2. FORSEEABLE CONSEQUENCES FOR MARINE INSURANCE Impacts of Climate Change on the Maritime Industries Preparatory Workshop 7 – 8 June 2007 World Maritime University, Malmö Patrick Donner Associate Academic Dean World Maritime University

3. Patrick Donner, World Maritime University2 IMPACTS ON SHIPPING Regulatory impacts Regulatory impacts –New / revised international and national regulations –E.g. MARPOL Annex VI – emissions –Reactive measures Technological impacts on ships Technological impacts on ships –Need for and proliferation of ice-classed ships –Methods for ballast water exchange Commercial impacts Commercial impacts

4. Patrick Donner, World Maritime University3 MARINE INSURANCE Navigation provisions Navigation provisions –International Hull Clauses (01/11/03) define navigation limits (clauses 10 and 32), where the vessel “shall not enter, navigate or remain” –Underwriters may give prior permission subject to amended terms and additional premium –Previous definition: Institute Warranty Limits (I.W.L.) Norwegian Marine Insurance Plan (2007 version compared to 2003 version) Norwegian Marine Insurance Plan (2007 version compared to 2003 version) –Small changes in East Asian waters (part of “Excluded trading area” changed to “Conditional trading area) –Conditional trading areas in the Baltic the period has been extended!

5. Patrick Donner, World Maritime University4 Excluded Trading Areas NMIP

6. Patrick Donner, World Maritime University5 Conditional Trading Areas: Baltic

7. Patrick Donner, World Maritime University6 Conditional Trading Areas: Baltic Limitation areas and periods in NMIP 1996/2003: Limitation areas and periods in NMIP 1996/2003: –The Gulf of Bothnia north of the line Umeå - Vasa during the period 15 December - 15 April –The Gulf of Finland east of 25° 45’ east longitude during the period 8 January - 15 April –The waters east of the line Dagerort - Lyserort during the period 1 January - 31 March Limitation period in NMIP 2007 Limitation period in NMIP 2007 –15 December – 15 May, both days included

8. Patrick Donner, World Maritime University7 Conditional Trading Areas: Baltic Limitation areas and periods in International Hull Clauses (01/11/03): Limitation areas and periods in International Hull Clauses (01/11/03): –The Gulf of Bothnia north of the line Umeå - Vasa during the period 10 December - 25 May –The Gulf of Finland east of 28° 45’ east longitude during the period 15 December - 15 May for vessels < 90,000 dwt »Vessels greater than 90,000 dwt may not enter at any time!!! –Gulf of Bothnia, Gulf of Finland and adjacent waters north of 59° 24’ north latitude between 8 January – 5 May, except for calls at Stockholm, Tallinn or Helsinki –Gulf of Riga and adjacent waters east of 22° east longitude and south of 59° east longitude between 28 December and 5 May

9. Patrick Donner, World Maritime University8 CURRENT SITUATION

10. Patrick Donner, World Maritime University9 CURRENT SITUATION http://www.smh.com.au/articles/2003/10/24/1066631611744.html

11. Patrick Donner, World Maritime University10 Charter Parties Time-charterparties refer to International Navigational Limits or I.W.L. Time-charterparties refer to International Navigational Limits or I.W.L. Define (geographical) limits for the use of the vessel Define (geographical) limits for the use of the vessel –“…always within I.W.L…” If wider geographical areas become accessible and the insurance definition of excluded and conditional trading areas do not adapt, charterers run greater risk of breach of contract If wider geographical areas become accessible and the insurance definition of excluded and conditional trading areas do not adapt, charterers run greater risk of breach of contract

12. THANK YOU ! Questions ?