FORSEEABLE CONSEQUENCES FOR MARINE INSURANCE

1. FORSEEABLE CONSEQUENCES FOR MARINE INSURANCE Impacts of Climate Change on the Maritime Industries Preparatory Workshop 7 – 8 June 2007 World Maritime University, Malmö Patrick Donner Associate Academic Dean World Maritime University

2. IMPACTS ON SHIPPING • Regulatory impacts • New / revised international and national regulations • E.g. MARPOL Annex VI – emissions • Reactive measures • Technological impacts on ships • Need for and proliferation of ice-classed ships • Methods for ballast water exchange • Commercial impacts Patrick Donner, World Maritime University

3. MARINE INSURANCE • Navigation provisions • International Hull Clauses (01/11/03) define navigation limits (clauses 10 and 32), where the vessel “shall not enter, navigate or remain” • Underwriters may give prior permission subject to amended terms and additional premium • Previous definition: Institute Warranty Limits (I.W.L.) • Norwegian Marine Insurance Plan (2007 version compared to 2003 version) • Small changes in East Asian waters (part of “Excluded trading area” changed to “Conditional trading area) • Conditional trading areas in the Baltic the period has been extended! Patrick Donner, World Maritime University

4. Excluded Trading Areas NMIP Patrick Donner, World Maritime University

5. Conditional Trading Areas: Baltic Patrick Donner, World Maritime University

6. Conditional Trading Areas: Baltic • Limitation areas and periods in NMIP 1996/2003: • The Gulf of Bothnia north of the line Umeå - Vasa during the period 15 December - 15 April • The Gulf of Finland east of 25° 45’ east longitude during the period 8 January - 15 April • The waters east of the line Dagerort - Lyserort during the period 1 January - 31 March • Limitation period in NMIP 2007 • 15 December – 15 May, both days included Patrick Donner, World Maritime University

7. Conditional Trading Areas: Baltic • Limitation areas and periods in International Hull Clauses (01/11/03): • The Gulf of Bothnia north of the line Umeå - Vasa during the period 10 December - 25 May • The Gulf of Finland east of 28° 45’ east longitude during the period 15 December - 15 May for vessels < 90,000 dwt • Vessels greater than 90,000 dwt may not enter at any time!!! • Gulf of Bothnia, Gulf of Finland and adjacent waters north of 59° 24’ north latitude between 8 January – 5 May, except for calls at Stockholm, Tallinn or Helsinki • Gulf of Riga and adjacent waters east of 22° east longitude and south of 59° east longitude between 28 December and 5 May Patrick Donner, World Maritime University

8. CURRENT SITUATION Patrick Donner, World Maritime University

9. CURRENT SITUATIONhttp://www.smh.com.au/articles/2003/10/24/1066631611744.html Patrick Donner, World Maritime University

10. Charter Parties • Time-charterparties refer to International Navigational Limits or I.W.L. • Define (geographical) limits for the use of the vessel • “…always within I.W.L…” • If wider geographical areas become accessible and the insurance definition of excluded and conditional trading areas do not adapt, charterers run greater risk of breach of contract Patrick Donner, World Maritime University

11. THANK YOU ! Questions ?