More than 20 tankers stuck in the Bosphorus last week have crossed the waterway, after Turkish authorities and protection and indemnity clubs thrashed out a compromise in a stand-off over additional insurance requirements.
The shipping directorate at Turkey’s Ministry of Transport & Infrastructure announced on Tuesday that 22 of the 26 tankers waiting in the straits had provided the extra P&I letter demanded of them.
Nineteen vessels have already completed the crossing. The four tankers that have not complied yet are expected to do so soon, as they include ships that recently arrived at the straits.
TradeWinds reported yesterday that a compromise solution was on the way, with at least one ship and P&I club providing the requested letter.
The compromise text, or a version thereof, now seems to have been generally adopted by all members of the International Group of P&I Clubs, which had hitherto refused to provide the additional guarantee, arguing that it ran against established insurance principles.
Turkey had demanded extra assurances of coverage after the introduction of a price cap scheme for Russian oil by the G7 group of countries.
The Bosphorus crosses Istanbul, a city of 20m inhabitants. The government in Ankara argued that breaches of the price cap could mean tankers lose coverage and complicate any clear-up after a spill. Sanctioned cargo in breach of club rules might allow P&I providers to refuse cover in case of accidents, it was said.
Communication failures
Failure to coordinate with stakeholders before the Turkish demand was announced in mid-November, however, as well as recalcitrance on all sides after it entered into force, led to a stand-off in which even the US government intervened, urging Ankara to back down.
Shipowners covered by International Group clubs protested that the situation had led to absurd results, as alternative P&I providers — including those from Russia or others of questionable origin — had little qualms about complying with Turkey’s request.
According to shipping sources, the letter has been finally agreed, stating basic voyage, ship and cargo data and to confirm the existence of P&I cover.
The text, on the other hand, does not seem to be much outside P&I clubs’ comfort zone.
Clubs are said not to be vouching for the accuracy of the information provided in the letter. The letter is also said not to be warranting any indemnity or evidence of any undertaking on the part of the club to any other third party.
Additional P&I confirmation along those lines stands to become commonplace for tankers in the Bosphorus.
Turkish authorities said on Tuesday that it will become “routine” for vessels carrying crude oil while crossing the straits.
