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ENGINE: War-risk premium soars to 0.75-1% as the Red Sea attacks enter third month

Heightened insurance rates can actually make the Cape of Good Hope routing more cost effective for carriers relative to the Suez Canal despite the higher bunker fuel costs, says Flexport.

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RESIZED Chris Pagan

War-risk insurance premium has now climbed to 0.75-1% of the vessel’s value, according to US-based supply logistics firm Flexport reports.

According to Flexport, shipowners will now have to pay roughly $1-2.5 million for war-risk insurance cover, depending on vessel age, size and type.

In addition to the soaring annual premium, shipowners will also have to pay an additional premium if they want to transit via the Red Sea. It is because several Protection and Indemnity (P&I) clubs have expanded their additional premium zones across the Indian Ocean, Gulf of Aden and Southern Red Sea.

“The heightened insurance rates can actually make the Cape of Good Hope routing more cost effective for carriers relative to the Suez Canal despite the higher fuel costs,” Flexport writes.

Major container lines avoid Red Sea as attacks enter third month

Yemen’s Houthi rebel group started attacking commercial ships in the southern Red Sea and the Bab al-Mandeb Strait between Yemen and Africa on 19 November 2023.

Since December, over 26 vessels have faced missile strikes, near misses or threats from the Houthis, according to marine risk management firm Ambrey. This includes vessels owned by major shipping companies, including A.P. Moller-Maersk, Mediterranean Shipping Company (MSC) and CMA CGM.

Several shipping companies, including MSC, Maersk, Hapag-Lloyd, Wan Hai Lines, Ocean Network Express (ONE), HMM, Evergreen and Yang Ming, have rerouted their vessels via the longer Cape of Good Hope route to avoid these attacks.

As of 18 January, 549 container ships have been diverted or are planning to reroute via the Cape of Good Hope instead of the Suez Canal route to avoid Red Sea attacks, Flexport says.

Meanwhile, Bloomberg reported that “some ship insurers are starting to avoid covering US and UK merchant ships against war risks when they navigate the southern Red Sea,” citing Marcus Baker, global head of marine and cargo at Marsh. This could result in US and UK-based commercial shipping companies also rerouting through The Cape of Good Hope in the near future.

By Konica Bhatt

 

Source: ENGINE
Photo credit: Chris Pagan on Unsplash
Published: 23 January, 2024

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Vessel Arrest

Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

Tanker was anchored 5.9 nautical miles west of Pulau Pintu Gedong; Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

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Malaysia: MMEA detains tanker for anchoring without permission near Port Klang

The Malaysian Maritime Enforcement Agency (MMEA) on Wednesday (23 April) said it detained a tanker for anchoring without permission at 5.9 nautical miles west of Pulau Pintu Gedong at about 3.15pm on 22 April. 

The ship was operated by a 36-year-old Thai captain with 16 crew members aged between 20 and 55 years, consisting of 13 Thais including two women, two Myanmar nationals and an Indonesian national.

The inspection found that the ship had committed an offence under the Merchant Shipping Ordinance 1952 by not obtaining permission from the Director-General of the Malaysian Maritime Department and for failing to fly the Malaysian flag. 

The tanker’s Second Deck Officer and Second Engineer were taken to the Pulau Indah marine police jetty for further action.

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 24 April, 2025

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Incident

Debris in lube oil caused engine room fire onboard passenger vessel in 2023, says NTSB

NTSB investigators found that debris in an engine’s lube oil system led to a diesel engine failure and an engine room fire aboard “Ocean Navigator” docked in Portland, Maine.

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Debris in lube oil caused engine room fire onboard passenger vessel, says NTSB

Debris in an engine’s lube oil system led to a diesel engine failure and an engine room fire aboard a passenger vessel docked in Portland, Maine, the National Transportation Safety Board (NTSB) said Tuesday (22 April).

The passenger vessel Ocean Navigator was moored at the Ocean Gateway Terminal on 18 October 2023, when the no. 2 auxiliary diesel generator engine suffered a catastrophic mechanical failure that seriously injured one crew member and resulted in an engine-room fire. Crewm embers secured ventilation to the engine room, and the fire self-extinguished. None of the 128 passengers onboard were injured, and no pollution was reported. Damage to the vessel was estimated at USD 2.4 million. 

After the fire, third-party technicians disassembled all components from the no. 2 auxiliary engine and found the crankshaft, several main bearings, connecting rod bearings and the no. 14 fuel injector were damaged. An additional inspection found abnormal wear on the connecting rod bearings and main bearings, which showed signs of cavitation erosion bearing damage, as well as damage from debris, which had been introduced at some point into the lube oil system.

NTSB investigators found the engine failure was caused by debris in the engine’s lube oil system—possibly due to the crew exceeding manufacturer-recommended intervals for changing the lube oil and oil filter elements—which caused catastrophic mechanical damage to the engine and a subsequent fire from the ignition of atomise lube oil released through the engine’s ruptured crankcase.

The crew had last changed the entire quantity of lube oil for the no. 2 auxiliary engine in September 2022—about 13 months before the engine failure—but the engine had operated more than 5,000 hours with this lube oil in the engine, five times longer than the manufacturer’s recommendation. Additionally, since the last change of the lube oil filter elements in May 2023, the engine had run over 3,000 hours. 

The engine manufacturer’s recommendation is to replace filter elements at every oil change or after the filter elements had been used for 1,000 hours.

“Manufacturers provide maintenance recommendations and intervals (schedules) to ensure equipment operates safely, optimally, and reliably throughout its service life,” the report said. 

“By regularly reviewing equipment manufacturer manuals and guidance, operators can ensure conformance with recommended maintenance plans and mitigate the risk of equipment malfunction or failure.” 

NTSB also found the crew’s quick action to secure engine room ventilation and engine fuel sources prevented the fire from spreading.

“Engine rooms contain multiple fuel sources as well as mechanical ventilation, making the spaces especially vulnerable to rapidly spreading fires,” the report said. 

“After an engine room fire ignites, it is imperative to remove the sources of available fuel and ventilation to the fire to prevent it from spreading. Vessel crews should familiarise themselves and train frequently on machinery, fuel oil, lube oil, and ventilation shutoff systems to quickly act to contain and suppress engine room fires before they can spread to other spaces.”

Note: Marine Investigation Report 25-13​ is available online.​

 

Photo credit: National Transportation Safety Board
Published: 24 April, 2025

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Incident

Armed group boards Marshall Islands-bulk carrier transiting in Singapore Strait

Bulker was boarded by four individuals armed with knives while transiting eastbound through Philip Channel, 9.5 nautical miles northeast of Great Karimun, Indonesia, according to Ambrey Analytics.

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A Marshall Islands-flagged bulk carrier was boarded by four individuals while transiting eastbound through the Philip Channel in the Singapore Strait, 9.5 nautical miles northeast of Great Karimun, Indonesia on Wednesday (23 April).

The individuals were reportedly armed with knives, according to Ambrey Analytics, the digital intelligence arm of the Ambrey risk management group. 

At the time of the incident, the vessel was underway at 10.6 knots with an estimated freeboard of 6.7 metres. The carrier was observed continuing on its original planned route.

Ambrey Analytics said crews transiting the Singapore Strait with freeboards lower than 10m are advised they are at heightened risk. 

“Crews should lock down access to the accommodation block and ship’s stores. It is recommended to carry out partnered deck patrols. Do not confront criminals,” it added.

Just two days before, a Panama-flagged crude oil tanker was boarded by an armed gang while transiting eastbound in the Philip Channel, 4.5 nautical miles northwest of Pulau Terung, Indonesia. 

The three individuals were reportedly armed with knives. At the time of the incident, the vessel was underway at 10.3 knots with an estimated freeboard of 6.3 metres. 

Related: Panama-flagged tanker heading to Johor boarded by armed gang off Indonesia

 

Photo credit: Ambrey Analytics
Published: 23 April, 2025

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