: ISU Secretary General, James Herbert (left) with his counterpart from IUMI, Lars Lange, at the recent IUMI annual conference in Edinburgh.
inflation and the growing number of natural catastrophes are likely to impact on the future claims environment. Global premiums for the ocean hull sector increased by 5.7% in 2022 to reach USD $8.4 billion. With the exception of Latin America which suffered a sharp downturn, all other regions reported an upturn. The distribution of premiums across the regions was relatively static, but the Nordic countries enjoyed a marked increase, possibly due to their activity covering war risks. 2022 saw continued growth in the world fleet as well as its overall value and this, coupled with reduced market capacity, has impacted positively on the premium base. IUMI said claims frequency had a longterm downward trend but has shown some increase after the extraordinary dip in 2020, following a return to precovid vessel activity. Average repair costs have seen some upward trend probably due to the impact of inflation. Major losses were moderate in recent years with the exception of fires but 2023 has seen an uptick including, again, a number of severe fires.
prolonged period of poor returns. That said, we shouldn’t lose sight of future challenges that are likely to inject a degree of uncertainty into all our lines of business. "Asset prices continue to rise and inflationary pressure will only add to the value of claims. The oil price is fluctuating and global trade forecasts vary. Trade routes are changing, not least as a result of the war in Ukraine which, itself, is changing the political landscape. “New cargoes such as lithium-ion batteries are creating new risks that must be fully understood and mitigated, as are new propulsion technologies resulting from our combined environmental protection ambitions. "Climate change and new weather events are also making themselves known to insurers. And we are managing new types of risk such as cyber and having to deal with the accumulation of risk as cargo of increasing value is being stored in single port facilities or is being carried on vessels that continue to grow in capacity.”
Concluding, Jun Lin, Chair of IUMI’s Facts & Figures Committee said: “The overall results from our 2022 analysis do appear to indicate positive growth which is welcomed after a 8
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