Professional Documents
Culture Documents
Skuld offers Mutual P&I insurance, Commercial fixed P&I, Yacht liability
cover, Charterers’ liability and more through our Skuld office network.
Protection & Indemnity (P&I) is Skuld’s largest line of business. The P&I
cover protects our members against third party losses and liabilities and
gives access to the professional services offered by Skuld’s experienced
teams. Skuld is a leading provider of Hull and Machinery (H&M) insurance,
and associated covers, to shipowners around the world. H&M insurance
covers physical damage to the vessel.
This guide provides insights into various marine risks which are laid out
in separate sections. In addition to looking at major risks against which
our shipowners are insured, we also want to provide some simple advice
to help you to protect your crew and ship, as well as saving everybody
a lot of trouble. As a seafarer you also help the vessel’s owners. Reduced
losses mean reduced insurance premiums for the shipowner. Everybody
benefits if everyone is doing the right thing at the right time.
Table of content
00 Safely with Skuld 1
01 Glossary 11
About P&I 12
What is P&I insurance? 12
What exactly does P&I insurance cover? 12
What is a P&I Club? 12
What is the International Group of P&I Clubs (IGP&I)? 12
What is a “member”? 13
What is a P&I claims handler? 13
What is a P&I Club correspondent? 13
How can a P&I Club correspondent help you? 14
What is a Skuld underwriter? 14
About additional insurance cover 14
What is extra insurance cover? 14
Examples of extra insurance cover 14
Collision with another vessel (RDC) 15
Contact with a fixed or floating object (FFO) 15
About H&M 16
What is H&M insurance cover? 16
What is an H&M correspondent? 17
How can an H&M correspondent help you? 17
What is an H&M claims handler? 17
02 Safety culture 18
Skuld’s experience 19
How can you help 20
On shore 20
On board 20
Training 20
Incident reporting 21
Workplace safety 22
Personal protective equipment 23
No blame culture 23
Safety committee 23
Lead from the front 24
03 Cyber safety 25
Skuld’s experience 26
How can you help 27
On shore 27
On board 27
04 Smuggling 28
Skuld’s experience 30
Potential implications for vessel owners,
operators, and crew 30
How can you help 31
On shore 31
On board 32
05 Crew health 33
Physical health 34
Mental health 35
Drugs and alcohol 35
Skuld’s experience 35
How can you help 36
On shore 36
PEME 36
Providing a healthy diet 36
Sufficient sleep 36
Exercise on board 36
Mental health and relaxation 37
Mental first aid 37
Team events 38
Internet access 38
On board 39
Medical check-ups and vaccinations 39
Focus on getting sufficient sleep 39
Mentor system 39
Shared pastimes 40
Exercise 40
Focus on your mental health 40
Speak up if you need help 40
06 Human fatigue 41
Skuld’s experience 43
How can you help 43
On shore 43
Sufficient time for sleep and rest 43
Cabin equipment 44
Encourage the co-operation of the crew 44
On board 44
To the crew, we recommend 44
To the captain, we recommend 45
07 People claims 46
Illness cases 47
Skuld’s experience 47
Physical health 47
Infections 48
Illness of musculoskeletal system (e.g. backpain) 48
Lifestyle diseases 48
Mental health 49
How can you help 49
On shore 49
Providing medical training and equipment 49
Telemedical service 49
On board 50
If you get sick 50
If a colleague gets sick 51
09 Personal injury 52
Skuld’s experience 53
Examples of accidents which we have seen
repeatedly over the years: 54
Enclosed spaces 54
Mooring accidents 54
Injury or death during rescue 54
Lifeboat drills 54
Burn injuries 55
Ignoring safety procedures 55
How can you help 56
On shore 56
On board 56
Keep it ship shape 56
Signage 56
Training 57
Give medical help 57
10 Investigating and reporting incidents 58
How can you help 59
On shore 59
On board 59
Preserve the scene 59
Take statements 60
Preserve records 60
Take photographs 61
Write a report 61
11 Stowaways 62
Skuld’s experience 63
How can you help 65
On shore 65
Proper treatment of stowaways 65
On board 66
Control access to the vessel 66
Control access within the vessel 67
Search the ship before leaving port 68
Inform the local agent once a stowaway
is discovered 69
Conduct a follow-up search 69
11 Rescue at sea 70
Skuld’s experience 71
How can you help 72
On shore 72
On board 72
12 Cargo claims 73
Damage to cargo 74
Skuld’s experience 74
Bulk carriers 74
Ore cargoes carried in bulk 75
Food stuff 75
Steel cargo 75
Plywood 76
Fertilizer 76
Multipurpose or project cargo vessels 76
Project cargo 77
Container vessels 78
Reefer vessels 79
Oil, Chemical and gas tankers 79
How can you help 79
On shore 79
On board 80
If the cargo loaded is damaged 80
No signing of Letters of Indemnity without
contacting Skuld 80
Preparation for loading 81
Put it in writing 81
Care of the cargo 82
Weather reports 83
Sea protest 83
Minimise losses 84
Surrender of cargo 85
Shortage of cargo 85
Skuld’s experience 85
Bulk carriers 85
Foodstuff 85
Container vessels 86
Oil and chemical tankers 86
Gas tankers 88
On board 110
Prevention: Operate safely 110
What to do in case of a collision with another ship
or object? 110
Useful information to be collected on board
in a collision case 111
Co-operate with others as per your
company’s instructions 111
17 Freight, Defence and Demurrage (FD&D) insurance 113
What is FD&D insurance? 114
How can you help 115
On shore 115
On board 115
Accurately record the events 115
Check documentation 115
Be consistent 115
18 Skuld – your global marine insurer 116
Loss Prevention 118
SKULD EMERGENCY NUMBERS 24/7 119
12 Safely with Skuld
Rest assured.
CHAPTER 01
Glossary
About P&I
What is P&I insurance? Skuld’s P&I rules are valid for the
P&I stands for “protection and entire cover period, which is usually
indemnity”. This insurance covers one calendar year, starting on
so called “third-party liabilities”. 20th February at 1200 hrs GMT
These are losses of, or damage each year and ending on 20th
to, an asset of another party, February 1200 hrs GMT the
a “third party”, which were caused following year. The Skuld P&I rules
by the party (“the vessel”) insured. are published annually shortly
P&I cover does not include any before the beginning of each
damage to the vessel herself; insurance year on our website.
this is covered by her hull and
machinery insurance. What is a P&I Club?
As a mutual association, Skuld
What exactly does P&I is owned and controlled directly
insurance cover? by its members. Our operations
Third-party liabilities which are and activities are overseen by
covered by P&I insurance typically a board of directors elected from
include: loss of life and personal the shipowners who have their
injury to crew, passengers and other P&I insurance with Skuld (our
people carried on board; cargo loss membership). The day-to-day
and damage; pollution by oil and operations of Skuld are handled
other hazardous substances; wreck by the association’s president
removal; collision; and damage to and CEO, who is appointed by and
property, just to name a few. For reports to Skuld‘s board of directors.
details about the extent of the P&I
insurance cover, please see our P&I What is the International Group
rules on www.skuld.com/products/ of P&I Clubs (IG P&I)?
Conditions/ Currently there are 12 P&I Clubs
which have formed the International
Group between them to co-operate with us, either help the members to
on various issues while remaining limit their loss by recommending
independent insurance mitigating steps, or in case an
associations. These 12 P&I Clubs incident has already happened,
provide marine liability cover (P&I) assist with legal advice and provide
for approximately 90% of the technical advice as received from
world’s ocean-going tonnage. our loss prevention department.
More information can be found The P&I claims handlers also handle
on the IG P&I website: an insurance claim, presented by
https://www.igpandi.org/about/. a third party, for and on behalf of
our members.
What is a “member”?
At Skuld, we call the shipowners Skuld also regularly plays a leading
who have their P&I insurance role in co-ordinating the response
“entered” with Skuld our to, and management of, maritime
“members”. Charterers who casualties.
have their P&I cover entered
with us we refer to as “charterer What is a P&I Club correspondent?
members” or “assureds”. Since ships trade worldwide, it
is important that Skuld can assist
What is a P&I claims handler? our membership in any port on
Claims handlers working at Skuld a 24/7 basis. To provide “round-
handle P&I insurance claims the-clock” assistance, Skuld set up
submitted by our members. Many a correspondents’ network to assist
of the colleagues have a law degree, any vessel at any port worldwide
but we also have colleagues who on any given day of the year.
have a business management Depending on the country, P&I
degree or a seagoing background. Club correspondents can be
The claims handlers will, depending another Skuld office, a local law
on how early they are being notified firm, or a company set up to work
of an incident by either a shipowner as a P&I Club correspondent office.
or by the master of a vessel insured These specialised P&I Club
correspondent offices often to attend on board, or help with
operate as P&I Club correspondents finding a suitable hospital for a sick
for various IG P&I Clubs. Any crewmember, or appointing a local
correspondent who wants to be lawyer if there are issues with local
listed with Skuld will undergo a authorities. The contact details for
thorough evaluation by Skuld before all our local correspondents can be
being approved and listed on our obtained from our webpage under
website (www.skuld.com) as a www.skuld.com/correspondents/
Skuld correspondent.
What is a Skuld underwriter?
How can a P&I Club correspondent Skuld underwriters are colleagues
help you? who provide our members,
If a vessel has any problem or issue assureds, and insurance brokers
in any port, the vessel or her owners with a suitable Skuld insurance
can directly contact the local P&I cover for their vessel or fleet.
Club correspondent. The local These colleagues focus on getting
correspondent can then, depending the best suitable insurance cover
on the help requested, quickly for our members and assureds;
involve more local resources, for they do not deal with insurance
example by sending a surveyor claims.
frequently than others, but there are then the other 3/4 (75%) is generally
many more. covered by the hull underwriters of
the vessel. For details, please see
Collision with another vessel (RDC) Skuld’s P&I rules.
If collision cover is taken out with
Skuld P&I, then any contact claim Contact with a fixed or floating
with another vessel falls under the object (FFO)
additional RDC (Running Down If contact damage cover is taken
Clause) cover. Depending on the out with Skuld P&I, then any contact
terms of the insurance contract with a fixed or floating object falls
which owners have with Skuld P&I, under the additional FFO (Fixed or
these may either cover 1/4 (25%) Floating Objects) cover. Depending
or 4/4 (100%) of a claim presented on the terms of the insurance
by another party against members. contract which owners have with
If the cover is 1/4 (25%) with P&I, Skuld P&I, these may either cover
1/4 (25%) or 4/4 (100%) of a claim Examples of contact damage with
presented by another party against objects that are covered include:
our members. If the cover is 1/4 damage to berths, fenders, quays,
(25%) with P&I, then the other 3/4 locks, shore cranes, offshore
(75%) is generally paid for by the windmills, oil platforms, coral reefs,
hull underwriters of the vessel. For fish farms, buoys, or underwater
details, please see Skuld’s P&I rules. cables which can be torn by vessels
dragging their anchor over an area
Under FFO, Skuld covers contact where the underwater cables are
damage caused by insured vessels. laying on the surface of the seabed.
About H&M
What is H&M insurance cover? most cases not provided by just one
Skuld offers hull and machinery insurance company (underwriter),
(H&M) insurance to our members. but by several insurers, with each
H&M is a separate insurance underwriter having committed to
product and not linked to P&I. insuring only a certain percentage
However, in rare instances H&M of the total insurable value. The
cover can overlap with the P&I shipowner will designate one
cover in place, such as in the H&M insurer as claims leader,
above-mentioned contact usually the insurer which commits
scenarios (RDC and FFO). to the largest percentage. The
claims leader is the one who has
H&M insurance protects shipowners contact with the shipowner in case
against physical loss or damage of a casualty, handles the insurance
to a vessel’s hull, her machinery claim and keeps the other H&M
and everything connected thereto. underwriters (“the followers”)
This insurance cover is also quite informed and involved.
different from P&I cover as it is in
CHAPTER 02
Safety culture
SKULD’S EXPERIENCE
Skuld has seen many large and expensive cases over the years
and in a lot of these cases safety shortcuts were taken by the
crew on board which led to either loss of life, severe injuries,
or damage to the vessel or her cargo, leading to expensive
insurance claims.
Workplace safety
Your company’s SMS will set out the
requirements for the operation of
a ‘permit to work’ system on board.
A permit to work should always
be completed whenever required,
particularly for work with machinery
or electrical components, work aloft
and entry into enclosed spaces.
Permits to work must be completed
diligently and the requirements for
additional checks throughout the
period of work must be complied
with, particularly when working aloft or whenever there is a variation in
or in an enclosed space. If a permit working conditions, such as heavy
expires, complete a new one before seas or inclement weather. Any risk
continuing or resuming work. assessment will be useless if the
officer completing it does not enter
Risk assessments are an invaluable all the relevant facts and consider
tool when used diligently. When risk them carefully. Proper training
assessments are necessary, they in this respect should be given
should be done prior to undertaking to any officer with responsibility
a task. Risk assessments should for completing risk assessments.
be reviewed at regular intervals If conditions change during the
CHAPTER 03
Cyber safety
Modern vessels are equipped cyber security safeguards of the
with increasingly complex company and its security culture
computer systems. Part of the should be cyber safety.
SKULD’S EXPERIENCE
Skuld’s experience with cyber safety issues has so far been
limited. However, what has been reported previously was the
infection of individual ship’s computers by a virus after an
external USB-drive was inserted into a vessel’s computer.
On shore On board
The company’s SMS should set We recommend that the crew
the framework for protecting and is taught about cyber security
maintaining the vessel’s IT safety. safeguards and cyber safety.
This should be developed with the Also, as part of the security
company’s IT department. What procedures, the crew should
should especially be prohibited familiarise themselves with
is the connection of any external the company’s cyber security
hard drive with any of the ship’s safeguards and cyber safety to
computers. If the crew has company learn what they are allowed to
laptops the same security policy do and what not.
applying to the ship’s computers
should extend to their company At no time should any private
laptops. computer of the crew be connected
to any of the ship’s computers or
a company laptop.
Sharing the same horizon
CHAPTER 04
Smuggling
Ships are often seen by smugglers are attractive transit points for
as an easy target and may be used smugglers because of the quick
to transport contraband such as movement of products. Therefore,
drugs, tobacco, or weapons. All smuggling volume is roughly
crew should be aware of the risks proportional with the size of the
involved in carrying goods for other port. However, Colombia, Ecuador,
people on board their vessel and Peru, Mexico, Brazil, and Venezuela
should never accept anything for are considered particularly high-risk
unauthorised carriage on board. countries for the transit of cocaine.
Whereby the Western Caribbean
It is documented that port opera- Vector is a route of particular
tions in Central America, South concern from Barranquilla,
America, and the Caribbean regions Colombia to Altamira, Mexico
should be subject to rigorous where cocaine has been seized
precautionary measures and in bulk carriers.
vigilance. Generally, larger ports
Contraband refers not only to illegal Smuggling cases are not covered
drugs but also tobacco, weapons by P&I or FD&D insurance which
or medications which need to means that Skuld will not cover
be declared. The consequences fines or expenses or legal costs for
of breaching smuggling laws are criminal proceedings or provide
severe. security in such cases.
SKULD’S EXPERIENCE
We have seen cases in which contraband was found on entered
vessels by local authorities at a port of call. The vessels most
often originated from South American ports. South America
is a hub for the production of cocaine.
In such cases the crew runs a real risk of not only facing criminal
proceedings in the country where these drugs are discovered,
but also imprisonment, whilst our members face expensive
fines and in the worst case an entry ban for their
fleet to ports of that country.
CHAPTER 05
Crew health
It is key that the crew of a ship is in Physical health
good health. Good health generally When it comes to physical health,
consists of two parts: the health of there are several things which are
the body (physical health) and the important, such as that a crew
health of the mind (mental health). member signing on does not have
Good mental health is especially any preconditions or prior sicknesses
important in very demanding jobs before coming on board. A solid
such as working on board a vessel medical check-up before going on
where seafarers also live for many board is necessary. During the time
months in a very confined space. at sea, it is important that the crew
SKULD’S EXPERIENCE
It is Skuld’s experience that a healthy crew is less likely to make
mistakes which could lead to accidents or serious incidents. Life
on board can be stressful as there are many tasks to complete
within a certain amount of time as many vessels operate under
time pressure. Only a healthy and strong crew can focus on
their work ahead and stay alert. This will also improve safety on
board as a more alert crew is less bound to lose focus and make
mistakes or take shortcuts. If the focus of the member is to
keep its crew healthy and content on board, the development
of illnesses, especially mental illness, may subside.
off any stress and stay fit for duty, in need to feel better. Skuld can
physically and mentally. assist you with finding courses that
teach how to provide mental first
Mental health and relaxation aid.
To help the crew to mentally relax
and unwind, it may be helpful to Skuld has a partnership with the
provide access either to online Norwegian Training Center (NTC)
courses or DVDs about mental in Manila who provide courses
health, or meditation or Yoga within the arena of mental health,
exercises for relaxation. including how to provide mental
first aid. Please contact us for more
Mental first aid information.
There may be instances where a
seafarer is feeling distressed and It may also help the crew if they
may need someone to talk to. To are provided with details of a
have one of more crewmembers helpline, so they know that there
providing mental first aid to fellow is someone available they can talk
seafarers may help a crewmember to in case of need. The crew should
be encouraged to look out for each atmosphere within the crew. Such
other. events could be weekly BBQs or
karaoke or movie nights. Such
It is also important for any seafarer events may help the crew to bond
to have a confidant to whom they irrespective of their rank, nationality
can turn for advice without being or gender.
judged or fearing that anything they
say could negatively affect their Internet access
career path. To provide such a “safe Equipping the vessel with a stable
space” for their crew is one of the 24/7 internet connection is also
most valuable things a shipowner important as this allows the crew
can provide. to always stay in contact with their
loved ones at home irrespective
Team events of what time of the day their work
Arranging team events during off shift ends.
time may encourage a better
CHAPTER 06
Human fatigue
Fatigue is a feeling of constant Proper rest and sleep are important
tiredness or weakness and can be to a person’s physical and mental
physical, mental, or a combination well-being and of great importance.
of both; it is an extreme form of This is particularly true for working
exhaustion. It can affect anyone, on commercial vessels, where the
and most adults will experience crew is engaged in both physically
fatigue at some point in their life. and mentally demanding work.
If a crewmember experiences Also, the nature of the work puts
fatigue, they feel tired to a degree the crew at times in dangerous
that they fall asleep during working situations while having to fulfil
hours or feel sleepy to the extent work rosters that are tight and
that they cannot be alert any longer. demanding for all on board.
This can have a direct impact on the
safety of the vessel and the safety Over time, fatigue has a severe
of the other crewmembers. Those wearing effect on the human
without proper sleep are likely to body which can lead to long-term
make more mistakes and are more physical and mental issues like
likely to be involved in accidents. paranoia.
SKULD’S EXPERIENCE
Human fatigue cases are exceedingly difficult for Skuld to
measure as the claims handlers mostly learn about a fatigued
seafarer in cases where the fatigue has either already resulted
in a physical or mental illness or led to an accident. The main
cause of fatigue is the lack of proper and enough sleep. Before
the Covid-19 pandemic the focus was more on physical factors
preventing a good and regular sleep by reducing noise on board,
avoiding a high coffee consumption, an unhealthy diet, etc.; but
during the pandemic it became clear that psychological and
mental factors can cause the same degree of tiredness
as physical ones.
CHAPTER 07
People claims
SKULD’S EXPERIENCE
Only a healthy and strong crew can focus on their work ahead
and stay alert. When looking at the claims’ statistics of the past
few years, both physical and mental illness cases show up.
Physical health
We noted that seafarers can suffer under a variety of
physical conditions. Some are infections, some illnesses are
connected to the physical demands of a life at sea with the
musculoskeletal system being affected, and some are
so-called lifestyle diseases.
Infections
The infections we see can vary
from classical food poisoning
to infections of the urinary
tract, tuberculosis, malaria,
yellow fever, and a few cases
of HIV/Aids. The most common
illness caused by an infection is
appendicitis.
Illness of musculoskeletal
system (e.g., back pain)
Whilst the number of infectious
diseases is low in comparison
with the overall number of illness cases we recorded, the number
of illnesses of the musculoskeletal system is higher. These
illnesses are usually back pain or hernias. Both are often a result
of heavy lifting and the physical work that needs to be carried out
on board by the crew.
Lifestyle diseases
The term “lifestyle disease” can often be misunderstood in
a way that the illness was caused by a “bad” lifestyle of the
seafarer, but this is not true. The term “lifestyle disease” refers
to illnesses which are a result of the modern way of life and
in particular the Western diet. A diet which is based on a high
consumption of meats, but low in fibres and vegetables. Most of
the time the content of salt as well as sugar and unhealthy fats
is high in such a diet. A high consumption of salt and bad fats
Mental health
The global COVID-19 pandemic showed how important good
mental health is. There are physical factors which can have a
negative impact on mental health, like an unhealthy diet, too
little sleep, drug or alcohol abuse, or illnesses; but there are also
other factors which can have a damaging effect on mental
health, such as lack of sleep, stress, worries, isolation, or bullying.
CHAPTER 08
Personal injury
SKULD’S EXPERIENCE
Skuld has seen a wide variety of cases over the years. There are
certain kinds of accidents we see on a recurring basis, most of
which can be prevented if good safety procedures are in place
and always followed by the crew as well as imposed on any third
party coming on board, such as stevedores, etc.
Examples of accidents which we have seen repeatedly
over the years:
Enclosed spaces
Seafarers or stevedores entering a tank or cargo hold without
wearing the necessary breathing equipment or protection gear
as instructed by the vessel’s safety procedures, and then being
killed by gas poisoning or lack of oxygen.
Mooring accidents
Accidents during mooring operations, such as a crewmember
breaking both legs when jumping from the vessel to the quay
during a self-mooring operation, or a crewmember being killed
by a mooring line.
Lifeboat drills
Accidents during lifeboat drills, including fingers or limbs being
squeezed and amputated by lines or wires; or passengers
boarding a lifeboat when it is already launching leading to severe
injuries; or head injuries caused by crew not wearing a helmet
and the consequences when the head was caught between
a lifeboat and the vessel.
Burn injuries
Seafarers suffering burn injuries of various kinds: The Material
Safety Data Sheet (MSDS) not being checked properly before
sending the crew into a cargo tank for cleaning. Crew not
wearing the correct PPE which led to burn injuries of unprotected
crew; or third degree burns when cleaning out hot slush in the
engine room; or chemical burns to the eye which led to loss
of vision; or burns by hot water.
CHAPTER 09
Investigating
and reporting
incidents
On shore
We recommend including in
the company’s SMS procedure
a checklist for the crew on which
steps they should undertake to
provide for a thorough investigation
of an incident.
On board
Preserve the scene
We recommend that any work
being carried out in the area in
which an accident has occurred
is immediately stopped. As soon
as possible, the scene should be
inspected and anything that may
have contributed to the accident,
such as defective equipment, trip
hazards, etc. is to be photographed. accident occurred. If the accident
It is also important to take pictures happened on the quay, or in a
of any measures that have been put dockyard, we recommend trying to
in place to prevent such accidents, take statements from non-crew-
such as guard rails, signage, etc. members who may have witnessed
the incident. This may not always be
If the cause of an accident is possible, but the local agent may be
identified, it is important then to able to assist, if required.
put necessary steps in place to
prevent a reoccurrence of that kind The names and contact details
of accident. Every effort should be of individuals in their statements
made to make sure that accident should be included, so they may be
investigations do not have a contacted later, if required.
negative impact on the commercial
operation of the vessel. However, Before taking the statement of an
safety must always take priority. injured crewmember or witness,
always try to set them at ease and
Take statements reassure them that the purpose of
We recommend that detailed your investigation is to establish the
statements from injured parties facts, and not to apportion blame.
and any witnesses are taken, after
having checked with Skuld. It is Empathy is especially important
important to let the witnesses and when dealing with a fellow seafarer
injured parties formulate their own who may be in fear of losing their
thoughts and not to try to influence job because of an accident.
their memory of the incident.
Preserve records
In the case of more serious Maintenance records of any
accidents, it may also be necessary equipment involved should be
to take statements from senior copied and attached to the
officers with responsibility for investigation report. Any relevant
the area of the vessel in which the logbook entries, particularly those
CHAPTER 10
Stowaways
SKULD’S EXPERIENCE
In most cases that Skuld is notified of, stowaways have
destroyed or thrown away any official documents of
authentication, such as a government-issued ID-card or
a passport, before they stow away on board. Without such
official documents, it is difficult for the crew to find out what
nationality the stowaway has. To establish the identity and
nationality of the stowaway, Skuld has questionnaires in various
languages for the stowaway to fill in. This questionnaire can help
the crew and Skuld to learn more about the stowaway. Please
contact Skuld if you wish to receive a copy of the questionnaire.
Once the stowaway comes off the vessel and is handed over
to local authorities of a country which is not theirs, the local
embassy of their home country will be contacted to issue travel
documents, so that they can be put on an airplane taking them
back to their home country. In some cases, Skuld will employ
private guards to make sure that the stowaway arrives safely
in their home country.
The crew and our members can actively help to reduce the
possibility of stowaways making it on board their vessel by
putting some risk reducing steps in place and to follow them
at every port call.
CHAPTER 11
Rescue at sea
SKULD’S EXPERIENCE
Over the years, many of our members’ vessels have been
contacted by the Maritime Rescue Co-ordination Centre
(MRCC) of a country being responsible for the area in which
the vessel is sailing to assist with a sea rescue operation.
On shore On board
How the ship should behave in Immediately contact the vessel’s
cases in which a MRCC seeks her manager and notify Skuld to enable
assistance to participate in a rescue us to help you. Rescued seafarers,
mission should be included in the sailors or refugees are under the
company’s SMS procedure. Also, the law in most countries treated as
proper treatment of rescued parties stowaways, so landing rescued
should be included as well. Any parties can, depending on where the
rescued parties should be treated vessel plans to land the people, be
with respect and be taken good a little challenging. However, in the
care of. This includes assisting with past Skuld has, with the help of its
applying first aid where necessary correspondents’ network, been able
and providing the people with to assist our members to arrange for
necessities like water, food, and a swift and safe disembarkation of
accommodation where possible. the rescued parties.
CHAPTER 12
Cargo claims
Cargo claims are among the claims we see which could be prevented.
with the highest frequency within This chapter will be divided in cargo
Skuld. There are large numbers of damage claims and cargo shortage
recurring cargo claims scenarios claims.
Damage to cargo
SKULD’S EXPERIENCE
There are a few steps shipowners can undertake to reduce
the risk of cargo being damaged during the process of loading,
during the sea voyage, and during discharge operations.
Bulk carriers
Bulk carriers or bulkers can carry a wide variety of food stuff
like grain or sugar in bulk or packaged in bags, but also coal, ore,
various kinds of steel cargo, and minerals.
Foodstuff
This can be rice, sugar, grains, or corn in bulk or bagged. Some
food cargoes are prone to be infected by pests and need to be
fumigated before the vessel departs her load port. Skuld can
assist in providing technical advice to avoid cargo damage
through fumigation. Skuld’s loss prevention department can
also provide guidance on proper ventilation and protection of
the cargo from wet damage during the sea voyage.
Steel cargo
We have seen many cargo claims in which high value steel cargo
was damaged during the sea voyage. Such cargo damage can
either be caused by water ingress or by cargo shifting. In many
cases, mechanical damage was caused to cold rolled steel coils
which shifted. If a pre-loading survey is carried out for steel
cargo and any pre-shipment damage is recorded in the mate’s
receipts and subsequently in the bills of lading, we see fewer
cargo claims.
Plywood
Plywood is another kind of cargo which can be severely
damaged if it shifts during the sea voyage. Also, for this kind
of cargo we would recommend a pre-loading survey with
a particular focus on the quality of the securing of the cargo
within the cargo holds.
Fertilizer
Fertilizers of various kinds can be shipped either in bulk or in
bags. This cargo also needs to be protected from water damage
during the sea voyage, but some kinds of non-organic fertilizers
also require that there be no potential heat source within the
cargo holds. Our loss prevention department can guide you in
more detail.
The other kind of cargo damage which Skuld sees is wet damage
caused by either water ingress through leaking hatch covers,
or water in the cargo holds entering via the bilge system. Skuld’s
loss prevention department can advise you further on how to
minimise the risk of wet damage.
Project cargo
Some multipurpose vessels carry project cargo such as windmill
parts, heat transformers, large machinery parts etc. This kind
of cargo is usually very bulky, heavy, and not easy to lash well.
Also, project cargo is usually quite expensive, so if that cargo
is damaged, a cargo claim will be expensive. The main project
cargo damage cases we see are physical damage to the cargo if
the lashings do not hold up and the cargo shifts or moves around
in the cargo hold. The danger in such cases is that because the
cargo pieces are heavy, it will have an influence on the stability
of the vessel if the cargo lashing breaks and the cargo pieces roll
around freely in the cargo hold.
Skuld recommends having a pre-loading and lashing survey
to be done at the port of loading, ideally with the involvement
of a lashing master or supercargo.
Container vessels
With the containers stowed under deck, we record mainly cargo
damage cases caused by water. This can be water entering the
cargo hold via the hatch covers or water entering the cargo
holds via the bilge system.
Reefer vessels
The damage we see with reefer cargo is mainly caused by
either incorrect temperature settings, or the failure of an
electrical unit supposed to keep the cooling systems
running at a consistent temperature. The problem with either
situation is that in most of these cases either the whole cargo
hold or the whole reefer container contains damaged cargo
which has become unsuitable for human consumption and has
barely any salvage value. In such cases a thorough investigation
of the root cause helps to find out if an electrical unit on board
was malfunctioning. If that is the case, repairs can be affected to
prevent a similar incident in the future.
Shortage of cargo
SKULD’S EXPERIENCE
There are some cargoes where shortage claims are a recurring
phenomenon. These are especially high-value cargoes where
either theft and pilferage are a problem or cargoes where there
is a discrepancy between the ship’s and shore’s figures, such as
dry bulk or liquid cargo.
Bulk carriers
If it comes to cargo carried on bulkers, it is mainly foods where
we record many of the short-delivery cases.
Foodstuff
If the vessel loads food stuff in bulk, it can be the case that the
shore figures (upon completion of the cargo loading operations)
show a higher cargo amount loaded than the draft survey done
by the vessel. Often, it is the higher shore figures which are
inserted into the B/L which leads to a short-delivery claim at
the port of discharge. We have discovered that if an external
surveyor is appointed to carry out a draft survey at the load
port it is easier to persuade charterers to insert the draft survey
figures into the B/L or in some cases to get shippers (with the
help of charterers) to load additional cargo. If you have any
issues with the discrepancy of the ship’s and shore’s figures,
please reach out to us for advice.
Sometimes the shortage does not stem from too little cargo
loaded, but from pilferage. We have seen cases in which rice
cargoes shipped in bulk were bagged on board by stevedores
who then took some bagged cargo with them, or even instances
of a whole cargo truck bypassing the shore scale and taking a
different exit. If the port of discharge is in a country in which
pilferage is a problem, we recommend having a discharge survey
carried out to have someone keeping an eye on the cargo.
Container vessels
On container vessels, we rarely see a container itself disappear,
but it has happened in some jurisdictions, that as soon as
the container was discharged, the seal was broken, and the
container emptied. This happened before the container was
handed over to the receiver. We see such cases mostly with
containers carrying high value electronics.
insists on having their figure put on the B/L. This will, in many
cases, result in a shortage claim being presented at port of
discharge. The vessel often has better bargaining power if the
ullage survey, during loading operations, was carried out by
an independent cargo surveyor.
If you have any issues with the discrepancy of the ship’s and
terminal’s figures, please reach out to us for advice.
On shore On board
If the vessel is calling at a port Tally the cargo
which she has not called at before We recommend tallying the cargo
or for a while, we recommend that during loading and discharge
you check with local agents before operations to avoid or to limit
calling at this port if there have shortage claims. If shore-side
been any pilferage issues or a higher tally clerks are employed, monitor
number of shortages recently. their work, wherever possible.
We also recommend liaising with Ensure members of the ship’s crew
Skuld if your vessel is loading either are vigilant and highlight damaged
dry bulk cargoes or liquid cargo. or substandard cargo that
We will then provide you with may be missed or ignored by
a recommendation for preventive shore-side personnel. This is
steps to reduce the risk of particularly important in loading
a shortage claim at port of ports where shore-side personnel
discharge. One step to reduce the may be less reputable.
amount of cargo shortage claims
for bulk cargoes is mentioned
below, for more tailored loss
prevention advice, please
contact us.
Sharing the same horizon
CHAPTER 13
Pollution
Pollution can take place in different and they can be natural, which in
forms in shipping. A broad definition shipping would be invasive species
of a pollution incident is when carried in the vessel’s ballast water,
materials enter the environment or organic food waste. Harmful
(air, soil, and water) where they pollutants are mainly created by
have a harmful and sometimes human activity (not natural) such
poisonous effect. These harmful as plastic garbage or residues
materials are called pollutants produced by engines.
Pollution by vessels -
MARPOL regulation
When it comes to pollution caused by oil, or by noxious liquid
incidents caused by vessels, substances in bulk (including
various kinds of pollution are wastewater), or by discharging
defined and regulated in the harmful substances carried by sea
International Convention for in packaged form (cargoes listed
the Prevention of Pollution from in the IMDG Code), by discharging
Ships (MARPOL). MARPOL sewage or garbage, and by air
regulations are part of your SMS. pollution. With the increasing
awareness of global warming,
MARPOL covers many different the focus on the prevention of air
forms of possible shipborne pollution by vessels is becoming
pollution, for example, pollution more prominent.
SKULD’S EXPERIENCE
Most pollution cases Skuld deals with are caused by spills or
leaking of bunkers, lube oils, or oily substances. We see fewer
cases of pollution caused by other liquid cargoes, disposal of
wastewater (including exhaust gas scrubber water), garbage,
cargo residues, and tank cleaning water.
the pollution and the amount of oil the crew tries to take samples of
lost should be entered in both the any floating pollutant. This should
logbook and the oil record book. be done in a safe way by the crew.
Any pollution, irrespective of how Such samples should be sealed
small it is, must be entered in the and labelled, as well as mentioned
respective logs of the vessel. The in the logs. These samples can be
ship’s logs must be correct. extremely useful to prove whether
the pollutant was coming from your
If the pollution is caused by another vessel or not.
vessel or a terminal
Skuld has seen cases in which the If the pollutant is solid
hulls of vessels were stained in a If the pollutant is solid, we
port by an oily substance that came recommend that the crew takes
from either another ship or from a pictures of the pollutant and makes
nearby oil terminal. In such cases it an entry into the vessel’s logbook
is important that you immediately which should include: a description
inform local authorities and Skuld of the pollution, the date, time, and
about the pollution. Skuld also location of its origin, any pictures
recommends that the crew takes that were taken of the pollutant, as
pictures of the areas of the vessel’s well as any information about who
hull which are oil-stained, if the polluter might have been,
possible. Skuld will assist you in if known.
finding a local clean-up crew as any
oil stains must be removed before Keep the logs up to date
the vessel can sail. If the oil stains As mentioned above all details of
are not removed before the vessel a pollution incident should be
departs, she will face problems at entered into the logbook and the oil
her next port of call. record book must always be fully
up to date.
If the pollutant is liquid
If it is possible, we recommend that
Sharing the same horizon
CHAPTER 14
Important rules
for vessels carrying
persistent oils
100
100 Safely with Skuld
Rest assured.
CHAPTER 15
Fines
SKULD’S EXPERIENCE
Pollution fines
As mentioned in the chapter “Pollution” above, if a pollution
offence is committed, in many cases a pollution fine will be
issued against the vessel or her owners.
Other fines
Below are few examples (the list is not exhaustive) of cases
Skuld sees frequently.
Immigration fines
These fines are usually issued against the vessel if her crew
is not following immigration regulations. These are cases
where a passport or any necessary visas of a crewmember
have expired. Sometimes a vessel can violate customs laws
which are a part of the wider immigration rules. Examples
of such cases are if provisions of a vessel are not correctly
declared. This could be the amount of lube oil, or medication
or any other provisions (e.g., alcohol) on board.
Cargo fines
The kind of cargo fines Skuld deals with mostly, are fines issued
for the wrong declaration of cargo. Such as if there is a short
delivery of cargo or an overlanding. The fine is then issued,
because the actual amount discharged is not identical to the
amount stated on the B/L.
CHAPTER 16
Contact damage
What is contact damage?
In shipping contact damage is the owner’s P&I cover. Depending on the
damage caused by a vessel that terms and conditions of the specific
either hits another ship (collision), insurance contract, which owners
or a permanent structure such as signed with their H&M underwriters,
quayside, or a floating structure like the contact damage (even to
a fish farm or a buoy. third parties) can fall under the
insurance cover of the owner’s H&M
The one thing which is always underwriters. It is, however, safe
certain when it comes to contact to say that third-party collision
liability is that any damage caused cover is, in most cases, covered
to the vessel herself does not fall by either one, the P&I Club of the
under the P&I cover, but under her vessel, or her hull underwriters.
cover with H&M underwriters. P&I,
as a third-party insurance, only Even so, it is important for you to
covers damage caused to a third know that any pollution caused by
party (any party but the vessel en- the entered vessel during a collision
tered for P&I). What falls under P&I or contact case is covered by P&I,
is a damage claim from the owner
of another vessel or an object which
was damaged by the entered vessel,
and usually these are repair costs
or other damages, if the members
added additional contact cover to
their P&I policy.
so are any injuries to the crew or Hull) in a contact damage case, you
damage to the cargo. can always contact Skuld, and we
will be happy to advise you.
If you are in doubt about what is
covered and who to contact (P&I or
SKULD’S EXPERIENCE
Over the years Skuld has seen some cases which could have
been prevented. We have dealt with cases in which the crew
tried to achieve a shortcut by deviating from a dedicated
shipping lane to take a route to the port or berth which
appeared to be shorter and would save time. If a vessel does
that, then the risk of her colliding with another vessel or object
like a reef or a buoy etc. or even running aground is much higher.
On shore
It may be helpful for the crew on
board to have a checklist they can
go through in such scenarios. From
our experience we have learned that
contact matters do not happen so
often when the crew has a checklist
as part of their SMS system, and
any necessary information can be
obtained quickly and in an orderly
fashion.
agents or local correspondents can ECDIS system to also have her make
assist with establishing the contact. a copy of that data as well.
CHAPTER 17
Freight, Defence
and Demurrage
(FD&D) insurance
What is FD&D insurance?
Your vessel may be entered with Such cases could be charterparty
Skuld for ‘Freight, Demurrage and problems (such as off-hire disputes,
Defence’ (FD&D) or ‘Defence’ cover. or demurrage, detention, dead
This includes cover for costs and freight, unsafe port, ship’s
advice in a wide variety of legal performance claims), as well as
cases, but not the liabilities any other claims directly connected
themselves, in contrast to P&I. with the operation of the vessel.
CHAPTER 18
Skuld caters to the needs of shipowners, the offshore and energy sector,
charterers, traders and more. We are committed to providing members and
clients with a comprehensive casualty response service and extensive loss
prevention programmes to better safeguard casualties and prevent injury.
By following the insights in this booklet, you can help yourself, your crew,
and your ship. By always doing the right thing at the right time, everybody
benefits.
If you have any questions on any points in this booklet, please contact
your local Skuld office. We will be happy to help.
Rest assured.