Increasing ships’ efficiency and decreasing underperformance claims – a “virtuous circle”
Underperformance claims, where a vessel is alleged to consume more bunkers and/or to steam more slowly than is warranted in the charter party, are one of the most common types of defense claims that the club is asked to advise on and handle. Added to this, any actual underperformance by the vessel is likely to have a knock-on effect on the vessel’s CII rating.
This indicates that these “bread and butter” underperformance claims are likely to become more complex and more costly. Add in, also, volatility in the global financial markets—over which a shipowner has no control – which can have a direct impact on the price of EU ETS Allowances, and it is clear that the value and cost of handling these defense claims are likely to increase.
On this theme, we have been very pleased recently to host seminars to the claims department which focus on the legal and practical aspects of underperformance disputes, the CII and EU ETS Regulations and how EU ETS Allowances are bought and sold.
These seminars have been given by:
Underperformance claims: Dolly Brown, partner, Preston Turnbull and Capt Nathan Mills, Nathan Mills Marine
EU Emissions Trading Scheme: Kirsty McHardy, partner Stephenson Harwood and Hugo Wilson, Hecla Emissions Management
