23395 network 3 06 - norclub.com€¦ · network number 3, december 2006 6 ... the free surface...

H I G H L I G H T S A N D M A R K E T N E W S F R O M N O R W E G I A N H U L L C L U B

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WORKH I G H L I G H T S A N D M A R K E T N E W S F R O M N O R W E G I A N H U L L C L U B

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Season’s GreetingsSeason’s Greetings

Managing Director’s column

Looking back and planning ahead

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hristmas and New Year are fast approaching. There is therefore no more natural time than now to look back and summarize the year 2006.

Firstly, we can (touch wood) describe the year as only modestly challen ging when it comes to large claims. That being said, the frequency and cost of medium and small claims have increased considerably, and the results from our hull portfolio are not satisfactory.

We are particularly concerned about the development of costs related to nautical errors where, since 2001, we have seen an increase of approx 50% expressed as USD per vessel per year.

We are of the opinion, that as an industry, we should address the facts as well as the problem. Operational effi ciency is paramount in today’s shipping environment. Although various stakeholders show zero tolerance to acci -dents, the prosperous shipping markets might have taken some of the attention away from operational challenges. We all know that only a continuous and focused attention from the very top of the shipping organizations ensures sustainable operational perfor mance over time. Other factors infl uencing the negative development described above include increased cost of repairs due to limited yard capacity and cost of steel and components. The inevitable consequence in the insurance market is withdrawal of capacity and further price increases.

Norwegian Hull Club approaches the market as a quality supplier, not only of risk transfer, but also infl uencing the risk through our loss prevention and loss control efforts. These services are highly appreciated by our members. We are set to continue this strategy, and to take it forward, as we believe these services are vital to quality ship-owners.

In 2007, we intend to increase our efforts to widen our range of insurance products and will be approaching members with products that, in terms of quality, service and price, will compete with what the current market can offer. One of these innovations is related to crew benefi ts, and is a direct response to the problem of attracting and retaining quality crew in the current shipping market. We are also very pleased with the increased support from our international members, who take great interest in what we can offer. When looking back on our inter national expansion, the state ment of the philosopher and poet George Santayana comes to mind: “A man’s feet should be planted in his country, but his eyes should survey the world”.

On behalf of the Club, I would like to thank our members for their cooperation in 2006 and look forward to continued mutual support in the coming year.

Wishing you all a Merry Christmas and a Happy New Year.

C 3 Managing Director’s Column

6 SOS - Our engine room is flooding

10 Farstad offshore simulator

14 Norwegian Hull Club’s Chief Operating Officer

16 Is there any logic?

19 The Club’s Articles of Association

20 Bourbon Orca

24 An evening to remember

26 Singing from the heart

28 Workshops abroad

30 Norwegian Hull Club event in Athens

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In this issue we will first focus on flooding and preservation, while in our next issue attention will be paid to recovery or repairs.

when a vessel is in a laden condition and encounters heavy weather whilst being very distant from shore.A flooded engine room causes more stability problems for cargo or container vessels and bulk carriers, while for a tanker vessel a flooded engine room may also result in the consequent flooding of its pump room as the excess pressure caused by the tidal conditions in the engine room can gradually fill the pump room through the bulkhead seals of the cargo pump drive-shaft.The extent of sustained damages resulting from flooded engine rooms can be influenced by the following factors:• Laden or ballast condition.• Salt, brackish or fresh water.• Torn or left open oil, bilge or waste oil

tanks inside the engine room.

• Cleanliness of the engine room and in particular its bilge, prior to flooding.

• Geographical location of the vessel, where the flooding occurred, meaning high seas, coastal waters or in port.

• Duration of flooding.

When flooding of the engine room occurs in a laden condition, the extent of the sustained damage is more severe because normally the engine control room with the main switchboard and control consoles, as well as the electrical power sources, will be submerged.Needless to say, flooding by seawater or brackish water will have a more detri-mental effect than soiled fresh water.Free oil from engine-room bilge or escaped oil from breached oil tanks will be harmful as oil will float on top of the leaked-in water and gradually pollute all machinery and equipment prior to sub-mersion and will also be of concern when pumping out the engine room later on.

1. Solid2. Partial, without free communication3. Partial, with free communication

1. Solid floodingThis is the complete filling of a tank or compartment where the effect is similar to that of adding solid weight. The centre of gravity of the vessel will be lowered if the flooding occurs low in the vessel, and if the vessel does not sink as a result, its stability is probably even improved.

2. Partial flooding, without free access to seawaterWhen a compartment, hold or tank remains intact and fills partially, the liquid is said to have “free surface”, which means that the level of the surface of the water is free to rise and fall as the liquid shifts due to the rolling or pitching of the vessel.If free surface is permitted to exist, its effect is a virtual rise in the centre of gravity, even though the weight shift is in a horizontal direction, as indicated by the shift of the wedge of water; ACB to A’C’B’ in figure 1. The breadth of the vessel has the greatest influence on the loss of the righting arm.

3. Partial flooding with free access to seawatercommunicationThe effects of partial flooding with free access to seawater are illustrated in figures 2 and 3.As the vessel rolls, the hole in the shell is alternatively submerged and exposed resulting in the flooding and partial draining of the compartment.The effect of the additional weight is similar to partial flooding without free communication and causes a vertical rise in the centre of gravity.As a general rule, vessels do not have longitudinal stability problems in instances of flooding, however, trimming problems may have to be resolved, in particular when a vessel is fully laden.On account of the existence of larger mechanical components, partially divided bulkheads or other components; the permeability of an engine room is much less than for a cargo hold or larger tank compartment and substantially reduces the free surface effect when flooding occurs in an engine room.Never theless, the worst scenario that can occur is the flooding of the engine room

Flooding and Stabilitylooding exists when water is admitted into the hull of a vessel and can be either controlled or

uncontrol led, while flooding of engine rooms occasionally occurs, but fortunately at a much lower frequency than engine-room fires.

An example of controlled flooding is the ballasting with seawater of tanks or holds aboard a vessel, which rarely presents a problem, except on tanker vessels and bulk - or O.B.O. - carriers.Uncontrolled flooding may result from any number of causes such as: • Collision with another vessel resulting

in the engine room being torn open.• Striking ground or submerged objects

or grounding resulting in a leak being sprung in the engine room.

• Pipe, sea-valve body or sea-chest failures, and occasionally heavy weather or explosions, are some other causes of flooding.

Regardless of the cause of uncontrolled flooding, the effect is almost always detrimental to transverse stability.In studying the effects on transverse stability, flooding is usually classed under three categories:

fThe geographical location of a vessel with a flooded engine room will influence the time it remains flooded and may result in having to tow the vessel in its apparent flooded condition to the nearest port.

In cases where serious flooding occurs and the engine-room bilge pumps can no longer cope with the ingress of water, there may still be one escape route left on those vessels that are able to connect ballast pumps or any other high capacity pump to an emergency bilge suction device located on the engine-room tank top.When the available bilge pump capacity becomes inferior to the rate of water flowing in and the engine room has to be evacuated, it is preferred to start the emergency generator as soon as possible to supply emergency lighting to the engine room and to shut off all electric power to the engine room dependents prior to submersion.

...OUR

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By Cornelis Hordijk

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Components that have become sub mer-ged and remain energised are normally un-repairable due to sustained thermal damage as a result of short circuits.

PreservationDepending on the type, size, value and location of the flooded vessel, it may be an adventage to appoint and contract an experienced Salvage Master who, at a pre-agreed daily rate, can assist the vessel’s Master and crew.Such a Salvage Master and his company may also be able to assist in quickly obtaining the required adequate pumping equipment and auxiliary material, pollu-tion combat material, etc., either from their local salvage agents or from bases abroad, which could save time and money. Furthermore, it will be an adventage to organize as early as possible, one or two sufficiently powerful portable electric-power generator sets, one of which should be employed for pumping the engine room and the other for temporary lighting, preservation and other purposes.The vessel’s emergency generator can then be exclusively used for navigational purposes and the direct needs of the remaining crew onboard.As with fires sustained by engine rooms, it is recommended that a specialist company be appointed to carry out preservation of all machinery,

equipment, starter or control boxes, and main switchboard etc. immediately after the water level inside the engine room has been lowered. In this way corrosion, which will naturally be more aggressive if the engine room is flooded by seawater, can be avoided.It will therefore be required to pump the water out slowly in a controlled fashion in close cooperation with the experts from the specialist preservation company who are present.The preservation procedures shall be mutu ally discussed with the vessel’s Master and crew, and Salvage Master if on board.Freshwater rinsing equipment and compressed air ought to be arranged, if possible.Availability or supply of fresh water will be an important issue when the vessel is far from port, and in case no fresh water can be supplied, a better solution may perhaps be to leave the engine room flooded and sealed from the atmosphere in the best possible way until arrival at port.Preservation experts have common knowledge of propulsion and auxiliary engines, as well as other marine machinery and special care has to be taken to adequately drain or pump out the water from the machinery after being properly washed with fresh water, preferably hot.

Based on practical experience, draining or pumping-out of water from mechanical components ought to be double or triple checked, and measures taken to ensure that the cooling-water systems are adequately drained and isolated in order to avoid cooling water leaking into preserved engines or machinery later on, and until arrival at a port of repairs.An example of how things can go wrong and become extremely expensive is the gearwheel of a flooded and submerged main propulsion gearbox. Having been flushed with fresh water and sprayed twice with a preservation fluid, but remaining partly submerged in water and not overhauled for many months, it was discovered that water had leaked into the gearbox sump up to a level of approximately 0.5 metres.As a consequence a new gearwheel had to be manufactured and two pinions polished at an additional cost of USD 120.000The detrimental effect of a cooling-water leakage from a cracked cylinder liner into the crankcase of a submerged and preserved propulsion engine after four weeks of towing is visible in the photographs below.Consequently the crankshaft in question had to be removed from the engine block and both components had to be taken ashore in order to grind the affected

The SCUA office in Lisbon (Cascais) renders services to Hull and Machinery, LoH Underwriters, and to P&I Underwriters for technical matters such as condition or pollution surveys along the Iberian Peninsula, the Canary Islands, Madeira and the Azores, and occasionally Morocco, as well as worldwide for major casualties upon request from our Principals.The office is currently staffed by 2 surveyors and 1 secretary. C.V. of Cornelis Hordijk, Manager:Cornelis is a Dutch citizen, born in 1944, and has been living permanently in Portugal since 1975.As a Naval Architect he has been employed by a Dutch shipyard, a Portuguese shipyard, a Norwegian tanker owner, and Det Norske Veritas in Lisbon prior to joining SCUA in 1985.

C.V. of Nuno Quitéria, Surveyor :Born in 1975, Nuno is a Portuguese citizen and a graduate in Engineering in Naval Architecture. He joined the SCUA Lisbon office in October 2005.Following his graduation he first worked for one year in a non-marine business, and since 2000 as a superintendent for a local Greek passenger vessel owner, where he was involved with the repairs and maintenance of four elderly passenger vessels.

From the accumulated common knowledge and experience gained through the years of working in the maritime business, the SCUA Lisbon office can assist underwriters in carrying out the full scope of survey work such as hull, machinery, collision, fire and flooding casualties, as well as entry and condition surveys.

SCUA at your service

The SCUA office in Lisbon, (l. to r.): Secretary Elizabete Durães, Manager Cornelis Hordijk, and Surveyor Nuno Quitéria

The Crankshaft, Connection Rod and the lower part of the Piston of a flooded and submerged Main Engine.

crankshaft 0.5 m.m. to undersize at an additional cost of approximately USD 180.000 The preservation process is a chemical procedure that has been specifically developed for the treatment of machinery, as well as for combustion engines, turbines, pumps and electrical equipment, which have either been submerged in salt water or soiled fresh water as a method of preventing the onset of corrosion.The preservation fluids form a thin layer of 1 to 2 microns on the surface of the parts being treated.The anti-corrosion effect may last for a minimum of 4 weeks, or up to 12 weeks, depending on the time the vessel takes to reach the port of repair.Specialist preservation companies provide on the spot worldwide services, including transport of tools, chemicals and the deployment of expert personnel.

Another important facet of a flooded engine room is the prevailing humidity apparent in the non-flooded space or the apparent humidity upon pumping the engine room dry. Moreover, as either the engine-room ventilation system is partly submerged, or insufficient electric power is available to run the otherwise powerful engine room fans, it will be vital to attempt to lower the humidity in the air to below 35 percent, which as a first step will prevent the chloride ions from reacting with water particles and thus slowing down the onset of corrosion. There are various well-known companies around the world that can supply, from either local or foreign sources, the required air dryers, dehumidifiers and other required items. These companies can also source the necessary equipment needed for measuring humidity, airflow and temperature as well as being able to log all data automatically.

RECOVERY: To be continued in the next

Network Edition.


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in order to achieve a higher safety standard - especially in anchor handling and other critical operations. Rolls Royce Marine AS, a leading global supplier of ship’s equipment, wanted to provide the best possible operational training for their own equipment as well as building a close relationship with their customers in order to develop new and better equipment. Aalesund University College had already established a modern simulator cluster specializing in the training of offshore personnel in close cooperation with shipping companies in the region. For a period of time the three parties had discussed possible cooperation and finally, in June 2004, Offshore Simulator Centre AS was established. During the summer of 2004 the newest partner, Marintek AS, joined the company, which would now consist of four equal partners.

he simulator system allows for “full mission” training, whereby in addition to the navigators, crewmembers on deck and operators of

ROVs (Remote Operating Vehicles), cranes, rigs and other apparatuses can engage in realistic simulation. Whole crews can then be trained in coping with a wide variety of incidents and emergency situations. The Offshore Simulator Centre officially opened in April 2005 and the simulator facilities have been available to everyone since this date. The development of the Offshore Simulator was a direct consequence of an increased need for improving on-deck safety in connection with offshore anchor handling procedures. The anchor-handling segment has grown rapidly over the last decade. However, both the technology and the working procedures were found to be extremely vulnerable, especially in relation to the high risk of human casualties. Farstad Shipping had already been using simulator technology to train their personnel in realistic and critical situations for a long period, and was eager to improve their training facilities

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FARSTAD OFFSHORE SIMULATOR

Norwegian Hull Club member, Farstad Shipping, together with partners; Rolls Royce Marine, Marintek AS, and the University of Aalesund, has developed an offshore simulator that enables you to do exactly that.

By Atle Fjeldstad, Photos by Offshore Simulator Centre AS

new ideas and technology being tested and explored long before the equipment has been constructed and produced; or that critical operations and working procedures are practiced and evaluated before they actually take place.

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Marintek AS is a major research organi-zation in Norway within the field of naval architecture and operations. The company works continuously on offshore operations and has developed several systems for simulating vessel and sub-sea installation operations.During its first year in operation (2005), staff at OSC worked efficiently on adjust-ing the training program based on feed-back received from the first group of participants and the experience gained during the various courses that were held. The simulator has been conceived and constructed with flexibility in mind. Thus, it can easily be modified and further developed to respond to new demands and regulations set by the industry. Now more than halfway through 2006, the year has proven to be very successful for OSC, and at the present time, no less than 200 crewmembers have already completed training courses at OSC.

OSC offers a variety of training courses (from basic to advanced levels) covering all anchor handling procedures, as well as normal PSV (Platform Supply Vessel) operations. The simulator systems offer “full mission” training, allowing bridge personnel (navigators) and deck crew (winch operators) to collaborate in realistic surroundings. The number of participants attending each course is typically between 8-10; i.e. crew representing two shifts of four persons (two on the bridge and two on deck), and one or two from other divisions of the company. Other participants representing the ship owners, rig operators and others have also found the courses to be very beneficial.In addition to Farstad Shipping, several other well known companies such as Eidesvik, DOF, Olympic, and Deep Sea Supply, have completed crew-training courses at OSC.Norwegian Hull Club member, Bourbon Offshore, also used the OSC simulator

in order to develop SAHS (Safe Anchor Handling System) on their newest offshore marine service vessel, “Bourbon Orca”. By combining the core competencies of a major international operator of modern supply vessels, a global leader in marine propulsion, engineering and

hydrodynamic expertise, the leading Norwegian organisation in marine technology, and a major Norwegian institution of higher maritime education: the Offshore Simulator Centre has provided us with a state-of-the-art educational and development tool for advanced maritime operations.

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general and the Norwegian Hull Club brand have always appealed to me.” These are the main reasons why he chose to join the Club when he was offered the oppor-tunity. However, talking to him I quickly perceive his enthusiasm for just about every aspect of the business that repre-sents Norwegian Hull Club. “Insurance is a very complicated product. At first glance one could presume that it is possible to base it on statistics only, but it is the combination of the market, handling of claims and also the statistics that makes the product as interesting as it is.”

Despite his long experience within the business, Arne Birkeland claims to be entering his new position as an apprentice. “This is not only a new position to me, but also to Norwegian Hull Club, and it is a challenge finding out what my niche area and my specific tasks will be. Fortunately I have been met by colleagues who are open and friendly, and I very much appreciate that.” Birkeland empha sizes that he will first and foremost use time to get to know the culture of the organization, and not least the people working here. “In a way, I am starting a new life here and I do not expect to achieve every-thing overnight: at first I need to devote time to getting everything sorted out.”

Nevertheless, he is beginning to see the outline of his new position. He is accusto-med to spending a lot of time traveling, but that will not necessarily be the case in the future. As Norwegian Hull Club’s Chief Operating Officer, he sees the operational aspects of strategy imple-mentation, of carrying out and complet-ing what has been decided, as his main task. “I hope to visualize the progression of our business in a simple way”. Having seen Norwegian Hull Club from the outside for many years, he hopes that he has made observations that can take the Club one step further. An organization such as Norwegian Hull Club should never be complacent; it should always be striving, always moving forward. “I have a strong belief in Norwegian Hull Club and its service concept. Insurance is not only financial capital, it is the shipowner’s security should a claim arise, and it is therefore of great importance to choose a strategic partner with the utmost care.”

Arne Birkeland is married and has three children. When not working he prefers to spend time in the mountains as he is very fond of hunting and the great outdoors. He portrays great enthusiasm for every new venture he becomes involved with, a quality Norwegian Hull Club very much appreciates. We are very glad to have Arne Birkeland on our team, and we warmly wel come him to the Norwegian Hull Club!

rne Birkeland (48) has a long career in the maritime indu-

stry. His extensive experi -ence has been gained through more than 25 years of employment with Grieg Billabong AS, where he has served as Accounting Manager, Finance Director and finally, as the company’s Managing Director. He has also built up compre-hensive experience through his duties as a board member of various other shipping companies as well as with the Norwegian Shipowners’ Association.

The new position of Chief Operating Officer was established in order to relieve Managing Director John Wiik of some of his everyday duties. Mr. Wiik will now be able to concentrate on strategic planning and development, general marine insu rance policy issues, and not least, on establishing new business and the strengthe ning of existing customer relation ships. Arne Birkeland will be responsible for the day-to-day running of primarily Underwriting and Claims Depart ments.

Having dealt with Norwegian Hull Club for over 15 years, of which 12 years were spent on the Club’s audit committee, Mr. Birkeland is well acquainted with the organization. “I have always been very fascinated by Norwegian Hull Club and the way it is organized. Both insurance in

On the 21st of August, Mr. Arne Birkeland walked into Norwegian Hull Club’s office in Bergen as he had done many times before while working for the

Grieg Billabong shipping company. On this day however, a new era was about to commence for he was now entering the office for the first time as the Club’s new Chief Operating Officer.

Norwegian Hull Club’s Chief Operating

Officer A R N E

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In August 2006, the newly elected Chairman of the Joint War Committee, a committee consisting of representatives from major London-based war risk underwriters, Mr. Clive Washbourn stated: “Today’s global economy is sustained and fuelled through shipping, and the maritime industry is enjoying a period of unprecedented activity. This leads to increasing challenges for the marine underwriter.”

he statement is as valid for any type of marine insurance as it is for war risk insu-rance by itself. With strong demand for

commodities of all kinds comes the need for transpor-tation services that can support the supply chain. As a consequence, the shipping industry is enjoying a very buoyant period. When investments in the exploration and recovery of natural resources in more remote geographical areas have become financially viable because demand and prices are on the rise; transportation services have to be put in place to bring these commodities to market.

Simultaneously, varying degrees of political stability have resulted in exporting countries retaining tight control over their export facilities. This is especially important in relation to oil terminals. Such terminals are preferably located on home soil rather than in foreign locations as the latter scenario would leave the exporting country having to rely on the friendship and cooperation of neighbouring countries in order to gain access to the open sea. Consequently, oil terminals are now operating in previously considered as non-navi-gational waters.

With the establishment and continued development of the Russian based oil terminals in the Baltic Sea, i.e. at and adjacent to Primorsk, the all year navigation of tankers in icy waters has increased tenfold. Presently, more than 400 ships call at Primorsk annually, passing through the Danish Straights, the Baltic Sea and the Gulf of Finland in order to arrive at their loading port. Considering that the inner part of the Baltic is usually covered with ice three to six months a year, this heavy traffic also represents a challenge to marine under-writers.

The ability to face and conquer the winter conditions of the Baltic varies with the structural specifications of each and every ship. The classification societies assign ice classification notations that reflect the vessels’ technical preparedness for countering the challenges

Additional premium for trading in ice waters IS

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and physical forces imposed by the ice and other harsh winter conditions. How-ever, there is no notation that reflects the crews’ experience and fitness when they encounter the same challenges.

Most crews do not sail the Baltic on a regular basis. Experts claim that in order for a deck officer to gain proper experience from navigating the Baltic during the winter months, 8 to 10 years of service in the area is a minimum requirement. The challenges of ice coupled with extreme low temperatures and a crew that is often not properly dressed and equipped, are risk factors that the underwriter must bring into his risk assessment when evaluating the risk associated with any Gulf of Finland transit.

From an insurance point of view, sailing in ice waters has historically been regulated through trading warranties. Whereas most navigable waters around the globe are “free areas” automatically covered by insurance, certain areas regarded as very risky are fully excluded and some are “conditional”, i.e. subject to the vessel reporting her entering the area and the underwriter approving the voyage. Often, entering a “conditional” area triggers an additional premium or changes in the insurance conditions, which reflect the increase in risk.Historically, there have been two diffe-rent ways of calculating the additional premium. If the vessel is covered on Institute Time Clauses and subject to Institute Trading Warranties, the additio-nal premium is calculated as a percentage of the annual premium with adjustments made for ice class notations and other

factors perceived to influence the risk. The Norwegian Marine Insu rance Plan (and other Scandinavian marine insurance conditions alike) applies a different tech ni-que based on the gross tonnage of the subject vessel plus a total loss element based on the insured sum for the vessel. The two methods represent common views with regard to the principle of specific area as being “conditional” (and “excluded”), although the two sets of conditions do not always concur in relation to the geographical boundaries of these areas. The obligation to report to the underwriter is mandatory between certain dates stated in the trading warranties. Although these procedures have for many years proven quite workable for all parties involved, it has been argued that the potential changes in insurance conditions and the imposition of an addition pre mium, does not always reflect the actual ice situation in the area the vessel is about to enter and the associated increased risk. There is a clear advantage that when the additional premium is calculated based on fixed dates as opposed to the actual situation, additional premiums can be known well in advance and may be included in the budget for that particular voyage.

Recently, there has been a trend amongst Hull & Machinery underwriters to dismiss the “fixed-dates-fixed-additional premium” thinking and apply changes in insurance conditions and additional pre-mium only when the ice and weather conditions are such that these changes and premium are justified.

Since ice conditions vary from one winter to another, it is impossible for an

under writer to know what the winter conditions in an area such as the Baltic will be in the coming winter. Requesting an additional premium without knowing the actual conditions at the time the vessel is supposed to enter an area is unfair to the assured. To assist him, the underwriter may obtain useful infor-mation from databases that adequately report ice and weather conditions. These databases are continuously updated.

As already stated, ice represents the biggest increase in risk exposure. In addition, blizzards, icing of super-structure and deck equipment, low temperatures and low visibility are other natural hazards underwriters must consider. The increased traffic in itself results in some areas being very congested, demanding efficient control with the manoeuvring of each and every vessel to ensure their safety. Further-more, difficulties connec ted to ballasting, extinguishing of fires and the general availability of salvage assistance at extremely low temperatures are important issues that the underwriter must consider.

For the Hull & Machinery underwriter, assessing the real risk that a vessel is sub-ject to is very challenging. At Norwegian Hull Club, we endeavour to evaluate all relevant factors when a vessel enters a conditional area and only impose changes in the insurance conditions and additio-nal premium that reflect the actual risk at the time the vessel enters such an area. Being located in Scandi navia, and being able to experience harsh winter conditions ourselves; bestows us with some qualifications.

General update of the ArticlesThe Articles have been through a general revision. The organizational structure has been harmonized and wording deleted or modified to reflect the Club’s present operating environment. These amendments do not have any legal or otherwise significant impact on the Articles.

Formal name of the ClubThe previous legal name of the Club was Norsk Skipsassuranse-forening – Gjensidig (freely translated as Norwegian Ship Insurance Association – Mutual). The name was cumbersome and difficult to use outside Norway. In addition, from time to time there were complications when the Club was party to legal proceedings in foreign jurisdictions, as the trading name Norwegian Hull Club normally appeared in agreements and correspondence. In order to simplify matters, the formal name was changed to Norwegian Hull Club – Gjensidig Assuranseforening. The appendix is necessary due to Norwegian legislation, which requires that the name must contain the word insurance, or the Norwegian equivalent thereof, and a description of the legal form of the company. In daily opera-tions, Norwegian Hull Club will continue to be used as before.

MembershipAs the corporate structure of shipping groups differ from each other, it is difficult to apply a general rule as to which entity should be the legal counterparty and thus eligible to be a member. Insurance can be bought by both internal and third party ship managers and by others, sometimes as intermediaries and sometimes as insured parties. From the Club’s perspective it is important to have clear criteria as to who the counterparty is. As a main rule the Articles state that: “every assured in the capacity as owner is a member of the Club”. However, in most cases it will not make commercial sense to have a large number of ship-owning companies as members, and from a client perspective it is often the “shipping group” that is regarded as both client and member. The Articles are therefore open to acceptance of an individual agreement of membership in each individual case, which is expected to

be the rule in practice. Permission to enter into individual agreements also covers an agreement of non-membership, i.e., insurance based on fixed premiums.

Both the main rule - meaning every assured in their capacity as owner is a member - and the permission to enter into individual agreements can result in more than one legal entity obtaining membership on the basis of one insurance agreement. In order to make the rules regarding organizational and economic rights and duties practical, these members are considered as “Joint Members” and are governed by special regulations in chapters 2 and 3 of the Articles of Association.

VotesIn order to provide a more precise distribution of the votes, members now have votes according to the member’s share of the Club’s mutual earned premium in the preceding calendar year, instead of one vote for each increment of NOK 100,000 that had been paid in premium.

Financial IssuesReference to underwriting years has been removed, and in most cases replaced by calendar years. The reasoning behind this is that in contrast to P&I clubs, where all renewals are due by the 20th of February, underwriting years differ among clients and are therefore impossible to clearly define. As a result of this and some other practical considerations, a decision to pay return premiums or claim contributions will be decided upon at the Ordinary General Meeting that deals with the adoption of the annual financial statement and the annual report. After adoption of the annual financial statement and the annual report, the previous calendar year will be closed and no further contributions can be called and no return premium can be paid. Because of the Club’s financial strength, the member’s responsibility for a contribution is limited to an amount equivalent to the net advance premium for the year in question.

Please contact us at [email protected] for any question that you may have.

The Club’s Articles of AssociationThe Club’s Articles of Association were amended at the annual General Meeting held on the 21st of June 2006, and accepted by the Norwegian Registration Authority on the 8th of August 2006. The most important amendments were:

By Roar Sanden


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B O U R B O N O R C A On 17th June 2006,

Bourbon Offshore Norway AS took delivery of Hull no. 273; “Bourbon Orca”. The vessel is

designed by Ulstein Design AS and is the first ship made in their new design AX104.

She is built for Bourbon Offshore Norway by Ulstein Verft AS.

By Hildegunn Nilssen, Photos from The Ulstein Group

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ourbon Orca was chris te-ned in Ålesund on 26th of June this year. Many invited

guests and other interested people were there to take part in the event. Norway’s previous Minister of Defence, Kristin Krohn Devold, was given the honour of being Godmother of the ship, and after she had smashed the champagne bottle, the ship set off on a cruise in the fjords outside Ålesund.

The bow“Bourbon Orca” is built to serve the oil exploration and oil production industry worldwide. There are several distinctive features to her new design. The most eye-catching

would be the inverted bow, called the Ulstein X-bow. Before building the vessel, the advantages of this bow were thoroughly tested in tanks at MARINTEK in Trondheim. These tests have shown that the shape of the bow lessens tacks from the sea. The vessel can therefore reach higher speeds in all weather conditions and at the same time maintain good fuel economy. Tests also showed that, even in extreme wave conditions, almost no seawater reached the deck outside the bridge.

The Safe Anchor Handling SystemBesides the shape of the bow, the vessel has diesel-electric propulsion and the unique SAHS (Safe Anchor

Handling System) from Odim. SAHS is developed in cooperation with the shipping company and Ulstein Design AS. As the name suggests, this system is developed for safety, and it is arranged so that the crew is protected during the most dangerous operations on deck. This is achieved by eliminating the need of human presence on the after deck during such operations. The after deck is equipped with two powerful mobile cranes again equipped with articulated grappling hooks, a control system and a remote activated video surveillance system, as well as a mobile anchor handling platform system to replace the traditional stern roller.

The diesel-electric propulsion systemThis system reduces the total cost of operation and maintenance, and at the same time safeguards the environment as it reduces the discharge of toxic gases. The diesel-electric propulsion system also makes the vessel easier to manoeuvre. Both the shipyard and the shipping company believe that this system comes more into it’s own on an anchor handling vessel than on a PSV, as the work done is based more upon waiting time.

“Bourbon Orca” has been named “Ship of the Year 2006”. The award ceremony took place at the SUM Show in Hamburg

late in September. Ulstein Verft AS has now been hired to build a large construction vessel for Island Offshore. Ulstein SX121 is the first special vessel designed by Ulstein Design AS.

Norwegian Hull Club is very concerned about safety on sea, and we fully recognise the true value of those who think innovatively towards safety. We congratulate Bourbon Offshore Norway and Ulstein Verft with the “Ship of the Year 2006” award, and not least with their new, safe vessel.

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FACTS M/V “BOURBON ORCA”:

Main dimensions:Length overall approx. 86.2 mLength between p.p. 77.0 mBreadth moulded 18.5 m

Capacities:Deadweight at max draught 7.0 m 3180 tonsGross tonnage, international 4089 GRT

Performance:Max speed (at d=6.0 m) approx. 17.1 knotsBollard pull approx. 183 tons

Accommodation:Hotel compliment of high standard and with capacity for 35 persons.

Technical data:Deck cranes:• One knuckle boom crane, 10 t – 16 m• Two deck cranes travelling on cargo rail, 3 t – 10 m

Safe Anchor Handling System (SAHS)• Two tugger cranes, travelling on top of cargo rail, tug-

ger winch 15 t, crane winch 3 t, max outreach 10 m.• Stern ram, L6000, B13950, Static max load: 500 t.

Dynamic max load: 400t at 50 m/min. Twin inboard stern rollers, L2’3000, D1800. Twin outboard stern rollers, L2’2000, D1800.

Machinery/Propulsion System• Diesel electric power and propulsion plant• Four main generator engines, each of MCR 2880

bkW at 720 rpm• Two main generator engines, each of MCR 1665

bkW at 900 rpm• Twin installation main azimuth thrusters with noz-

zles, controllable pitch, variable speed, each of 5000 kW diameter 3600 mm, speed 0-173 rpm.


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Text and photos: Ann Eileen Ditlevsen Nygård

As thousands of Christmas lights are lit and Hamburg exchanges its autumn coat for Christmas robes, the Norwegian Hull Club

will meet its German members and partners. It is time for the traditional Christmas dinner.

An evening to remember

fter 15 years, the Norwegian Hull Club Christmas dinner

in Hamburg has become a well established tradition. Interest for the event increases each year. This is confirmed by Senior Underwriter Geir Arne Heggland, responsible for the German market.- We value the German market and would like to show our appreciation. Germany is an important market for us. It is a major shipping nation and represents our second largest market after Norway, says Heggland to Network.This year’s event was bigger than ever with over 100 participants gathered in the venerable Spiegelsaal at the Museum for Kunst und Gewerbe (Museum of Arts and Crafts) in Hamburg.This year, Chairman of the Board Helge Krafft and his wife Elisabeth joined the employees of the Norwegian Hull Club at the dinner.- The fact that the Chairman of the Board and his wife are present is a signal that we take the German market very seriously. It cannot be taken for granted that a board chairman should attend this

type of event, says a satisfied Managing Director, John Wiik.- It is positive for me to meet the customers and to see the interaction of our representatives with customers, replies Krafft.- What does the Norwegian Hull Club want to communicate to its German customers today?- Continuity. We have been active in the German market for 20 years and wish to emphasise both continuity and commitment. The bonds between North Germany and Norway are strong, with roots going back to the hanseatic times, replies Wiik.The Germans are major buyers of specialised products from the Norwegian Hull Club and they are extremely quality conscious.- This makes it particularly appropriate for them to make use of the services offered by our company, adds Helge Krafft.The Norwegian Hull Club is witnessing an increasing interest in these additional services. Both the Marine Benefits concept and other types of seminars, in particular those dealing with damage prevention measures, are becoming increasingly popular.- This shows that it is generally accepted that more tools are needed nowadays

in order to operate a quality shipping company. We can provide tools, continuity and a long-term perspective to our work, says Wiik.The Christmas dinner that took place at the end of November was a great success and the response from guests was extremely positive. The combination of a good atmosphere, delicious German cuisine and excellent entertainment resulted in the event being described as “a magical evening”.A major contribution to this magic was provided by the tenor Stephen Hansen, famous from the televised Norwegian classical music talent competition, Kjempesjansen. His magnificent voice and soft tones gave the audience a real Christmas and party atmosphere. All in all, an evening to remember ….

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Photos from top left to bottom:

Chairman of the Board; Helge Krafft and his wife Elisabeth welcomes the guests together with Managing Director John Wiik and his wife Kari.

Mr. Herbert Juniel and Mr. Friedrich W. Detjen in dialogue.

Guests enjoy dinner and conversation in the beautiful Spiegelsaal.

Stephen Hansen entertains the audience with his magnificant voice.


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umidity is good for the voice, explains the tenor who sang his way into all Norwegian homes during the classical music talent competition

Kjempesjansen that was televised by the Norwegian NRK channel this autumn. He reached the finals and made his name as one of the very best classical music talents. Stephen Hansen became the Norwegian public’s great favourite. This evening he will be singing for an expectant German audience at the traditional Norwegian Hull Club Christmas dinner in Hamburg. Network was given access to the warm up for this evening’s mini concert.It will probably come as a surprise for those guests who experienced the concert in Germany at the end of last month that Stephen Hansen has only been singing opera for a very short time; in fact, no more than one and a half years! The talented Hansen has only had 40 singing lessons in his entire life, yet he exudes professionalism when he sings. There is a softness and warmth to his voice. The expression “lush tenor” is often used to describe such voices and Stephen does not object to being given this label. He grew up listening to lush tenors on the record player.- I listened to old opera stars such as Mario Lanza and Caruso for two months every summer when I visited my grandmother in Scotland as a child. I almost memorised the songs and knew exactly where Lanza breathed and where the crackling on the records came. I was completely fascinated by the crackling sound on the old records, smiles Stephen. Norway’s new tenor talent hopes that he has managed to incorporate the warm tone from these records when he sings for an audience.- I hope that people can almost hear the crackling, he adds.Stephen Hansen is both ambitious and humble. He is ambitious in terms of wanting to use his voice to gain access to the great opera stages, yet humble in relation to his talent and the public who have supported and pushed him forward.

- I have never previously dared to stand in a room and make as much noise as I do now, admits Hansen.The prize money he won in the talent competition will give him the opportunity to take private singing lessons with the best of the best. - It has been a dream I have almost not dared to contemplate. There is an Argentinean tenor, José Cura, with whom I would love to sing. He is a pupil of Plácido Domingo, whose master class I would also love to attend, says Stephen Hansen.He knows that it will take a huge amount of time and effort before he can hope to perform on stages such as the Metropolitan in New York or Covent Garden in London. Not only does the theatre-trained musical performer need to re-school his voice into a classical opera voice, but he also has to learn the major opera languages fluently. - I have to sing from here, says Stephen beating his heart, and that means I need to know and understand what I am singing …An audience of 1.3 million watched the final of Kjempesjansen. This is an incredibly high number by Norwegian standards. Stephen Hansen had not actually planned to take part in the classical music talent competition.- I am glad that I dared. I stood there with my heart in my hand and sang for 1.3 million people. “Now at least I have tried” I thought, says Hansen. The attempt was rewarded with a superb third place and a financial platform for further training.- This evening you will be singing in a different country and for a much smaller audience at the Norwegian Hull Club’s traditional Christmas dinner in Hamburg. What do you think about that?- One always wants to perform to the best of one’s ability. In this case I have been flown in for a special occasion by people who know about me. They want to “share” me with others, and of course I want to do my best! I have sung for the Norwegian Hull Club on previous occasions and I am humble and grateful for the opportunity, says the tenor.

Text and photos: Ann Eileen Ditlevsen Nygård

SINGING FROM

The

HEART

It is raining lightly as we make our way to the Spiegelsaal im Museum für Kunst und Gewerbe (Museum of Arts and Crafts) in Hamburg. - Perfect, says Stephen Hansen (34) in a calm voice.

SINGING FROM

The

HEART

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ombining hot topics from our previous workshops, we presented the following

themes for the two workshops:

You don’t have the best officers and crew!Almost all of the 900 claims reported to NHC annually are related to the human factor – why?Experiences gathered by our Loss Prevention and Technical department were presented.

The Master – still in command?This theme touches upon communication between the shore organization and the Master.Should the Owner and/or the Charterer challenge the Master’s decision-making in situations where the vessel is exposed to an above average risk?

Our Claims Handlers shared their experiences of claims handling in Norwegian Hull Club.

More than 60 persons registered for the workshop in Hamburg and more than 70 people registered for the workshop in Limassol, a very satisfactory response, especially considering the relatively short notice given.

The workshop in Hamburg was held on 10th October and was thereby the first Norwegian Hull Club workshop arranged abroad in the 169-year-long history of the Club. Although the speakers are quite used to talking in front of a large audience, all were slightly nervous before entering the stage. Facing a mixed assembly, it was challenging to communicate the topic of their presentations in a way which

caught the interest of all, especially since half the audience was there mainly to learn more about only one of the subjects announced. However, when the speakers entered the stage, they were immediately aware of the number of interested faces in the audience and all their anxiety evaporated.

Six presentations were given, all by Norwegian Hull Club employees who shared their experiences and lessons learned throughout their careers both within Norwegian Hull Club and at their previous workplaces. Two of the speakers were switched for others from the workshop in Hamburg to the workshop in Limassol, but the message in their presentations was the same. The workshops reiterated topics from four different workshops and seminars held in Norway in 2006. Both in Hamburg

WorkshopsabroadText and photos: Hildegunn Nilssen

After three successful workshops in Bergen this year, Norwegian Hull Club decided it was time to bring the concept to other countries and cities. Germany and Cyprus rank between the five largest markets for Norwegian Hull Club, and it was a natural choice to approach these markets for our first workshops abroad.

and in Limassol we experienced the same as in Norway; bringing up important subjects in a slightly provoking way is perfect when we want the audience to become involved. It is part of human nature to defend one self when confronted with unpleasant facts. Norwegian Hull Club brought up problems that we often notice, and therefore there will always be someone in the audience who has been in that same situation once, and may have reacted the same way as the character in the example. The important thing is not to point a finger, but to learn from the mistakes we make ourselves and those made by others – and not least to learn from each other’s success.

The Germans seemed to take an interest in all topics presented, and all of the speakers very much appreciated

both questions and comments that came up. The workshop ended with a buffet dinner after the presentations – a good opportunity to get to talk to the speakers whose lecture you found particularly interesting and also to ask the questions you did not get to ask during the workshop.

The workshop in Limassol took place on 25th October. The beautiful island welcomed the Norwegian delegation with sunny weather and high temperatures, so it was a smiling and energetic group of speakers who entered the stage in the conference room at Londa Hotel that afternoon. The audience seemed a bit reserved at the beginning, but it did not take long before both questions and comments were being fired from the front row as well as from those who had found their seats

at the back. Their interest motivated the speakers to be even more enthusiastic in their presentations, and when Mr. Geir Skoglund entered the stage to do the last presentation, the interaction between Norwegian Hull Club and the audience almost reached a climax. The seminar was summed up by Claims Director Jostein Egeland, who showed an amusing video of how to solve problems very easily. The audience was still laughing as they left the conference room for dinner in the hotel’s restaurant, so we concluded that all the participants had at least had one useful moment during the workshop.

We would like to thank everybody who participated, and we sincerely hope you found our workshop interesting. If you want to provide any feedback, please contact us at [email protected]

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Claims Manager Hogne Nesse questions whether the Master is still in command.

The participants at the workshop in Limassol paid attention to the presentation of Lawyer Per-Åge Nygård.

A coffee break between presentations in Hamburg.


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Ole Hjardeng received his degree in marine technology at the Bergen University College in 1996. He has served ten years in the Norwegian Navy, eight of them on submarines as Engineer and Chief Engineer Officer. In 2003 Mr. Hjardeng also received a degree (Bachelor of Science) in ships systems management and maintenance from Tromsø University College.Ole is a welcome asset to Norwegian Hull Club and we are looking forward to a prosperous long working relationship.

le Wikborg warmly welcomed the close to 100 people who participated at the event, and gave a short update on Norwegian Hull Club and the

most important challenges as seen from the insurer’s point of view. Mr. Wikborg stated, “A recently published survey covering the development in total operating costs from 2004 to 2005 reveals that the insurance costs have increased by some 10% on average, up to about 6% of the total daily expenses”. He questioned whether this implies a more healthy market for insurers but had to conclude that higher insurance costs are attributable to more fundamental factors driving the numbers up, e.g. development in exposures and claim costs rather than an improved market for marine insurers. Norwegian Hull Club retains its focus on today’s standard and the future development of human capital, and Ole Wikborg also touched upon this theme in his short speech. As insurers, the Club observes that human error stands out as the major contribution to the increase in claims cost. Mr. Wikborg emphasized that this problem is likely to increase in the coming years, as the demand for more vessels and more crew will continue to grow. The crucial question, according to him is : “How does the shipping industry attract, train and retain the crew they need in the future?” He underlined that Norwegian Hull Club endeavours to be a strategic partner for its members on this question as well as on other marine insurance related matters. After the short introduction, the participants were served a lunch buffet. As host, Norwegian Hull Club was happy to see that people had a good time, all enjoying interesting conver-sations around the tables. Norwegian Hull Club would like to thank all guests for coming – it is always a great pleasure to meet with our Greek business partners!

NORWEGIAN HULL CLUB

EVENT IN

ATHENS

Text and photos: Hildegunn Nilssen

On Tuesday 24th October Norwegian Hull Club invited members and clients in Greece to its traditional luncheon

at the Hellenic Yacht Club in Piraeus.

Also this year Norwegian Hull Club

will be donating to a humanitarian

organization rather than sending

seasonal greeting cards and gifts.

Our donation for 2006 goes to The

Church City Mission in Oslo and Bergen.

We wish all our contacts all the best for

the forthcoming festive season.

New employee atNorwegian Hull Club

O

Guests are enjoing the good weather and the fantastic view at the Hellenic Yacht Club in Piraeus.

BergenOlav Kyrres gate 11P. O. Box 75 SentrumNO - 5803 Bergen, Norway

TELEPHONE: + 47 55 55 95 00TELEFAX: + 47 55 55 95 22 (insurance)TELEFAX: + 47 55 55 95 55 (claims)E-MAIL: [email protected] www.norclub.no

OsloRådhusgaten 25P. O. Box 1290 VikaNO - 0111 Oslo, Norway

TELEPHONE: + 47 22 47 72 30 TELEFAX: + 47 22 42 38 67E-MAIL: [email protected] www.norclub.no

Kristiansand Rådhusgaten 3P. O. Box 489NO - 4664 Kristiansand, Norway

TELEPHONE: + 47 38 10 71 20 TELEFAX: + 47 38 10 71 21 E-MAIL: [email protected] www.norclub.no

NETWORK

EDITOR:Hidegunn Nilssen

GRAPHIC DESIGN: Konvoi as

PRINTED BY Molvik Grafisk as

COURSE OF EVENTS :THE HAZARDS OF TUNNEL V IS ION :

It was during dark hours and the fully loaded ship was entering shallow waters. Her port of call was small, and the ship required a pilot to take her safely into the destined terminal. The approach from open waters was easy to navigate, and the plan was to pick up the pilot approximately two nautical miles from the buoyed and lighted, dredged channel.Another port, only a few miles away from our ship’s port of call had a similar entrance. The inlet was dredged, buoyed and marked with flashing lights and it appeared that the lights illuminated much brighter.Communication was established between the Captain and the pilot, and they agreed to embark the pilot at a specific location. When the ship reached the pick up location, the pilot boat was still underway, a fact that obviously confused the Captain. He proceeded further to the east, and maintained a speed of nine knots. Some ten minutes after the ship passed the pre-planned position of the pilot pick up, the Captain realises that the ship is steaming towards the entrance of the other harbour. The Captain immediately slows down and turns hard to starboard towards open sea, but too late. A few seconds later the ship runs heavily aground.

DISCUSS ION

In this case it seems as though the Captain, and the rest of his bridge team of entrusted officers have suffered from a collective loss of situationalawareness.There also seems to have been miscommunicationand poor common understanding of what the pilot

Norwegian Hull Club, Olav Kyrres gt. 11, P.O.Box 75 Sentrum, NO - 5803 Bergen, Norway Phone: +47 55 55 95 00 – Fax: +47 55 55 95 55 – E-mail: [email protected] – Web: www.norclub.no

CASUALTY INFORMAT ION NO . 57 - NOVEMBER 2006

Norwegian Hull Club wishes to contribute to increased safety on board, focusing on Lives, Health, Environment and Assets and extracting Useful Experience.Maintaining situational awareness is crucial in order to keep operational safety manageable. So if you lose that awareness, chances are high that you and your ship will be involved in an incident that will jeopardize safety.

and the Captain expected from each other.Passing through the entrance point with nine knots suggests that the bridge team is not really navigating. The position of the ship is obviously not plotted frequently and you may argue that the ship’s command in this crucial moment is only navigating on their perceptions of the real world. Because of the similarities between the approaches to the ports, because the buoys are flashing brighter and because the optical characteristics of the flashing lights are ignored, the Captain truly believes he is doing the right thing. His perception of reality is twisted, but in his own mind he’s convinced.This parochial view or tunnel vision will appear whenever an organisation or a team does not con-trol each other, and where. there seems to be a strong hierarchical command structure (or a total lack of such). Strong bridge team manage ment and modern principles of leadership will reduce the probability of perceiving the real world wrongly.

USEFUL EXPER IENCE :■ Adopt best practices and work as team, rather

than individuals within a stringent hierarchy.

(Illustration photo only)

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