Skuld Beacon issue 204

m d.co skul

d Skuilne z e 204 a g a m ch 2013 / issu Mar

E H T rctic A

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Viewpoint Douglas Jacobsohn President & CEO

A good start to the year Welcome to a promising 2013. Business is thriving. At renewals we have set a new-business tonnage record for Skuld Group. Furthermore, in spite of high claims levels from the International Group pooling system, Skuld will deliver robust results for the last financial year, yet again.

204 issue / 3 1 20 rch on Ma c bea

Developing business

Skuld has made significant gains in the offshore and energy markets and our new office in Singapore is already making further progress.

Although it hasn’t been long since we introduced fixed premium P&I and yacht insurance, we have already signed up a sizeable amount of new business. In addition, our Lloyd’s syndicate Skuld 1897 goes from strength to strength and will be well positioned to deliver results in accordance with the long-term plan.

The Arctic

ary Libr hoto ce P cien to: S Pho

In this Beacon, we examine the Arctic. This ‘new frontier for exploration and development’ is a fascinating region, which challenges the developed world’s ability to combine opportunity with sustainability.

My thanks again for your hard work and support during 2012 and, as spring approaches; I look forward to growth and success for us all.

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BIS /COR orgia ll Ge Lowe to: © Pho

Douglas Jacobsohn

Arctic trading

Skuld magazine

beacon

March 2013 / Issue 204

Beacon (Skuld Magazine) is the official publication of Assuranceforeningen Skuld (Gjensidig) Address P.O. Box 1376 Vika, NO-0114 Oslo, Norway, Tel +47 22 00 22 00, Fax +47 22 42 42 22 E-mail ingeborg.berge@skuld.com editor in chief Ingeborg Berge Editorial staff Lise Larson, Marte Nordli Andersen, Inger Margrethe Holm Layout Transmission AS Repro and printing 07 Group Front page The Russian nuclear-powered icebreaker Yamal. ©Peter Guttman/CORBIS BACK PAGE Yacht. Entire contents ©2013, all rights reserved. Reproduction in whole or in part,

without written permission from Skuld, is prohibited. Opinions expressed by writers in Beacon are not necessarily those held by Skuld. Skuld assumes no responsibility for unsolicited material WWW.SKULD.COM

As the Arctic opens up, the prospect of increased commercial opportunity for shipping is an exciting one.

However, with increased access comes increased risk and responsibility. Meeting these responsibilities and assessing risks present challenges to owners, charterers and insurers alike.

/ contents NEWS feature: THE Arctic 6 9 10 12 14 16 18 20

Unlocking the Arctic Know your Arctic Key changes for NSR regulation Arctic trading On thin ice?

Cold reality Testing the ice The Arctic and me

Current 21 Stowaway with a mission 23 Skuld opens new office

news 25 Personnel news 27 News

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Key changes for NSR regulation

In January, Russia introduced ‘New Rules of Navigation on the Northern Sea Route’. The rules can be seen as a great leap forward for facilitating navigation and commercial shipping on the NSR.

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cold reality

Navigating icy waters is challenging and can be more costly than expected.

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NEWS feature

THE Arctic

r A he T t Coas he US ly is t y a e ll a H gic ter d cut t technolo n here base s show attle- t and mo e ’s S It e r. s Th ke ewe ebrea a. d’s n Guar olar ic Bering Se ced p e n h a t v in ad e ic ing break

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NEWS feature LEGAL ISSUES THE Arctic

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NEWS feature

THE Arctic

Tschudi ShipPING and the high north

UNLOCKING Once described as a vast inaccessible wasteland, the Arctic has become a new frontier for exploration and development. There’s a lot to play for. The Arctic contains around one tenth of the world’s oil and a quarter of its natural gas. Mineral deposits include gold, uranium, copper, nickel, tungsten and diamonds. The problem has always been how to get at them or, more precisely, how to get at them economically.

With growing demand for resources, rising commodity prices, political change, improved technology and the effects of climate change the playing field is now very different from even a decade ago. Felix Tschudi, Chairman of Tschudi Shipping Company, saw the opportunities early on.

Bread for the people Photo: Tschudi Shipping Company

In the late 1980s, Felix Tschudi was working for the Vienna-based trading and finance house AWT, specialising in countertrade with Eastern Europe and the Soviet Union. Soon after the Berlin Wall fell in 1989, he returned to Norway and put his trading experience to good effect.

“Although Norway has several borders, the only really interesting one is the 196 km border with Russia,” says Felix Tschudi. “When the Soviet Union disintegrated, the difference in living standards was enormous, with real hardship on the Russian side. It provided opportunities for trade in foodstuffs and white goods. Our business developed and at the point of the Rouble’s devaluation in 1998, we owned a large bakery just across the Russian border in Murmansk producing 13–14,000 loaves of bread a day. Unfortunately, the devaluation forced a move out of this business.”

As hydrocarbon and mineral exploration increases in the high north and popularity of the NSR grows, so will expected use of Tschudi Group’s Kirkenes Industrial Logistics Area.

In transit

Kirkenes was an ideal location for the continuation of Tschudi’s Arctic enterprise. It’s an industrial centre inside the Arctic Circle and an entry point into Norway from Russia. Its port is large, deep, ice-free and well protected from the weather. Kirkenes Transit, now named Tschudi Arctic Transit, was formed to help facilitate Russian bulk exports, such as steel and oil products, from Archangel and ports in the White Sea to Kirkenes and beyond. “Due to shallow waters and ice in many Russian ports, it is often more economical to transship cargoes to conventional vessels in ice-free, deep waters for further transportation. This is where Tschudi Arctic Transit comes in. Using its bases in Kirkenes and Honningsvåg it offers clients transshipment services,” explains Felix Tschudi.

Going underground

At first sight it might not appear an obvious fit, but the purchase of the Sydvaranger iron ore mine in 2006 underlines Felix Tschudi’s belief in the high north and the opportunities it holds. The draw was not so much the mine – it had been closed for several years – but the

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infrastructure around it: deep-water quays, storage facilities and the potential for development of a large new port facility. The fact that the mine is now listed on the Australian Stock Exchange and is again producing iron ore is an added plus.

As Felix Tschudi says, “Trans­portation is the key to unlocking resources in the Arctic”, and with the investment in Kirkenes it means the Tschudi Group is well placed to offer logistics for hydrocarbon and mineral development in the region and, of course, to facilitate use of the Northern Sea Route (NSR).

The Northern Sea Route

The NSR, historically known as the Northeast Passage, links the Atlantic and Pacific oceans in the high north. First developed in the 1920s as a shipping lane by the Soviet Union, it wasn’t officially opened to foreign shipping until 1991. Not that there was a great rush when it did open. It’s only recently that its commercial viability looks promising.

NEWS feature

THE Arctic

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THE ARCTIC

Photo: Dynagas

The Ob River was the first LNG tanker to use the Northern Sea Route. It cut almost 20 days off its journey to Yokohama compared to sailing through the Suez Canal.

Tschudi Group made history in 2010 by chartering the MV Nordic Barents to make the first passage by a foreign commercial vessel between two non-Russian ports. “We were interested in opening up the NSR to commercial traffic for some time”, says Felix Tschudi. “There were clear benefits – it saves time, fuel, emissions and eliminates piracy risk. In 2010, we and the Centre for High North Logistics instigated a meeting between several potential stakeholders. It was attended by 27 people, including representatives from brokerages, shipping companies, law offices, DNV, Skuld and, most importantly, Atomflot, which operates the Russian nuclear-powered icebreakers that guide vessels through the NSR.” One very important issue under discussion was the cost of using the route. For it to be economical, rates had to be comparable to those of the Suez Canal. “Russia wanted it to happen,” continues Felix Tschudi. “Atomflot’s representative said ‘We want to compete with Suez’. From this point, people really began to believe it could work.”

Some time after this meeting, Tschudi Shipping took the initiative by chartering the MV Nordic Barents from Nordic Bulk Carriers to ship 41,000 tons of iron ore from Sydvaranger mine to Xingang in northern China. It was the first non-Russian vessel carrying nonRussian cargo transiting the NSR between two non-Russian ports.

It helped establish the route’s economic viability in the ice-free season and was one of four commercial vessels that year to use the NSR. In 2011, the number rose to 34 and, in 2012, it rose again to 46.

“The NSR saves time, fuel, emissions and eliminates piracy risk,” says Felix Tschudi.

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NEWS feature

THE Arctic

the western coast of USA

▲

▲To

To the Gulf of Mexico NORTHERN SEA ROUTE ▲

Rotterdam

Kirkenes H Murmansk H

Bering Strait

North Cape

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Felix Tschudi

SUEZ CANAL

/ Graduate from the Royal Norwegian Naval Academy Japan

Korea

/ Previously Sub-Lieutenant in the Royal Norwegian Navy

▲

▲

▲▲

/ Has a Second Mate’s certificate from UK merchant navy colleges, a BSc (Econ) from London School of Economics and an MBA from INSEAD, France

▲ ▲

China

/ Joint Managing Director of Tschudi & Eitzen from 1992 until 2002 / From 2003, Chairman of Tschudi Shipping Company AS, the holding company for Tschudi Group / Chairman of the Centre for High North Logistics, a non-profit organisation focusing on transport solutions in the Arctic

Singapore

/ Board member of Maritimt Forum Oslofjord and the Norwegian publishing house Aschehoug & Co.

The Northern Sea Route joins the Atlantic and Pacific Oceans along the Russian coast of Siberia and the Far East. It crosses five Arctic Seas: the Barents Sea, the Kara Sea, the Laptev Sea, the East Siberian Sea and the Chukchi Sea. Here, it is shown in comparison to the route through the Suez Canal.

NORTHERN SEA ROUTE

/ Member of the World Economic Forum’s Global Agenda Council on the Arctic

– the shortcut between Asia and Europe

/ Member of Skuld’s committee since 2002

Full tank

The most noteworthy vessel sailing NSR in and 2012 was the Ob River, alternative international trade routethe for cargoes mobilisation the first LNG tanker toice use this route. Arctic Bulk AG, a venture between during favourable season the trading company Prominvest SA and Tschudi Arctic Transit, assisted distance from Northern Europe to China and vice versa, approx. 40% shorter the Gazprom-chartered ice-class 1A LNG tanker in its voyage. It than via the Suez Canal or 60% shorter via the Cape of Good Hope departed South Korea and sailed the NSR from its most easterly point reductions time, fueltaking consumption to its substantial most westerly pointinintransportation only six days.

After delivery of LNG environmental and piracy risk at Statoil’s Melkøyaemission plant near Hammerfest in northern Norway, it returned using the same route. Savings are estimated at almost 20 longer season – amount of ice reduced by 40% over the last 30 years days on the laden voyage and 40 on a round-trip basis compared to the alternative route via the Suez Canal.

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/ Holding company for the Tschudi Group / Three main areas: shipping, logistics, offshore / Roots back to 1883 / Formed in 2003 after a demerger of Tschudi & Eitzen AS / Represented by subsidiaries, joint ventures and associated companies in Norway, Finland, Denmark, Netherlands, Belgium, UK, Russia, Estonia, Lithuania, Latvia, Ukraine and Switzerland / Particular focus on infrastructure and logistics in the high north, Baltic region, Russia and Central Asia.

Sailing NSR notthe calling Russian ports in 2010

Felix Tschudi believes in the NSR’s future. “As activity in the Arctic Arcticincreases, Bulk is associated Shipping Company Oslo gradually so will with use Tschudi of the NSR. There will beingreater need for ice-class vessels of all kinds, particularly larger vessels for carrying bulk cargoes in transit, but also for specialised shuttle vessels serving Arctic destinations.”

ArcticBulk

Whatever the vessel, it needs to comply with NSR regulations. Russia has recently introduced new legislation that aims to shorten and simplify transit approval procedures and make ice-class and escort requirements dependent on ice conditions. “We also need to recognise that precautions taken when using the NSR make it a safe alternative”, says Felix Tschudi.

“In which other ocean can you get an escort with navigational expertise, towing capability and hospital capacity?”

So what advice would you give to others contemplating using the NSR? “I’d suggest that they contact Arctic Bulk AG. Not only for general guidance, but also to see if there are opportunities for return cargoes,” continues Felix Tschudi. “And then there’s the Centre for High North Logistics and the wealth of information it makes available through its databases. These are two good starting points. The NSR may be a niche route, but it can be a very profitable one for many shipping companies,” replies Felix Tschudi. read more

www.tschudishipping.com www.arcticbulk.com

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Tschudi Shipping Company AS

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Northern Sea Route vs. Suez Canal – possible savings (AUTUMN 2012) / LNG tanker: reduced costs in USD for 21.4 days saved1) LNG from Melkøya, northern Norway to Yokohama, Japan: 147,000 cbm Full round voyage spot market rate: USD 15/mmBtu 1. Time charter per day USD 150 0002) x 21.4 x 2 USD 6,420,000 2. Bunkers burn off LNG 0.1% per day x 21.4 x 2 USD 2,200,000 3. Suez Canal round voyage cost USD 150,000 4. NSR tariff USD 5 X 70 000 mt + USD 2.5 x 113,0003) (USD 632,000) Possible savings (full round voyage) USD 8,138,000 / Panamax iron ore bulk carrier: reduced costs in USD for 18 days saved Iron ore from Kirkenes, northern Norway to Shanghai, China 1. Time charter per day USD 15 0002) x 18 USD 270 000 2. Bunkers fuel 33 x 700 x 18 USD 416,000 3. Insurance USD +/-4) 4. Ports N/A 5. Suez Canal voyage cost USD 250,000 6. NSR tariff USD 5 x 75 000 mt (USD 375,000) Possible savings (one-way voyage) USD 560,000 5) 1. Based on an average speed of 13 knots.

2. Day rates taken from brokerages’ daily reports during Autumn 2012.

3. Displacement tons.

4. Insurance can be lower or higher dependent on vessel, crew experience, track record, weighting of piracy threat, etc.

5. Gives a per-ton saving of USD 7.50.

NEWS feature

THE Arctic

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Centre for High North Logistics launches new Arctic information database

Know your Arctic In January, the Centre for High North Logistics (CHNL) launched its long-awaited ARCTIS database at the Arctic Frontiers Conference in Tromsø, northern Norway.

“ARCTIS is a dynamic and searchable online database on shipping, transportation infrastructure, mineral and energy resources and innovative logistics solutions in the Arctic,” says Dr. Bjørn Gunnarsson, Managing Director of CHNL. “One aim is to help companies make better-informed decisions when operating in the Arctic. We do this by providing easy access to hundreds of relevant articles, reports and scientific papers.”

Structure and quality

“Quality of information is naturally important,” says Bjørn Gunnarsson.

“We are building a highly qualified team of 40 editors that review documents and pass them fit for the database. We largely avoid duplication by selecting the most up-to-date and relevant literature on each subject.

From our own research and feedback at the launch, people are very positive to it. We expect its popularity to grow as the Arctic opens up further,” he continues.

Photo: CHNL/Rosatomflot

Easy access are the key words. The database is broken down into eight main categories and close to 50 sub-categories, with summaries for each document. If a report is large and covers several areas, CHNL’s editorial team breaks it down and places sections under relevant categories with links to the original document. The database is free and users are encouraged to nominate new articles and data entries to help its expansion.

ARCTIS provides easily accessible, well-structured and high-quality information on the Arctic for organisations operating in the high north.

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Information is classified under eight key topics in the ARCTIS database

/ Arctic energy and mineral resources / Marine transport and logistics

Centre for High North Logistics

CHNL was established as an international non-profit foundation in May 2009. It’s the result of an initiative by Tschudi Shipping Company in collaboration with the Norwegian Ministry of Foreign Affairs and Det Norske Veritas (DNV). CHNL’s mission is to build an international knowledge network together with key businesses, research institutions and public authorities on Arctic resources, transport and logistics.

Apart from ARCTIS, it also runs the Arctic Logistics Information Office (ARCLIO) in Murmansk, which provides practical information on shipping and logistics along the Northern Sea Route (NSR), promotes joint research, such as its long-term NSR project with South Korea’s Youngsan University, and runs workshops and seminars. In 2013, two NSR-themed workshops are planned in Tokyo and Sapporo, Japan.

ARCTIS

/ Arctic sea routes / People, industries and institutions / Maps and charts CHNL’s Managing Director, Dr. Bjørn Gunnarsson, was an Associate Program Chair and Faculty at Johns Hopkins University, USA, and founder and Rector of the School for Renewable Energy Science, Iceland.

/ Arctic sea ice and climatology / Arctic policies and governance / General Users can register free through www.arctis-search.com.

read more

www.chnl.no

beacon / March 2013

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Russia adopts ‘New Rules of Navigation on the Northern Sea Route’

Key changes for NSR regulation In January, Russia introduced ‘New Rules of Navigation on the Northern Sea Route’. The rules can be seen as a great leap forward for facilitating navigation and commercial shipping on the Northern Sea Route (NSR).

Previously all vessels had to follow 1990 Rules, with their timeconsuming and bureaucratic procedures, to obtain permission from the Northern Sea Route Administration to navigate in the Russian Arctic Zone. Now, a new administration for the Northern Sea Route will be established to consider applications and issue vessel permits.

The new regulation also includes a more precise legislative definition of the NSR, which is now strictly limited to the 200-mile exclusive economic zone.

The new NSR Administration will also monitor hydro-meteorological, ice and navigation conditions, and provide information to the public. It is obliged to publish a significant amount of information on its website, including 72-hour weather and ice forecasts, 30- and 90-day ice-condition forecasts, recommended navigation routes, current information about vessels navigating the NSR and other information.

Enactment of by-laws for establishing and operating the NSR Administration is somewhat delayed, but it is hoped to see the Administration and its website functioning by April 2013.

Obtaining permits

Although NSR navigation permits are still required from the Russian authorities, the process of obtaining them is now faster and less complicated compared to the old legislation.

A shipowner must send a navigation permit application by e-mail to the NSR Administration 15 to 120 days prior to the planned day of transit through the NSR. The application must include the vessel’s class certificate and other documents, which can now be attached to

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Photo: Science Photo Library

A novelty for increasing navigation safety on the NSR is the introduction of ice pilots, who have specialist knowledge and experience of ice navigation. They must be Russian citizens with permission from Russian state authorities to offer ice-pilot services on the NSR. Ice pilots are compulsory only if the master of the vessel navigating the NSR does not have ice navigation experience.

Only Russian-flag icebreakers can provide assistance to vessels transiting the NSR. All Russian icebreakers are nuclear powered and operated by state enterprise ‘Rosatomflot’.

The nuclear reactor shown in the photograph fuels the Russian icebreaker Rossiya and is one of two on the vessel. The second is for back-up.

“A novelty for increasing navigation safety on the NSR is the introduction of ice pilots”

the electronic application in PDF format. Permission or rejection must be given by the NSR Administration within ten working days of the date the application was accepted for consideration. All navigation permits must be published on the NSR Administration’s website.

Icebreakers optional

The new rules do not provide for icebreaker assistance as a standard condition for navigating the NSR. Icebreaker assistance now depends

NEWS feature

THE Arctic

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By Konstantin Krasnokutskiy Jurinflot International Law Firm, Moscow

konstantin.krasnokutskiy@jurinflot.com

Photo: Science Photo Library

Russia operates the world’s largest nuclear icebreaker fleet – four nuclear ‘Arktika’-class ice-breakers and two nuclear shallow-draft icebreakers. Picture shows the Rossiya.

Its helicopter is checking whether the ice ahead is thin enough to be broken by the ship’s hull.

on the time of year, section of the NSR in question, ice conditions and the vessel’s ice class.

According to the new rules, only Russian-flag icebreakers can be used to render icebreaker services to vessels transiting the NSR. Russia’s nuclear icebreaker fleet is operated by state enterprise ‘Rosatomflot’, which provides assistance according to rates set by the Russian government. These depend on tonnage and the vessel’s ice-class, route and period of navigation.

Through the NSR’s history, major losses in the area have been limited.

From 1950 to 1990 only four vessels were lost, while on average 250 vessels navigated the NSR annually. Since 1990, there has been no major incident on the NSR at all.

“new rules do notprovidefor icebreaker assistance as a standard condition for navigating the NSR”

Despite legislative efforts to promote commercial navigation on the NSR, it’s still a route through a harsh and remote wilderness with little infrastructure and support services. Consequently, commercial insurance of H&M and P&I risks in the Arctic will remain a challenge for both P&I clubs and underwriters for many years to come.

read more

www.arctic-lio.com/nsr_legislation

beacon / March 2013

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THE Arctic

BIS /COR orgia ll Ge owe L Š to: Pho

The prospect of increased commercial opportunity for shipping in the Arctic is an exciting one.

NEWS feature

THE Arctic

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By Christian Ott Head of Claims, Skuld Singapore

christian.ott@skuld.com

New commercial ventures bring challenges for operators and insurers

Arctic trading As the Arctic opens up, the prospect of increased commercial opportunity for shipping is an exciting one. However, with increased access comes increased risk and responsibility. Meeting these responsibilities and assessing risks present challenges to owners, charterers and insurers alike.

Where’s the challenge?

How can Skuld help?

There are several factors that increase the challenge of sailing and trading in the Arctic:

Skuld is best placed to help members before the voyage takes place.

The more known at the outset, the better the club can assist.

For example, Skuld can:

• Territorial and jurisdictional boundaries are not yet fully settled • Legal regimes are under development for new areas opening up, both at national and international level. Arctic Council member and observer states are increasingly busy, while Russia is developing domestic legislation independently of the group • Infrastructure in remote northern regions may be basic or, in some areas, non-existent • Vessels can easily sustain damage and crew can suffer injury and illness quickly in extreme temperatures. Help may be far away!

• Dealing with a casualty and/or pollution can be particularly challenging in the Arctic Get ahead before you start

Members will no doubt recall the cruise ship MS Explorer in 2007.

The vessel was designed for Arctic and Antarctic service, yet became a casualty after submerged Antarctic ice ripped a large gash in her hull.

Fortunately, help arrived quickly and the 154 passengers and crew were rescued safely.

This case helps to illustrate the perils of Arctic sailing and the importance of being prepared. The following checklist is a useful starting point.

(A) Know what voyage you are planning and the conditions you are likely to encounter (B) Make sure you have the right vessel and that it’s fully seaworthy for the proposed voyage (C) Officers and crew should be trained for the conditions. Key personnel must have ice-sailing experience (D) Shore support must be in place and, in particular, have ready access to accident and emergency plans (E) Be up to date with the latest political, legal and practical developments, and know who the marine and port contacts are in the area the vessel will pass through (F) Understand the contract before it is signed – who will be responsible for what, especially if unusual or special risks are involved

i. Help assess possible risks ii. Consider insurance cover limits and advise on possible additional covers iii. Assist with contracts before fixing iv. Source external experts v. Act as a ‘sounding board’ for new ideas vi. Intervene more effectively during the voyage if necessary And remember – if in doubt please contact us!

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The Arctic Council

/ The Ottawa Declaration of 1996 formally

established the Arctic Council as a high-level intergovernmental forum providing means of promoting cooperation, coordination and interaction among Arctic states on common issues. Involvement of Arctic indigenous communities and other Arctic inhabitants is important.

/ Only states with Arctic territory can be members.

There are also permanent and ad-hoc observer countries and ‘permanent participants’, such as the Sami Council and Inuit Circumpolar Council.

/ Arctic Council member states:

Canada, Denmark (including Greenland and Faroe Islands), Finland, Iceland, Norway, Russian Federation, Sweden, US.

/ Countries with permanent observer status:

France, Germany, Netherlands, Poland, Spain, UK.

/ Countries/bodies with ad-hoc observer status: China, EU, Italy, Japan, South Korea.

Sources: www.arctic-council.org, Wikipedia.

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Do today’s safety regulations sufficiently protect ships operating in the Arctic?

On thin ice?

Arctic safety is regulated by different international conventions.

Unlike the Antarctic, the Arctic is not covered by a treaty dealing with the region as a whole.

During the past 15 years, the international community has increased focus on law – mainly safety regulations – motivated by the Exxon Valdez oil spill off the Alaskan coast in 1989. The International Maritime Organisation (IMO) began work on a navigation code in polar waters, today known as IMO’s ‘Guidelines for Ships Operating in Arctic Ice-covered Waters’. Its intention was clear from the outset; a vessel operating in the Arctic can face different technical requirements from Arctic states’ own legislation. The need for common Arctic legislation has increased along with global warming and exploitation.

Photo: © Natalie Fobes/CORBIS

The law of the sea convention

Today’s legal regime consists mainly of UNCLOS (the law of the sea convention), SOLAS (safety of life at sea) and MARPOL (prevention of pollution from ships). UNCLOS sets limits for coastal states’ jurisdiction at sea, measured from the baseline of the continent. In territorial waters, coastal states have full sovereignty, meaning their law must be followed. The Arctic consists of three different sea zones: territorial, exclusive economic zone and high sea.

The Arctic’s coastal states (Canada, Russia, Norway, United States and Denmark) can refer to articles 21, 56 and 194, which apply to all seas, to protect the Arctic marine environment. The aim is to protect against pollution within the territorial and economic exclusive zones. According to these articles, coastal states should take measures to prevent pollution in these areas. These articles must be read together with article 234, which specifically mentions Arctic waters.

According to article 234, coastal states have the right to “adopt and enforce” laws and regulations in Arctic waters. This means it is up to each Arctic coastal state to decide on safety regulations, but these regulations need to be considered as safety or environmental measures and cannot be discriminating. Legal interpretation of coastal state jurisdiction in ice-covered waters based on Article 234 is not easy under international law. Coastal states can therefore adopt different security rules in Arctic waters “within the limits of the exclusive economic zone”, which gives them extended legal authority in their exclusive economic zones.

The Arctic Ocean also consists of a relatively small expanse of remaining ‘high seas’, which is covered with very substantial ice and is almost

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Motivating factor – The Exxon Valdez oil spill prompted work on a navigation code, known today as IMO’s ‘Guidelines for Ships Operating in Arctic ice-covered Waters’.

impossible to operate. Here, flagstate rules apply.

IMO Guidelines for Ships Operating in Arctic Ice-covered Waters

“Today, IMO’s guidelines have no binding status”

Today, IMO’s guidelines have no binding status; they are only recommendations. However, there is reason to believe the guidelines can form a treaty. They are more precise than today’s regulations and promote safe navigation and prevent pollution from shipping in Arctic ice-covered waters. The guidelines take into account the Arctic’s challenging climate and have developed rules regarding vessel construction, special equipment required onboard and operational procedures.

NEWS feature

THE Arctic

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By Katinka Mørch Granberg Client Servicing and Marketing Executive, Skuld Offshore katinka.granberg@skuld.com

IMO guidelines have their own ice-class, which is used by DNV for classifying vessels operating in the Arctic today, even though the guidelines are not yet mandatory.

Since Arctic climate is harsh, normal safety equipment needs to be improved. For example, crew requires extra-warm clothes, lifeboats need thicker hulls and every vessel should be equipped with AIS (automatic identification system). However, since navigation is more challenging in the Arctic and rescue operations are very difficult, IMO’s guidelines recommend that AIS is mandatory for all vessels.

IMO guidelines also have their own ice-class, which is used by DNV for classifying vessels operating in the Arctic today, even though the guidelines are not yet mandatory.

Conclusion

The Arctic needs one treaty that regulates safety. A common safety legal system will reduce some potential risks in the future and clarify today’s situation for operators. However, under UNCLOS, Arctic coastal states’ sovereignty stands strong, so it is difficult to ask them to give up some of their sovereignty and accept an international convention that applies in their territorial and exclusive economic zones. Both Russia and Canada already have very strict and specific rules for their waters. As it stands today, it’s more or less up to coastal states to agree on an international convention, which answers both legal and political questions.

This article summarises Master’s degree thesis ‘La sécurité dans l’Arctique: comparaison entre l’article 234 de la Convention des Nations Unies sur le Droit de la meret le Code Polaire’.

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United Nations Convention on the Law of the Sea (UNCLOS)

/ Article 234: Coastal states have the right to adopt and

enforce non-discriminatory laws and regulations for the prevention, reduction and control of marine pollution from vessels in ice-covered areas within the limits of the exclusive economic zone, where particularly severe climatic conditions and the presence of ice covering such areas for most of the year create obstructions or exceptional hazards to navigation, and pollution of the marine environment could cause major harm to or irreversible disturbance of the ecological balance. Such laws and regulations shall have due regard to navigation and the protection and preservation of the marine environment based on the best available scientific evidence.

/ Territorial waters: Extend to at most 12 nautical miles

(22 km) from the baseline. The territorial sea is regarded as the sovereign territory of the state, although foreign ships (both military and civilian) are allowed innocent passage through it; this sovereignty also extends to the airspace over and seabed below.

/ Exclusive economic zone: Extend to a distance of 200

nautical miles (370 km) out from its coastal baseline.

A coastal nation has control of all economic resources within its exclusive economic zone, including fishing, mining, oil exploration and any pollution of those resources.

read more

www.cdmt.droit.univ-cezanne.fr/fileadmin/CDMT/Documents/ Memoires/Memoire.pdf beacon / March 2013

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The challenges of Arctic navigation

It is very easy and very dangerous to underestimate the force of ice.

Cold reality Navigating icy waters is challenging and can be more costly than expected. Recently, Skuld has received several high-value claims for rudders and propellers, the most vulnerable parts of the vessel.

Propeller and rudder damage from ice milling or impact with ice occurs when a vessel is not fully laden or is in ballast, as it is most vulnerable to surface ice at these draughts. Almost always, damage is inflicted when vessels try to manoeuvre astern in ice-prone waters without due caution. Accidents include bending of propeller tips, rudders and rudder stocks. More often than not, master and crew are surprised at the extent of the harm done.

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beacon / March 2013

NEWS feature

THE Arctic

/

By Captain Binoy Kumar Dubey Senior Executive, Risk Assessment and Claims

binoy.dubey@skuld.com

Getting a tow

If propellers or rudders are damaged, the vessel may need towing. If there isn’t an ice escort, this may be easier said than done. Specially designed icebreakers with notches in their stern are needed. Such notches allow the bow of the vessel under tow to come in close contact with the icebreaker’s stern. A simple towing arrangement may not be sufficient, since fluctuating resistance caused by varying amounts of ice in the water causes sudden acceleration or deceleration. Needless to say, costs of such operations are substantial.

Be prepared

Backing up

• Respect the ice – even if the vessel is ice strengthened – but don’t fear it. Be prepared to go full astern on engines should the need arise • Manoeuvring astern or backing in ice is very risky and should only be attempted with extreme caution. A careful watch should always be kept on ice conditions and the distance of the ice edge from the vessel’s stern • Ensure the propeller is fully immersed and there is sufficient water depth over its tip • Never ram astern unless the vessel is suitably designed for this purpose, e.g. in double-acting ships where reinforced sterns are used to break ice • If the vessel is hemmed in by ice, it is important to keep the stern ice-free. ‘Propeller turning at slow speed ahead with rudder midship’ is one of the most practical ways to achieve this • If the vessel has to attempt astern propulsion, it should give ‘minimum astern on engine ensuring that the rudder is always kept midship’. However, please note this may not apply in an ice convoy where maximum astern propulsion can be required to avoid collision with the vessel ahead Members are advised to contact Skuld’s ‘Arctic group’ for further clarification and advice on sailing in ice-covered waters.

xxx

Vessels need to be kept in optimum operational condition for sailing in icy seas. When backing a vessel, a number of precautions should be taken.

Photo: © Ralph Lee Hopkins/National Geographic Society/Corbis

Passage planning and vessel preparation for ice navigation necessitate much more advanced planning than for open-water sailing. Inadequate training and poor planning, coupled with inexperience of handling ships in ice-prone waters, can result in very expensive claims.

xxx

Manoeuvring astern or backing in ice is very risky and should only be attempted with extreme caution. A careful watch should always be kept on ice conditions and the distance of the ice edge from the vessel’s stern.

/

Captain Binoy Kumar Dubey

/ Extra Master Mariner with LLM degree

/ Employed in Skuld since

2010. Recently relocated to Singapore

/ Gained extensive ice-navigation experience as Master for Fednav Ltd. Canada

/ Has authored the book ‘Ice

“Respect the ice – even if the vessel is ice strengthened”

Navigation Managing Cold Climate Risks’

/ Skuld’s expert on ice navigation and Arctic routes

read more

www.skuld.com/topics/navigation/ winter

beacon / March 2013

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/

NEWS feature

THE Arctic

Oil spill response in the Arctic: technical options and practical challenges

Testing the ice As Arctic sea ice diminishes, northern shipping routes are becoming commercially attractive. Whilst there are undeniable advantages in reduced transit times between the Atlantic and Pacific, there is growing concern over the potential for an oil spill. Oil spill preparedness and response capability in the Arctic is unproven, and given the logistical challenges in such a remote and harsh environment, a response may not always be possible or reasonable.

Detection and tracking of spilt oil

Arctic conditions affect the fate and behaviour of spilt oil in a number of ways, some aiding and some hindering its removal (see table and figure). Standard oil spill fate and trajectory models do not apply in icy waters; oil trapped within or under fast ice is likely to remain relatively stationary as fast ice does not drift with surface currents or wind, and under-ice currents are minimal. However, in the highly dynamic pack-ice zone, oil drift may be considerable and unpredictable. Detection and tracking of oil in ice is one of the major technological challenges facing the Arctic spill response community, as although various techniques have proven successful in certain conditions, there is currently no universally applicable tool.

Remote sensing of oil in open water is possible because oil dampens wind-generated capillary waves on the sea surface, thereby reducing the radar backscatter signal. However, ice has a similar effect to oil and confuses the output.

Clear skies, necessary for satellite systems, are not the norm in the Arctic. Airborne sensors, such as Side-Looking Airborne Radar, fly under cloud cover, but are limited by airspace regulations, pilot availability, operational health and safety considerations, communications challenges and a general shortage of suitably equipped aircraft in the far north.

The most promising technique for detection of oil in or under ice is ground-penetrating radar (GPR). Surface-carried units afford better penetration than airborne, but are large and heavy, and a trade-off must be made between penetration and resolution. GPR can detect oil accumulations greater than roughly 2.5 cm in thickness, but not thin slicks or oil trapped under new ice, young ice, first-year ice, rafted ice, rubbles or ridges, or thick ice. High-sensitivity ethane sensors can detect volatile compounds evaporating from freshly spilled oil and trained dogs may be able to reliably detect relatively small volumes of oil under ice or snow, although further field testing is needed.

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beacon / March 2013

/

Effects of Arctic conditions on oil fate and behaviour Factor

Effect

Implications

Oils are more persistent, but Extreme Reduces rate of natural weathering processes, such as the window of opportunity for cold evaporation and biodegradation; response may be increased increases oil viscosity Pack ice

Dampens wave energy and Increased window of opportunity reduces natural dispersion and for chemical dispersion and emulsification in-situ burning , although dispersion will be restricted by reduced wave energy

Fast ice

Oil may become encapsulated within or trapped under ice

“The most promising technique for detection of oil in or under ice is groundpenetrating radar”

Difficult to detect, track and recover oil

Responding to oil spills

The main at-sea response options for the Arctic are mechanical recovery, chemical dispersion and in-situ burning. Mechanical recovery is physically challenging: the presence of ice is likely to prevent boom use; extreme cold may hinder operation of skimmers and pumps; and viscosity of oil increases in Arctic conditions.

However, containment of oil in ice and limited weathering – especially reduced emulsification – may aid its recovery. Specialised skimmers and ‘winterised’ pumps and power packs claim to operate efficiently in Arctic conditions. However, mechanical recovery is unlikely to be efficient above approximately 30% ice cover, and is always dependent on availability of suitable vessels and facilities for storage and disposal of recovered oil.

NEWS feature

THE Arctic

/

By Dr. Nicola Beer Technical Adviser, ITOPF Ltd.

nicolabeer@itopf.com

Spilled oil reacts very differently in ice-covered seas compared to open water.

Dispersants are widely used to respond to oil spills at lower latitudes and have the advantage of treating oil in situ rather than recovering it for subsequent disposal. Specific formulations are being developed for the Arctic, where the window of opportunity for application may be expanded to days or even weeks, due to limited oil weathering and less chance of emulsification. However, dispersion only occurs if dispersants come into contact with the oil/water interface and the dampening effect of sea ice means that artificial mixing, e.g. through propeller wash, may be necessary. Dispersant use is not currently pre-approved for the Arctic and approval may be difficult to obtain in shallow, nearshore waters or in the vicinity of sensitive benthic resources or fish spawning grounds, for example.

Alternative techniques

In-situ burning of oil was trialled extensively during the Deepwater Horizon response, as it is potentially capable of removing large volumes of oil from the water surface with minimal waste generation. A minimum slick thickness of 3–4 mm is required to sustain an efficient burn of crude oil. In the Deepwater Horizon response, this was achieved by containment within fire-resistant booms or use of chemical herders, but in the Arctic, containment by ice may suffice. Whilst experimental burns have reported oil removal efficiencies of more than 90%, a thick,

tar-like residue may remain that has the potential to sink as it cools and may need recovering. The toxicity of such residues on Arctic flora and fauna has not yet been tested. In Arctic conditions, or with more heavily weathered or higher viscosity oils, ignition or combustion aids may be required to start and sustain a burn. In-situ burning is not a pre-approved response technique for Arctic oil spills and the dense smoke plume generated will restrict burns in close proximity to settlements and sensitive coastal resources.

Although oil recovery/removal techniques are proven in laboratory and controlled field experiments in Arctic conditions, they are yet to be tested in a full-scale incident, or on non-crude oils. As ITOPF is increasingly called upon to attend bunker oil spills from non-tanker vessels, this is an important area for future research.

read more

www.itopf.com www.sintef.no/projectweb/jip-oil-in-ice

beacon / March 2013

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/

NEWS feature

THE Arctic

By Lena Holm Saxtoft Claims Executive, Skuld Copenhagen

lena.holm.saxtoft@skuld.com

A personal view on Greenland’s development

The Arctic and me Being half Greenlandic and half Danish, I am part of two wonderful cultures. Both nations’ strengths are now being tested as Greenland faces great opportunities and challenges from increasing interest in the Arctic.

I usually refer to Greenland as my home and the centre of the world.

But is it really that important? When talking about global warming and new shipping opportunities, it seems that most industries see Russia as the main Arctic power. However, when considering Arctic strategy, Greenland’s importance is greatly underestimated.

It is often said that Greenland is rich with ‘gold’: black gold (oil), green gold (raw materials needed for green economies) and blue gold (fresh water1). In other words, it has all the assets necessary to attract anyone, particularly powers wanting to reinforce their position in the Arctic and those looking for natural resources.

“The fear I have is that Greenland is abused and a ‘ruined Klondike’ replaces my home.”

I am Greenlandic, live in Denmark and am the daughter of a Greenlandic mother and Danish father. I have spent equal amounts of time in both countries, but if you ask me where I come from, I answer proudly that I am from Greenland.

With Arctic raw material extraction comes increasing shipping activity.

This means risk taking in remote and unexplored areas. Shipowners face challenging conditions, including extreme cold, prolonged periods of darkness, remote locations and rapidly changing weather.

While studying law in Denmark, I spent most summers working in Greenland and holidaying with family, fishing or simply enjoying the spectacular nature that I took for granted.

Being Greenlandic and working in shipping, I’m ambivalent to the growing interest in my beautiful homeland. I hope that raw material exploration and increased shipping activity grow slowly and with respect for Greenland’s vulnerable and fragile nature. The obvious fear I have is that the new state of Greenland is abused and a ‘ruined Klondike’ replaces my home. So far, however, it seems that countries participating in various Arctic forums show great passion, but in a humble manner, and that this hopefully allows development to come in a natural and carefully considered way.

During those special summers, I realised that when escaping from Nuuk, a small city with only 15,000 inhabitants, but nevertheless the capital of Greenland, it was a pleasure to stand entirely alone on a mountain, letting my eyes follow the beautiful landscape feeling smaller and more unimportant to the universe than ever.

Greenland is still part of the Kingdom of Denmark, but in 2009 it signed the Self-Government Act, which provides extended self-government and empowers it to make many of its own decisions. Due to its huge size – at 2,166,086 km² Greenland is nearly half the size of the European Union – and its population of a mere 57,000, it is still considered necessary for Denmark to run foreign and security policy, thus maintaining a close relationship between the two nations. Many say present developments are part of a state-building process and, with rapidly increasing focus on the Arctic, the creation of the state of Greenland has to be carried out carefully and wisely.

20

Greenland’s capacity to manage an increasing number of foreign interests, coming notably from North America, Europe and the Asia-Pacific region, remains unclear. Managing interests from the largest world economies requires enormous strength.

beacon / March 2013

1) Greenland holds around ten percent of the world’s fresh water reserves, which will make the territory’s strategic importance even greater in the future.

read more

www.bmp.gl (Bureau of Minerals and Petroleum) www.dma.dk (Danish Maritime Authority)

/ CURRENT

By Rachel Wong Claims Executive, Skuld Hong Kong

rachel.wong@skuld.com

Well-prepared stowaways cause repatriation difficulties

STOWAWAY WITH A MISSION

The stowaway managed to board the ship as part of a gang of stevedores.

Stowaways continue to prove a problem in these difficult economic times with unwanted passengers from Africa being particularly troublesome. One in particular stands out, due to the steps he took to shield his true identity.

In South Africa, a stowaway recently made his way on board a member’s vessel while in port. He is discovered soon after departure and freely tells the crew that he wanted “to go to Asia for a good life”.

He had done his ‘homework’. By surfing the Internet and speaking with local agents, he successfully identified our member’s vessel as

flying an Asian flag and that she would call at a nearby port. He boards along with a gang of stevedores.

The difficulties began when he claimed to be of South Sudanese origin and refused all attempts at disembarkation.

beacon / March 2013

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/

Current

“He fell into the trap of not researching South Sudan and was therefore unable to answer basic questions about his ‘home’ country” Independence at a price – Sudan is still recovering from years of conflict and has not yet established diplomatic relations with many countries.

South Sudan – the world’s youngest country

Questionnaire evaluation

South Sudan is a landlocked country that became independent on 9 July 2011. After many years of civil war, the split of Sudan into the Arab North and the Muslim South has created the Republic of South Sudan. It is a region still recovering from many years of conflict and has not yet established diplomatic relations with many countries.

When contacted, the issue of ship-bound stowaways was a new and challenging one to its South African consulate staff and we received the impression that successful disembarkation and repatriation would be very problematic.

He fell into the trap of not researching South Sudan and was therefore unable to answer basic questions about his ‘home’ country. Representatives from the Kenyan embassy questioned him further and he was subsequently identified as a Kenyan.

Assessing the stowaway’s genuine nationality

Lessons to learn

Doubts arose regarding how truthful the stowaway was in his declaration of nationality. As part of the process, the stowaway completed a questionnaire that included questions specifically designed to test knowledge of his homeland. Results were very revealing.

To maximise their chances of a better life, stowaways can be surprisingly well prepared in their attempts to gain access to a vessel and to make the process of repatriation as difficult as possible. Crew members need to be extra vigilant to stay ‘one step ahead’.

Outcome

With the help of Skuld’s correspondents, repatriation was arranged via Mozambique. When he arrived in Kenya the local authorities promptly arrested him.

Q1. What are the colours of your country’s flag?

He answered black, white, red and green.

The correct answer for South Sudan is black, white, red, green, blue and yellow.

His answer corresponded to the Kenyan flag.

Q2. What is your permanent address in your country?

The address he gave does not exist in South Sudan.

South Sudan flag

Q3. What is the name of the capital?

He could not answer correctly. The answer is Juba.

Q4. Which currency is used in your country?

He had no idea. The answer is the South Sudan Pound.

Kenya flag

read more

www.skuld.com/topics/people/ stowaways

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beacon / March 2013

Current

/

Skuld increases its presence in South Asia with new branch office in Singapore

Skuld in Singapore. Back row from left: Lars Dueled, Cpt. Binoy Kumar Dubey, Simon Smith, Gregory Thomas, Kjell-Åke Augustsson, Christian Ott. Front row from left: Bernt Hellman, Claes Lindh, Douglas Jacobssohn, Kay Williams, Janice Choy.

Skuld opens new office Skuld has opened a branch office in Singapore to spearhead further expansion in South Asia.

The launch party was held on 17 January at the East Garden of the Fullerton Hotel, Singapore.

With over 250 guests listening to speeches from President & CEO Douglas Jacobsohn and the Norwegian Ambassador, Skuld was put firmly back on the map in Singapore.

Christian Ott, a lawyer from Skuld’s office in Hong Kong, runs the claims service in Singapore and is already very well known to members and clients.

The office is located in the middle of the business district on Six Battery Road. It’s led by Kjell-Åke Augustsson who rejoined Skuld in September 2012 from the Swedish Club’s Hong Kong office, where he was Deputy Managing Director since 2005. He was previously Senior Underwriter with Skuld for ten years.

“We have had growth of around 15% in Asia over the past few years and I have complete confidence that Kjell-Åke, Greg and Christian will significantly strengthen our presence and increase demand for Skuld’s comprehensive range of products”, says President & CEO Douglas Jacobsohn.

In Singapore, Skuld Offshore is led by Gregory Thomas who joined Skuld in 2008 to build the offshore liability product. Gregory has developed Skuld Offshore to become recognised worldwide for its service and comprehensive cover. He remains head of the offshore unit within Skuld P&I.

Asian markets are growing rapidly, with a number of shipowners, charterers and offshore operators expanding their presence in the region. Skuld has operated from Hong Kong for 23 years. With the new Singapore office, it integrates further into South Asia.

beacon / March 2013

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/

Current

Skuld President & CEO Douglas Jacobssohn.

From left to right: Ken Littlejohn of FP Marine Risks, Peter Murphy of Holman Fenwick Willian, D. Shunmugam of Stephenson Harwood, N. Vasudevan of Precious Shipping, Binoy Kumar Dubey of Skuld Singapore.

From left to right: Claes Lindh of Skuld, Norwegian Ambassador Tormod C. Endresen, Mark Sachs of Thomas Cooper.

From left to right: Trace Yim of Risk Exchange, Ohtsubo Namio of Celeste Holdings, Masatoshi Ito and T. Inoue of Lead Insurance Services.

Part of Marsh’s Singapore team, including James Addington-Smith (left) and Hans Stoermann-Naess.

24

beacon / March 2013

/ personnel

news

/

from skuld offices around the world

new employees & Promotions/Changes 2

1

3

4

5

6

7

SKULD COPENHAGEN

SKULD London

SKULD OSLO

1 / Krester Krøger Kjær

3 / Keith Parker

6 / Heidi Troberg

Assistant Vice President, Lawyer

SVP Head of UK Operations

IT Executive

Keith, 46, joins Skuld London as SVP Head of UK Operations from Jubilee Underwriting. He previously worked with Lloyd’s and SVB Syndicates Ltd., among others, in roles ranging from COO to Consultant and Project Manager to Managing Director. Keith has an MBA from Henley Management College, England, and is a Fellow of the Chartered Insurance Institute.

Heidi, 30, is appointed IT Executive.

Previously, she worked for Norway’s Directorate for Emergency Communication as IT Head Engineer. She also has IT experience from Norwegian airport operator Avinor and Oslo University Hospital Ullevål. Heidi has a Bachelor’s degree in information technology from Vestfold University College, Norway.

4 / Fergus Draper

Senior Executive, Knowledge Management

Krester, 38, joins Skuld Copenhagen as Assistant Vice President, Lawyer. Previously, Krester worked as Associate and Lawyer for Danish law firms Gorrissen Federspiel and Horten, specialising in maritime, transportation, international trade, insurance/ re-insurance and international arbitration. He has a Master in Law from the University of Aarhus, Denmark.

SKULD Hellas 2 / Maria Fouska Office Assistant

Maria, 35, joins Skuld Hellas as Office Assistant. Previously, she spent three years working for NewsPhone Hellas in the same role. She also has secretarial experience from Altec Group and worked as Customer Support Representative for Simplex Data Company.

Executive, Fixed P&I and Yachts

Fergus, 26, is appointed Executive, Fixed P&I and Yachts. Before Fergus started the Skuld Yacht and Skuld Fixed P&I facilities together with Nigel Oakley, he worked as Assistant Underwriter for two years on several portfolios, including yachts. He has also taught French and science at private schools in the UK. Fergus has a Bachelor’s degree in chemistry from Durham University.

7 / Carin Elisabet Andal

Carin, 42, joins Skuld as Senior Executive, Knowledge Management.

She comes from KPMG in Oslo where she was responsible for the company’s data-management system. She was previously a Researcher for Aftenposten, one of Norway’s biggest newspapers.

She has a Bachelor of Arts degree from the University of Oslo.

SKULD New York 5 / Aase Naaman Jensen Senior Claims Executive

Aase has accepted a position as Senior Claims Executive at Skuld’s New York office. Aase joined Skuld Copenhagen in 2009.

/ More than ten years

employed in Skuld

33% beacon beacon / december / March 2013 2008 25

SKULD SINGAPORE

SKULD 1897

8 / Magne Andersson

10 / Kay Kaur-Williams

13 / Alex Martinez

SVP Underwriting and Marketing

Office Manager

Claims Adjuster

Kay, 46, is appointed Office Manager. Earlier, Kay held a similar position with the Shipowners Mutual P&I Association in Singapore. She has extensive experience in office management and executive support. Kay has a Bachelor of Law degree from the University of London and a Masters in Human Resource Management from Curtin University, Australia. She previously worked with Swire Pacific Offshore and Delta Airlines, where she helped to set up its Singapore office in 1994.

Alex, 24, joins Skuld 1897 as Claims Adjuster. He previously worked as Claims Broker for Marsh and HSBC Insurance Brokers. Alex has a Certificate in Insurance from the UK’s Chartered Insurance Institute.

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8

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Magne, 58, joins Skuld as SVP Underwriting and Marketing in Syndicate 2. Through his earlier role as Managing Director of Marine Practice in Marsh, he is known to many in Skuld. Prior to Marsh, he worked for Polaris/Uni Storebrand for many years as Area Manager/International Reinsurance and as Senior Underwriter and Director for International Hull Business.

He is a qualified Actuary from the University of Oslo.

9 / Simone Vitzthum Claims Executive

11 / Christian Ott

Simone Vitzthum is seconded to Oslo Syndicate 2 from Hamburg for two years and will return in September 2014. Simone joined Skuld Hamburg in 2008.

Vice President, Syndicate Head of Claims

Christian is newly appointed Vice President, Syndicate Head of Claims in Skuld Singapore.

Christian joined Skuld Hong Kong in 2010.

12 / Binoy Kumar Dubey Senior Executive, Risk Assessment and Claims

Binoy moves from Skuld Hong Kong to Skuld Singapore as Senior Executive, Risk Assessment and Claims. Binoy joined Skuld in 2010.

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beacon / March 2013

14 / Amanda Wenborne Underwriting Assistant

Amanda, 25, joins Skuld 1897 as Underwriting Assistant. She has over five years’ experience in underwriting support and comes from the Travelers Syndicate at Lloyd’s. She is currently working towards her ACII and holds a Certificate in Insurance from the UK’s Chartered Insurance Institute.

15 / Stephen Wait Underwriting Operations Manager

Stephen, 47, is the third new member of Skuld 1897.

Before accepting his position of Underwriting Operations Manager, he built up more than 30 years’ insurance industry experience.

Stephen comes directly from Randall & Quilter Investment Holdings where he provided quality control services.

/ news Current cases and other Skuld News

/ Who covers the cover?

Skuld now covers ports and terminals. / Skuld extends its cover

portfolio

Skuld P&I now offers Skuld Yacht.

This is a specially designed product for super yachts with full all-in liability cover.

Nigel Oakley will be joining Skuld to head the fixed premium P&I and super yachts business. Nigel will be working closely with Fergus Draper and Robert Johnston to develop the business, which has started very positively.

Skuld Fixed is a new product from Skuld P&I covering fixed liability. It has its own terms and conditions and naturally includes Skuld’s renowned service and access to the club’s significant international network.

Please contact Skuld’s London P&I team for more details.

Facts Skuld Offshore – number of units (TW) 105

73

44

50

49

34

4

10

2009 2009 2010 2010 2011 2011 2012 2013 1 half 2 half 1 half 2 half 1 half 2 half 1 half Renew-

als

SOURCE: SKULD GROUP

Skuld holds owner’s P&I cover for a vessel that discharged its cargo on to a trailer at the U.S. port of Kalaeloa Barbers Point. The cargo was a nacelle, which is a cover-housing that holds engines, fuel or equipment on an aircraft or wind turbine. As the nacelle caused the trailer to list towards the vessel the driver asked to adjust the cargo and, after several movements, the load was repositioned on the trailer.

Unfortunately, the trailer’s dunnage began to crack, which caused the nacelle and trailer to tilt until the nacelle rolled off. The manufacturer considers the nacelle to be a constructive total loss.

by BIMCO, the International Chamber of Shipping, InterCargo and Intertanko. Other subjects covered include voyage planning, trading in the area and employment of armed guards. / Skuld adds PEME clinics

Skuld members now have access to clinics in Odessa, Ukraine, and Cebu, Philippines for Pre-entry Medical Examinations (PEMEs).

Skuld PEMEs help members select a healthy crew by going

beyond the standard examination.

Skuld established the programme in co-operation with Nigel Griffith of Marine Medical, Singapore in 2008. The Odessa and Cebu clinics come in addition to five established clinics in India and one in Manila, Philippines. Updates and a full clinic list are available on Skuld’s website.

READ MORE

www.skuld.com/topics/people/peme

In the booking note, the carrier has the ultimate say on loading, stowing and discharge of the cargo.

Due to this important provision, together with the arbitration and law and jurisdiction clauses in the Bill of Lading, the U.S. Carriage of Goods Act is unlikely to be upheld. / Piracy in the Gulf of Guinea

Piracy and armed robbery in the Gulf of Guinea – a busy expanse of water and an emerging trade hub – is of increasing concern to local coastal states and the shipping industry. While Somalia has seen a decline in hijackings over recent months, incidents are on the rise in West Africa. It is suspected that Nigerian pirates have expanded operations into a wider geographical area, including Ivory Coast waters.

Updates, practical guidance and useful links are found on Skuld’s website under the heading ‘Piracy’.

Information includes guidance from recent publications, such as Interim Guidelines for Owners, Operators and Masters for Protection Against Piracy in the Gulf of Guinea Region issued

Nor-Shipping will bring the maritime community to Oslo in early June.

Skuld sponsors Nor-Shipping Skuld is one of the main sponsors of this year’s Nor-Shipping, a leading maritime event week. With a top-quality exhibition, high-level conferences and prime networking opportunities, it attracts the international maritime industry to Oslo every other year. In addition,

Skuld is participating in Ocean Talent Camp 2013, a Norwegian recruiting initiative with a longterm perspective. The first part takes place at Oslo’s City Hall Plaza from 3 to 7 June, when Nor-Shipping is in full swing.

Read more

www.skuld.com beacon / March 2013

27

m d.co skul

e u s s i next 2013 r e b ptem e S t Ou

d Skuilne z maga

New The Skuld group provides marine and energy insurance to shipowners and clients worldwide. Liability insurance is provided by Skuld P&I and Skuld Offshore, while Skuld 1897, a syndicate at Lloyd’s, provides further marine, energy and cargo covers. The head office for global operations is located in Oslo, with additional offices in Aberdeen, Bergen, Copenhagen, Hamburg, Hong Kong, London, New York, Piraeus and Singapore.

s r ve o c

24-hour

emergency

number +47 952 92 200

Call this number if you have an emergency where Skuld can assist.

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beacon back issues For back issues of Beacon, please reference our online library located at the foot of our web pages or go to www.skuld.com/Beacon.

Previous editions are available for download in PDF format.

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