The trend towards ever-larger container vessels require investments and industry collaboration to develop the appropriate salvage capabilities, said speakers at a marine casualty forum in Singapore.
Little thought has been given to salvage capability during the construction of very large ships, said Mr Michael Kelleher, Senior Claims Director with West of England P&I Club. The Chairman of the International Group’s Large Casualty Working Group also pointed to a general lack of salvage equipment catering to such vessels, as well as a lack of funding for salvors’ R&D costs.
Mr Peter Townsend, Head of London Marine with Swiss Re Corporate Solutions also highlighted the need to develop proper salvage equipment. “The only way to reduce the cost of risk is by reducing the cost of claims. And to do that, we need to develop single-purpose, not multi-purpose equipment. The will is there, but no one wants to bear the R&D costs.”
He noted that while loss frequency is falling, volatility and the cost of risks are rising. Calling on the industry to debate possible solutions such as creating asset pools and building “salvage-friendly” ships, Mr Townsend said the next casualty is “not ‘if’, but ‘when’. [But] the general sense is that ‘it’s not going to happen to me’”.
Mr Christian Ott, Vice President and Head of Claims with Skuld Singapore, pointed out that bigger may be better at the front end in terms of economies of scale, but not necessarily at the back end in terms of higher insurance costs testing the market. Although the insurance market has so far coped well with the trend, “one day, we’ll start testing capacity”, he said.
Mr Frank Leckey, Senior Salvage Master with Resolve Salvage & Fire, urged builders to engage salvors in the design and construction of mega ships. “No one is talking to salvors about what needs to be done,” he said. “The industry is not prepared for mega ship casualties – let us share responsibilities and not just talk about it.”
The Forum was organised by LOC Group and capped the annual Singapore Maritime Week.