Standard Club has warned shipowners that the coronavirus outbreak could delay crucial scrubber fittings in China.
But the UK insurer said problems arising with charters could lead shipowners to declare force majeure, which means they would be considered as unforeseeable circumstances that could prevent a vessel from fulfilling a contract.
The club said the delays due to the virus-related extension of Chinese public holidays are particularly troublesome as owners need scrubbers fitted in time for the 1 March carriage ban on heavy fuel oil.
There are concerns that yard workers may not return "any time soon", the insurer added, leading to a significant extension of the budgeted downtime for many vessels.
Ship queues are growing at Chinese repair yards, Standard Club said.
The insurer added that owners have some grounds to argue their case on force majeure, but under common law there is no general definition of the term.
"It has the meaning given to it by the contract which governs the relationship between the parties," the club said.
Off-hire questions
As for whether shipowners should declare ships off-hire, there could be a risk for its members of breaching contractual obligations in this case, the club said.
"The club recommends its members to review their charterparty terms, and put the relevant parties on notice of the fact that there could be delays due to the prevailing circumstances and conditions," Standard Club added.
There are now more than 14,500 cases of the virus confirmed worldwide. It has spread to 23 other countries from China.
The Maritime and Port Authority of Singapore (MPA) has said visitors with a history of travel to mainland China within the last 14 days will not be allowed to enter.
All vessels that have called in China in the last two weeks must complete a maritime declaration of health.
Australia will not allow crew to come ashore if they have been to China in the last 14 days.
Seafarers face a quarantine period of two weeks.
The club's correspondent in China has said the operation of cargoships at all ports is going on normally, amid an increased state of alert.
At some ports, loading or discharging operations may be slow due to the lack of stevedores and terminal staff who are away for the prolonged lunar new year holiday.
