Protection and indemnity insurer West of England has warned shipowners that the carriage of containers on bulk carriers could run the risk compromising P&I cover.
As TradeWinds has reported, there has been an increasing number of cases of containers being loaded onto bulk carriers to take advantage of the booming boxship market.
The changes mostly involve small handysize bulkers and multipurpose (MPP) vessels that have been modified to carry containers.
TradeWinds reported the adaptations are mainly unsophisticated, in-hold modifications, which do not need the services of a shipyard, or approval from classification societies.
But, in a note from underwriting director Simon Parrott, the West of England said there are class, flag state and insurance considerations related to effectively switching bulkers into boxships.
The London-based mutual said such moves could be seen as a “change of use” which would require classification societies and flag states to be notified.
It also warned there could be issues for P&I cover. “It is also likely that loading containers may be deemed a material change by the P&I club and therefore in order to prevent the risk of cover being prejudiced, members are advised to contact the underwriting department,” Parrott said.
There are other issues related to classification and statutory flag state approval, West of England pointed out.
A single voyage may only require an exemption letter from classification society or flag state.
But, if a bulk carrier is carrying containers for multiple voyages, the statutory certificates may need to be reissued to reflect a change in vessel type. There also maybe issues for the International Safety Management (ISM) Document of Compliance.
The cargo securing manual and stability book will also have to be revised. If containers are to be loaded on the deck then it must be confirmed that that is allowed under the contract of carriage.
“These changes may need to be verified by an additional external ISM audit of the office and vessel. The vessel's classification society may require reclassification of the vessel and possibly other surveys to confirm that the vessel can be reclassified for the carriage of containers,” the West of England said.
