Posted on: 29 November 2023
NorthStandard’s Strike & Delay class has introduced Weather Cover into its suite of risks, providing shipowners and charterers with the first ever marine insurance protection to mitigate the threat posed to ships solely by adverse weather conditions.
The global marine insurer has responded to market needs with a groundbreaking marine insurance product which offers up to eight days of cover against the risks of a ship being delayed in or outside a port due to bad weather, as part of its broader Strike & Delay package.
Despite extraordinary advances in forecasting capabilities, weather remains a main factor not only in ship strandings, but in voyage planning disruption and route diversions. Nick Rowe, Head of Strike & Delay, NorthStandard, reports a growing number of requests from members for the Club to extend its ‘Onshore’ cover to mitigate these risks.
“Adverse weather is a constant risk for shipowners and charterers, and the costs of unforeseen conditions can be substantial,” said Rowe. “Port closures can either leave vessels sitting idle and unable to leave, or force them to stay at sea or navigate a different route. Both scenarios can cause long delays and bring significant financial loss.”
NorthStandard has extended its ‘onshore’ weather cover – which takes account of disruptions to the landside supply chain – to include the risk of delay to ships caused by named storms, but also wind, swell or fog, and unexpected rain and ice. Cover for up to eight days is triggered if an entered ship is delayed at any port, berth, sea-lane, or navigable waterway, even if the port authority hesitates on officially closing for weather reasons. NorthStandard has also kept deductibles low, with a minimum of one day applied for each claim.
“Although weather routing services offer support when planning a voyage, they are of little help if a vessel is already trapped in a port, or the weather conditions change on route,” added Rowe.
NorthStandard’s Strike & Delay committee members, Alpha Bulkers & Pantheon Tankers, Astra Shipmanagement, Bunge, d’Amico, Mandarin Shipping, Swire, BSM and Ultrabulk have supported the launch of the new cover.
“NorthStandard has listened to the market and thoroughly analysed data from its in-house resources and from third parties to develop a unique, comprehensive and realistic tool for underwriting weather”, said Tim Huxley, CEO of Mandarin Shipping and chair of the committee. “We also expect this to be cover which evolves and adapts to member trading patterns.”
The global scale of NorthStandard’s Strike & Delay capability will be critical for supporting underwriting innovation, with claims handled from six regional hubs across Asia, Europe and the Americas.