18563 Sea Venture 10 7/2/08 12:28 Page 1 Sea Venture newsletter Issue 10 Introduction....................................3 Steamship Mutual Members Receive Top Seatrade Awards ........4 Indian Iron Ore Alert - Excessive Moisture Content ..........................5 Option for Continuation When Does it Commence? ............6 Steamship Mutual Director President of the Indian National Shipowners’ Association ................7 Steamship Mutual Director Receives Lloyd’s List Award ............7 Deepwater Exploration ..................8 NOR Tendered at Outer Anchorage to Terminal - Valid? ......9 EU Ship-Source Pollution Legislation - Developments...........10 Disputes Arising “Under” or “Out of” a Charter? ....................11 Crew Claims in the Philippines “120 Days” Update......................12 VLCC to VLOC Conversions ........14 U.S. - Recent Decisions on Punitive Damages ........................15 Low Sulphur Fuels Some Practical Implications ..........15 Pleural Plaques Not Actionable in Tort ........................16 Frustrating Delays Revisited ..........16 Risks in Carriage of Food Cargoes 17 Mediation - Tried and Tested? ......18 Loss Prevention Posters ................19 Small Claim, Serious Irregularity & Substantial Injustice ..................20 Singapore - MOU on Oil Spill Response Rates ............................21 Anti-Fouling Systems and Bunker Conventions ....................22 Steamship Mutual Website ..........23 Contents 2 Editorial Team Naomi Cohen Sue Watkins Malcolm Shelmerdine Sea Venture is available in electronic format. If you would like to receive additional copies of this issue or future issues in electronic format only please send your name and email address to seaventure@simsl.com. Feedback and suggestions for future topics should also be sent to this address. 18563 Sea Venture 10 7/2/08 12:28 Page 2 The new look Sea Venture is now entering its fourth year. During this period shipping markets have enjoyed an unprecedented boom with vessel earnings at or around their historic peaks in many markets. As the strength of the new building order book indicates, the market view is one of continued optimism with only a minority of commentators advocating caution A consequence of the booming shipping industry has been increased costs; both in terms of asset values, and operational and claims costs. The cost of claims and related disputes is discussed in the Club’s Mid Year Review: as is the Club’s revised approach to claims records and future risk profiles and their relevance to the premium increases sought by Steamship Mutual at the forthcoming renewals. Higher claims levels oblige the P&I Clubs to raise their rates and, at the time of publication, Steamship Mutual is in the process of agreeing terms for the forthcoming 2008/09 policy year on the basis of the 15% standard increase set by the Board. While a reduction in claims levels for the year ahead would be most welcome, the strong market outlook remains one that demands a cautious underwriting approach. This edition of Sea Venture includes nine articles from Steamship Mutual, covering a variety of subjects including recent arbitration and court decisions on frustration, options to extend charterparties, permanent disability claims, pollution, the conversion of VLCCs to VLOCs, and loss prevention issues. There are also external contributions from US and English solicitors and experts on topics including punitive damages, whether an agreement to arbitrate is v