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Barge Shipment Pre & Post Shipment & Underwriting By Capt Sivakumaran Divakaran Head of Transportation Risk Management, Marine, Asia Pacific, Chubb Asia Pacific. PIAM Marine Insurance Knowledge Seminar – Kuala Lumpur 13 July 2017

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Page 1: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge Shipment

Pre & Post Shipment &

Underwriting

By Capt Sivakumaran Divakaran

Head of Transportation Risk Management, Marine, Asia Pacific,

Chubb Asia Pacific.

PIAM Marine Insurance Knowledge Seminar – Kuala Lumpur

13 July 2017

Page 2: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Tug and barge arrangements – comparison between Europe, USA and Asia

Page 3: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Typical arrangement in Europe

Page 4: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Typical tug in Europe

Page 5: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Typical arrangement in USA – integrated unit

Page 6: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Typical arrangement in USA – integrated unit

Page 7: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Typical tug and barge arrangement in this region

Page 8: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Characteristics

Page 9: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Barge – commonly flat top barge (a.k.a dumb barge).

Non self propelled. Prime Mover is the tug. Both tug and barge connected by a towline. Slow moving, demands good manoeuvring skills.

Economical mode of transport. Lower cost compared to conventional vessels.

Able to access port with shallow draft, e.g ports along rivers, jetties located within shallow estuaries etc

Page 10: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Types of tow arrangement

Single Tow: The most frequent/common arrangement.

1 tug pulling (towing) one tow

Typical arrangement; towline of tug connected to bow of the barge.

Towline from tug connected to Smit towing brackets on barge using delta plate,

chaffing chain, shackles etc.

Page 11: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Single Tow:

Page 12: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Types of tow arrangement

Tandem Tugs : 2 tugs pulling (towing) one tow

Normal arrangement for ocean tow with large objects/barge

Typical arrangement; tow wire of lead tug connected to bow of the 2nd tug and

2nd tug line connected to towed unit

Usually larger of 2 tugs is positioned between lead tug and tow.

Page 13: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Types of tow arrangements

Breasted Tugs: 2 tugs pulling (towing) one tow

Both tugs positioned next to each other and in front of the towed unit

Usually used for towing problematic structures where speed is not important

BUT maintaining towing control is.

Page 14: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Breasted Tugs:

Page 15: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Types of tow arrangements

Double Tow / Tandem Tow (a.k.a “Double Trouble”): 1 tug pulling (towing) 2 tows

Highest risk compared to other types of tows

Customarily 2 ways to secure the tows - Tow line is secured to the 1st towed unit. Another tow line passes the 1st unit

and secured to the 2nd unit.

- Tow lines from the tug is secured to the 1st towed unit and another intermediate tow line secured to between the 2nd towed unit and the 1st towed unit

Page 16: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Double Tow – two towed units connected to different towing equipment on tug.

Page 17: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Characteristic

Tandem Tow – two or more towed units connected in series i.e tow line connected behind 1st unit to the front of 2nd unit.

Page 18: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Why double trouble? In an emergency, tug is required to recover 2 tows.

Very difficult to manoeuvre

Often, no crew on 2nd tow (or even on 1st tow) – tug would not have any idea on

the condition of the 2nd tow.

In the event of issues with tow, especially 2nd tow, tug would most likely not be aware

In congested waters or water in very close proximity to underwater obstructions, the service of additional tug is often required (but not often arranged).

Page 19: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – Underwriting

Typical profile of tug and barge in the region: Unclassed or classed with non IACS

Underpowered

Questionable condition

Workhorses, little or no maintenance

Low morale crew with little or no motivation to ensure safety of cargo

Not usually subjected to PSC inspections

Page 20: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Underwriting Information critical to underwriting process

Type of tow Tug and barge specifications (size, capacities) Tug and barge flag and class Age Tug horsepower / bollard pull Cargo details (type, weights, sizes, special requirements, protection) Load and discharge port (location, facilities, risks)

Page 21: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - Underwriting Information critical to underwriting process

Voyage distance and routes Expected weather and sea conditions Owners/operators reputation or record Other expected risk – cargo specific, piracy/hijacking etc

Page 22: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – Reality Check In reality, typical information that is provided (often at short notice)

Tug and barge name (or at times only tug or barge name – sometimes with wrong spelling!)

If lucky, with registry certificates and if very lucky with Class Cert

Cargo name and value (sometime very general description e.g machineries) General load and discharge port names (e.g Port Klang, South Kalimantan)

“Reply urgently as vessel about to complete loading and will depart soon”

or worst

“vessels have departed”

Above is recipe for disaster

Page 23: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Typical defects

Relating to bridge:

Charts and publications not updated

Master and officers not familiar with bridge equipment

Expired Safety Equipment (or due for servicing)

Navigation aids and instruments defective or not in good order

Little or no voyage planning

Page 24: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Typical defects

Relating to machinery spaces / engine room:

Oil leaks

Fire hazards

Critical machinery out of order

Breakdown maintenance instead of Preventive/Planned Maintenance

No records on running hours, maintenance, log books etc

Page 25: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Typical defects

Relating to deck, its equipment etc:

Towing equipment not suitable or in bad condition

Watertight doors and/or closing arrangement not watertight

Winch/windlass out of order

Certificates for towing equipment not available

No emergency towing equipment

Serious defects/damages on side shell, securing points etc

Page 26: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Torn Section in way of side shell

Page 27: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

This is what a navigation charts looks like (on a tug)

Page 28: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Charts that looks like from the early 1900’s (a photocopied chart)

Page 29: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical steering wheel

Page 30: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Missing Steering Wheel

Page 31: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Missing Steering Wheel – found it on the bridge. (According to tug Master, he keeps knocking into it so he removed it !!!)

Page 32: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Defective Rubber Packing/Gasket at watertight doors

Page 33: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Missing Rubber Packing/Gasket at watertight doors

Someone is

happy we found

this?

Page 34: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Defective Rubber Packing/Gasket at machinery space access

Page 35: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Life raft due for servicing

Page 36: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Navigation side light on barge (light not per requirement)

Page 37: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Side light housing (corroded and no side light in place)

Page 38: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Cracked chaffing chain

Page 39: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Severely corroded chaffing chain

Page 40: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical anchor windlass on a tug

Page 41: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Anchor windlass – missing port anchor and chain

Page 42: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Anchor windlass – motor wastage

Page 43: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment - characteristic

Photos of typical defects

Another one: Anchor windlass – motor wastage

Page 44: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong Risk when rushed decisions are made/risk blindly accepted

Page 45: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Risk when rushed decisions are made/risk blindly accepted

Page 46: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 47: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 48: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 49: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 50: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 51: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 52: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – when things go wrong

Page 53: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Barge shipment – What can be done better?

Prudent underwriting

Ensure all relevant information is obtained

Review previous/similar risk which experienced losses – learn from experience

Refer to your internal Marine Risk Management team if you have one and/or

Consider engaging a reputable and qualified surveyor.

Page 54: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Towage Surveys – Surveyor Selection

Qualification and experience required by a surveyor to carry out a towage

approval and lashing survey

Someone who: Has some amount of seagoing experience and especially someone who is aware

of the risks present at sea and/or

Has been carrying out towage approval surveys for a considerable amount of time, has the practical and past experience of such surveys.

Is absolutely independent even though effects his/her “popularity” among shippers, tug & barge owners etc.

Is objective, fair and able to provide honest and impartial recommendations.

Page 55: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Towage Surveys – Surveyors

Expectations from surveyors – among them:

Surveyor to be from third and impartial independent party who has absolutely

no interest in the venture.

Surveyor must inspect the tug and tow(s) and see that all necessary preparation has been carried out.

Surveyor expected to base his/her opinions and recommendations on what is required based on past experience, practical knowledge, local and statutory requirements to ensure safe and successful completion of the venture.

Page 56: Barge Shipment Pre & Post Shipment & Underwriting · Barge shipment - Characteristic Barge – commonly flat top barge (a.k.a dumb barge). Non self propelled. Prime Mover is the tug

Chubb. Insured.