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Iran NITC tanker in East China Sea collision covered by IG P&I reinsurance - IG member

Logistic News - Published on Fri, 12 Jan 2018

Image Source: zerohedge.com
Platts reported that an Iranian oil tanker, which collided with another vessel in the East China Sea, is covered by reinsurance provided by the International Group of Protection & Indemnity Clubs, a source at an IG member P&I Club said. The 164,154 dwt Sanchi, carrying 136,000 mt or 960,000 barrels of South Pars condensate, caught fire late Saturday after a collision with another vessel in the East China Sea. The accident occurred 160 nautical miles (300 km) east of Shanghai.

The source said that the Sanchi, operated by the National Iranian Tanker Company, as well as the other vessel involved in the collision, CF Crystal, have the IG reinsurance cover of up to USD 7.8 billion each. The condensate cargo had been purchased by South Korea’s Hanwha Total Petrochemical and it was scheduled for delivery to Daesan over January 8-10.

Hanwha Total confirmed Monday that any financial losses incurred by the undelivered oil would be fully covered by its own insurance package deals, while the company bears no legal responsibilities over the vessel collision and environmental damages caused by the recent accident.

STATE OF TANKER
China’s Ministry of Transport said Tuesday that the Sanchi was in danger of exploding and sinking, while the CF Crystal sailed off on January 8 to Zhoushan, escorted by a rescue vessel, the Donghai Rescue 118. The Chinese transport ministry’s announcement came after Iran’s oil ministry news service Shana reported Monday that “it is unlikely that it [the tanker] will sink,” though it mentioned that the tanker was still burning and was considered to be “at risk of exploding.” A chartering manager at an Asian refiner said: “Now charterers will pay much more attention on the safety of the vessels.”

A shipowner said, with reference to safety requirements, “I hope that people will think twice about their rules, every time something had to happen for rules to change.”

P&I COVER
On February 20, 2017, the IG restarted providing nearly full coverage of reinsurance of around $7.8 billion per tanker for shipping Iranian oil, in addition to resuming reinsurance coverage for NITC tankers.

Almost half of the NITC fleet now have IG P&I cover, according to a source following the matter. Prior to the Sanchi incident, NITC had a fleet of 65 tankers.

The changes took place as the IG has created a protection and indemnity reinsurance framework, without having contributions from US insurers, in an effort to bring back its coverage to a near pre-sanction level for the first time since impositions of international sanctions against Iran in mid-2012, according to sources familiar with the matter.

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Posted By : Nanda Koijam on Fri, 12 Jan 2018
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