29 November 2023 – NorthStandardâs Strike & Delay class has introduced Weather Cover into its suite of risks, providing shipowners and charterers with the first ever marine insurance protection to mitigate the threat posed to ships solely by adverse weather conditions.
The global marine insurer has responded to market needs with a groundbreaking marine insurance product which offers up to eight days of cover against the risks of a ship being delayed in or outside a port due to bad weather, as part of its broader Strike & Delay package.
Despite extraordinary advances in forecasting capabilities, weather remains a main factor not only in ship strandings, but in voyage planning disruption and route diversions. Nick Rowe, Head of Strike & Delay, NorthStandard, reports a growing number of requests from members for the Club to extend its âOnshoreâ cover to mitigate these risks.
âAdverse weather is a constant risk for shipowners and charterers, and the costs of unforeseen conditions can be substantial,â said Rowe. âPort closures can either leave vessels sitting idle and unable to leave, or force them to stay at sea or navigate a different route. Both scenarios can cause long delays and bring significant financial loss.â
NorthStandard has extended its âonshoreâ weather cover – which takes account of disruptions to the landside supply chain – to include the risk of delay to ships caused by named storms, but also wind, swell or fog, and unexpected rain and ice. Cover for up to eight days is triggered if an entered ship is delayed at any port, berth, sea-lane, or navigable waterway, even if the port authority hesitates on officially closing for weather reasons. NorthStandard has also kept deductibles low, with a minimum of one day applied for each claim.
âAlthough weather routing services offer support when planning a voyage, they are of little help if a vessel is already trapped in a port, or the weather conditions change on route,â added Rowe.
NorthStandardâs Strike & Delay committee members, Alpha Bulkers & Pantheon Tankers, Astra Shipmanagement, Bunge, dâAmico, Mandarin Shipping, Swire, BSM and Ultrabulk have supported the launch of the new cover.
âNorthStandard has listened to the market and thoroughly analysed data from its in-house resources and from third parties to develop a unique, comprehensive and realistic tool for underwriting weatherâ, said Tim Huxley, CEO of Mandarin Shipping and chair of the committee. âWe also expect this to be cover which evolves and adapts to member trading patterns.â
The global scale of NorthStandardâs Strike & Delay capability will be critical for supporting underwriting innovation, with claims handled from six regional hubs across Asia, Europe and the Americas.
About NorthStandard:
NorthStandard is one of the leading providers of global marine insurance products and services across the maritime industries. Established through the merger of North P&I Club and the Standard Club in February 2023 and âAâ rated by S&P Global, NorthStandard has a premium income around US$800M and provides cover for over 365 million GT of owned and chartered tonnage.
From headquarters in the UK and with offices throughout Europe, Asia and the Americas, NorthStandard offers a unique blend of worldwide presence and class-leading expertise across multiple specialist areas, including P&I, FD&D, War Risks, Strike & Delay, Hull and Machinery and ancillary insurance. Its Sunderland Marine and Coastal & Inland divisions also provide cover for ownersâ fixed premium P&I, fishing vessels, inland waterway and coastal trading vessels and aquaculture. NorthStandardâs comprehensive local market and sector knowledge is underpinned by continuous investments in market-leading digital technologies.
NorthStandard is a leading member of the International Group of P&I Clubs (IG) and is fully committed to upholding the shared objectives of its 12 independent member clubs, which provide liability cover for approximately 90% of the worldâs ocean-going tonnage.
