Category Archives: Corporate

Dear Members and Valued Partners,

I am pleased to share with you a positive update on the continued growth and development of our Association.

Over the past year, we have seen strong momentum in membership expansion. For the upcoming 2025–2026 subscription period, we welcome 63 newly joined vessels, representing over 4 million gross tons of additional tonnage. This significant increase reflects growing confidence in our underwriting strength, claims handling expertise, and member-focused service model.

We are now preparing to release the premium rates and terms for the next subscription year. To ensure timely placement of your cover, we strongly advise all shipowners to contact their brokers at the earliest opportunity to obtain updated quotations and policy details.

In addition to our core P&I coverage, we are also pleased to report substantial growth in our ancillary insurance offerings. Business lines such as Charterers’ Liability Insurance and Cargo Insurance have experienced notable uptake, demonstrating our ongoing commitment to providing comprehensive risk solutions across the maritime value chain.

As Managing Director, I reaffirm our dedication to delivering professional, reliable, and responsive services to all members. We remain focused on enhancing operational efficiency, expanding global support networks, and strengthening our financial resilience to meet evolving industry challenges.

Thank you for your continued trust and partnership. Should you have any questions, please do not hesitate to reach out through your broker or directly via our official channels.

Sincerely,

The Power Front Ship Owner Mutual Insurance Association
The Board of Directors

Dear Members and Shipowners,

With the International Maritime Organization (IMO) having formally adopted the amendments to SOLAS Regulation V/23 in June 2025, pilot transfer operations are entering a new era of enhanced safety and stricter compliance standards. The revised regulation, aligned with IMO Resolution A.1045(27) and the updated ISO 799:2023 standard, will become mandatory on 1 January 2028. Although early implementation is encouraged, full compliance requires proactive planning. As your insurance and risk partner, we urge you to review the key changes without delay.

Key Regulatory Changes at a Glance

• Maximum service life: Pilot ladders must be replaced no later than 36 months from manufacture date, or 30 months from first use – whichever comes first.
• No repairs allowed: Replacement or repair of ladder steps or spreader plates is strictly prohibited. Any damaged ladder must be withdrawn from service.
• Mandatory spare equipment: Ships must carry a complete set of spare pilot ladder and manropes, ready for immediate use.
• Manufacturer’s instructions: Each item of pilot transfer equipment must be supplied with clear installation, operation, and maintenance instructions.
• Enhanced documentation: Regular inspection, maintenance, storage, and replacement activities must be properly recorded and retained as part of the vessel’s SMS.
• Updated safety poster: The revised MSC.1/Circ.1428/Rev.1 “Pilot Transfer Arrangements” safety poster must be displayed in the wheelhouse and other relevant locations.

We recommend that all owners begin assessing their current equipment and procedures now to ensure timely compliance ahead of the 2028 deadline.

The Power Front Ship Owner Mutual Insurance Association
Marine Risk & Claims Department

In recent months, there has been an increase in incidents involving vessels impacting port berths, fender systems, cargo handling equipment, and other terminal infrastructure. Such collisions can result in significant physical damage and business interruption, with complex liability and recovery implications.

To safeguard recoverable losses, port authorities and terminal operators must act promptly and systematically. This note outlines key steps to protect interests and enhance the prospects of successful recovery under applicable liability and insurance frameworks.

1. Immediate Post-Incident Actions

Upon occurrence of a collision, the port should:

• Document the incident thoroughly (photos, CCTV, logbooks, witness statements);
• Notify the vessel’s master, owner, manager, and charterer without delay;
• Issue a formal notice of damage, preserving all rights of recovery.

It is critical to recognize that many vessels are owned by single-purpose entities, increasing the risk of asset stripping or deregistration post-incident. Early engagement with the responsible party’s insurer is therefore essential.

2. Securing Financial Guarantee

The primary objective is to obtain a letter of undertaking (LOU) from the vessel’s Protection & Indemnity (P&I) Club. A properly worded LOU constitutes a direct commitment by the P&I insurer to meet quantifiable liabilities arising from the incident, including:

• Cost of repairs to damaged infrastructure;
• Reasonable business interruption losses directly resulting from the damage.

An LOU ensures that recovery remains viable even if the vessel is sold or withdrawn from service. If the P&I Club declines or delays issuing an LOU, consider whether maritime lien or statutory grounds exist to support vessel arrest within the jurisdiction. Legal advice should be obtained without delay.

3. Notification to Insurers and Loss Assessment

The port’s insurer or broker must be notified immediately, providing full details of the incident. Concurrently, initiate internal assessment of:

• Physical damage: Engage qualified engineers to inspect and quantify structural or equipment damage;
• Business interruption: Estimate lost revenue or increased costs due to reduced operational capacity during repair periods.

Where losses exceed the policy deductible, the port’s insurer will typically assume conduct of the claim. Where below deductible, the port may pursue recovery directly, supported by appropriate documentation.

4. Repair Process and Survey Coordination

For material damage, the port’s insurer will appoint a marine or civil surveyor. The vessel’s P&I Club may also appoint its own representative. Cooperation between parties promotes transparency and reduces disputes later in the claims process.

Repairs should be tendered competitively, with at least two independent quotations obtained. The final selection should be made in consultation with the surveyors and insurers. The port remains the contracting party and bears responsibility for project management and quality assurance.

Approved invoices, once verified by the appointed surveyor(s), form the basis for reimbursement from the insurer (for retained loss) or recovery from the P&I Club (for indemnified amounts).

Note: Recovery is limited to reinstatement of the pre-loss condition. No compensation will be allowed for enhancements, modernizations, or non-damage-related capital improvements.

5. Recovery and Settlement

Following completion of repairs, formalize the claim with the P&I Club, supported by:

• Incident report;
• Damage assessment;
• Repair invoices;
• Business interruption analysis.

If liability is admitted and an LOU is in place, settlement is typically efficient. In contested cases, further negotiation or expert determination may be required. Legal action may become necessary—particularly where guarantees are absent or liability is denied.

Upon agreement, the port should execute a full and final release, confirming discharge of all claims against the vessel and her owners. The original LOU should be returned to the P&I Club.

Conclusion

Timely action, thorough documentation, and early engagement with insurers and legal counsel are fundamental to effective claims recovery. While each incident presents unique circumstances, adherence to established procedures significantly strengthens the port’s position in recovering legitimate losses.

The Power Front Ship Owner Mutual Insurance Association

Marine Risk & Claims Department

In the maritime industry, disputes over contracts, freight payments, or charterparty agreements are common. These disputes can lead to costly litigation and operational delays, making Freight, Demurrage & Defense (FD&D) Insurance essential for shipowners and operators. FD&D coverage, often referred to as “legal expenses insurance,” provides shipowners with financial protection for legal costs arising from disputes related to their operations.

This blog explores FD&D insurance, its benefits, and why it is indispensable for modern shipping operations.

What is FD&D Insurance?

FD&D insurance offers coverage for legal costs and professional fees associated with disputes involving the ownership or operation of vessels. It is designed to cover claims that fall outside traditional marine policies like Hull & Machinery (H&M) or Protection & Indemnity (P&I) insurance.

The focus of FD&D is not to compensate for physical damages or third-party liabilities but to help shipowners and charterers resolve complex disputes without bearing the financial burden of legal proceedings.

What Does FD&D Insurance Cover?

1. Freight Disputes

• Disagreements over freight rates, non-payment, or incorrect invoicing.
• Short deliveries or disputes over cargo weight and quantity.

2. Charterparty Disputes

• Claims involving breach of contract between shipowners and charterers.
• Issues over early termination of charter agreements.

3. Demurrage and Detention Claims

• Disputes related to vessel delays in loading or unloading beyond agreed time limits.
• Claims involving demurrage (delays at port) and detention fees for delayed cargo release.

4. Bunker Supply and Service Disputes

• Legal conflicts over bunker fuel quality, non-delivery, or pricing.
• Issues with third-party service contracts for repairs or supplies.

5. Cargo Claims Defense

• Support with defending cargo loss or damage claims filed against the shipowner.

6. Breach of Regulatory Compliance

• Assistance with legal costs related to non-compliance with maritime laws and international regulations.

How FD&D Insurance Works in Practice

When a dispute arises, the FD&D insurer steps in to cover legal costs and provide expert advice. Coverage includes the following:

• Legal and arbitration fees
• Surveyor and expert witness costs
• Lawyer consultation and professional support
• Mediation or arbitration expenses

The FD&D insurance provider will assist in negotiations, dispute resolution, or legal proceedings, helping shipowners avoid costly courtroom battles.

Key Benefits of FD&D Insurance

1. Reducing Legal Costs and Financial Risk

Legal disputes in the maritime sector can escalate quickly, with arbitration or court proceedings becoming expensive. FD&D insurance ensures shipowners don’t face crippling legal expenses, protecting their finances.

2. Expert Legal Advice and Support

FD&D coverage provides access to experienced maritime lawyers, arbitrators, and experts who understand the complexities of shipping law and contract disputes. This expertise helps shipowners resolve conflicts efficiently.

3. Protection for Charterers and Operators

Charterers often encounter disputes over freight payments, demurrage, or service agreements. FD&D insurance provides both shipowners and charterers with coverage, offering a layer of financial protection for both parties.

4. Faster Dispute Resolution

With FD&D insurance, shipowners have access to resources and professionals to handle disputes quickly. This minimizes downtime and operational disruptions, ensuring vessels return to business faster.

Why FD&D Insurance Complements Other Marine Policies

FD&D insurance works in tandem with other marine policies like:

• P&I Insurance: Covers third-party liabilities, such as crew injuries or environmental damage.
• H&M Insurance: Protects against physical damage to the vessel and machinery.

While P&I and H&M policies cover specific risks, FD&D fills the gap by covering legal disputes, ensuring shipowners are fully protected from both physical and legal risks.

Challenges and Trends in FD&D Insurance

1. Increasing Charterparty and Freight Disputes

As shipping contracts become more complex, disputes over freight payment and demurrage are on the rise. FD&D insurers are helping shipowners navigate these challenges through mediation and arbitration services.

2. Evolving Maritime Regulations

With new regulations, such as carbon emissions requirements from the IMO, shipowners are increasingly facing compliance challenges. FD&D coverage helps shipowners address legal disputes over regulatory non-compliance.

3. Rising Arbitration Costs

Dispute resolution in shipping often involves specialized arbitration courts, which can be costly. FD&D insurers are developing strategies to streamline arbitration and reduce legal expenses.

How to Choose the Right FD&D Insurance Provider

When selecting an FD&D insurer, shipowners should consider:

• Scope of Coverage: Ensure the policy covers common maritime disputes related to your operations.
• Geographical Reach: Choose a provider with global networks for dispute handling in key maritime hubs.
• Track Record: Look for insurers with a proven history of settling disputes quickly and fairly.
• Complementary Services: Some FD&D providers offer loss prevention programs and legal training for crew and management.

Conclusion

In an industry where legal disputes are almost inevitable, Freight, Demurrage & Defense (FD&D) insurance is an essential tool for shipowners and operators. It offers financial protection, expert legal support, and peace of mind in an increasingly complex maritime environment. By pairing FD&D with other insurance policies, shipowners can ensure that they are fully protected from both financial losses and legal challenges.

For shipowners looking to navigate disputes efficiently, FD&D insurance is a reliable safety net that helps them focus on smooth operations while professionals handle legal risks.

In the maritime industry, ensuring the physical integrity of a vessel is paramount. From the hull’s structure to the inner workings of machinery, a vessel must withstand the harsh environments of open seas. Hull & Machinery (H&M) Insurance plays a pivotal role in protecting shipowners and operators against financial loss from damage to the vessel’s core components.

This blog will explore what H&M insurance covers, its importance, and how it fits into the broader maritime risk management framework.

What is Hull & Machinery (H&M) Insurance?

H&M insurance provides coverage for physical damage to a vessel’s hull, superstructure, and machinery due to unforeseen incidents. It is one of the most essential marine insurance products, ensuring that shipowners can recover from accidents such as collisions, fire, machinery breakdown, or grounding.

Unlike Protection & Indemnity (P&I) insurance, which covers third-party liabilities, H&M focuses on protecting the vessel itself from risks that threaten its structural integrity and mechanical performance.

What Does H&M Insurance Cover?

1. Collision and Grounding Damage

• Collisions with other vessels, docks, or submerged objects
• Grounding incidents that can cause severe structural damage

2. Fire, Explosion, and Flooding

• Damage resulting from fires or onboard explosions
• Flooding and water ingress affecting both the hull and machinery components

3. Machinery Breakdown

• Coverage for damage caused by engine failure, electrical faults, or propulsion system malfunctions
• Replacement and repair costs for essential mechanical components

4. Weather-Related Damage

• Damage from severe weather events, including storms, high seas, and lightning strikes

5. Salvage and Wreck Removal Costs

• Contribution toward salvage operations if the vessel needs assistance
• Wreck removal coverage to meet environmental obligations after severe damage

Why is H&M Insurance Essential for Shipowners?

1. Financial Security for Expensive Repairs

Ships are highly complex and valuable assets, with repair costs running into millions of dollars. H&M insurance ensures shipowners can quickly address damage without bearing the full financial burden, preventing cash flow disruptions.

2. Safeguarding Operations from Downtime

For shipping companies, every hour of downtime translates to lost revenue. H&M insurance ensures swift repairs and machinery replacements, minimizing operational delays and keeping vessels on schedule.

3. Compliance with Charter Agreements

Many charter agreements require vessels to maintain H&M coverage to safeguard against accidents during operations. This ensures both owners and charterers are protected from unexpected repair costs.

4. Access to Expert Surveyors and Repair Networks

Insurers typically work with a network of surveyors, shipyards, and repair specialists, ensuring that vessel owners receive timely assistance and reliable service, regardless of where an incident occurs.

How H&M Insurance Works in Practice

Claims Process

When a vessel suffers damage, the shipowner or operator must notify the insurer immediately. The insurer will appoint a marine surveyor to assess the extent of the damage and ensure repairs are carried out to a professional standard. Once the surveyor completes the report, the insurance payout is processed to cover repair costs.

Co-Insurance and Deductibles

H&M insurance policies often come with deductibles, meaning the shipowner is responsible for a portion of the repair costs. In some cases, co-insurance agreements are also involved, where multiple insurers share the risk for high-value vessels.

H&M Insurance and Risk Management Strategies

Many shipowners pair H&M insurance with other policies, such as:

• Protection & Indemnity (P&I) Insurance: Covers third-party liability, such as crew injury or pollution.
• Freight, Demurrage & Defense (FD&D) Insurance: Provides legal cost coverage for disputes.
• War Risk Insurance: Covers damages related to war or piracy.

Additionally, insurers often provide risk assessments and loss prevention services, such as:

• Machinery inspections and audits
• Training programs for engineers and crew
• Maintenance recommendations to prevent breakdowns

Challenges and Trends in H&M Insurance

1. Increasing Complexity of Marine Engines

Modern vessels use highly sophisticated machinery, making repairs and replacements more expensive. Insurers are now focusing on preventive maintenance programs to help shipowners avoid costly breakdowns.

2. Rising Weather-Related Claims

With climate change leading to more frequent and intense storms, weather-related damage is becoming a larger part of H&M claims. Insurers are adapting their policies to account for these evolving risks.

3. Cyber Risks in Maritime Machinery

Many vessels today rely on digital systems for navigation and engine control. This has introduced a new layer of risk—cyber-attacks on ship machinery. Some insurers now offer cyber coverage add-ons to address these threats.

How to Choose the Right H&M Insurance Policy

When selecting an H&M policy, shipowners should consider:

• Coverage Limits: Ensure the policy covers the full value of the vessel and its machinery.
• Geographical Restrictions: Some policies may exclude coverage for certain regions or high-risk areas.
• Claim History of the Insurer: Choose an insurer with a strong track record of prompt claims settlement.
• Deductibles and Premiums: Understand the financial implications of deductibles and compare premium rates among providers.

Conclusion

Hull & Machinery (H&M) insurance is indispensable for shipowners, providing a safety net against the high costs of vessel damage. In an industry where operational continuity is crucial, H&M insurance ensures vessels remain seaworthy, even after unexpected incidents.

By choosing the right H&M policy and working closely with insurers, shipowners can mitigate risks, minimize downtime, and ensure long-term profitability. In a world of increasing maritime complexity, H&M insurance offers security and peace of mind to shipowners navigating both predictable and unforeseen challenges at sea.

The global maritime industry is a cornerstone of international trade, with over 80% of global goods transported by sea. However, with great opportunity comes considerable risk. Shipowners and operators must address a range of liabilities—from crew safety to environmental damage. This is where Protection & Indemnity (P&I) Clubs and marine insurers step in, providing crucial financial protection and operational support to safeguard vessels, cargo, and people.

In this blog, we explore the importance of secured P&I clubs and marine insurers, their services, and their critical role in risk management for maritime stakeholders.

What is a P&I Club?

A P&I Club is a mutual insurance association that provides shipowners, charterers, and operators with coverage for third-party liabilities arising from the operation of their vessels. Unlike traditional insurers, P&I clubs operate as non-profit mutuals, meaning members pool resources to share risk. This structure ensures long-term stability and fosters mutual trust among maritime players.

The term “secured” P&I club refers to clubs with strong financial backing, offering members additional confidence in their ability to pay claims, even in high-liability situations. Secured P&I clubs have A-rated financial ratings, ensuring reliable compensation during crises.

Why Marine Insurance is Essential for Shipping Operations

Shipping involves complex risks—ranging from weather disruptions and machinery breakdowns to cargo disputes and environmental hazards. Marine insurers provide specialized policies to address these risks, ensuring continuity and sustainability in maritime operations.

Core Services Offered by P&I Clubs and Marine Insurers

1. Protection & Indemnity (P&I) Coverage

This covers third-party liabilities, including:

• Crew injury, illness, and repatriation costs
• Pollution and environmental liability
• Cargo damage or loss
• Collision liability (damage to other vessels)
• Wreck removal and salvage costs

2. Freight, Demurrage & Defense (FD&D) Insurance

FD&D provides legal cost coverage for shipowners and charterers involved in disputes over:

• Freight payment disagreements
• Charterparty or demurrage issues
• Contractual claims

This service ensures that shipping operations are protected from legal risks and costly litigation.

3. Hull & Machinery (H&M) Insurance

H&M insurance covers the physical structure of the vessel and its machinery from risks like:

• Fire, collision, or grounding
• Engine or machinery breakdown
• Storm and environmental damage

4. Loss Prevention and Risk Management

Many secured P&I clubs and insurers provide proactive risk management services, such as:

• Vessel audits and safety training
• Compliance guidance with international regulations
• Best practices for environmental protection

How Secured P&I Clubs Add Value

1. Financial Security

A secured P&I club is backed by strong financial reserves and reinsurance programs, giving shipowners confidence that large claims—such as those from oil spills—will be met promptly.

2. Global Reach and Correspondents Network

Secured P&I clubs operate with an extensive network of correspondents located in key maritime hubs worldwide. These correspondents offer on-the-ground support for claims handling and dispute resolution, ensuring minimal downtime for vessels.

3. Swift Claims Resolution

In the event of an incident, marine insurers and P&I clubs ensure fast and fair claims processing, mitigating operational disruptions. Many clubs provide 24/7 support, reflecting their commitment to keeping vessels moving.

4. Industry Expertise and Compliance Support

Marine insurers and P&I clubs work closely with shipowners to navigate evolving regulations, such as IMO compliance for carbon emissions or SOLAS guidelines. Their expertise ensures members remain compliant while minimizing risk exposure.

The Future of Marine Insurance: Trends and Innovations

1. Digitalization and Technology Integration

Marine insurers are adopting digital platforms and data analytics to streamline claims management, predict risks, and offer more precise coverage. Automation and blockchain-based solutions are also emerging to enhance transparency and efficiency in the maritime insurance space.

2. Sustainable Shipping and Environmental Risk Coverage

With increasing emphasis on green shipping practices, P&I clubs are expanding their policies to include environmental liability coverage. Clubs are also encouraging eco-friendly initiatives by providing risk assessments and premium discounts to sustainable operators.

3. Cyber Risk Coverage

As maritime operations become more reliant on digital systems, cyber risks such as ransomware attacks and data breaches have emerged. Secured P&I clubs and marine insurers are developing new policies that specifically address cyber threats to maritime assets.