Insurance experts believe the chances of a general average declaration for more than $200m in potential claims from a stack collapse on an Ocean Network Express (ONE) containership are now receding.
The equivalent of 4,500 teu of containers were estimated to have been lost from the giant 14,052-teu containership ONE Apus (built 2019) when it was caught in a storm in the Pacific off Hawaii in late November last year.
General average is usually declared within a few weeks of such an incident occurring. The measure splits the insurance costs between protection and indemnity, cargo, and hull and machinery insurers based on the principle that cargo had to be sacrificed to save the ship.
However, specialist claims consultancy WK Webster said the parties involved appear moving away from a GA declaration.
“GA [general average] has not been declared at this stage, but cannot yet be ruled out, although the likelihood of a declaration is considered to be receding as time progresses,” WK Webster said.
If cargo insurers are left to foot the bill for the lost and damaged containers, then they could seek legal action to pin liability on the shipowner for failing to operate the ship safely.
That would increase the exposure of the shipowner's P&I insurer, the Japan P&I Club, which already faces the cost of salvage and repair.
The vessel is currently being repaired and offloaded at the port of Kobe in Japan. Pinpointing the cause of the accident will be critical in eventually establishing financial liability.
WK Webster said: “Our experts have been examining not only our drone footage but also vessel tracking information and meteorological data to assist in understanding the root cause or causes of the casualty.
“In the meantime, we are discussing issues around the evidence and its preservation with shipowners’ representatives to ensure that a proper evaluation can be carried out in due course, particularly once it is permissible to have an expert attend on board the vessel.”
In a statement, ONE said that discharging operations commenced after the New Year break on 5 January. It said so far 212 containers have been unloaded.
“Transloading of the discharged damaged containers have commenced and are ongoing,” ONE said.
