A major explosion and fire on a Korea Marine Transport Co (KMTC)-owned containership, which was unloading at the port of Laem Chabang in Thailand, is set to ring up hefty general average and injury claims for its third-party liability insurer Korea P&I Club.
A cloud containing a toxic mixture of formaldehyde and chlorine was reportedly created by the explosion onboard the 1,600-teu KMTC Hongkong (built 1998) last week.
More than 200 people were directly affected by fumes, with many sent to hospital.
No severe injuries
Korea P&I said none of the injuries were severe.
In a statement to TradeWinds it said: "The club holds owners entry of the vessel and is now investigating the cause and extent of the damages alleged by various parties who are cargo owners, port owners or operators, workers in the port and residents near the port.
Waters in the cargo holds that were used for firefighting have been removed from the vessel and fire experts will shortly be able to carry out an investigation
Korea P&I Club
"Waters in the cargo holds that were used for firefighting have been removed from the vessel and fire experts will shortly be able to carry out an investigation.
"Surveyors are also investigating the extent of the alleged damage. It is early to estimate the losses and fortunately no severe injuries or illness are reported."
Within a week of the incident, more than 1,000 claims are understood to have been filed. The Thailand Port Authority is claiming THB 100m ($3m) for damage to port facilities and is encouraging anyone affected to claim.
Thailand Port Authority director Kamolsak Phromprayoon said: “We would like to invite all businesses, owners and people affected by the fire and chemical leakage to report their damage to the Thailand Port Authority in order to let us calculate the exact amount of damage and allow us to claim compensation from the owners of these toxic chemical shipments.”
Misdeclaration
Local reports suggest the incident originated from a cargo of calcium hypochlorite and chlorinated paraffin, which had not been reported to customs.
Such cargoes are known to explode in extreme temperatures if they have not been stowed correctly due to misdeclaration.
Five containers of liquid paraffin and 13 containing calcium hypochlorite were among the 35 destroyed according to information from specialist law firm Roose & Partners, which is representing cargo interests affected by the incident.
There were 676 containers onboard the vessel when it arrived in port. More than two-thirds had been discharged before the explosion, a factor which limited the damage.
General average
Shipowner KMTC has declared general average. South Korea’s Korhi Average Adjusters & Surveyors have been appointed by the owner.
The KMTC Hongkong is the second high-profile incident covered by Korea P&I this year.
It was also the protection-and-indemnity cover provider for the 74,000-dwt bulker Solomon Trader (built 1994), which grounded off the Solomon Islands in February.
The ship was stranded for three months close to a Unesco World Heritage site before being refloated by salvage company Resolve Marine.
