Risk of collision rises when ships lay up: P&I Club

SHIP collision risks remain "potentially greater" when a ship is laid up because the average size of vessel makes it larger and more vulnerable, says industry underwriter UK P&I Club.

The club also expressed concern that "the terms of contractual compensation for seamen is now potentially onerous and whether a ship is in lay-up or in active trading, some medical and injury risks do not change significantly."

The marine insurer made the observations while announcing the issuance of new guidelines on proper lay-up arrangements for ships to curb insurance claims.

The guidelines, prepared with BMT Marine & Offshore Surveys, contain extensive checklists relating to the lay-up site; mooring arrangements; security, safety, protection and environment; preservation and maintenance; preparation procedures; and approval of inspection arrangements.

As a result, the club has issued guidelines to ship owners about P&I cover for laid-up ships to help them prepare and maintain their vessels and provide a comprehensive note on the return of calls.

The club said in a statement that it is "keen to minimise claims for personal injury, wreck removal, pollution, anti-fouling, environmental contamination and damage to other vessels, underwater cables, beaches and reefs."

The note points out that crew claims frequently add up to greater total costs than cargo claims.

Normal P&I cover continues during lay-up, subject to the terms of entry and the rules. As a basic premise, a ship in lay-up should reduce P&I risks, enabling the club to return a portion of its calls to the owners.

A ship must have been laid up for at least 30 consecutive days after mooring, without cargo on board, to qualify for call returns. Ships with cargo on board will not qualify for lay up returns under any circumstances.

If a ship is laid up for six months, the club must have seven days' notice before it leaves the place of lay-up. The vessel may have to undergo a special survey at the club's discretion. Failure to provide notice before recommissioning could prejudice cover, the club added.

Source: Portnews