Business

IUMI: Shipping’s move to net-zero is welcome but new risks must be understood and insured

‘It is the job of marine underwriters to assist all those involved, including shipowners and charterers, to de-risk their operations as far as possible and provide new and innovative insurance products,” states President.

Published

3 years ago

September 21, 2023

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International Union of Marine Insurance President Frederic Denefle

The International Maritime Organization (IMO)’s recent strengthening of its environmental ambitions heralds a significant turning point for the shipping industry and, consequently, a heightened impact on marine insurers, says the President of International Union of Marine Insurance (IUMI).

“IUMI welcomes the recent announcement from IMO that GHG emissions from ships will be reduced further. New targets require net-zero emissions by close to 2050 with a 20-30% reduction by 2030 and a 70-80% reduction by 2040– from the 2008 baseline,” said Frédéric Denèfle at the IUMI annual conference.

“To achieve this, the industry will need to adopt a series of immediate measures followed by intermediate technologies and, finally, a long-term technology shift. It’s gratifying to see that leading shipowners, supported by charterers, have already made the first steps with some trail-blazing their way to early decarbonisation.

“For the marine insurance community, it is vital that we maintain pace with all the incoming changes and innovations so we fully understand each and every risk involved enabling us to support shipowners to de-risk their new operations. This will include ensuring the continued safety of our crews at sea, their training and their well-being; as well as the safety of the vessels themselves and their cargoes.”

As an interim solution, some shipowners were adopting LNG dual-fuel, biofuels and wind-assisted propulsion. Longer-term, zero-emission propulsion options might include ammonia, hydrogen or methanol.

Each of these new technologies would give rise to a new set of risks that marine underwriters will need to insure. As the transition proceeds, retrofits will give way to new-builds, again giving rise to new types of risks.

“With new innovations and a changing risk profile, the need for enhanced information becomes paramount”, said Denèfle.

“It will be important for underwriters to receive and analyse data on ESG, economic and technical performance. In the past, we had relied upon historical information and statistics but today, real-time, dynamic data such as weather, geopolitical, regulatory, routing and engine information are all available to us.

“We need to capitalise on this, as some underwriters are already doing, to ensure our cover remains relevant. Capturing a range of new data from new and alternative sources will be key and the trick will be to adopt systems that allow marine insurers to make sense of what they are receiving and apply it to their risk portfolios. Predictive risk management and improvement to risk quality will, inevitably, lead to greater sustainability and profitability of our sector”.

Summing up, the conference heard that key risks likely to emerge from the introduction of new GHG technologies would include new onboard hazards; a complex portfolio of GHG emissions; the introduction of new technology systems; and a re-balancing of voyage dynamics and chartering strategies.

Denèfle concluded: “One of our speakers said ‘transformation involves taking risks and making investments in new technologies’, which is quite right. But it is the job of marine underwriters to assist all those involved, including shipowners and charterers, to de-risk their operations as far as possible and provide new and innovative insurance products.”

Photo credit: International Union of Marine Insurance
Published: 21 September, 2023

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

17 hours ago

July 21, 2026

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Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

17 hours ago

July 21, 2026

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Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

17 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026