GARDNEWS

ISSUE 201 February/April 2011

Stowing and securing of jumbo bags

filled with granulated cargo PAGE 4

Ports and places of refuge

in South Africa PAGE 18

Switching bills of lading PAGE 22

Claes IsacsonChief Executive Officer

2Each year throws up its own challenges for

each of us and, for 2010, the global economic

conditions have remained unsettled,

especially across many Euro currency

countries. The impact of many of these

challenges is outside our scope of activities;

however, where we feel we can help, our

focus is to look at everything we can do to

support our Members and clients, in as many

ways as possible.

Facing the future The autumn and early winter seasons are

always interesting periods for everyone here

at Gard. The renewal discussions (both on hull

and P&I) start to get under way and our

underwriters begin to get a much better

understanding of how the market is feeling.

This year will see our second full renewal with

underwriting teams representing the full

product range in their regions, and their

experience and understanding is developing

all the time. We are seeing quite a number of

early P&I renewals in Northern and Southern

Europe, while discussions in other parts of the

world traditionally take place slightly later.

Certainly feedback so far has been positive,

particularly around our financial position. At

the half year our total assets were just over

USD 2 billion and we have continued to see

good progress through the third quarter. The

claims environment has remained benign and

our underwriting performance has also been

strong. This meant that, for the second year

running, we are not asking for a general

increase in the advance calls for mutual P&I

entries for next year. Our strong financial

foundations contribute to a likely premium

saving for our Members going forward,

through low general premium adjustments

and very attractive call policy. The hull market

continues to offer its own challenges –

primarily around excess capacity – but, as an

underwriting business with a very long-

standing track record, we feel that we can

continue to navigate our way through. Our

objective is to continue to focus on

underwriting for each customer individually,

looking at their overall risk picture and the

best solutions available. The combination of

this strategy and first class service is a model

that has served us well now for many years.

Looking to set new standards The environment in which we all live and

work leaves no room for complacency in the

way we run our business; we are very aware

that we must always be looking for new and

better solutions to the issues we face. We

have spoken on other occasions about our

initiative to improve the claims service we

offer and, I am pleased to say, a revised

claims distribution model will be in place by

the next renewal. Its primary objective is to

create pools of expertise by claims type –

whether that is liquid or dry cargo, charters

traders, etc. – so that we can optimise the

process to deliver efficient and effective

claims handling while delivering high degrees

of client satisfaction.

Looking to the outside A year after I accepted the chairmanship of

the International Group, I continue to be

impressed by the quantity and quality of work

being done in the many sub-committees,

working groups and, not least, the Secretariat.

Its work is rarely in the spotlight, but there is

no doubt that it delivers tremendous benefit

to shipowners around the world.

The EU investigation of the Group’s

arrangements continues to require a lot of

time and attention, particularly working to

make sure the EU understanding of the issues

is as comprehensive as possible. The other

project is the revision of the criteria for

membership in the Group – these will be

incorporated in the Pooling Agreement for the

2011/12 policy year. The criteria shall apply

in the same way to new applicants as to

existing member clubs. Key aspects are that

the member clubs must be truly mutual,

controlled by their international shipowner

members and able to demonstrate that they

are financially sound by meeting accepted

solvency or international rating standards.

Existing clubs must periodically verify these

and other aspects.

Winter has come early to many parts of

Europe this year with unexpected severity,

and history tells us that the coming months

can be difficult ones in the Northern

Hemisphere. I hope, however, that the holiday

season provides a good and restful break for

you and your families and that we all return

refreshed from our break to take full

advantage of the opportunities available

in 2011.

A time of contemplation

“Our strong financialfoundations contribute to alikely premium saving forour Members going forward,through low generalpremium adjustments andvery attractive call policy.”

“A year after I accepted the Chairmanship of theInternational Group, Icontinue to be impressed byquantity and quality of workbeing done in the many sub-committees, working groupsand, not least, theSecretariat.”

3

In this issue:

© Gard AS. Gard News is published quarterly by Gard AS, Arendal, Norway.

Editorial Committee: Claudia Storvik (Editor), Leif Erik Abrahamsen, Peter Chard, Knut-Morten Finckenhagen,

Terje Paulsen, Nick Platt, Geir Sandnes. Production: Claire Osborne.

Disclaimer: The information contained in Gard News is provided for general information purposes only. Whilst we

have taken every care to ensure the accuracy and quality of the information provided, Gard can accept no

responsibility in respect of any loss or damage of any kind whatsoever which may arise from reliance on

information contained in Gard News, regardless of whether such information originates from Gard, its

correspondents or other contributors.

Gard has noted an increase in cases of lost

anchors. Page 10.

What exactly are the liabilities with respect to

crew covered by P&I? Page 14.

2 Message from the Chief Executive Officer – A time of contemplation

4 Stowing and securing of jumbo bags filled with granulated cargo

10 Loss of anchors and chain

12 Hull and machinery incident – Engine breakdown

14 Crew employment contracts – Members’ liabilities

15 IMSBC Code comes into force

16 The invisible invasion continues – Update on ships and invasive species

18 Ports and places of refuge in South Africa

21 Air emissions – California update

22 English law – Switching bills of lading

23 New Malaysian Admiralty Court

24 Introducing Oy Gard (Baltic) Ab

26 The protection of the Baltic Sea

26 Venezuela – Amendments to legislation on drug smuggling

27 English law – Further exception to the “without prejudice” rule

27 Medicare delays implementation of mandatory reporting requirement

28 Loss Prevention and P&I Member Circulars, autumn 2010

28 Staff news

Gard NewsFebruary/April 2011

Gard News presents the members of staff in

Gard’s Helsinki office. Page 24.

Gard News welcomes contributions from

external authors. Articles must not have

been published previously or be under

consideration for publication elsewhere.

Contributors may submit articles for

consideration for publication to

claudia.storvik@gard.no.

and more...

Stowing and securing of jumbo bagsfilled with granulated cargo

Gard News has a look at problems involving cargo carried in jumbo bags

and some solutions to these problems developed by the industry.

potatoes, onions, etc. A lot of raw materials

for the chemical industry are transported in

jumbo bags, and they are commonly used for

products like cement, fertiliser, salt, etc. The

bags may be placed inside cargo containers

and, if used for fertiliser for instance, they are

easy to put on trucks for direct delivery to

farmers. Jumbo bags are gaining in popularity

so fast that there are now international

conferences for the producers and users, and

the “6th World FIBC Congress” was held in

Amsterdam in September 2010.

The risk of capsizing All vessels may sometimes face risks of

grounding, collision and fire, but such

accidents may to a certain extent be handled

by the crew, and if not, the crewmembers

normally have a chance to leave the ship. The

capsizing of a vessel, however, may leave the

crew no time for action and possibly not even

time to save themselves. IMO and Class

regulations therefore aim to provide all

vessels with sufficient stability, also if the hull

should be damaged to a certain extent.

Slack bunker-and ballast tanks onboard may

contribute to a capsizing, but the two main

initial causes will either be that the cargo has

shifted or there has been massive ingress of sea

water. One may eventually lead to the other.

nitrates or phosphates, including urea. In dry,

granulated form, these products may be

shipped in bulk, in sacks or in large, so-called

jumbo bags, both in bulk vessels and in other

types of dry cargo vessels. Other names used

for such cargo units are “big bag”, “super

sack”, “bulk bag”, but the proper name is

Flexible Intermediate Bulk Container, or FIBC.

The Flexible Intermediate BulkContainerMore and more cargo is transported in jumbo

bags, which are made in many sizes, for

contents usually between 500 and 3,000 kg.

They may be round or square and vary in

heights between 100 and 200 cm, and are

often made of an outer layer of woven

polypropylene for strength and an inner layer

of polyethylene. Transportation is usually

done by lifting in loops, and there are bags

with one, two or four loops at the top,

depending on whether they are to be lifted

by crane or forklift. For easy handling by fork

lifts, the bags may also be transported on

pallets. The jumbo bags are filled from the

top, and some are arranged so they may be

emptied from the bottom or are just cut open,

if not of a re-usable type. They are very

handy for transportation of cargo in powder,

pellet or granulated form, but may also be

used for nodule types of products, like

About a year ago a reefer vessel insured by

Gard went down on a voyage from Europe to

South-America. In the Bay of Biscay the cargo

shifted in heavy weather, the vessel took a list

to port, capsized and sank. Of the 24 crew,

two were lost. That brought to mind a very

similar case from 1997, when the reefer

vessel VANESSA also capsized in bad weather

and went down. Both these reefer vessels

carried fertiliser in jumbo bags.

Gard has searched for other similar cases and

looked at the transportation of granulated

cargo in jumbo bags, first of all as a return

cargo in reefers. Reefer vessels, purpose built

for carrying fruit, may carry different types of

available cargo when returning to the fruit

producing countries. As fertiliser is in big

demand by the same agricultural countries, it

has become a very common return cargo.

Fertiliser may be ammonium nitrate, which is

also used for explosives, or other types of

4

“In dry, granulated form,these products may beshipped in bulk, in sacks orin large, so-called jumbobags, both in bulk vesselsand in other types of drycargo vessels.”

The cargo was ammonium nitrate in jumbo

bags, loaded at a Norsk Hydro plant in

Porsgrunn, Norway, and destined for Australia.

A major disaster with a vessel carrying jumbo

bags happened on 9th December 1994, when

the Ukrainian SALVADOR ALLENDE went down

in the North Atlantic. On a voyage from

Freeport, Texas to Helsinki, she encountered

a storm 750 miles off Nova Scotia, took a list

to port, capsized and went down stern first.

Waves were said to be 50 feet, or around 15

metres high. A major search and rescue

operation took place with spotter planes and

helicopters, as well as six diverted cargo ships.

The two helicopters of the 106th Rescue

Group of the New York Air National Guard

worked under very difficult conditions, had to

refuel in mid-air no less than ten times and

were later recognised for the “longest over-

water rescue with helicopters in aviation

history”. One of the helicopters picked up one

survivor from the sea and a German vessel

another. The Atlantic Ocean claimed the lives of

the rest of the crew, no less than 29 persons.

Clipper-type, 8,400 GT and built in Norway in

1971. She rolled considerably, being of a slim

hull and powered for a speed of 22 knots. The

cargo from Hamburg was fertiliser in plastic

sacks, stowed manually on the reefer decks.

In nine-metre-high waves, the vessel rolled

tremendously and got a list of 25 degrees,

which increased to 60 when the crew left her.

Of the 37 people on board 35 survived,

rescued under very difficult conditions by

British helicopters and a rescue boat from

Guernsey. The case is still one of the major

rescue operations of the Royal National

Lifeboat Institution and is referred to at the

Marine Museum of St. Peter Port in Guernsey.

The vessel, which sank the following night,

was not loaded with jumbo bags, which were

not much in use at that time. But the plastic

sacks of fertiliser were not shored against the

decks above the cargo, and one may also

suspect insufficient stowing in the extreme

wings of the cargo holds. The vessel had

Ecuadorian flag in order to profit by obtaining

very cheap Ecuadorian fuel and did therefore

also leave Hamburg with some bunker tanks

empty. Later, sister vessels used drilling mud

as added ballast in some of the bottom tanks.

On 26th February 1986 the six year old

general cargo ship ANGELA SMITS went down

after meeting heavy weather in the Bay of

Biscay. As the cargo shifted, the vessel

developed a severe list and eventually sank.

To protect the vessel against capsizing due to

ingress of water, there are the relevant IMO

regulations in the International Load Line

Convention and SOLAS for obtaining the

International Cargo Ship Construction

Certificate. To avoid the risk of shifting cargo,

there are SOLAS Chapter VI, Carriage of

Cargoes, and the Code of Safe Practice for

Cargo Stowage and Securing.

Jumbo bags are excellent for the handling of

granulated cargo like fertiliser. But during

ships’ motions in heavy weather, it has been

found that the cargo may move within the

bags and the bags may take a slightly

different shape. If stored tightly together and

on top of each other in a boxed cargo hold,

this normally does not represent a problem.

But if stored in multi-decked cargo holds,

without a shoring between the bags and the

deck above, the cargo may shift. The shifting

of such cargo on several decks may result in

the vessel taking a list and eventually

capsizing. Reefer vessels are more vulnerable

to such shifting of cargo in jumbo bags than

others. They are usually built for speed, so

they are slim-hulled and may roll

considerably. They usually have four decks of

a height of 2.2 metres, which allows only one

bag in height per deck, leaving an empty

space above. There may also be reduced

friction between the material of the bags and

for instance the flooring of aluminum plating

often used in reefer vessels, or if plastic

sheets have been placed on the decks for the

purpose of cleanliness.

Cases from the pastThere is not much guidance available on how

to stow and secure jumbo bags, and there has

not been much warning against non-reefer

types of cargo in reefer vessels, but it is never

too late to learn from cases from the past.

On 13th December 1981, the Ecuadorian

reefer vessel BONITA, with P&I cover with

Gard, was hit by a hurricane in the English

Channel, on a voyage from Hamburg to

Panama and Ecuador. The vessel was of the

5

Loading of ammonium nitrate in jumbo bags at Yara Industrial in Koping, Sweden.

“Jumbo bags are excellentfor the handling ofgranulated cargo likefertiliser. But during ships’motions in heavy weather, ithas been found that thecargo may move within thebags and the bags may takea slightly different shape.”

“There is not much guidanceavailable on how to stow andsecure jumbo bags, and therehas not been much warningagainst non-reefer types ofcargo in reefer vessels.”

Jumbo bags being stowed on board a reefer vessel.

Solid attachments have been fitted for the lashing of the cargo. Bolts are welded to thesideshell structure behind the reefer insulation.

“The lashings only coveredpart of the cargo, and as the ropes were merelylooped through the straps,the bags could move alongthe lines.”

6

The SALVADOR ALLENDE was a general cargo

vessel, but had similarities to a reefer vessel,

both in having a hull form designed for a

speed of 19 knots when new and in having

upper and lower tween decks in the cargo

holds. She was loaded with 7,300 tons of rice,

in jumbo bags of 1.7 m3, weighing about one

ton each. Rice will have the same tendency to

move within the jumbo bags as other

granulated cargo, and the investigation

showed that the stow had not been as tight as

it could have been. The bags were carried in

the lower holds, lower and upper tween-

decks, in tiers two to five-high, depending on

headroom. There had been considerable free

space in incomplete rows and around

obstructions such as columns and web frames

at the flare to the ship sides forward. Rubber

tiers and pallets had been used to fill voids, a

questionable procedure. Ropes of 14 mm

synthetic and natural fibre had been used for

lashing, not steel wires. The lashings only

covered part of the cargo, and as the ropes

were merely looped through the straps, the

bags could move along the lines.

During the heavy rolling motions of a ship, the

bags will seek to fill the voids between them,

and during sideways pressure the cargo may

be compressed and also rise within the bags,

creating even more slackness in the

transverse direction. In the case of SALVADOR

ALLENDE, it was found that the bodily shift of

cargo could have amounted to thousands of

tons, and even by movements as little as 2cm

per bag, with 24 bags across, this would have

caused a dangerous heeling moment,

resulting in a list and the vessel eventually

taking in water and capsizing.

The SALVADOR ALLENDE was not a Gard-

covered vessel, but the reefer VANESSA was.

She was a Bahamas-flagged, 4,000 GT vessel

making 16 knots. On a voyage from Koping in

Sweden to Puerto Bolivar in Colombia, she

sank in rough seas 435 miles east of St.

John’s, New Foundland on 23rd October 1997.

Six lives were lost. The cargo on board the

VANESSA was ammonium nitrate, carried in

jumbo bags. Ammonium nitrate was

becoming a popular return cargo for reefer

vessels trading to South America, used either

as a fertiliser in fruit farms or as an explosive,

for instance for use in the mines of Colombia.

The cargo lost with the VANESSA had to be

replaced, and that was done by the sistership

NYANTIC, which soon after loaded at the same

port. In bad weather, on 15th November

1997, this vessel also developed a list, but the

master managed to take her to a port of

refuge in the Azores, where the cargo was re-

stowed. The NYANTIC had P&I cover with Gard

at the time, but the event did not result in a

claim. As the vessel survived, the

observations of the shifted cargo gave the

shippers valuable information about the

behaviour of cargo in jumbo bags.

There have been other cases as well, over the

years, of vessels capsizing with a cargo in

jumbo bags, or having to seek a port of refuge

due to listing. Often, in cases of capsizing, it

has not been possible to establish a clear

cause, other than assuming a shifting of

cargo. When KONGSTIND, a small Norwegian

freighter disappeared with a crew of four at

Hustadvika on 4th January 2003, no cause was

found, but it was assumed that a shifting of

cargo had taken place. Almost half the cargo

was fertiliser in jumbo bags; other cargo was

fertiliser in sacks on pallets. This type of cargo

had been regularly carried by the vessel many

Lashing of jumbo bags on one deck is completed.

Strong chains are installed, taut across the cargo holds.

“The Code of Safe Practicefor Cargo Stowage andSecuring has some advice on particular types ofcargoes, and Annex 10 deals particularly withFlexible Intermediate BulkContainers.”

7

times, without problems. However, it was

mentioned at the inquiry that the vessel had at

times arrived in port with some list, and that

this was caused by jumbo bags being pressed

together on voyage. The vessel was a tween-

decker and was normally loaded by stevedores

of the shippers, supervised by the crew.

IMO’s advice on FIBCsSOLAS Chapter VI, Carriage of Cargoes, Part A

Reg.5.1 deals with stowage and securing of

cargoes and requires: “Cargo, cargo units and

cargo transport units carried on and under

deck shall be so loaded, stowed and secured

as to prevent as far as practicable, throughout

the voyage, damage or hazard to the ship and

the persons on board, and loss of cargo

overboard”. Regulation 5.6 further requires

an approved “Cargo Securing Manual”, for all

types of ships engaged in the carriage of all

cargoes other than solid and liquid bulk

cargoes. IMO has also issued Guidelines on the

preparation of the cargo securing manual

(MSC/Circ.745). As for other vessels, reefer

vessels are to have a Cargo Securing Manual

on board, and if there are other types of cargo

to be carried than the customary reefer

cargoes, the manual should also make

reference to that.

The Code of Safe Practice for Cargo Stowage

and Securing has some advice on particular

types of cargoes, and Annex 10 deals

particularly with Flexible Intermediate Bulk

Containers. It is pointed out that “The ideal

ship for the carriage of FIBCs is one with wide

hatches so that the FIBCs can be landed

directly in the stowage positions without the

need for shifting” and that “The cargo spaces

should, where practicable, be rectangular in

shape and free of obstructions”. That is also

in line with Gard’s experience: no problems

have been noted with the transportation of

jumbo bags in box-shaped cargo holds, where

the bags are loaded tightly together and on

top of each other. The problem is first of all

one for ships with relatively narrow hatch

openings and multiple decks.

The Code of Safe Practice for Cargo Stowage

and Securing seems to acknowledge the

problems of vessels with teen-decks, advising

that “when FIBCs have to be stowed in deep

hatch wings, easy access and sufficient

manoeuvring space for suitably adapted fork-

lift trucks should be available”. For jumbo

bags in reefer vessels this may be a bit of

wishful thinking, as normal fork lifts may not

have enough space under the decks to move

the bags by lifting them by the loops. Major

shippers may have invested in purpose-built

fork lifts, or they use a technique of placing

the fork lift so the fork extends in the way of

the hatch opening to receive a bag onto the

fork. The bottom of the bag then takes a

shape that will allow the fork to be extracted

once the bag is in position and lowered to the

deck for stowing.

The Code also advises that when FIBCs are

stowed athwart ships, one should start the

stowage from both sides of the cargo hold, so

any void space will be at the centre and not in

the wings. That void space should then be

chocked off. In cases where a tween-deck or

lower hold is only partly filled with FIBCs, the

bags must be shored off and wire lashings

should be used from side to side of the cargo

hold to secure the bags. The Code does well in

A cross section of a reefer vessel, where the jumbo bags on the A deck have been secured by web lashings to chains going across the cargo hold,and the bags on the B and D decks have been secured to fixed points of the underdeck structure. By both methods two longitudinal boundaries ofbags are created to stop sideways shifting of cargo.

All d

raw

ings

are c

ourt

esy

of

Mar

iTerm

, Sw

eden.

points of the under deck structure. Solid fixed

attachments for the chains are needed, and if

such are not fitted already, the cargo hold

lining and insulation have to be cut for the

welding of solid lugs to the side-framing of

the hull. All chains, shackles and turnbuckles

are required to have a minimum breaking

load of 20 tons and the web lashings one of

four tons. All the lashing equipment is

supplied by Yara, so the cargo shipper has full

control over the quality of the gear. Lashing of

bags are also required at sides, to avoid

tilting, if the ship sides are not vertical. All

open spaces between bags or between bags

and ship structures are to be filled with air

bags, etc. The bags must be protected from

sharp edges and damaged bags are not

allowed to be loaded. Another consideration is

not to exceed the permissible deck load.

Even if the bags are secured in accordance

with the above requirements, they will have

a certain freedom, although limited, to move

in the transverse direction. In a vessel loaded

with for instance a row of 16 unsecured bags

in the transverse direction, the compression

of the bags could, according to tests, result in

a movement of the centre of gravity by as

much as 1.28 metres. Yara also requires

therefore that the vessels loading their cargo

fulfil the following stability criteria:

1. The angle of heel due to the shifting of

the jumbo bags should not be greater than

12 degrees.

In 2004 a practical test with the jumbo bags in

use by Yara was carried out by MariTerm for

vessels of Seatrade, in order to determine the

expected compression of ammonium nitrate

in jumbo bags due to accelerations on board

vessels, angle when tilting, angle when

sliding occurred and coefficient of friction. For

the test a truck with a tilting platform was

used, covered with gratings in use by reefer

vessels of Seatrade. The results have

thereafter been used for dimensioning cargo

securing arrangements for reefer vessels

loading jumbo bags for Yara. It is required that

the loaded cargo should not be subjected to

accelerations above 0.6 g and to achieve that

the metacentric height, GM, is to be below a

maximum value individual for each vessel.

To secure the jumbo bags in block stow from

side to side of the cargo hold, one high, two

methods were designed, both using the bags

to create two longitudinal boundaries or

“bulkheads”. This is achieved by either

stretching steel chains above the bags, across

the cargo holds at three to five metre

distance, and securing to these the

longitudinal rows of bags by web straps, or by

chaining the longitudinal rows of bags to fixed

asking for wire lashings, too often it has been

seen that synthetic ropes may stretch or are of

insufficient strength to secure heavy cargo in

heavy weather.

Yara’s solution for loading reefervessels The reefer vessel VANESSA, which capsized in

1997, had loaded ammonium nitrate in jumbo

bags from Koping in Sweden. Yara Industrial,

Technical Nitrates, at that time Hydro

Chemicals AB, is a major shipper of prilled

ammonium nitrate and ships it in jumbo bags.

Following the capsizing of VANESSA, and the

cargo shifting of NYANTIC soon after, Yara

decided to investigate the behaviour of jumbo

bags filled with ammonium nitrate. The firm

MariTerm, a specialist firm on the securing of

cargo for transportation, was engaged to do

the job and gained valuable information from

the case of the NYANTIC, when it was

reported that the jumbo bags had been

compressed to one side, leaving an open free

space of as much as 1 to 1.5 metres on the

other. Following the shifting of cargo on board

NYANTIC, Yara decided to use other types of

vessels for their cargoes, until they had

developed the so-called “Chain Lashing

Method” for reefer vessels. It was decided

that all reefers, to load ammonium nitrate in

jumbo bags, would have to have an

addendum to the Cargo Securing Manual and

to have the cargo secured in a way that would

avoid the risk of shifting.

8

“All open spaces betweenbags or between bags andship structures are to befilled with air bags, etc.”

This drawing gives a top view of how two longitudinal rows of jumbo bags on the A deck aresecured by web lashings to four chains, stretched between solid attachments on each ship side.Both the chains and the web lashings are pulled taut.

This drawing shows the lashing pattern of how jumbo bags are secured by chains and weblashings using D-ring attachments of the underdeck structure.

2. In the static stability diagram, the net or

residual area between the heeling arm curve

and the righting arm curve up to the angle of

heel of maximum difference between the

ordinance of the two curves, or 40 degrees or

the angle of flooding (θ), whichever is the

lesser, shall in all conditions of loading be no

less than 0.075 metreradians.

3. The initial metacentric height, after

correction for the free surface effects of liquids

in all tanks, shall be not less than 0.30 metres.

These criteria are taken from the IMO

International Code for the Safe Carriage of

Grain in Bulk”, which does not formally apply

to cargo in jumbo bags, but sets a reasonable

survivability criterion for vessels loading

such cargo.

Finally, Yara also strongly advises vessels

loading their cargo to subscribe to

meteorological consulting services and

navigate according to the forecasts and the

advices on route planning delivered by such

firms. This praxis was initiated by Seatrade as

a standard procedure on all their vessels

carrying ammonium nitrate in jumbo bags.

Gard’s experience is that ship managements

adopting such services for their vessels are

well pleased by the reduced risks of meeting

adverse weather, and find it worthwhile to

perform a slightly longer voyage.

Yara Industrial, Technical Nitrates has

expressed that the tests carried out and the

requirements they have established for the

securing of jumbo bags are only valid for the

type of bags they use and the ships they load.

Last year as many as 40 to 50 reefers were

loaded with such cargo, and since 1997

around 500 vessels have carried cargo in

jumbo bags from Yara, all arriving at their

ports of destination without problem. The

principles established by Yara are therefore

well worth studying by other shippers and

shipping lines.

We thank Yara Industrial, Seatrade Reefer

Chartering and MariTerm for providing the

information on how to lash jumbo bags with

prilled cargo on board reefer vessels.

9

“Yara strongly advises vesselsloading their cargo to subscribe tometeorological consultingservices and navigateaccording to the forecasts andthe advices on route planningdelivered by such firms.”

Loss of anchors and chainGard has noted an increase in cases of lost anchors. The Club experiences aboutone case per 200 ships per year and class societies experience about twice asmany: one anchor lost per 100 ships a year.

This anchor was almost lost due to the pin of the anchor shackle (D-shackle) falling out. Thespile pin, securing the main pin of the anchor shackle, is missing.

Photo

s co

urt

esy

of

Ole

Mar

tin T

erj

ese

n.

10Most Gard cases involving lost anchors are

P&I-related. More and more port authorities

require that lost anchors be removed from the

sea bed, so these cases become “wreck

removal” operations. There are fewer cases

related to hull and machinery insurance, as the

value of the lost anchor and chain is normally

lower than the applicable deductibles.

The weakest linkGard has looked at the technical reasons

behind loss of anchors, and noted that

anchors may be lost due to breakage of a

common chain link, joining shackle, swivel,

anchor shackle or crown shackle, and also

through breakage of the anchor itself. One or

both flukes may break and, surprisingly, also

the solid anchor shank.

“A chain is only as strong as its weakest link”

is an old saying, and when a part of the chain

breaks it may be due to wear and corrosion or

to over-stressing of that part. Class societies

require anchors and chain to be ranged in dry-

dock every five years and that is the time to

pay attention to every part of the chain.

Gard’s advice to vessels’ masters and

superintendents is to take an active part in

the inspection, and not just to leave it to the

yard and the class surveyor. Class societies will

require the common chain links to be

measured at the ends, where they are most

worn, and allow a reduction of up to 12 per

cent of the diameter.

Second-hand chains are on offer in the

market, but one should not buy them without

a certificate of quality. Consult the class

society. One should also be aware that chains

and anchors have been offered with false

class certificates. The low price may be an

indicator.

In addition to reduction by wear and

corrosion, one of the common problems of

anchor chain is loose or lost studs. The studs

are there to keep the sides of the common

links apart during pulling, to avoid that the

chain “kinks”, and they also add weight to the

chain. If a stud is lost, the strength of the link

is severely reduced. It is common to see loose

studs being welded up, but one should be

very careful in doing so. The class society

should always be consulted, the amount of

welding should be limited, and the link should

be both pre-heated and slowly cooled down

afterwards. In many cases it would be better

to scrap the length of chain or to replace a

single link by a joining shackle.

An anchor chain is composed of lengths of 15

fathoms (27.5 metres) joined by kenter

shackles, as well as a “fore-runner” next to

the anchor. It is relatively rare for a swivel or

a kenter shackle to break, but if a worn chain

has to be replaced, the “fore-runner”,

consisting of swivel, large link and joining

shackles, should also be renewed. The spile

pin, i.e., the conical pin locking the kenter

shackle parts together, is important. It is

hammered in and sealed by a lead pellet, and

this has to be done in a proper way. Be sure to

buy only quality goods with proper

certificates.

Lost spile pinsThe pin of the anchor shackle (D-shackle),

which links the “fore-runner” to the crown

shackle of the anchor, is sealed in the same

way as for kenter shackles. There have been

several cases where a chain in good condition

comes up without the anchor and without the

pin of the anchor shackle. The spile pin,

securing the main pin of the shackle, seems to

fall out relatively often, and Gard’s

investigation saw two reasons for that. One is

found at the shipyard where the chain was

fitted. The conical shape of the spile pin must

GARD NEWS ISSUE 201 February/April 2011

“Gard’s advice to vessels’masters and superintendentsis to take an active part inthe inspection, and not justto leave it to the yard andthe class surveyor.”

Anchor windlass and chain stopper.

Photo

court

esy

of

Ake

r Pusn

es

AS.

11

match the hole in the shackle parts perfectly,

so this is a question of quality at the

manufacturers. Sealing the hole of the spile

pin used to be done in the shipyard by

hammering in a lead pellet with a special

tool, but today this is sometimes done by

pouring melted lead into the hole. That lead

may shrink during cooling, and needs a

hammering to serve its purpose. That is not

always done.

The other reason for lost spile pins is found on

board. Most anchors, if not all, will hammer

within the hawse pipe while on voyage in

heavy seas. The repeated hammering may at

times loosen the spile pin of the anchor

shackle and cause it to fall out. The anchors

should be secured as tightly as possible by

tensioners or turnbuckles/lashing wire, etc.,

to reduce anchor movements on voyage.

BreakageIf parts of an anchor break, there are good

reasons to suspect defects of the cast metal,

like inclusions and fissures, but it can also be

caused by uncontrolled dropping of the

anchor on a rocky seabed. Gard has also seen

some anchor shanks breaking off, and that

has been a surprise. Normally one would

expect a chain link to part under strain long

before the anchor shank. Examinations of the

remaining part of the broken shanks have

revealed a brittle metal structure, caused by

insufficient annealing at the makers’. The

anchor shank and anchor crown are made of

cast steel, which requires a long heat

treatment after casting. The manufacturers

may have speeded up the production, cut

time and temperatures needed for heat

treatment, and that may not have been

discovered by the authorities involved in

testing and certification. If an anchor shank

breaks, Gard recommends sending the

remaining part to a test facility and comparing

the results with the certificate.

Operational circumstancesAs for operational circumstances when

anchors are lost, some happen during normal

anchoring, if one is not able to control the

speed of the drop by the windlass brake, or if

the anchor is dropped while the vessel is still

moving forward. Anchors and chains may also

be lost when anchoring in an area exposed to

bad weather, if the vessel starts drifting. In

such situations, there is of course also a risk of

losing the vessel, or causing collisions, which

have happened more than once. A vessel

dragging its anchor also risks causing damage

to pipelines and cables on the seabed, a very

expensive affair. Anchors have also been lost

when anchoring in too deep water and when

attempting to stop a vessel as a last resort in

a black-out situation.

Gard also has some cases of anchors dropping

out while at sea, obviously a result of

inadequate securing. If an anchor drops out

while the vessel is under way, it has overcome

the chain-stopper, the lashing-

wire/tensioning arrangements and the

windlass brake, or these have not been

correctly engaged. If an anchor has dropped

out while at sea, this would normally be felt

by a smaller vessel’s behaviour, such as loss

of speed or tendency to steer to the side of

the anchor. However, Gard has experienced

cases where the personnel on the bridge

blames a loss of speed on the conditions of

waves and winds, or the lack of efficiency of

the engine, instead of going forward to check

the securing of the anchors. Approaching

ports or shallow passages with an anchor in

tow can become very expensive if cables and

pipelines on the seabed are pulled off or

damaged.

The efficiency of the windlass brake is

extremely important, and worn brake band

linings should be replaced without delay. Also,

be aware that when the lining is worn, this

makes the band more “roomy” and a full

braking force will not be obtained by

tightening the brake spindle alone. On large

windlasses there is an arrangement at the

lower part, to adjust the brake band. Service

people working for a windlass manufacturer

report that this is hardly ever done by the

crew. It is just a case of reading the

maintenance booklet and acting accordingly

to obtain a better braking efficiency.

Class rulesThe rules regarding specifications of anchoring

equipment are established by the class

societies. It is important to be aware that

these requirements are minimum

requirements, and also to be aware of

assumptions made in the calculations used.

Class societies stress that anchoring

equipment is only intended for temporary

mooring of a vessel, within a harbour or a

sheltered area, when awaiting berth, tide, etc.

It is also underlined that the equipment is not

designed to hold a ship off a fully exposed

coast in bad weather or to stop a vessel from

drifting. The class rules will only require the

vessel to have an anchoring equipment

designed to hold the vessel in good holding

ground, and are based on the assumption that

a scope of chain cable between 6 and 10 is

used. Such a scope, being the ratio between

the length of chain paid out and the water

depth, is just not obtainable for large ships in

some of the deeper designated anchorages.

With these limitations in mind, and the type

of incidents mentioned above, it becomes

apparent that some masters may at times put

too much trust in their vessel’s anchoring

equipment, and that they should be more

proactive and put out to sea more often when

the weather deteriorates.

The full text of the rules for anchoring

equipment can be found at the IACS

website at www.iacs.org.uk/document/

public/Publications/Unified_requirements/

PDF/UR_A_pdf148.PDF. Gard has addressed

these rules in Loss Prevention Circular No. 12-

10, which can be found at www.gard.no.

“Approaching ports orshallow passages with ananchor in tow can becomevery expensive if cables andpipelines on the seabed arepulled off or damaged.”

Hull and machinery incident –Engine breakdown

The following incident occurred on a general cargo vessel.

Bottom end bearing.

GARD NEWS ISSUE 201 February/April 2011

same time, several lube oil filter alarms

sounded. This was found to be caused by

sludging.

It was decided to continue at full speed,

despite all bearing temperatures being above

normal, several lube oil filter alarms having

been recorded, and a persisting lube oil

sludging problem. The vessel continued at this

speed until a crankcase explosion occurred the

next morning. An automatic shutdown of the

main engine was activated by the oil mist

detector which was followed by heavy smoke

and the sounding of the fire alarm.

InvestigationFurther investigation and subsequent

dismantling of the components of the

crankcase revealed substantial damage to the

main and crank bearing. Several bearing

shells were found to have been completely

smashed or deformed. Furthermore, several

pistons, including liners, were cracked. The

engine crew quickly realised that they were

unable to repair the engine and the master

was informed that towing was necessary.

Upon arrival at the port, service engineers

from the manufacturers attended on board

and started dismantling the crankcase to

facilitate further investigation. It quickly

electric power was restored. However, the

main engine was still running and had to be

stopped manually.

ChecksThe engine crew did not open the crankcase

doors, but only checked the temperature on

the doors, which gave no indication of over-

heating. The lube oil pressure also appeared

normal. After ten minutes the chief engineer

decided to start the main engine again and

continue the journey.

The RPM was slowly increased to full speed

and it was noted that bearing temperatures

increased to in excess of the permissible

upper limit before decreasing again. At the

RPM dropWhen the incident occurred, the vessel was

fully loaded and under way to a European

port. The vessel was at sea, the main engine

was running on full speed as normal and

everything seemed to be as it should.

The engine crew only discovered that

something was wrong when they noted that

the main engine RPM had dropped and a

bearing high temperature alarm had been

activated.

Since the RPM had dropped and the main

engine shaft generator was connected, a

blackout also occurred at this time. The

auxiliary engines started automatically and

12

“The engine crew onlydiscovered that somethingwas wrong when they notedthat the main engine RPMhad dropped and a bearinghigh temperature alarm hadbeen activated.”

Lube oil auto filter. Lube oil filter.

White metal from bearing.

Crankpin.

again was the probable cause of the blocked

oil supply, which led to the damage.

The crankshaft then lost its support in way of

the main bearing, and this, in the end, caused

the crankshaft explosion. As the crankshaft

also had to be renewed, the repair time was

quite extensive.

Lesson learnedIn the end we have to ask, could something

have been done to prevent or reduce the

damage? As can be seen above, there were

several indications beforehand that

something was wrong. Also, when the first

warning alarm sounded, the crankshaft doors

were not opened to manually check the

temperature.

The lube oil alarms and the persisting

sludging problem were also ignored, which

again could be an indication that something

was wrong.

It also has to be mentioned that the engines

were running in this condition for several

hours before the explosion.

The end result was very expensive for all

involved, and it is strongly recommended that

alarms or any indications that something is

wrong are not ignored until you have satisfied

yourself that everything is safe.

The investigation concluded that the most

probable cause of the breakdown was the

thin-walled white metal lining of one of the

main bearings having broken and

subsequently fallen into the crankcase. This

became clear that the crankshaft was bent

and beyond repair. Due to the unavailability

of spare parts and the consequent delivery

time, repair time was estimated to be

approximately 10 weeks.

13

“The investigation concludedthat the most probable causeof the breakdown was thethin-walled white metal liningof one of the main bearingshaving broken and subsequentlyfallen into the crankcase.”

14

Members and crew managers often send crew

employment contracts for review by

Gard. However, sometimes there appears to

be some confusion regarding the role of the

P&I Club, which is wrongly perceived as an

insurer for the crew member personally, so

that benefits in case of injury, death, etc., are

stated in the contracts to be payable “in line

with the  terms and conditions  of the

shipowner’s P&I insurance“ (or other words to

similar effect). This article sets out to explain

in brief the Club’s role in respect of liabilities

towards crew so that contracts are drafted in

terms that are acceptable to it.

Contract reviewThe terms and conditions in crew employment

contracts  vary, but  they can describe the

employer’s liability, if any, to pay damages

and compensation in case of a crew incident.

The crew member’s individual contract of

employment usually incorporates terms and

conditions from a named Collective

Bargaining Agreement (CBA). A  CBA  is a

labour contract agreed between the employer

and one or more trade unions for a group of

workers.  The individual crew employment

contract and its incorporated CBA  are the

seafarer’s evidence of the benefits to which

he is entitled in case of illness, injury,

disability or death. It also covers terms and

conditions on wages, working hours, holiday,

leave, etc. As such, the agreement is of great

importance to both crew and employer.

Whether the employment contract

incorporates a union agreement or not is

irrelevant  to the P&I Club.  However,  the

contractual terms and conditions, i.e., the

members’ contractual liabilities, are crucial.

Members must make sure that their liabilities

are reasonable. When in doubt, the P&I Club

should be asked to review the contract.

Gard follows  certain  guidelines when

reviewing  new contracts or amended

versions. Evidently, the review focuses on the

various benefits which are covered under the

standard P&I cover (Gard Rule 27). These

benefits are typically:

– medical treatment

– sick wages

– disability compensation

– death compensation

– compensation for damage to or loss

of personal effects

– compensation for termination

of employment

The jurisdiction and choice of law clause

is  also relevant. There may be several

potential jurisdictions for judicial resolution in

case a dispute is not solved through friendly

negotiations. The nationality of the seafarer,

the employer’s registered address (country),

the vessel’s flag, the place of an incident, etc.,

are relevant factors in terms of under which

jurisdiction a case shall be heard, and what

choice of law shall apply.  Especially in

personal injury cases, some jurisdictions, such

Crew employment contracts –Members’ liabilities

What exactly are the liabilities with

respect to crew covered by P&I? 

“Whether the employmentcontract incorporates a unionagreement or not isirrelevant to the P&I Club.However, members’contractual liabilities arecrucial.”

15

as the US and Brazil, are more unpredictable

than others and may imply a potentially

higher exposure. Thus a jurisdiction clause

which determines which law and jurisdiction

shall apply in case of disputes might be

helpful.

Additionally, ambiguous/unclear  wording

should be amended in order to maintain

crystal clear contractual terms and avoid

misinterpretation.  

Medical/hospital treatment and sickwagesNormally crew members are entitled to

medical/hospital treatment at the employer’s

expense in case of injury or illness occurring

whilst in the service of the employer. Some

contracts say, however, that such benefits only

apply in case the illness is declared work-

related. In any case, the time during which

such benefits are available varies. Some

contracts specify a limited number of days,

e.g., 120 days, whereas others state they are

available until the seafarer is declared fit for

sea service or until maximum medical

improvement (MMI) is declared, which

requires a permanent disability declaration.

The same issues apply to the employer’s

liability to  pay sick wages.  Sick wages are

often based on the basic wage stated in the

employment contract, but some contracts also

include fixed overtime, for instance in case of

officers.

Disability and death compensationDisability compensation is paid to a seafarer

who has been declared by a medical expert

to suffer from a permanent disability. Most

CBAs provide for maximum amounts  of

disability compensations ranging from USD

60,000 to USD 150,000 but sometimes higher.

Usually the seafarer is only entitled to

disability compensation in case of injury or

“occupational illness”. Very often the CBAs

include grading of disabilities which relate to

a specific percentage of the maximum

disability amount. Some contracts state that

in case of disability of 50 per cent or more,

full compensation shall be paid. And the

contract may say that in case of disability

assessed at less than 50 per cent, but where

the seafarer is declared permanently unfit for

sea service, the seafarer is also entitled to 100

per cent compensation.

The compensation amounts for death may

range from USD 60,000 up to USD 250,000.

Very often there are additional amounts to

pay for dependent children. Gard  has 

experienced cases where there are several

parties who claim the contractual death

compensation. To avoid such delicate

situations, it is recommended that the

contract states who the beneficiary is. This

does not necessarily have to be the same

person as that declared to be the next of kin,

who in many jurisdictions is only considered

the contact person in case of emergency.

Personal effectsMost contracts provide for compensation to

the crew member for loss of or damage to

personal effects due to sinking, grounding or

other maritime casualty. Many contracts only

state a maximum compensable amount,

which often is USD 3,000. Theft or

misappropriations are usually excluded.

However, members should be aware of the

exclusions of cover in Rule 27 of the Statutes

and Rules. For instance, cash, jewellery,

collectors’ items or other items of high value

are not covered by P&I even if the member is

liable to compensate for such loss or damage.

Exceptions are made if the Club is informed in

advance of the presence of these items and

the member has complied with any directions

by the Club in that respect.

Termination of employmentThe employer’s liability to pay compensation

for termination of employment is

usually triggered only in case of a maritime

casualty such as grounding, sinking, fire, etc.

Such compensation is very often equivalent to

two or three months’ basic wage.  

SummaryA P&I Club has no direct liability to the crew

member personally. The Club provides cover

only for the members’ liabilities to crew

arising from the terms of the contract of

employment or by force of law, always

subject to the terms and conditions of Gard’s

Statutes and Rules and to the terms of the

individual member’s P&I policy. Some

contractual liabilities may be excluded from

the Club’s cover.

More information is available in the

comments to Rule 27 in Gard Guidance to the

Statutes and Rules, at www.gard.no. Gard’s

Personal Injury and Crew department is also

available to answer any questions members

may have.

The International Maritime Solid Bulk

Cargoes Code (IMSBC Code) and

amendments to SOLAS Chapter VI to make

the IMSBC Code mandatory were adopted

by the Maritime Safety Committee (MSC)

85th session in 2008 and are set to enter

into force on 1st January 2011. The IMSBC

Code will replace the Code of Safe Practice

for Solid Bulk Cargoes (BC Code), which

was first adopted as a recommendatory

code in 1965 and has been updated at

regular intervals since then. Use of the BC

Code should be discontinued from

1st January 2011.

The aim of the mandatory IMSBC Code is

to facilitate the safe stowage and

shipment of solid bulk cargoes. Its aim is

to bring to the attention of those

concerned an internationally-accepted

method of dealing with the hazards to

safety which may be encountered when

carrying cargo in bulk.

The IMSBC Code highlights the dangers

associated with the shipment of certain

types of bulk cargoes, gives guidance on

various procedures which should be

adopted, lists common products which are

shipped in bulk, gives advice on their

properties and how they should be

handled and describes various test

procedures which should be employed to

determine the characteristic cargo

properties.

More information on the IMSBC Code is

available at www.imo.org.

IMSBC Code comes into force

“Normally crew membersare entitled to medical/hospital treatment at theemployer’s expense in caseof injury or illness occurringwhilst in the service of theemployer.”

16

In recent years, the issue of invasive species

arriving either in ballast water or on the hulls

of ships has been a topic of acute interest and

regulatory reaction in various countries, and

has been the topic of past articles in Gard

News.1 Various procedures, permits and

standards have been promulgated to deal

with the problem, and in some places more

are proposed.

The problem is certainly a serious one. The

best known example, where the origin of an

invasive species can be pinpointed to a ship,

was the incident in 1986 when a vessel bound

from a Black Sea port discharged ballast water

into Lake Erie, releasing a tiny stowaway, the

zebra mussel, which then spread, unhindered

by native predator species, to the Hudson

River, the Mississippi River, and eventually the

Gulf of Mexico, forming large clusters that

clogged freshwater intakes, industrial outlets

and smaller waterways themselves. These

species also kill or render extinct native

species, settle on buoys and ships lines, and

interfere with aquaculture efforts.

To illustrate this is truly a multilateral

problem, the reverse of the above example

has also occurred: a ship from North America,

entering the Black Sea, brought there a

species of North American comb jellyfish,

Mnemiopsis leidyi, which so devastated

native plankton stocks that several

commercial fisheries in the Black Sea were

destroyed, including almost all of the anchovy

industry.

The invisible invasion continues –Update on ships and invasive species

The problem of invasive species being carried around the world by ships is aserious one.

1 See articles: “More on unwanted aquatic organisms

in ballast water – All ships are now potential

polluters” in Gard News issue No. 155; “California –

Ballast Water Regulations” in Gard News issue No.

157; “Unwanted aquatic organisms in ballast water –

New requirements in Australia” in Gard News issue

No. 163; “Control and management of ballast water

– Recent developments” in Gard News issue No. 173;

“New ballast water regulations in force in Brazil” in

Gard News issue No. 181; “Ballast water – Victoria,

Australia” in Gard News issue No. 183; “Ballast water

– Peru” in Gard News issue No. 183; “Carp(e) diem –

Current issues on ballast water regulations in the US”

in Gard News issue No. 198; and “Norway – Ballast

water regulation” in Gard News issue No. 199.

“A vessel bound from aBlack Sea port dischargedballast water into Lake Erie,releasing a tiny stowaway,the zebra mussel, whichthen spread, unhindered bynative predator species, to theHudson River, the MississippiRiver, and eventually theGulf of Mexico.”

GARD NEWS ISSUE 201 February/April 2011

Global approach needed Starting in the 1990s, various national laws

and regulations were passed to address the

issue of vessels serving as the primary vector

of the introduction of invasive nuisance

species into exotic ecosystems. Some of

these measures were expensive, time-

consuming, and required significant effort,

and thus were not welcomed by some in the

shipping community. But after all of that

attention and expense, are these actions

working to solve the problem?

Zebra mussel. North American comb jellyfish.

17

A recent report issued on 10th June 2010 by

the Regional Marine Pollution Emergency

Response Centre for the Mediterranean Sea of

the United Nations Environment Programme

(UNEP)’s Mediterranean Action Plan (MAP)

indicates the problem still exists as a serious

phenomenon. The report states that in the

Mediterranean, with 10,000 ships transiting

the area every year, commercial vessels

currently deposit a new alien species every

nine days.

The report suggests that more actions are

needed, and that these must be done on an

ecosystem-wide basis, and should include not

only commercial freight vessels, but also

fishing fleets and recreational craft, in order

to secure a tighter cordon against the invasion

of these pest species. For example, even

boots of fishermen on commercial vessels can

carry on their treads small numbers of

invasive microscopic organisms, that are then

remoistened and wash over the side in later

fishing activities on deck, thus entering a new

ecosystem as an unwelcome visitor.

So, in reaction, on 3rd November 2010 the

World Ocean Council, an industry group

consisting of shipping, fishing, tourism, and

marine environmental companies, called for a

renewed push in getting a sufficient number of

countries to ratify the Ballast Water Convention

approved in 2004.2 The convention requires 30

countries to ratify it in order to come into effect,

and so far only 26 have done so, thus it is only

four countries shy of entering into force. While

individual countries have their own laws in

places, it would seem evident from recent

studies that a total, world-wide scheme is

needed in order to be effective.

Otherwise, humans will continue to lose the

war with these unseen aquatic invaders,

2 See article “Ballast Water Convention adopted” in

Gard News issue No. 175.

Repro

duce

d w

ith p

erm

issi

on f

rom

IM

O/Glo

Bal

last

.

posing significant economic risks to marine-

related industries, including the world’s

seafood industry, as well as the desalination

of seawater for drinking and the ability

of native species to perform their vital roles

in keeping a given ecosystem diverse

and vibrant.

Further reading For more information on the spread of

invasive aquatic species and measures being

taken for its reduction readers should refer to

the article “Setting a Course for Ballast Water

Management – Reducing the gloabal spread

of aquatic nuisance species”, by John Morris,

Environmental Protection Specialisit, US Coast

Guard Office of Operating and Environmental

Standards at http://homeport.uscg.mil/cgi-

bin/st/portal/uscg_docs/MyCG/Editorial/20

0 9 0 4 2 2 / w i n t e r 2 0 0 8 -

09.pdf?id=2f1a9522ccb33c1fbf152fd5d98b6fd

d4872aaff.

“The report states that in theMediterranean, with 10,000ships transiting the areaevery year, commercialvessels currently deposit a new alien species everynine days.”

Basic ballast water exchange and the unintended transport of invasive species.

A recent report issued on 10th June 2010 by

the Regional Marine Pollution Emergency

Response Centre for the Mediterranean Sea of

the United Nations Environment Programme

(UNEP)’s Mediterranean Action Plan (MAP)

indicates the problem still exists as a serious

phenomenon. The report states that in the

Mediterranean, with 10,000 ships transiting

the area every year, commercial vessels

currently deposit a new alien species every

nine days.

The report suggests that more actions are

needed, and that these must be done on an

ecosystem-wide basis, and should include not

only commercial freight vessels, but also

fishing fleets and recreational craft, in order

to secure a tighter cordon against the invasion

of these pest species. For example, even

boots of fishermen on commercial vessels can

carry on their treads small numbers of

invasive microscopic organisms, that are then

remoistened and wash over the side in later

fishing activities on deck, thus entering a new

ecosystem as an unwelcome visitor.

So, in reaction, on 3rd November 2010 the

World Ocean Council, an industry group

consisting of shipping, fishing, tourism, and

marine environmental companies, called for a

renewed push in getting a sufficient number of

countries to ratify the Ballast Water Convention

approved in 2004.2 The convention requires 30

countries to ratify it in order to come into effect,

and so far only 26 have done so, thus it is only

four countries shy of entering into force. While

individual countries have their own laws in

places, it would seem evident from recent

studies that a total, world-wide scheme is

needed in order to be effective.

Otherwise, humans will continue to lose the

war with these unseen aquatic invaders,

posing significant economic risks to marine-

related industries, including the world’s

seafood industry, as well as the desalination

of seawater for drinking and the ability

of native species to perform their vital roles

in keeping a given ecosystem diverse

and vibrant. 2 See article “Ballast Water Convention adopted” in

Gard News issue No. 175.

Further reading For more information on the spread of

invasive aquatic species and measures being

taken for its reduction readers should refer to

the article “Setting a Course for Ballast Water

Management – Reducing the global spread of

aquatic nuisance species”, by John Morris,

Environmental Protection Specialist, US Coast

Guard Office of Operating and Environmental

Standards at http://homeport.uscg.mil/cgi-

bin/st/portal/uscg_docs/MyCG/Editorial/20

0 9 0 4 2 2 / w i n t e r 2 0 0 8 -

09.pdf?id=2f1a9522ccb33c1fbf152fd5d98b6fd

d4872aaff.

It should be noted, however, that the USCG

has revised the expected publication date of

the Ballast Water Discharge Standard

rulemaking. It is now expected to be

published in April 2011, rather than

December 2010.

18

GARD NEWS ISSUE 201 February/April 2011

sensitive. The PRESTIGE case, however, does

illustrate the need for a sensible approach

when dealing with ships in difficulty. In the

case of the MSC NAPOLI, a decision had to be

taken on what to do with the vessel after she

experts argued that if the vessel had been

taken into a port or place of refuge the

resultant oil spill could have been controlled.

This is not the first time that such a debate

has occurred, since the issue is highly

No doubt when the PRESTIGE accident

occurred there were several issues at stake

regarding what should be done with the

vessel and what steps should be taken by the

various authorities. After the incident some

Ports and places of refugein South AfricaBy Alan Reid and Mike Heads, P&I Associates (Pty) Ltd, Durban, South Africa.

The subject of ports and places of refuge around the world has steadily becomea topic of much debate among various interest groups, especially after thebreaking of the PRESTIGE off the coast of Spain.

Nautical chart of Valsbaai (False Bay).

19

In addition, there are eight commercial ports

in South Africa: Saldanha Bay, Cape Town,

Mossel Bay, Port Elizabeth, Coega, East

London, Durban and Richards Bay.

Anchoring a vessel at will is illegalA shipowner or master can not simply anchor

a vessel along the South African coastline at

their own will. Various pieces of legislation

have been passed to prevent this:

– The Marine Traffic Act, Act 2 of 1981;

– South African Maritime Safety Authority Act,

Act 5 of 1998;

– Merchant Shipping (Maritime Security)

Regulations 2004, which incorporate

Regulation X 1-2/9 of SOLAS (ISPS);

– Marine Pollution (Control and Civil Liability)

Act, Act 6 of 1981;

– Wreck and Salvage Act, Act 94 of 1996;

– Merchant Shipping Act, Act 57 of 1951 (as

amended);

– National Ports Authority Act, Act 12 of 2005.

The Marine Traffic Act deals with a vessel

entering and departing from international

waters and states that there are regulations

regarding the immobilising, laying up,

stopping or anchoring outside harbours or

fishing harbours. It is an offence under the Act

for any vessel to lay up on the South African

coastline without the necessary permission.

Permission to lay up a vessel must be given

with other local marine experts, on the

procedures to follow should a vessel run into

trouble.

South Africa has adopted a very sensible and

commercial approach to the issue of ships in

difficulty and the need to have ports and

places of refuge available for a vessel in case

of an emergency. There are places of refuge

available in South Africa for deep draft

vessels, together with certain ports, provided

certain requirements can be met.

There are three possible places of refuge on

the South African coast:

1. St Helena Bay – a deep water bay but

exposed to the wind from the northwest

2. False Bay – very good area that offers much

protection

3. Algoa Bay – good shelter only from the

west

developed a crack, and it was decided that a

beached landing would be the best solution

in order to limit and control the damage to

the environment.

It is against this background that South Africa

has looked at its contingency plans in order to

deal with ships in difficulty and what it should

do if faced with any of the above scenarios.

South Africa is surrounded by 2,798 km of

coastline that splits the Atlantic and Pacific

Oceans. At certain times of the year this

length of coastline can be one of the most

dangerous stretches of coastline in the world,

especially when one takes the weather,

currents and rugged rocks into account.  It is

for these very reasons, that it is important to

have a plan in place and to be aware of the

options available to the country in order to

deal with potential ecological catastrophes

should one ever arise. The coastline is littered

with wrecks stretching back hundreds of years

and, therefore, the next maritime casualty

could be imminent.

A sensible and commercial approachTo deal with the scenario of a ship in difficulty,

the South African government has passed

legislation and approved the appointment of

the South African Maritime Safety Authority

(SAMSA) to consider their options, together

“South Africa has adopted a very sensible andcommercial approach to theissue of ships in difficultyand the need to have portsand places of refugeavailable for a vessel in case of an emergency.”

The South African coastline can be one of the most dangerous in the world.

20

by the relevant minister through SAMSA, who

may demand, inter alia, that various

conditions be met. For example, SAMSA may

demand that a tug be made fast to the vessel

at all times throughout the duration of the

lay-up. The tug would therefore be able to

move the vessel in case of an emergency. If

she is made fast, then there is little delay in

moving or relocating the vessel should the

need arise.

SAMSA’s roleSAMSA also has the power to demand that the

master or owner of the ship post security to

the satisfaction of SAMSA in an amount

determined by SAMSA for the recovery of any

costs incurred by SAMSA in enforcing any

condition applicable to the immobilising or

laying up of the ship, or in the exercise of its

powers under the Act.

SAMSA have the authority to prevent a vessel

coming towards the coast to seek refuge and

this authority stretches to all bays and

anchorage areas. Although the ports are

operated by the Transnet National Ports

Authority (TNPA), they will often turn to

SAMSA for advice and assistance.  Before a

vessel can seek refuge at a place or port in

South Africa, SAMSA must first give their

authority, and if it is a port, then TNPA will

also have to be consulted and give their

approval. SAMSA will always consider the

safety of life as being paramount and the

Maritime Rescue Co-ordination Centre in Cape

Town co-ordinates all rescue activities with

the harbour master at the nearest port. The

next priority is the environment. Once the

above factors have been taken into account,

one would then give consideration to the

safety of property.

South Africa has always had an excellent

approach to the subject of vessels seeking a

port or place of refuge and SAMSA should be

commended for their role in such matters.

SAMSA have a difficult function to fulfil and it

has always been our advocacy that

shipowners looking to utilise South African

waters as a place of refuge should act with

utmost good faith when dealing with SAMSA.

A failure to disclose a particular fact may lead

to a vessel being barred from gaining refuge.

Where a vessel’s structure has been

compromised, SAMSA will want to inspect the

vessel and assess the problem before granting

permission for the vessel to get close to the

coast.

Once permission has been granted, it may be

subject to certain conditions, for example:

– The vessel may be requested to produce a

valid hull and machinery insurance certificate.

– The vessel may be requested to produce a

valid P&I insurance certificate of entry.

– All fuel bunkers and black oil (including

contents of engine sumps) may have to be

removed from the vessel.

– The vessel must be attended to by an

adequately powerful salvage tug that has to

be made fast.

– A salvage contractor must be appointed by

owners (the contractor should be an

International Salvage Union member).

– An operational plan must be prepared and

approved by SAMSA

– A suitable guarantee might be requested.

The request for valid insurance certificates is a

new development and an essential one. If

vessels want to make use of our coast, then

owners must understand that South Africa

needs to protect itself from having to incur

and bear the costs of removing vessels which

may eventually be abandoned by the owners.

Having suitable insurance in place provides a

level of protection should an unfortunate

event or risk arise during the period of refuge.

Both SAMSA and TNPA recognise and accept

Club letters of undertaking from IG clubs. The

wording of this letter has been agreed upon

with the clubs and is only a slight variation of

the standard IMO wording for ports of refuge.

The variation is that it incorporates South

African law.

ResourcesSouth Africa is fortunate to have various

resources available on its coastline to assist

vessels in difficulty or which may have to lay

up. South Africa was the first country to

recognise the need to have a tug solely for

the above purpose, which resulted in the rest

of the world also introducing emergency

towing vessels (ETV).

Two salvage companies have offices in Cape

Town with fully equipped warehouses.

Resources are available to provide, inter alia,

fenders and transfer hoses.

Co-operation is paramountSouth Africa, as a coastal state, does recognise

the need for vessels to seek refuge and in

general will assist in this process. However, it

is imperative that the requirements of the

authorities are met and that the owners, the

ship and their respective insurers co-operate

at all times.

Salvage tug putting to sea.

“SAMSA have the authorityto prevent a vessel comingtowards the coast to seekrefuge and this authoritystretches to all bays andanchorage areas.”

“Where a vessel’s structurehas been compromised,SAMSA will want to inspectthe vessel and assess theproblem before grantingpermission for the vessel toget close to the coast.”

21

GARD NEWS ISSUE 201 February/April 2011

Air emissions –California updateBy Frances Keeler, Keesal, Young & Logan, Long Beach, CA.

CARB is actively enforcing the low sulphur fuel regulations.

1 See articles “Every breath you take? – California’s

legal and regulatory changes with regard to ship air

emissions” in Gard News issue No. 195; “Is it still all

up in the air? – New regulations for fuel and marine

diesel air emissions in California – Timing and status”

in Gard News issue No. 193; ”The new California

Vessel Air Emission Regulations – Facing legal

challenges” in Gard News issue No. 186; “Airing

differences – Vessel air emissions in the US” in Gard

News issue No. 188; “California diesel engine

regulations – An update” in Gard News issue No. 190

and “Update on California Air Emission Regulations” in

Gard News issue No. 191.

“CARB is currentlyconducting air qualitymodelling to evaluate theimpacts of the changes invessel routes.”

propulsion is not likely associated with

switching. CARB has also noticed a downward

trend in the number of loss of propulsion

incidents since the beginning of rule

implementation.

If you have questions, comments or

information regarding implementation of the

CARB regulations, this is the best time to

contact CARB staff, so that your input may be

considered in the rule amendments. The

CARB and Navy presentations are available on

CARB’s website at http://www.arb.ca.gov/

ports/marinevess/marinevess.htm.

Port of Los AngelesIn response to what the City of Los Angeles

says is a growing public concern over smoke

emissions from ships, the City Attorney has

begun to file criminal complaints on Notices

of Violation written by the South Coast Air

Quality Management District (SCAQMD) for

smoke emissions. SCAQMD rules prohibit the

emission of air contaminants for periods

aggregating more than three minutes in any

one hour which are equivalent to or greater

than a No. 1 Ringelmann (20 per cent

opacity). The City Attorney’s office has

indicated that they expect the number of

criminal prosecutions for excessive smoke to

increase in the future.

used by the Navy for testing and training. The

Sea Range is outside the current 24 nautical

mile zone in which low sulphur fuel is

required, but within the Contiguous Zone.

Additionally, CARB believes that ships are

changing their routes from the established

Santa Barbara Channel shipping lanes to a

route through the test range in order to avoid

application of the regulations. Because the

ships are not switching to low sulphur fuel in

that area, the rule is not achieving the

emission reductions CARB anticipated when it

first adopted the rule. CARB is currently

conducting air quality modelling to evaluate

the impacts of the changes in vessel routes,

which CARB staff expects will be completed

by the end of the year. This will be followed

by a second workshop on the proposal.

In addition, CARB is considering other minor

amendments to the regulations, including

changes to the non-compliance fee, to account

for partial compliance with the regulations.

Currently, a ship may opt to pay a fee of USD

45,500 if it notifies the agency before it arrives

in California that it will not be in compliance.

This fee increases with each visit and applies

whether the ship fails to comply in whole or in

part. The fee must be paid before the vessel

leaves the California port.

CARB staff also indicated at the 12th October

workshop that they do not believe there is a

major issue with loss of propulsion due to fuel

switching. They stated that in almost all

instances where loss of propulsion occurred,

the ships were manoeuvring, so the loss of

Low sulphur fuel regulationsSince the re-adoption of its low sulphur fuel

mandates that went into effect in July 2009,

the California Air Resources Board (CARB) has

been actively enforcing the regulations.1

CARB inspectors conduct dockside visits that

include collecting fuel samples for testing and

reviewing records and fuel switching

procedures. Out of nearly 400 inspections,

CARB has written 22 Notices of Violation. The

bulk of the notices written have been for

record-keeping violations or for fuel switching

that has occurred too far into California waters.

As most ships that call on California are now

well aware, CARB’s regulations require ocean-

going vessels to utilise marine gas oil, or

marine diesel oil with a sulphur content of 0.5

per cent, in all main engines, auxiliary

engines and auxiliary boilers from 24 nautical

miles from shore. This sulphur limit is set to

decrease to 0.1 per cent on 1st January 2012.

The regulations also provide for a few

exemptions, most notably an exemption for

“essential modifications”, where vessels

demonstrate that a modification to equipment

is necessary in order to utilise the low sulphur

fuels. So far, CARB has issued slightly under

450 of these exemptions, mostly for auxiliary

boilers on tankers.

On 12th October 2010 CARB held a rule

workshop to discuss proposed modifications

to the low sulphur fuel regulations. CARB is

proposing to extend the area in which the rule

applies in Southern California, consistent with

the Contiguous Zone. This approximately

doubles the regulated area by extending it

another 24 nautical miles from the Channel

Islands. The reason for this change, as

explained by CARB staff, is two-fold. First, the

US Navy has noted a sharp increase in traffic

through the Point Magu Sea Range that is

22

A recent case1 in the English High Court is one

of very few on the not so uncommon practice

of switching bills of lading, that is,

substituting the original set of bills with a

new set.

BackgroundYekalon Industry Inc (Yekalon), a Chinese

company, was a seller of 30 containers of tiles

to Sonaec SA (Sonaec), with the goods being

shipped on Maersk’s liner service through

local agents High Goal Logistics GD Ltd (High

Goal). The bill of lading, which was later

treated by the English courts as a waybill (and

which term will be used in this article for the

sake of clarity), named Sonaec as consignee

and the shipper(s) as B & D Co Ltd P/C (pour

compte de) Vernal Investment (Vernal) &

Yekalon. Vernal is a subsidiary or associate

company of Sonaec. The consignee was

Sonaec Villas in Cotonou, Benin. The notify

party was Vernal P/C Sonaec Villas. The

containers were to be loaded in China for

discharge in Benin.

Seller not paidShortly after the waybill had been issued (it

remains unclear whether the containers were

in fact shipped), seller Yekalon claimed that it

had not been paid by buyer/consignee

Sonaec and asked agent High Goal for the

waybill. High Goal refused on the grounds that

it had not received instructions from B & D Co

Ltd acting on account of the shippers. Yekalon

applied to the Chinese courts and obtained a

declaration that Yekalon was entitled to

possession of the waybill.

Switched bills On declaring that they had still not been paid

by Sonaec, Yekalon surrendered the original

waybills to Maersk and requested a new bill

issued to the order of Yekalon (which, being

“to order”, would make it a bill of lading).

Yekalon subsequently found a new buyer and

then surrendered the replacement bill of

lading for a second replacement naming the

new buyer as the consignee.

Buyer commences proceedings againstthe carrierBuyer Sonaec later commenced court

proceedings against carrier Maersk in Benin,

claiming that they were entitled to possession

of the cargo. The Benin court made an interim

ruling in favour of Sonaec requiring Maersk to

ship the cargo to Sonaec and imposing a daily

fine on Maersk of USD 4,800 until it complied.

This was despite Maersk having challenged

the Benin court’s jurisdiction (the waybill

contained an exclusive English law and

jurisdiction clause) and also disputing that

Sonaec no longer had title to sue since the

waybill had been cancelled.

The carrier seeks relief from theEnglish High Court Having failed to persuade the Benin court,

Maersk sought a declaration from the English

High Court that Sonaec must submit its

dispute to the latter court’s jurisdiction and

English law –Switching bills of lading

When a carrier receives a request to substitute the original set of bills of lading with a new set he

should be aware of the risks involved. A recent English case considers some aspects of this problem.

1 A.P. Moller-Maersk A/S (trading as Maersk Line) .v

Sonaec Villas Cen Sad Fadoul [2010] EWHC 355

(Comm).

“Yekalon applied to theChinese courts and obtaineda declaration that Yekalonwas entitled to possession of the waybill.”

23

that Sonaec no longer had title to sue under

the waybill. The High Court granted both

declarations to Maersk and in reaching its

decision the court had to tackle some difficult

questions: was Sonaec a party to the waybill

and was Sonaec still bound by the exclusive

English law and jurisdiction clause after the

waybill had been surrendered?

The court’s answer to both questions was yes,

but the question of whether the surrender of

the waybill brought to an end the rights of

Sonaec was more difficult. This was because

the waybill stated that B & D Co Ltd acted on

account of two entities, one of which was

seller Yekalon and the other of which was

Vernal, a subsidiary of buyer Sonaec. The court

was ultimately persuaded by the Chinese

court order to deliver the waybill to Yekalon,

therefore giving Yekalon the right to re-direct

delivery or to cancel the waybill.

CommentAlthough Sonaec had submitted a written

response to the English proceedings, it was

not supported by a statement of truth, and

Sonaec did not appear in the English court

proceedings. Had they done so, the

declarations may not have been obtained as

easily, particularly the declaration that only

Yekalon had the right to re-direct delivery or

to cancel the waybill, in circumstances where

the waybill named B & D Co Ltd as acting for

the account of two entities with opposing

interests.

It may be of note that the judge appears to

have been somewhat uncomfortable with the

lack of evidence provided in the English

proceedings, both as to Maersk’s knowledge

of certain documents that may have

evidenced B & D Co Ltd’s taking over of the

goods for the account of Sonaec (referred to in

the written response from Sonaec to the

English proceedings) and Yekalon’s evidence

in the Chinese proceedings that they were the

owner and shipper.

It is not clear whether Sonaec made any

attempt to challenge the Chinese court

decision or what effect the English court

declarations had in the case overall.

ConclusionThe case highlights the importance of making

clear who the shipper is in a bill, whether it is

a waybill or bill of lading. If this is unclear,

problems are likely to be encountered should

the shipper request the carrier to re-direct

delivery or issue replacement bills. The case

also serves to stress the importance of

establishing the proper party entitled to make

such a request.

There are other risks associated with

switching bills, which are beyond the scope of

this article. At the very least the carrier should

ensure that all original bills of the first set

issued are surrendered before a new set is

issued. If there is a request to change any

details in the bills then advice should be

sought before this is agreed.

A new specialist Admiralty Court has

been set up in Malaysia. The main

objectives of the court include efficient

adjudication of all admiralty and

maritime claims and centralisation of

information on registration of claims and

caveats. By consensus parties are at

liberty to bring all maritime claims to

this court.

There are 12 categories of cases that are

to be heard by the Malaysian Admiralty

Court:

1. Claims or disputes relating to the 18

categories of Admiralty matters

identified by reference to Section 24(b)

of the Courts of Judicature Act 1964;

2. Claims relating to international trade and

commerce, including commercial and shipping

agreements, import and export, carriage of

goods by sea;

3. Limitation actions;

4. Marine insurance and reinsurance including

marine and shipping agency and brokerage

matters;

5. Construction, design, maintenance and

repair of ships;

6. Civil claims arising out of marine pollution;

7. Marine related agency, multimodal

transport and warehousing;

8. Claims related to ship financing and

documentary credits for the carriage of goods

by sea;

9. Death or personal injury, loss or damage

arising out of a marine activity in or

about a marine facility. Marine facility

shall include ports, docks, berths, or any

form of structure defined as a “ship”

under maritime law;

10. In relation to arbitration, interim

applications for the preservation of assets

pending final arbitration awards, disputes

on appointment of arbitrators; the

review, setting aside and enforcement of

maritime awards;

11. Marine regulation and compliance;

and

12. Disputes pertaining to the welfare of

seamen.

The Admiralty Court is located in Kuala

Lumpur.

New MalaysianAdmiralty Court

“The case highlights theimportance of making clearwho the shipper is in a bill,whether it is a waybill or abill of lading.”

24

GARD NEWS ISSUE 201 February/April 2011

Oy Gard (Baltic) Ab was formed in 2003

following the amalgamation of the property

and casualty portfolios of If and the leading

Finnish insurance company Sampo.

It was decided then that Gard needed a local

service vehicle in Finland and the Baltic, so it

purchased 100 per cent of the shares of Oy

Baltic Protection Ab, Gard’s General

Representative in Finland since 1989.

At that time Gard only insured a few single

vessels in Finland and the market was

dominated by the UK Club and Skuld.

As the only P&I Club representation in Finland,

with staff working in the areas of marketing,

legal and claims, Baltic Protection helped to

expand Gard’s membership in the region so

that today Gard is clearly the leading P&I Club

in Finland and the Baltic countries.

After the purchase the company name was

changed to Oy Gard Services (Baltic) Ab –

currently Oy Gard (Baltic) Ab – and the six

Baltic Protection employees and seven

employees in If’s marine department in

Finland moved together to new premises in

the Rettig House, close to the Helsinki city

centre.

One of the three founders of Oy Baltic

Protection, Roberto Lencioni, was asked to

continue as Oy Gard (Baltic) Ab’s Managing

Director. Roberto has a Law degree from

Helsinki University and before joining Baltic

Protection acted as company lawyer and sales

manager for a big Finnish conglomerate, the

Aspo Group. In addition to the normal

administrative functions of a Regional

Manager, Roberto is active in marketing and

Introducing Oy Gard (Baltic) Ab

Gard News presents the members of staff in Gard’s Helsinki office.

Back row from left: Johan Lång, Roberto Lencioni, Henry Hemtman, Patrik Palmgren, Martin Jansson, Jan Sundberg. Front row from left: RiikaAhtiala, Saila Hiirsalmi, Inkeri Ailus, Taru Natri, Virpi Hakalax, Camilla Ölander.

25

capacities. He holds a postgraduate diploma

in Maritime Law with specialisation in Ship

Finance Law. He is currently reading for the

Lloyd’s Maritime Academy and Middlesex

University MBA in Shipping & Logistics. At

Gard (Baltic) Jan works as Claims Executive

and handles all types of hull and machinery

and builders’ risks claims, especially for Oslo-

based marine clients, but he also co-ordinates

the marine claims handling of the Helsinki

office.

Johan Lång is a qualified Master Mariner with

nine years of experience from various ship

types. He also has a Law degree from Åbo

Akademi in Turku. Prior to joining Gard he

worked for Rettig Group Ltd Bore achieving a

Chief Officer position. Johan handles both P&I

and hull and machinery claims in Helsinki and

is also a part of the Gothenburg hull and

machinery claims team.

Claims Executive Riika Ahtiala has a Bachelor

of Business Administration degree with

specialisation in International Business from

Haaga-Helia University of Applied Sciences. At

Oy Gard (Baltic) she has been working with

P&I claims, mostly from passenger vessel and

ferry members. She handles mainly crew,

personal injury and minor cargo claims.

Office administrationTaru Natri works currently as  Assistant

Manager at Oy Gard (Baltic) Ab. She has a

Bachelor of Business Administration degree

with specialisation in International Business

from Haaga-Helia University of Applied

Sciences. Taru is the office manager and has

overall responsibility for office functions,

including local ICT matters, personnel

healthcare and major client arrangements. In

addition, Taru is responsible for some of the

local underwriting support functions,

especially related to P&I.

Virpi Hakalax works as Office Assistant. She is

substituting Anna Ehrnrooth who is on

maternity leave until Autumn 2011. Virpi has

worked as an Executive Assistant at Ernst &

Young and the Boston Consulting Group.

in support functions and reporting mainly

with marine clients, both blue water and

Small Craft. In addition, she takes care of

handling and accounting of claims payments.

The claims teamThe claims team deals with P&I and marine

claims. It consists of personnel with technical,

naval and legal backgrounds, most of whom

are currently studying part-time to develop

and widen their professional skills.

Two of the marine claims handlers also

belong to the Oslo and Gothenburg claims

teams so Helsinki is very well linked to

activities in Norway and Sweden. As the office

is so close to all local members and clients,

the claims staff often attend meetings and

seminars at their offices.

Senior Claims Manager Saila Hiirsalmi is a

qualified Finnish lawyer, with an LLM from the

University of Helsinki. She joined Gard from

Baltic Protection where she worked as a

claims executive. Prior to that she worked in

a local District Court and in law firms both in

Helsinki and London. Saila has a special focus

on P&I, especially dry cargo, personal injury

and oil spill claims. She actively participates

in member/client activities and renewal

meetings, and is a reputed expert and

speaker in various seminars within the Finnish

maritime cluster.

Martin Jansson, who is a naval architect,

joined Gard from If. Prior to that he worked at

the marine division of Sampo as a yacht,

transport and vehicle surveyor. He has also

worked at Finnish Loss Survey Ltd as a yacht

surveyor and product manager for yacht

surveys. Martin deals mainly with Finnish and

Estonian claims lead marine clients and also

performs condition and claims surveys.

Jan Sundberg is a qualified Master Mariner

with fifteen years of experience with different

ship types. Before joining Gard he worked for

Royal Caribbean International in various

sales and co-ordinates undewriting for most

blue water (or major) clients.

The underwriting teamThe underwriting team in the Helsinki office

works in close co-operation with the Nordic

team and the Small Craft team. Due to the

volume of Finnish speaking clients and

members, especially in the small craft sector,

a lot of insurance certificates, invoices and

other material are issued in Finnish.

Patrik Palmgren is the underwriting

department manager and a member of the

Small Craft team. He has a Law degree from

the University of Helsinki and before joining

Gard he worked for nine years as a lawyer for

Neptun Juridica, which at that time was

owned by the Silja Group. In addition he was

the Human Resources Director for the Silja

Group for five years and a member of the

board of directors for three years.

Henry Hemtman, who holds an MSc from the

Helsinki Business School, moved from If P&C

to Gard as a Claims Adjuster. Prior to that he

worked within banking and marketing of gas

services within the AGA Group, where he held

various positions for almost two decades,

including Product Manager and Planning and

Budget Manager. Henry is currently

underwriter in the Small Craft team.

Inkeri Ailus has a Bachelor of Business

Administration degree with specialisation in

Finance and Risk Management from Laurea

University of Applied Sciences. She is currently

attending a part-time Master’s degree

programme in Real Estate Investment and

Finance in the Hanken School of Economics in

Sweden. She works as Assistant Underwriter

dealing mainly with marine and Small Craft

clients. She also has some responsibilities

regarding local finance matters, budgeting

and accounting.

Assistant Underwriter Camilla Ölander came

to Oy Gard (Baltic) from If – she had been with

If / Sampo and their predecessor Finnish

Marine since 1974 working with Re-insurance

and accounting. In Gard (Baltic) Camilla works

“The underwriting team inthe Helsinki office works inclose co-operation with theNordic team and the SmallCraft team.”

“The claims team consists of personnel withtechnical, naval and legalbackgrounds, most of whomare currently studying part-time to develop and widentheir professional skills.”

“Two of the marine claimshandlers also belong to theOslo and Gothenburg claimsteams so Helsinki is verywell linked to activities inNorway and Sweden.”

26

GARD NEWS ISSUE 201 February/April 2011

Gard has been an active voice in the debate

about the protection of the marine

environment for many decades. On 2nd

November 2010 Oy Gard (Baltic) Ab held a

seminar together with the Baltic Sea Action

Group (www.bsag.fi) in order to focus

attention on the issue of pollution in the Baltic

Sea. The seminar had 84 participants,

including clients, members, lawyers,

surveyors and authorities from Finland and

the Baltic States.

Almost totally enclosed, very shallow and fed

by numerous rivers, the Baltic is a vulnerable

sea. Ninety million people live around its

shores, many of them depending on the sea

in one way or other for their livelihoods, but

waste from industry, agriculture and daily life

ends up in the Baltic – making it one of the

world’s most polluted seas. Concrete action is

needed now to help it survive.

At the Oy Gard (Baltic) Ab seminar a series of

speakers discussed environmental issues from

a variety of perspectives, such as that of P&I

insurers, shipowners and authorities. The

opening address was held by Ilkka Herlin,

founder and Chairman of the Board of

Trustees of the Baltic Sea Action Group and

Chairman of Gargotec Corporation.

Presentations included a talk about HNS spills

and a comparison with oil spills by Karen

Purnell, Managing Director of ITOPF. Other

topics were oil spills and their aftermath (by

Kenneth Kumenius, of Haaga-Helia), vetting

procedures (by Esa Päivinen, of Neste Oil) and

air emissions (by Anita Mäkinen of the Finnish

Transport Safety Agency and Thomas Franck,

MD of Rettig Bore and Chairman of Finnish

Shipowners’ Association).

Gard’s Saila Hiirsalmi and Tonje Castberg gave

a presentation on the reasons why accidents

happen and Roberto Lencioni, MD of Oy Gard

(Baltic) Ab, presented the view and role of a

P&I insurer and how he can contribute to

protecting the seas. In addition, Roberto had

the honour of forwarding the greetings from

the President of the Republic of Finland to the

seminar participants. President Tarja Halonen

is the Chairman of the Baltic Sea Action Group

International Advisory Board.

In September 2010 Venezuelan

legislation applicable to cases of

drugs found on board ships was

amended. Among other things, drug

trafficking is now punishable with a

jail sentence of between 15 and 25

years, up from the previous eight to

ten years. Vessels may be seized and

held for up to three months until a

preliminary hearing is held. Following

that hearing the vessel may be

released or held for up to a year or

more if the authorities decide to

proceed with criminal prosecution.

Release against Club letters of

indemnity is probably not possible. If

found guilty the vessel may be

confiscated. No time bar is applicable

to these violations.

Members are advised to be cautious

when calling at Venezuelan ports and

to carry out underwater searches

and security inspections in close

co-operation with local agents.

We thank Gard’s correspondents in

Venezuela, Globalpandi S.A., for the

above information.

The protection ofthe Baltic Sea

From left: Roberto Lencioni (Oy Gard (Baltic) AB), Ilkka Herlin (Baltic Sea Action Group andGargotec Corporation) and Svein Buvik (Gard).

Venezuela –Amendmentsto legislationon drugsmuggling

27

GARD NEWS ISSUE 201 February/April 2011

The Centers for Medicare and Medicaid

Services (CMS) has announced a new

delay in the mandatory reporting

requirements by Responsible Reporting

Entities (RRE) for liability claims applicable

to the Medicare Secondary Payer Act.

This is the second postponement of the

requirements which were originally

scheduled to commence in January 2010.1

Medicare Secondary Payer Act reporting

requirements are designed to eliminate

On 27th October 2010 the UK Supreme Court

handed down a judgment concerning an

exception to the “without prejudice” rule.1

The “without prejudice” rule will, in general,

prevent statements made in an attempt to

achieve a settlement of a dispute from being

put before a court as evidence against the

party that made those particular statements.

There are several exceptions to the “without

prejudice” rule and a number of these have

been set out in an earlier judgment.2

The decision of the Supreme Court considered

whether it should extend the scope of the

exceptions to the “without prejudice” rule –

namely, of evidence that, despite being

produced without prejudice, is admissible

in court. 

The Supreme Court and indeed Lord Clarke,

who gave the main judgment, stressed the

need to recognise the importance of the rule

and determined that the rule should not

be eroded lightly.  However, it was found that

in this particular instance an exception should

be made.

As background, the parties had entered into a

number of freight forwarding agreements and

a dispute arose whereupon the parties

negotiated a settlement agreement.  The

dispute between them then arose out of one

of the terms of the settlement.  One of the

parties had made a couple of representations,

on a without prejudice basis, during the

negotiations and it was argued that these

were relevant to the interpretation of that

particular clause of the settlement

agreement.  The Supreme Court agreed and

Lord Phillips provided the following principles

which were to be derived from this particular

matter: “When construing a contract between

two parties, evidence of facts within their

common knowledge is admissible where

those facts have a bearing on the meaning

English law – Further exception to the“without prejudice” rule

UK Supreme Court considers one more exception to the “without prejudice” rule.

1 Oceanbulk Trading T Shipping S.A. v. TMT Asia

[2010] UKSC44. 2 Unilever plc v. Procter & Gamble [2001] 1 All ER at

783.

that should be given to the words of the

contract.  This is so even where the

knowledge of those facts is conveyed by one

party to the other in the course of

negotiations that are conducted “without

prejudice”.  This principle applies both in the

case of a contract that results from the

“without prejudice” negotiations and in the

case of any other subsequent contract

concluded between the same parties.”

Conclusion It is, perhaps, debatable whether this actually

will have much effect on parties negotiating

settlements – they should be aware that the

content of their negotiation may be admitted

into evidence, noting the exceptions that

already existed.

Medicare’s responsibility for benefits when

the beneficiary has medical expenses that

should be paid by workers compensation,

no-fault or liability insurance. Failure to comply

with the act’s provisions may result in

major fines.2

With this new delay RREs are not required to

report claims payments, unless they involve

an Ongoing Medical Responsibility (ORM),

until 1st January 2012. Regardless of the

delay, any RRE who wishes to report prior

to the extended deadline may do so.

For further clarification please contact CMS

or visit their website at www.cms.gov.

Medicare delays implementation ofmandatory reporting requirement

New postponement of dates for recording data and reporting to CMS. 

1 See article “Medicare delays implementation of

some mandatory reporting requirements” in

Gard News issue No. 198.2 See article “Medicare reporting and set asides”

in Gard News issue No. 197.

28

GARD NEWS ISSUE 201 February/April 2011

Staff news

The following Loss Prevention and P&I

Member Circulars have been issued by Gard

during the autumn of 2010:

Loss Prevention Circulars– Loss Prevention Circular No. 10-10,

September 2010: Fines in Lebanon.

– Loss Prevention Circular No. 11-10, October

2010: Grey water discharge and pollution

fines in Turkey.

– Loss Prevention Circular No. 12-10,

November 2010: Limitations of vessels’

anchoring equipment.

– Loss Prevention Circular No. 13-10,

December 2010: Argentina – Local customs

regulations.

– Loss Prevention Circular No. 14-10,

December 2010: Loss of ship’s records when

changing ownership or management.

P&I Member Circulars– P&I Member Circular No. 13-10, October

2010: International Group Standard Form

Letters of Indemnity.

– P&I Member Circular No. 14-10, October

2010: US Vessel Response Plans – Salvage

and Marine Firefighting Requirements –

Final Rule – 31 December 2008 – Deadline

for implementation – 22 February 2011 –

Update.

– P&I Member Circular No. 15-10, October

2010: Review of policy years, premium rating

for the 2011 policy year, and half year status

report as at 20 August 2010.

– P&I Member Circular No. 16-10, December

2010: India – Safe Shipment of Iron Ore Fines

from Indian Ports.

All Loss Prevention and P&I Member circulars

are available from www.gard.no. If you

would like to receive Gard’s Loss Prevention

Circulars by e-mail, please contact

terje.paulsen@gard.no. ��

Loss Prevention and P&I Member Circulars, autumn 2010

Jannike Olsson has been appointed head

of the newly-created Liquid Cargo section

of the Claims Department, P&I.

Terje R. Paulsen has been appointed

Senior Manager in the Loss Prevention &

Risk Assessment Department.

Karl Petter Muhlbradt and John Scalia

have been appointed Senior Claims Adviser.

Andres Duran, Tonje Castberg, Roar

Larsen and Alf Ove Stenhagen have been

appointed Senior Claims Executive.

Marius Schønberg has been appointed

Senior Loss Prevention Executive in the

Loss Prevention & Risk Assessment

Department.

Catherine Wong has been appointed

Senior Lawyer in the Charterers and Traders

section of the Claims Department, P&I.

Claudia Botero-Gotz and James Hawes have

been appointed Senior Lawyer in the

Defence team.

Jennie Gibson, Riika Ahtiala and Charmaine

Chu have been appointed Claims Executive.

Alexandra Chatzimichailoglou and Veronica

Villegas have been appointed Lawyer in the

Defence team.

Alf-Ove Stenhagen, Robert Skaare, Severin

Frigstad and Karin Moy Laursen have moved

to the newly-created Liquid Cargo section of

the Claims Department, P&I.

Joakim Bronder has relocated to Gard

(Greece) Ltd to assume a new role as Senior

Manager and head of the claims team in

Greece.

Silje Skjævesland has joined Gard as Claims

Executive in the Dry Cargo section of the

Claims Department, P&I. She has an LLM

degree from Oslo University.

Themis Ploumidakis has joined Gard

(Greece) Ltd as Claims Executive. He is a

solicitor qualified in Greece and England

and holds an LLB and an LLM from

University College London. Before joining

Gard Themis worked as in-house legal

counsel at Prime Marine Management Inc.

in Piraeus.

Kelly Wagland has stepped down from his

position as Senior Manager in the Defence

team in order to focus on a Senior Lawyer

role.

Harald Fotland has resigned from his

position as Vice President in the Casualty,

Environmental & Property Claims section

of the Claims Department, P&I. We wish

him all the best for the future.

Stuart Ross has resigned from his position

as Senior Marine Surveyor in the Loss

Prevention and Risk Assessment

department. We wish him all the best for

the future.

29

Staff directory

Ingrid Helena G Larsen Mobile +47 99 29 22 15Underwriter ingrid.helena.larsen@gard.no

Liv Johanne Nordvik Mobile +47 99 29 22 18Underwriter liv.nordvik@gard.no

MOU & Offshore

Magne Nilssen Mobile +47 97 55 91 20Vice President magne.nilssen@gard.noArea Manager

Tore Furnes Mobile +47 97 55 92 86 P&I Offshore tore.furnes@gard.no

Liv Sand Mobile +47 99 29 22 19Marine Offshore liv.sand@gard.no

Sven Jensen Mobile +47 99 29 22 63 Underwriter sven.jensen@gard.no

Christian Lillevik Mobile +47 97 55 92 49Underwriter, Lawyer christian.lillevik@gard.no

Marianne Bruun Mackrill Mobile +47 97 55 93 38Underwriter marianne.bruun.mackrill@gard.no

Atle Jonsborg Pedersen Mobile +47 99 29 22 65Underwriter atle.jonsborg.pedersen@gard.no

Tone Dahle Pettersen Mobile +47 94 52 96 44Contract Adviser tone.dahle.pettersen@gard.no

Marine Builders’ Risks

Knut Morten Finckenhagen Mobile +47 99 29 22 50Vice President knut.morten.finckenhagen@gard.noArea Manager

Ingunn Brenna Mobile +47 99 29 22 55Senior Underwriter ingunn.brenna@gard.no

Jan Solem Jacobsen Mobile +47 99 29 22 56Senior Underwriter solem.jacobsen@gard.no

Charterers Traders

Terri Lynn Jay Mobile +47 97 55 93 25Area Manager terri.lynn.jay@gard.no

Liv Kristensen Mobile +47 97 55 91 21Senior Underwriter liv.kristensen@gard.no

Bart Mertens Mobile +47 94 52 96 32Senior Underwriter bart.mertens@gard.no

Small Craft Nordic

Thomas Nordberg Mobile +46 (0)70 311 70 02Managing Director thomas.nordberg@gard.no

Patrik Palmgren Mobile +358 (0)40 046 5852Manager patrik.palmgren@gard.no

Malena Edh Mobile +46 (0)705 469 697Underwriter malena.edh@gard.no

Mette Ellefsen Mobile +47 94 52 92 69 Underwriter mette.ellefsen@gard.no

Henry Hemtman Mobile +358 (0)50 414 6943Underwriter henry.hemtman@gard.no

Ivar Rokne Mobile +47 99 28 40 74Underwriter ivar.rokne@gard.no

Market Research & Analysis

Line Dahle Mobile +47 99 28 40 53Manager line.dahle@gard.no

Karin Nicolaisen Mobile +47 94 52 93 13Research Executive karin.nicolaisen@gard.no

Vivi Sandsten Mobile +47 99 29 22 22Research Executive vivi.sandsten@gard.no

Technical Underwriting

Helge A Nordahl Mobile +47 99 29 22 64Manager helge.nordahl@gard.no

Knut Goderstad Mobile +47 97 55 91 27Vice President, knut.goderstad@gard.noUnderwriting and Support

Lars Schedenborg Mobile +46 (0)70 792 60 84Special Adviser lars.schedenborg@gard.no

Shipowners/Charterers

Bjørn Fremmerlid Mobile +47 97 55 92 43Area Manager bjorn.fremmerlid@gard.noNorthern Europe

Reidun Haahjem Mobile +47 99 28 40 56Area Manager reidun.haahjem@gard.noNordic

Iain Laird Home +44 (0)1962 777650Area Manager Mobile +44 (0)7768 547401Latin America & London iain.laird@gard.no

Sid Lock Mobile +852 9196 4210Area Manager sid.lock@gard.noAsia East

Espen Olsen Mobile +47 99 28 40 51Area Manager espen.olsen@gard.noNorth America

Audun Fjermedal Pettersen Mobile +47 97 55 92 10Area Manager audun.pettersen@gard.noSouthern Europe

Stein Wahl Sande Mobile +47 99 28 40 84Vice President stein.wahl.sande@gard.noSenior UnderwriterNorthern Europe

Petter Eid Skalstad Mobile +47 99 29 22 74Area Manager petter.skalstad@gard.noAsia West, Eastern Europe & Africa

Nina Hovland Mobile +47 99 28 40 62Senior Underwriter nina.hovland@gard.no

Steinar Jørgensen Mobile +47 99 29 22 49Senior Underwriter steinar.jorgensen@gard.no

Stephen Mulcahy Mobile +44 (0)7799 894670Senior Underwriter stephen.mulcahy@gard.no

Michaela Arnell Mobile +46 (0)733 55 51 13Underwriter michaela.arnell@gard.no

Wenche Dahle-Olsen Mobile +47 97 55 92 71Underwriter wenche.dahle.olsen@gard.no

Inger Aasbø Flaten Mobile +47 97 55 93 12Underwriter inger.aasbo.flaten@gard.no

Lisbet Fokstuen Mobile +47 99 28 40 54Underwiter lisbet.fokstuen@gard.no

Jai Raymond Johansen Mobile +47 94 52 96 34Underwiter jai.johansen@gard.no

Mariela Karvanen Mobile +46 (0)705 92 68 02Underwriter mariela.karvanen@gard.no

Karianne Kristensen Mobile +47 97 55 92 72Underwriter karianne.kristensen@gard.no

Kenneth Meyer Mobile +47 99 28 41 05Underwriter kenneth.meyer@gard.no

Samira Hmam Mobile +44 (0)7990 591911Deputy Underwriter samira.hmam@gard.no

Sigrun Ottersland Mobile +47 97 55 92 97Deputy Underwriter sigrun.ottersland@gard.no

Anne Wenche Leland Mobile +47 94 52 92 23Deputy Underwriter anne.wenche.leland@gard.no

Exploration & Production

Gunnar Aasberg Mobile +47 99 29 22 25Vice President gunnar.aasberg@gard.noArea Manager

Sabine Colette Mazay Mobile +47 99 29 22 30Senior Underwriter sabine.mazay@gard.no

Claes Isacson Mobile +47 97 55 93 37Chief Executive Officer (CEO) claes.isacson@gard.no

Bjørnar Andresen Mobile +44 (0)7920 163586Managing Director bjornar.andresen@gard.noGard (UK) Limited

Sara E. Burgess Mobile +44 (0)7818 421723Senior Vice President, sara.burgess@gard.noHead of International Group Matters

Svein Buvik Mobile +47 97 55 93 18Senior Vice President, svein.buvik@gard.noHead of Administration & ICT

Steinar Bye Mobile +47 99 29 22 10Senior Vice President, steinar.bye@gard.noChief Financial Officer (CFO)

Kristian Dalene Mobile +47 97 55 91 42Senior Vice President, kristian.dalene@gard.noChief Investment Officer (CIO)

Nicolas Wilmot Mobile +47 99 28 40 11Senior Vice President, nicolas.wilmot@gard.noCustomer Relations

Christen Guddal Mobile +47 97 55 92 95Senior Vice President, christen.guddal@gard.noHead of Quality Management

Jan-Erik Braathen Mobile +47 99 28 41 01Vice President, jan-erik.braathen@gard.noRisk Management and Analysis

Inge Liltved Mobile +47 97 55 91 25Vice President, inge.liltved@gard.noAccounts

Jens Martinius Nilsen Mobile +47 97 55 92 80Vice President, jens.martinius.nilsen@gard.noHead of Gard Academy

Trygve Nøkleby Mobile +47 99 28 41 11Vice President, trygve.nokleby@gard.noHuman Resources and Organisation

Trond Willy Olsen Mobile +44 (0)7826 853782Vice President, ICT trond.willy.olsen@gard.no

Roar Rasten Mobile +47 99 29 22 80Vice President, roar.rasten@gard.noController

Harald Stridsklev jr Mobile +47 97 55 92 38Vice President, harald.stridsklev.jr@gard.noInvestment Management

Lily Karaiscos Mobile +30 693 220 0209Special Adviser lily.karaiscos@gard.no

Claudia Storvik Home +44 (0)1689 851486Editor, Gard News Mobile +44 (0)7775 644791

claudia.storvik@gard.no

Group Legal

Kjetil Eivindstad Mobile +47 97 55 92 18Senior Vice President, kjetil.eivindstad@gard.noChief Legal Counsel

Karsten Sunde Mobile +47 97 55 91 83Vice President karsten.sunde@gard.no

Underwriting

Bjørnar Andresen Mobile +44 (0)7920 163586Senior Vice President, bjornar.andresen@gard.noJoint Head of Underwriting

Rolf Thore Roppestad Mobile +47 97 55 92 45Senior Vice President, rolf.thore.roppestad@gard.noJoint Head of Underwriting

Bjarne Sælensminde Mobile +47 99 28 40 61Vice President, bjarne.saelensminde@gard.noSpecial Adviser

Terje Holte Mobile +852 9154 8101Vice President, terje.holte@gard.noSpecial Adviser

Odd Helgesen Mobile +47 97 55 92 02Senior Claims Executive odd.helgesen@gard.no

Geir Kjebekk Mobile +47 97 55 92 52Senior Claims Adviser geir.kjebekk@gard.no

Peter Leijs Mobile +47 97 55 91 93Senior Claims Executive peter.leijs@gard.no

Torgrim Andersen Mobile +47 97 55 93 47Claims Executive torgrim.andersen@gard.no

Heiko Bloch Mobile +47 94 52 92 08Claims Executive, Lawyer heiko.bloch@gard.no

Sandra Guiguet Mobile +47 97 55 91 71Claims Executive, Lawyer sandra.guiguet@gard.no

Paul Andor Marskar Mobile +47 94 52 93 69Claims Executive paul.marskar@gard.no

Tom Bent Opsal Nielsen Mobile +47 94 52 93 62Claims Executive tom.bent.nielsen@gard.no

Gitana Røyset Mobile +47 97 55 91 41Claims Executive, Lawyer gitana.royset@gard.no

Silje Skjævesland Mobile +47 94 52 91 96Claims Executive silje.skjaevesland@gard.no

Rasmus Tideman Mobile +47 94 52 93 57Claims Executive, Lawyer rasmus.tideman@gard.no

Grethe Øynes Mobile +47 97 55 91 77Claims Executive grethe.oynes@gard.no

Beatriz Åsgård Mobile +47 97 55 92 91 Claims Executive beatriz.asgard@gard.no

Liquid Cargo Claims

Jannike Rognøy Olsson Mobile +47 97 55 91 94Senior Manager jannike.olsson@gard.no

Alf Ove Stenhagen Mobile +47 97 55 91 66Senior Claims Executive alf.ove.stenhagen@gard.no

Severin Frigstad Mobile +47 94 52 91 60Claims Executive severin.frigstad@gard.no

Robert Skaare Mobile +47 94 52 93 52Claims Executive robert.skaare@gard.no

Casualty, Environmental, & Property Claims

Andreas Brachel Mobile +47 97 55 91 49Senior Manager andreas.brachel@gard.no

Gunnar Espeland Mobile +47 97 55 92 53Senior Claims Adviser gunnar.espeland@gard.no

Jan Kr. Jacobsen Mobile +47 97 55 92 27Senior Claims Adviser jan.jacobsen@gard.no

Kim Jefferies Mobile +47 97 55 92 90Senior Claims Adviser, kim.jefferies@gard.noLawyer

Tonje Castberg Mobile +47 97 55 91 36Senior Claims Executive tonje.castberg@gard.no

Roar S. Larsen Mobile +47 97 55 91 43Senoir Claims Executive roar.larsen@gard.no

Hans-Øyvind Leikvin Mobile +47 97 55 92 63Senior Claims Executive hans.leikvin@gard.no

Fredrik Doksrød Olsen Mobile +47 97 55 92 32Claims Executive, Lawyer fredrik.olsen@gard.no

Torgeir Bruborg Mobile +47 94 52 96 18Claims Executive torgeir.bruborg@gard.no

Emil Evnum Mobile +47 97 55 91 28Claims Executive emil.evnum@gard.no

Grethe Ljøstad Mobile +47 97 55 92 16Claims Executive grethe.ljostad@gard.no

Isabel Martin de Nieto McMathMobile +47 94 52 96 19Claims Executive, Lawyer isabel.martin@gard.no

Claims (London)

Ajaz Peermohamed Mobile +44 (0)7747 758978Senior Manager ajaz.peermohamed@gard.no

Ivor Goveas Mobile +44 (0)7881 921116Senior Claims Executive ivor.goveas@gard.no

30

Veith Huesmann Mobile +47 94 52 22 92Business Analyst veith.huesmann@gard.no

Tor Halvor Løyte Mobile +47 97 55 92 40Business Analyst tor.halvor.loyte@gard.no

Product Development

Andre Kroneberg Mobile +44 (0)7920 423832Manager andre.kroneberg@gard.no

Tonje Forøy Breivik Mobile +47 97 55 93 58Product Adviser, Lawyer tonje.breivik@gard.no

Inger Eidem Mobile +47 97 55 93 90Contract Adviser, Lawyer inger.eidem@gard.no

Documentation & Support

Ingebjørg Eliassen Mobile +47 97 55 92 70 Manager ingebjorg.eliassen@gard.no

Trading Certificates (CLC/ITOPF/Bunkers Blue Card)

Inger-Helene Andersen Mobile +47 94 52 93 27Underwriting Assistant inger.helene.andersen@gard.no

Liv Gundersen Mobile +47 94 52 91 23Underwriting Assistant liv.gundersen@gard.no

Hanna Kristensen Mobile +47 94 52 93 22Underwriting Assistant hanna.kristensen@gard.no

Claims

Svein A. Andersen Mobile +47 97 55 91 92Senior Vice President, svein.andersen@gard.noHead of Claims

Nick Platt Mobile +44 (0)7768 547402Vice President, nick.platt@gard.noSpecial Adviser

Mark Russell Mobile +44 (0)7747 758789 Vice President mark.russell@gard.no

Geir Sandnes Mobile +47 97 55 91 63 Vice President geir.sandnes@gard.no

Christopher Mackrill Mobile +47 97 55 93 61Senior Manager christopher.mackrill@gard.no

Bjarne Printz Mobile +47 97 55 92 20Special Adviser/Lawyer bjarne.printz@gard.no

Claims – P&I

Personal Injury & Crew Claims

Lene-Camilla Nordlie Langås Mobile +47 97 55 92 42 Senior Manager, lene-camilla.nordlie.langas@gard.no Lawyer

Kristin Aanonsen Mobile +47 97 55 92 47Senior Claims Executive kristin.aanonsen@gard.no

Per Fredrik Jensen Mobile +47 97 55 91 91Senior Claims Executive per.fredrik.jensen@gard.no

Christopher Petrie Mobile +47 97 55 93 28Senior Claims Executive, christopher.petrie@gard.noLawyer

Pål Berglund Mobile +47 97 55 92 37Claims Executive pal.berglund@gard.no

Lisbeth Christensen Mobile +47 97 55 92 75Claims Executive lisbeth.christensen@gard.no

Trond Denstad Mobile +47 97 55 91 90Claims Executive trond.denstad@gard.no

Roy Kenneth Jenssveen Mobile +47 97 55 93 41Claims Executive roy.kenneth.jenssveen@gard.no

Gudrun Mortensen Aaserud Mobile +47 97 55 91 17Claims Executive gudrun.aaserud@gard.no

Morten Mauritz Seines Mobile +47 97 55 91 82Claims Executive, Lawyer morten.seines@gard.no

Dry Cargo Claims

Andres Duran Mobile +47 97 55 92 61Senior Claims Executive, Lawyer andres.duran@gard.no

Einar Gulbrandsen Mobile +47 97 55 91 64Senior Claims Executive einar.gulbrandsen@gard.no

Adrian Hodgson Mobile +44 (0)7747 758956 Senior Claims Executive adrian.hodgson@gard.no

Andreas Alsterberg Mobile +44 (0)7917 351450Claims Executive andreas.alsterberg@gard.no

Chris Connor Mobile +44 (0)7747 758845Claims Executive chris.connor@gard.no

Jennie Gibson Mobile +44 (0)7786 915855Claims Executive jennie.gibson@gard.no

Tina Lind Havdahl Mobile +44 (0)7826 854156Claims Executive Tina.havdahl@gard.no

Kelly Turner Mobile +44 (0)7748 646665Claims Executive kelly.turner@gard.no

Nigel Wright Mobile +44 (0)7795 843634 Claims Executive nigel.wright@gard.no

Claims (Oslo)

Ivar Brynildsen Mobile +47 99 29 22 31Senior Manager ivar.brynildsen@gard.no

Alejandra H. Sterri Mobile +47 99 29 22 71Senior Claims Executive, alejandra.sterri@gard.noLawyer

Claims – Energy

Jan-Hugo Marthinsen Mobile +47 99 29 22 40Vice President jan-hugo.marthinsen@gard.no

Torstein Søreng Mobile +47 99 29 22 47Senior Claims Executive torstein.soreng@gard.no

Ragnar Løken Mobile +47 99 29 22 46Claims Executive ragnar.loken@gard.no

Nils-Joakim Rosdahl Mobile +47 94 52 22 43Claims Executive nils.joakim.rosdahl@gard.no

Tove Kaasine Skjeldal Mobile +47 99 29 22 41Claims Executive tove.skjeldal@gard.no

Asle Skola Mobile +47 99 29 22 42Claims Executive asle.skola@gard.no

Claims – Marine

Claims Handling

Leif Erik Abrahamsen Mobile +47 99 28 41 12Vice President leif.erik.abrahamsen@gard.no

Svend Leo Larsen Mobile +47 99 28 40 22Senior Claims Adviser leo.larsen@gard.no

Karl Petter Mühlbradt Mobile +47 99 29 22 78Senior Claims Adviser karl.p.muhlbradt@gard.no

Reidar Ebbesvik Mobile +47 99 28 40 31Senior Claims Executive reidar.ebbesvik@gard.no

Vidar Solemdal Mobile +47 99 28 40 25Senior Claims Executive vidar.solemdal@gard.no

Thomas Christiansen Mobile +47 99 29 22 62Claims Executive thomas.christiansen@gard.no

Trond Justad Mobile +47 99 28 40 27Claims Executive trond.justad@gard.no

Jan Sundberg Mobile +47 99 29 22 72Claims Executive jan.sundberg@gard.no

Påsan Vigerust Mobile +47 99 28 40 71Claims Executive pasan.vigerust@gard.no

Claims Adjusting

Sveinung Måkestad Mobile +47 99 28 40 32Vice President sveinung.makestad@gard.no

Anne Glestad Lech Mobile +47 99 29 22 76Senior Claims Adjuster anne.lech@gard.no

Alf Inge Johannessen Mobile +47 99 28 40 28Senior Claims Adjuster alf.inge.johannessen@gard.no

Atle Olav Nordbø Mobile +47 94 52 22 24Senior Claims Adjuster atle.nordbo@gard.no

Marit Bjørnethun Mobile +47 99 28 40 21Claims Adjuster marit.bjornethun@gard.no

Merete Engevik Home +47 55 12 45 93Claims Adjuster merete.engevik@gard.no

31

Frank Gonynor Mobile +1 (917) 670 3164Senior Claims Adviser, Lawyer frank.gonynor@gard.no

John Scalia Mobile +1 (516) 551 1577Senior Claims Adviser john.scalia@gard.no

Cheryl Acker Mobile +1 (203) 258 7059Claims Executive cheryl.acker@gard.no

Edward Fleureton Mobile +1 (917) 670 3510Claims Executive edward.fleureton@gard.no

Hugh Forde Mobile +1 (917) 670 3753Claims Executive, Lawyer hugh.forde@gard.no

Dina Gallaro Mobile +1 (917) 670 3209Claims Executive dina.gallaro@gard.no

Christine Thomas Mobile +1 (917) 670 3271Claims Executive christine.thomas@gard.no

Gard (Greece) Ltd

George Karkas Mobile +30 694 451 3350Managing Director george.karkas@gard.no

Joakim Bronder Mobile +30 693 662 1102Senior Manager joakim.bronder@gard.no

Anne Boye Mobile +30 693 726 7653Senior Claims Executive anne.boye@gard.no

Svein Ellingsen Mobile +30 693 726 7654Senior Claims Executive svein.ellingsen@gard.no

Alexandra Chatzimichailoglou Mobile +30 697 412 0812Lawyer alexandra.chatzimichailoglou@gard.no

Themis Ploumidakis Mobile +30 694 624 4965Claims Executive, Lawyer themis.ploumidakis@gard.no

Emmanuel Tatianidis Mobile +30 693 726 7669Claims Executive, emmanuel.tatianidis@gard.no Financial Controller

Lingard Limited, Bermuda

Graham Everard Mobile +1 (441) 330 3445Managing Director graham.everard@lingard.bm

DIARY

Arendal, Bergen, OsloThe offices will be closed on:21st-22nd April 201125th April 2011

LondonThe office will close at 1300 GMT on:21st April 2011The office will be closed on:22nd April 201125th April 201129th April 2011

GothenburgThe office will be closed on:21st April-22nd April 201125th April 2011

HelsinkiThe office will be closed on:22nd April 201125th April 2011

Hong KongThe office will be closed on:3rd-5th February 201122nd-23rd April 201125th April 2011

TokyoThe office will be closed on:11th February 201121st March 201129th April 2011

New YorkThe office will be closed on:21st February 2011

BermudaThe office will be closed on:22nd April 2011

PiraeusThe office will be closed on:7th March 201125th March 201122nd April 201125th April 2011

Yvonne Mikulandra Mobile +46 (0)70 787 04 06Controller yvonne.mikulandra@gard.no

Claims – P&I and Marine

Johan Henriksson Mobile +46 (0)70 787 04 07Senior Claims Executive johan.henriksson@gard.no

Thomas Forssen Mobile +46 (0)70 655 92 92Claims Executive thomas.forssen@gard.no

Patrik Friberg Mobile +46 (0)70 878 74 15Claims Executive patrik.friberg@gard.no

Jonas Gustavsson Mobile +46 (0)70 633 92 94Claims Executive jonas.gustavsson@gard.no

Jerker Paulusson Mobile +46 (0)73 442 60 70Claims Executive jerker.paulusson@gard.no

Oy Gard (Baltic) Ab

Roberto Lencioni Mobile +358 (0)50 500 0000Managing Director roberto.lencioni@gard.no

Claims – P&I and Marine

Saila Hiirsalmi Mobile +358 (0)50 595 1133Senior Manager saila.hiirsalmi@gard.no

Martin Jansson Mobile +358 (0)50 414 6942Claims Executive, Surveyor martin.jansson@gard.no

Riika Ahtiala Mobile +358 (0)50 414 6946Claims Executive riika.ahtiala@gard.no

Johan Lång Mobile +358 (0)50 414 6941Claims Executive johan.lang@gard.no

Gard (HK) Ltd

John Martin Mobile +852 6478 7261 Managing Director john.martin@gard.no

Einar Christensen Mobile +852 9106 9262Claims Director einar.christensen@gard.no

Catherine Wong Mobile +852 6478 7260 Senior Lawyer catherine.wong@gard.no

Tony Wong Mobile +852 6398 7265Lawyer tony.wong@gard.no

Charmaine Chu Mobile +852 6478 7264Claims Executive charmaine.chu@gard.no

Zoe Ho Mobile +852 6478 7262Claims Executive zoe.ho@gard.no

Nancy Kam Mobile +852 6292 7578Claims Executive nancy.kam@gard.no

Patrick Lee Mobile +852 9107 0302Claims Executive patrick.lee@gard.no

Michelle Pun Mobile +852 9337 6463 Claims Executive michelle.pun@gard.no

Wallace Yeung Mobile +852 9124 6365 Claims Executive wallace.yeung@gard.no

Sigvald Fossum Mobile +852 9036 6561Underwriter sigvald.fossum@gard.no

Gard (Japan) K.K.

Richard Corwin Mobile +81 (0)90 6479 2544Regional Director – Asia, richard.corwin@gard.noGard Group

Tadashi Sugimoto Mobile +81 (0)80 4142 9688 Managing Director tadashi.sugimoto@gard.no

Hideo Teramachi Home +81 (0)3 3440 2205Gard P&I (Japan Branch): Mobile +81 (0)70 5590 9062 Representative hideo.teramachi@gard.no

Katsumi Imamura Mobile +81 (0)90 4709 5174 Claims Executive katsumi.Imamura@gard.no

Gard (North America) Inc

Sandra Gluck Mobile +1 (917) 670 3169President sandra.gluck@gard.no

Claudia Botero-Götz Mobile +1 (646) 248 8109Senior Lawyer claudia.gotz@gard.no

Evanthia Coffee Mobile +1 (917) 399 5918Senior Lawyer evanthia.coffee@gard.no

Hans Jørgen Hald Mobile +47 99 29 22 17Claims Adjuster hans.hald@gard.no

Svein Arne Nilsen Mobile +47 99 28 40 34Claims Adjuster svein.arne.nilsen@gard.no

Defence

Alice Amundsen Mobile +47 97 55 92 65Vice President alice.amundsen@gard.no

Balvinder Ahluwalia Mobile +44 (0)7766 303047Senior Lawyer balvinder.ahluwalia@gard.no

Peter M. Chard Mobile +44 (0)7766 251390Senior Lawyer peter.chard@gard.no

Jim Edwards Mobile +44 (0)7879 235982Senior Lawyer jim.edwards@gard.no

James Hawes Mobile +44 (0)7887 508198Senior Lawyer james.hawes@gard.no

Helenka Leary Mobile +44 (0)7766 251387Senior Lawyer helenka.leary@gard.no

Michael Moon Mobile +47 94 52 22 11Senior Lawyer michael.moon@gard.no

Helen Sandgren Mobile +44 (0)7901 530812Senior Lawyer helen.sandgren@gard.no

Arne Sætra Mobile +47 97 55 92 92Senior Lawyer arne.satra@gard.no

Kelly Wagland Mobile +44 (0)7789 938200 Senior Lawyer kelly.wagland@gard.no

Christopher Walker Mobile +47 99 29 22 75Senior Lawyer christopher.walker@gard.no

Hélène-Laurence Courties Mobile +44 (0)7917 195810Lawyer helene.courties@gard.no

Monica Kohli Mobile +44 (0)7920 423832Lawyer monica.kohli@gard.no

Tore A. Svinøy Mobile +47 97 55 92 01Lawyer toreandre.svinoy@gard.no

Hanne Topland Mobile +47 94 52 22 91Lawyer hanne.topland@gard.no

Veronica Villegas Mobile +47 94 52 96 12 Lawyer veronica.villegas@gard.no

Jove Ytreland Mobile +47 97 55 91 80 Lawyer jove.ytreland@gard.no

Loss Prevention & Risk Assessment

Terje Paulsen Mobile +47 94 52 40 85Senior Manager terje.paulsen@gard.no

Alf Martin Sandberg Mobile +47 97 55 92 51Senior Technical Adviser alf.martin.sandberg@gard.no

Marius Schønberg Mobile +47 97 55 91 75Senior Loss Prevention marius.schonberg@gard.noExecutive

Bjarne Augestad Mobile +47 97 55 92 54Senior Marine Surveyor bjarne.augestad@gard.no

Per Arne Sæther Mobile +47 99 28 40 29Senior Marine Surveyor per.arne.saether@gard.no

Per Haveland Mobile +47 97 55 93 17Marine Surveyor per.haveland@gard.no

Magnar Birkeland Mobile +47 99 28 40 18Risk Assessment Executive magnar.birkeland@gard.no

Accounting

Solvor Ek Hayes Mobile +47 97 55 91 48Senior Manager solvor.ek.hayes@gard.no

Inger Kristiansen Mobile +47 97 55 92 74Senior Manager inger.kristiansen@gard.no

Jorunn Brekkestø Mobile +47 97 55 92 88Manager jorunn.brekkesto@gard.no

Gard (Sweden) AB

Thomas Nordberg Mobile +46 (0)70 311 70 02Managing Director thomas.nordberg@gard.no

Gard AS

Postbox 789 Stoa

NO-4809 Arendal

Norway

Phone: +47 37 01 91 00

companymail@gard.no

Gard AS

Skipsbyggerhallen

Solheimsgaten 11

NO-5058 Bergen

Norway

Phone: +47 37 01 91 00

companymail@gard.no

Gard AS

Støperigata 2, Aker Brygge

NO-0250 Oslo

Norway

Phone: +47 37 01 91 00

companymail@gard.no

Gard (UK) Limited

85 Gracechurch Street

London EC3V 0AA

United Kingdom

Phone: +44 (0)20 7444 7200

garduk@gard.no

Gard (Greece) Ltd

2, A. Papanastasiou Avenue

185 34 Kastella, Piraeus

Greece

Phone: +30 210 413 8752

gardgreece@gard.no

Gard (North America) Inc

30 Broad Street

New York

NY 10004-2944

U.S.A.

Phone: +1 (212) 425 5100

gardna@gard.no

Gard (Japan) K.K.

Kawade Building, 5F

1-5-8 Nishi-Shinbashi

Minato-ku

Tokyo 105-0003

Japan

Phone: +81 (0)3 3503 9293

gardjapan@gard.no

Gard (Sweden) AB

Våstra Hamngatan 5

SE-41117 Gothenburg

Sweden

Phone: +46 (0)31 743 7130

gardsweden@gard.no

Gard (HK) Ltd

35/F, The Centrium

60 Wyndham Street

Central

Hong Kong

Phone: +852 2901 8688

gardhk@gard.no

Oy Gard (Baltic) Ab

Bulevardi 46

FIN-00120 Helsinki

Finland

Phone: +358 30 600 3400

gardbaltic@gard.no

Gard P. & I. (Bermuda) Ltd.

Gard Marine & Energy Limited

Lingard Limited

Trott & Duncan Building

17A Brunswick Street

Hamilton HM 10

Bermuda

Phone: +1 (441) 292 6766

companymail@lingard.bm

CATASTROPHE TELEPHONE

NUMBERS

P&I: +47 90 52 41 00

Marine: +47 90 92 52 00

OUTSIDE OFFICE HOURS

TELEPHONE NUMBERS

Gard AS:

+47 90 52 41 00

Gard (UK) Limited:

+44 (0)7747 021 224

Gard (North America) Inc:

+1 (917) 856 6664

Gard P&I Japan and Far East:

+81 (0)3 3503 9293

Gard (Sweden) AB:

+46 (0)31 743 71 48.

Gard (HK) Ltd:

+852 94 61 63 61

Oy Gard (Baltic) Ab:

+358 (0)50 402 7777

www.gard.no

companymail@gard.no