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Insurance market has widened the area of waters around the Black Sea and Sea of Azov that it deems high risk, as Russia’s invasion of Ukraine intensifies and perils to merchant shipping grow.

Marine insurers said in advisory dated March 7 that the high-risk area had been widened to waters close to Romania (a NATO member) and Georgia after initially adding Russian and Ukrainian waters in the Black Sea and Sea of Azov in February. 

The new high-risk areas also extended to various inland waters and sections of the high seas, underscoring the increasing dangers to sailings through the whole region. 

“There is clearly a growing nervousness around the region in the insurance market, especially in relation to the Black Sea,” said Marcus Baker at insurance broker and risk adviser Marsh. “Any future amendments to these areas will very much depend upon a further escalation of activity in the region.”

Guidance from the insurance industry’s Joint War Committee (JWC) is watched closely and influences underwriters’ considerations over insurance premiums.

The JWC in a market advisory pointed to three ships that had been hit around the Ukrainian port of Odessa adding that the situation “is dynamic and being closely monitored.” 

“The listed areas will be re-adjusted if the JWC believe it appropriate.”

The JWC normally meets every quarter to review areas it considers high risk for merchant vessels and prone to war, piracy, terrorism and related perils. It had previously met in February before Russia’s invasion.

Niels Rasmussen, chief shipping analyst at trade association BIMCO, said there was a higher risk of Black Sea export disruption owing to shipping companies’ reluctance to service the area and because of increasing freight costs.

“Of particular concern to global supply is the export of wheat and maize, which is mainly loaded in the Black Sea (region).”

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This updated Practical Guide outlines the most up-to-date and relevant information regarding vaccinations for seafarers and includes answers to important questions on availability and efficacy of vaccinations for ships’ crew and shipping companies.

The 3rd edition contains:

  • Updated information on the current status of global vaccinations and vaccination guidance relevant to seafarers; and
  • An expanded ‘Key Questions’ section, including new information on multiple doses and types of vaccinations.

Full advisory at the following link.

https://maritimecyprus.com/wp-content/uploads/2022/02/Coronavirus-COVID-19-Vaccination-for-Seafarers-and-Shipping-Companies-A-Practical-Guide-Third-Edition.pdf

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changes which are incorporated in the new list as attached at the bottom of this article.

The newly excluded areas include a significant part of the Ukrainian and Russian Black Sea. Additionally, the inland waters of Ukraine and southern Belarus, as well as the tail-end of the rivers Don and Donets in Russia have likewise been excluded.

Concurrently, a new Hull War Risks Notice of Cancellation Clause has been issued (coded JW2022-007) which allows underwriters the option of giving a 48-hour Notice of Cancellation of coverage of the Listed Areas.

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After a machinery breakdown led to a collision, the incident, explaining the circumstances that led to it and provides lessons learned for the future.

The incident

While proceeding for berthing, a tanker experienced main engine failure and collided with a barge that was berthed outboard of another vessel moored alongside a breakwater.

Prior to berthing, pre-departure tests were carried out following company procedures before embarking the pilot and all were found satisfactory. Weather conditions at the time of the incident were light wind, a calm sea with no swell, and good visibility. The bridge was manned by the master, second officer, lookout, helmsman and pilot. ECDIS was used as the primary means of navigation. The vessel’s draught was 10.10m even keel and was fully loaded with gas oil.

As the vessel entered the breakwater at a speed of 8.3 knots and was swinging to starboard the main engine was stopped. The pilot ordered hard to port and dead slow ahead as the vessel continued to swing to starboard, but the main engine failed to respond. The vessel’s speed was now 7.2 knots.