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David Baker SOPF – 30th anniversary Ottawa, Canada 28th May 2019
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Oil pollution damage – Canadian risk perspective
The International Group Canada’s international action and strategic role in improving civil liability for oil pollution damage: International Group of P&I Clubs: What it is, what it does, why are we here today? International Group role in the civil liability system in Canada for oil pollution damage Oil pollution damage – Canadian risk perspective Oil pollution damage claims - Canada
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What is the International Group?
Comprises 13 mutual marine insurance associations (“Clubs”) which between them insure and pool third party liabilities relating to the use and operation of ships: Including for claims for oil pollution damage where oil carried as cargo (1992 CLC/IOPCF) and bunkers (2001 Bunkers Convention) & HNS damage Insurance cover to over 90% of world ocean-going tonnage Over 95% of ocean-going tankers c.60,000 vessels 1.21bn total GT
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Who are the International Group Club Members?
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International Group Clubs provide:
The International Group International Group Club role in the system: International Group Clubs provide: - Insurance cover for oil pollution damage liabilities, including 1992 CLC - Evidence of financial security to shipowners – “blue cards” for IMO Conventions in force in Canada: approx. 7, CLC per year - Handling and assessment of claims for pollution damage - Unilaterally, jointly with the 1992 IOPC/Supplementary Fund or with the Canadian SOPF Provision of prompt security/payment of compensation to claimants Limits for oil pollution damage: - Up to US$1 billion
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Top Canadian Ports by Port Calls - Oil Tankers 2000+ dwt
Number of Calls Rank Port 2013 2014 2015 2016 2017 2018 2019 1 Saint John 460 355 411 396 420 393 95 2 Les Escoumins Harbor 46 73 63 62 54 110 14 3 Vancouver 78 91 70 84 106 4 Come By Chance Harbor 81 100 102 99 39 5 Pointe aux Trembles 104 98 86 88 12 6 Point Tupper 57 47 56 74 61 16 7 Quebec 52 68 60 8 Whiffen Head 34 25 41 71 48 59 19 9 Dartmouth 35 50 51 58 40 11 10 Levis 37 31 26 13 Tracy Constance Bank Holyrood Montreal - 15 Sarnia Kitimat 17 Eastern Passage 18 Halifax Corunna 20 Charlottetown Others Total 1,044 953 1,109 1,067 1,071 1,108 272 Source: Clarksons Research. Note: Ports ranked by number of calls in full year Excluding port calls where the previous call was at a Canadian port. Port calls data basis all instances of a vessel entering and leaving a defined port location, excluding instances where vessel not recorded as travelling at less than 1 knot, and combining multiple consecutive instances at the same port where the vessel has not left a buffered shape around the port.
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Top Flags by Port Calls at Canadian ports - Oil Tankers 2000+ dwt
Number of Calls Rank Flag 2013 2014 2015 2016 2017 2018 2019 1 Marshall Is. 294 283 326 345 399 432 94 2 Liberia 121 92 103 116 108 138 24 3 Greece 125 104 66 101 88 4 Malta 44 47 61 69 57 25 5 Panama 53 59 48 56 13 6 Bahamas 102 85 70 76 55 23 7 Singapore 34 46 115 91 72 50 8 Canada 31 27 35 38 9 Hong Kong 83 19 30 10 Isle of Man 21 36 11 Norwegian Int'l 15 18 12 Italy 29 14 17 Bermuda 16 Netherlands Japan - Danish Int'l United Kingdom 20 United States Cayman Islands Qatar Others 58 39 Total 1,045 954 1,109 1,067 1,071 1,108 272 Source: Clarksons Research. Note: Flags ranked by number of vessel port calls in full year Excluding port calls where the previous call was at a Canadian port. Port calls data basis all instances of a vessel entering and leaving a defined port location, excluding instances where vessel not recorded as travelling at less than 1 knot, and combining multiple consecutive instances at the same port where the vessel has not left a buffered shape around the port.
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Total Canadian Flagged Oil Tanker Fleet >= 2,000 DWT
Type and Age in Numbers, GT and DWT Vessel Type 0-4 Years 5 – 9 Years 10 – 14 Years 15 – 19 Years ≥ 20 Years Total No. GT DWT Suezmax Tankers ( ,999 dwt) 3 257,286 444,330 Panamax (55,000-84,999 dwt) 2 85,654 148,900 Handy Products Tankers (10-54,999 dwt) 1 11978 14745 46712 75030 6,720 10,557 4 65,410 100,332 269,264 459,075 132,366 223,930 9 408,350 693,562
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ITOPF Mobilisation Type
The International Group Oil pollution damage claims – Canada – IG Club involvement: Vessel Name Incident Date ITOPF Mobilisation Type Vessel Type Oil Type CLC 69/92 71/92 Fund CUIDAD DE BERISSO 07/06/1989 Attended – onsite during response Non-Tanker OTHER N/A NANCY ORR GAUCHER 25/07/1989 Attended - onsite during response Tanker BITUMEN CLC 69 71 FUND RIO ORINOCO* 16/10/1990 BUNKER SARABAND 01/02/1998 FUEL (CARGO) KATSHESHUK 30/03/2002 TERRA NOVA FPSO 21/11/2004 CRUDE QUEEN OF THE NORTH 22/03/2006 Attended - onsite post spill KING DARWIN* 28/09/2008 CLC 92 92 FUND SHOVELMASTER 19/11/2008 MARATHASSA 09/04/2015 ARCTIC 17/01/2016 Remote advice HNS *RIO ORINOCO Total claims paid = CAN $12.8 million *KING DARWIN Total claims paid = US$1.3 million
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The International Group
Canada vs International: oil pollution (persistent oil as cargo) claims data: 1978 – 2002: Total number of “international Convention” oil tanker cases worldwide = approximately cases* Total cost of compensation paid = US$6,592 million* 2006 – 2016: Total number of “international Convention” oil tanker cases worldwide = 350 cases ** A total cost of claims paid in this period in these cases = approximately US$ 300 million** * See document 92FUND/WGR.3/22 (14 May 2004) ** See document IOPC/OCT16/4/3/1 (23 September 2016)
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Summary: Unparalleled security
The International Group Summary: Unparalleled security Limited relative claims experience – a good thing! Excellent State – IG P&I – IOPC Fund co-operation Underpinned by international regulatory system Future co-operation: - International Group/SOPF/IOPC Fund MoU? Happy 30th anniversary!
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“Collectively Stronger”
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