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20-09-2018 (Singapore)

P52253 Charterers’ and Traders’ Liabilities
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Charterers’ and Traders’ Liabilities

20 – 21 September 2018 | Mandarin Orchard Hotel, Singapore

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TEAM SAVINGS: REGISTER 2 DELEGATES & THE 3RD COMES FREE!

overview

Understanding the risks, insurance cover and claims

On completion of this course, attendees will:

  • Recognise the severity of risks and liability exposures faced by Charterers & Traders in the dry bulk, container, tanker and  other trades.
  • Appreciate the need to utilise pro-active risk reduction and control methods before ‘fixing’.
  • Understand the scope and necessity of separate and comprehensive Charterer’s liability insurance even in ‘back to back’ charter situations.
  • Obtain a sound comprehension of the terms of Charterer’s P&I cover and their application to both regulatory (oil pollution) and contractual (charter party and B/L) liabilities and claims.
  • Be aware of what Charterer’s P&I does not cover and the pitfalls of ‘breach of warranty’.
  • Comprehend the roles and obligations of the broker and underwriter and the ‘best terms’ negotiation process relating to the insurance premium cost and the deductible element.
  • Know when to activate the claims defence and recovery processes to optimise reimbursement.
  • Realise the advantages of supplementary Freight, Demurrage and Defence (FD&D) Insurance.
  • Better understand the processes of charter party dispute resolution, inclusive of both pursuit and defence actions, together with cost and settlement consequences.

PLUS!
Case Reviews and Simulated Mediations between designated Shipowner and Charterer teams

Day 1

  • Shipowner’s claim against Voyage Charterer for serious hull damage due to nomination of an alleged unsafe berth plus consequential freight earnings losses.
  • Shipowner’s claim against Time Charterer for main engine damage due to provision of alleged off-spec bunker fuel plus consequential off-hire losses.

Day 2

  • Time Charterer’s alleged late payment of hire triggering owner’s withdrawal of vessel. Charterer’s claim for damages against owners for wrongful withdrawal of vessel in breach of the C/P hire payment anti-technicality clause.

Who Should Attend?

  • Time and Voyage Charterers as well as Container Slot or Space charterers.
  • Traders and Cargo Owners using ships and COA’s for import/export of commodities and goods.
  • Shipping Executives wishing to enhance their knowledge of insurance claims matters.
  • Government Authorities involved with international shipping.
  • Lawyers and Claims Executives in P&I Clubs, Insurance Companies and Private Practice.
  • Bank Executives dealing with the Shipping and Maritime Industries.
  • For all trades, inclusive of tankers, bulk carriers, container ships and others

pricing

Packages Price
2 Day TrainingSGD $3495Early Bird

Early Bird Rate: Register and Pay on or before 13 July 2018

Register 2 Delegates & the 3rd attends FREE!
For Group Registrations, email register@ibcasia.com.sg or call +65 6508 2401

 

  • Special Group Discount pricing is applicable to groups of 2 or more delegates from the same organisation registering for the same event, at the same time.
  • Fee stated is the discounted price PER DELEGATE. Only one discount applies – either the early bird rate OR the Special Group Discount.
  • All fees stated include luncheons, refreshments and complete set of documentation. It does not include the cost of accommodation and travel.
  • A 7% Goods & Services Tax (GST) is applicable to all Singapore based companies for Singapore venue.

Testimonials

What past participants have said about our Course Director:

A knowledgeable presenter with a high-level coverage of shipping law and insurance.
– Glenn Prewster, Chartering Manager, Ampol

It gave me detailed explanation on P&I. There was new Information for more understanding at work
– Tang Pui See, Assistant Manager – Claims (Demurrage Dept), Eastport Maritime

It was informative and the trainer had a good depth of knowledge.
– Loh Yelei Wayne, Chartering and Operations Executive, Global Marine Logistics Pte Ltd

The course director is very knowledgeable about the topic and had good presentation materials.
– Marlow Maneo, Fuel Supply Planning logistics Officer

The lecturer was interactive, friendly and highly knowledgeable. He answered all my questions.
– Meryln, Claims Executive, Pequod Associates Pte Ltd

I learnt more about marine insurance.
– Teng Su Yuin, Customer Service, Sabic Asia Pacific Pte ltd

trainer

Capt. Robert Gordon

Master Mariner & Solicitor (England & Wales) Managing Director, SeaProf Executive Education Former MD and Chairman, SEAsia P&I Services

Agenda

Day One

0900 -1030
Introduction: What is Charterer’s liability insurance and what does it cover? How does it differ from other marine insurances?

What extent of liability insurance do Charterers require?

  • What kind of Charterers can be covered?
    • Demise/Bareboat Charterers.
    • Time Charterers
    • COA Voyage Charters and others.
  • Shipowners P&I insurance – the risks covered include ship collision, damage to FFO, cargo, injury and loss of life, fines, stowaways, wreck removal, pollution, etc.
  • Why is the assigned benefit of the Shipowner’s P&I cover under C/P terms not sufficient to also protect the Charterer? What about a Charterer in a C/P chain?
  • Charterers P&I insurance – risks covered include Shipowner liabilities PLUS special Charterer Risks and Additional Risks of Loss of Charterer’s Bunkers, Loss of Freight, Extended Contract Liability.
  • Overview of the scope of the North P&I Club’s terms of Charterer’s P&I Cover (similar to most P&I Clubs).

Charterers’ exposure to regulatory liabilities?

  • Oil pollution 3rd party claims for damage, clean-up and fines, together with associated legal defence costs.
    • Bunker Convention 2007 extends strict liability for bunker spills to owners, managers & charterers.
    • Civil Liability Convention 1996 channels all liability for tanker cargo and bunker spills to registered owners but not always applicable.
  • US Oil Pollution Act 1990 holds liable “any person owning, operating or demise chartering the vessel”.
  • US State legislation targets the “transporter of oil”, “person having control over oil”, and “person taking responsibility”.
    • Criminal prosecution of charterers may occur in certain jurisdictions e.g. energy company ‘Total’ as charterers of the “ERIKA”.

How are Charterers’ regulatory liability claims covered?

  • In depth review and interactive discussion of terms and application of Charterers P&I Rules of Entry for oil pollution liability claims made against a Charterer, together with potential criminal prosecution and fines.

Coffee

1100 – 1230
Charterer’s exposure to contractual (C/P and B/L) liabilities.

  • Contractual claims particular to charterers, together with legal defence costs, include:
    • Unsafe Port or Berth claims arising out of damage to ship’s hull e.g. grounding on obstructions.
    • Damage to or loss of the vessel caused by charterer’s dangerous, noxious or corrosive cargoes e.g. calcium hypochlorite or direct reduced iron.
    • Negligence of charterer’s servants or contractors e.g. stevedores causing crane or hold damage.
    • Injury to crew, passengers or 3rd parties caused by persons employed or contracted by Charterers.
    • Time charterer’s liability for off-spec bunkers, inclusive of:
      • Damage to ship’s machinery plus cost of bunker removal and disposal.
      • Bunker tank and engine cleaning.
      • Off-hire losses.
    • Salvage Fees and General Average Contributions.
      • Voyage charterer’s exposure is proportionate to the freight at risk.
      • Time charterers exposure is proportionate to the value of the bunkers on board.
    • Damage to cargo on board a vessel where
      • Charterer/Shipper owns the cargo, or
      • Charterer is named in the B/L contract as the contractual carrier e.g. liner trades.

How are Charterers’ contractual liability claims covered?

  • In depth review and interactive discussion of relevant terms and application of Charterer’s P&I Rules of Entry to contractually generated claims and liabilities.

Lunch

1330 – 1500
What Charterer’s liability claims are not covered?

  • General liability exclusions to Charterers cover under Club Rules & the MIA 1906:
    • No liability if voyage is illegal, hazardous, improper or imprudent.
    • Loss arising out of charter cancellation.
    • Claims relating to demurrage or detention.
    • Loss due to war risks arising out of war, civil war, rebellion, capture & seizure (exclusive of piracy) arrest, mines, bombs, rockets, etc.
      • BUT – Clubs can provide both primary and excess war cover on supplementary terms.
    • Nuclear risks and live animals.
    • MIA s. 55 (2) – no liability for loss due to the ‘wilful misconduct’ of the assured e.g. issuing B/L’s with a false description or pre-dated or post-dated B/L’s.
    • Excessive contractual liabilities beyond that imposed by ordinary law, including C/P’s and B/L’s that include terms more onerous than The Hague Visby Rules e.g. ad valorem B/L’s.
    • No liability for damage to charterer’s equipment or loss of bunkers on board chartered ship unless separately insured.
    • No liability for claims below the agreed deductible or franchise.
    • No liability for losses covered by “other insurance” i.e. P&I insurance provides complementary cover only.
  • Cargo liability exclusions to Charterers Liability cover:
    • The identity of the contractual carrier problem under the B/L terms – shipowner or charterer?
    • If charterer is the carrier, then liability exclusions include losses or damage to:
      • Contraband, Nuclear, Refrigerated, Deck and Rare & Valuable cargoes.
      • Goods carried under Ad Valorem B/L’s.
      • Falsely declared B/L’s as to quantity and condition.
      • Issue of Ante-dated or Post-dated B/L’s.
      • Any Deviation not entitled by the contract of carriage or discharge at an unnamed port.
      • Delivery of cargo without production of B/L.
  • Breach of Warranty & impact on Charterers liability cover:
    • MIA 1906 – a condition which must be complied with, whether material to the risk or not.
    • Express Warranties – are contained within the Club Rules and member’s Certificate of Entry.
    • Implied Warranties are contained in the MIA 1906.
    • Warranty issues:
      • General rule that nothing excuses non-compliance.
      • MIA 1906 provision that non-compliance entitles the insurer to avoid liability, even if the non-compliance did not cause the loss.
      • Clubs have mitigated some of their Express Warranty Rules by requiring a causal connection.
      • Insurance Act 2015 negates much of the MIA 1906 insurer’s avoidance entitlements but Clubs may contract out.

Tea Break

1530 – 1700
Day 1 Case Study & Learning Application Tutorial:

  • Review of C/P Safe Port and Berth contractual provisions.
  • Examples and discussion of Unsafe Port and Berth cases, the losses suffered and court/arbitration decisions.
  • Course participant interactive analysis of an Unsafe Port/Berth claim scenario.
  • Learning application and enhancement through engaging in a simulated formal mediation process between designated Shipowner and Charterer teams.

Day Two

0900 – 1030
Obtaining Charterer’s P&I Cover on best terms.

  • Is Charterers liability insurance more or less all the same?
  • Current P&I Club providers of Charterers’ P&I insurance, their market reputation and security ratings.
  • Upper limit of Charterer’s P&I insurance, available increases and supplementary covers.
  • Agreement of the deductible amount as well as sub-limits.
  • Club ‘entry’ as a ‘member’ on a ‘fixed terms’ basis.
  • Role of the insurance broker and their selection.
  • Role of the insurance underwriter and the risk assessment information required.
  • The current cost of Charterers P&I Insurance and the effect of non-payment.
  • Club Rules of Entry and cover note as both the contract of insurance and ‘Policy Terms’.
  • Impact of the Marine Insurance Act 1906 and the Insurance Act 2015.
    • Duty of full disclosure of both Member & Club.
    • Effect of misrepresentation.

Coffee

1100 -1230
Charterer’s P&I claims process and reimbursement.

  • Obligation to notify claims promptly and time permitted.
  • Role of the insurance broker in optimising the claims process and outcomes.
  • Claims lead provisions.
    • No admission of liability is permitted.
    • No settlement or appointment of surveyors or lawyers without Club approval.
  • The “Pay to be Paid” Rule and its application.
  • Discretionary provision of Club security (LOU’s).
    • Premiums can be demanded to first be paid in full.
    • Possible issue of Club ‘reservation’ and requirement for counter-security.
  • Charterers’ obligation to ‘Sue and Labour’.
    • Costs covered by P&I.
    • Costs not covered.
  • Charterer’s legal entitlement and their Club Rules’ obligation to limit liability under international maritime convention entitlements.
  • Inter-Club NYPE agreement and application to Time C/P’s.
  • Claims settlement, receipt and release and subrogation and reimbursement to Charterer member.
    • Payment of premiums as a condition precedent to settlement and reimbursement.
    • No set-off of reimbursement against premiums is permitted.
    • Application of The Omnibus Rule.
  • Maritime Convention Direct Action entitlements against P&I Clubs.
  • Third Party (Rights Against Insurers) Act 2010.
  • Member and Club disputes, arbitration, jurisdiction & law.
  • Charterer’s liability risk assessment and management.

 Lunch

1330 – 1500
What is Freight, Demurrage and Defence (FD&D) Insurance? How does it differ from P&I and other marine insurances?

  • Responds to charter party disputes and claims between owners, charterers and other parties which are not covered by P&I insurance. Examples include:
    • C/P negotiations broken off while ‘subject details’.
    • Time C/P Off-hire and final accounts.
    • Voyage C/P Demurrage and Dispatch.
    • Repudiatory breach and withdrawal from a C/P.
    • Non-payment of hire or freight.
    • Supply and payment for Time C/P bunkers.
  • Separate to Charterers P&I and provided by a distinct division of a P&I Club or by a pure Defence Club.
  • Provides cover for legal costs only for pursuit or defence of a claim i.e. no settlement cost of the claim itself.
    • Costs of gathering supporting factual evidence.
    • Costs of lawyers, court fees and expert witnesses.
    • Member’s exposure to other side’s recoverable legal costs if case is lost.
  • Terms of cover will usually be subject to Club P&I Rules, inclusive of the ‘Pay to be Paid’ rule and other exceptions as well as the benefit of the ‘Omnibus Rule’.
  • Cover is entirely discretionary and Club will consider:
    • Merits of claim and strength of evidence.
    • Reasonableness of member’s conduct.
      • Did member make pre-fixture enquiries to assess counter-party risk?
      • Adherence to bunker sampling and analysis schemes?
    • Member’s adherence to Club’s prior advice.
    • Cost effectiveness of measures to be taken.
  • If Club declines to support the Claim, then member has no recourse against the Club.
    • BUT – some Clubs have a guaranteed level of cover to pay for initial legal advice on the merits of claim.
  • Limits of Defence claims.
    • Lower limit of USD 10,000.00 but Club will still assist the member through their own in-house lawyers.
    • Upper limit of about USD 15 million but Club’s board will have to approve after costs run to about USD 80,000.00.
  • Conduct of FD&D claims.
    • Members must notify promptly and Rules will often contain a 1-year time bar.
    • Appointment of external lawyers must be pre-approved by the Club.
      • These lawyers must also report to and take instructions from the Club.
    • No settlements without Club prior approval.
  • If the member wins at trial or in arbitration, will he/she and their FD&D insurer be awarded their incurred legal costs?
    • In a common law jurisdiction (apart from the USA), yes, regardless of whether the winner’s lawyers are external lawyers or in-house lawyers.
  • Providers of FD & D cover, their market credibility and S&P ratings.
  • FD & D risk assessment and management.
  • Current cost of FD&D cover.

 Tea Break

1530 – 1700
Day 2 Case Study and Learning Application Tutorial:

  • Review of C/P obligations for prompt payment of hire and the effect of anti-technicality clauses.
  • Examples and discussion of the concept and legal effect of the repudiation of a contract.
  • Course participant interactive analysis of a late hire payment claim and ship withdrawal scenario.
  • Learning application and enhancement through engaging in a simulated formal mediation process between designated Shipowner and Charterer teams.

when & where

20 - 21 Sep 2018

Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li
Email: aili.tan@meritushotels.com
Website: www.meritushotels.com

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