Marine Insurance

Learning from this tragedy could prove an invaluable lesson in risk mitigation with complex maritime operations, writes John Butler. In the early morning of 26 March 2024 the container ship Dali struck the Francis Scott Key Bridge in Baltimore forcing its dramatic collapse which was captured and circulated on television and social media across the world. This is a textbook example of a Black Swan Event, an unexpected incident that has disproportionately created a social and economic impact on a local area. This incident also shines a light on the offshore industry, maritime insurance, and the importance of Marine Warranty Surveyors. Continue reading “The Francis Scott Key Bridge ‘Black Swan Event’”

The melting of sea ice presents opportunities for international marine transportation networks in the Arctic. Recent discoveries of oil and the potential financial and time savings are making the Arctic shipping routes more appealing to the shipping industry. Two viable Arctic sea routes exist, enabling ships to move between the Atlantic and Pacific Oceans, thus cutting the distance between East Asia and Western Europe. But with more frequent trade in a dangerous climate these new Artic shipping routes cause concerns for marine insurers.

These new routes offer viable alternatives, but they are not without risk. Extreme climate and weather conditions create unique hazards, including floating ice, thick fog, and violent storms. Despite new safety features, vessels remain vulnerable to ice damage, machinery breakdown, and more. The harsh environment also creates challenges for crews, few of which have been trained for or have experience in such conditions, according to insurance broker and risk adviser Marsh.

The international shipping industry is keen to start maximizing the opportunities afforded by Arctic navigation. Yet the marine insurance industry — essential to the commercial viability of Arctic transit — holds a host of safety and navigational concerns, which may limit and/or prohibit the possibility of rapid growth in Arctic transit for the foreseeable future.

Continue reading “Arctic shipping routes cause concerns for marine insurers”