Tasman Pioneer
The "Tasman Pioneer", a Cyprus-registered container vessel under time charter, loaded cargo in New Zealand ports for markets in Japan and Korea. In the early morning of 3rd of May 2001, the vessel went aground in the Bungo Sounds, in Japanese waters, enroute from Yokohama to Busan in Korea. Originally reported as a collision with an unknown object, it was soon apparent that the vessel had gone aground and was taking on water. Weather conditions were not adverse, and no other vessel was involved. There seems to have been a basic navigational blunder.
The Japanese Maritime Safety Authority dispatched five patrol vessels and tried to pump out the vessel, without success. At about 1630 hrs on May 3rd, all 27 crew abandoned ship and boarded the patrol vessels. In the meantime, Nippon Salvage had negotiated a salvage contract with the owners under Lloyd's Open Form and SCOPIC, and so sent their salvage vessels to attend the stricken vessel.
Vero Marine are the lead insurer on many large export accounts, so it was little surprise to us to find that we were the insurers of a considerable amount of CIF cargo on board. Our first task was to obtain from our clients a list of the container numbers, a description of the cargo and copies of the commercial documents (bills of lading, commercial invoices, and insurance certificates). We had to quickly determine the terms of sale, as cargo that was not on a CIF or similar basis was insured by the consignees.
From Lloyd's List:
Moji, Japan, May 7 .... Tasman Pioneer is now anchored at lat 32 59N, long 132 24E, in Bungo Channel, and the forepeak tank and Nos.1 & 2 holds were flooding. The water has apparently leaked in these compartments through the holes in the bottom plating. The salvors are considering voluntary grounding of her. The Master, Chief Engineer and some other crew reboarded her, to assist the salvage operations. — Lloyd’s Agents.
We quickly established that we were the insurers of 67 containers of dairy produce, hides and skins, squash and china clay. Luckily one of our clients had just off-loaded another 40 containers in Yokohama!
The vessel was towed and beached in Japan, where the hull was patched.
From Lloyd's List:
Moji, Japan, May 11 — Mv Tasman Pioneer: Negotiations with the fishermen involved has been successfully concluded. The vessel then beached at about 0830, local time, May 10, in Murote Bay, Ehime prefecture, Shikoku, in position lat 33 00.1N, long 132 30.3E. Two steel wire ropes rigged from her stern to the shore rock and two oil booms have been laid along her port and starboard side. Her forward bottom plating ripped open over 30 metres. The Salvors will commence salvage work there and commence discharge of cargo. — Lloyd’s Agents.
Some of the cargo was removed and barged to Kokura; and when the vessel was refloated the remainder of the cargo was discharged at Kokura.
From Lloyds List:
London, May 18 — A press report, dated today, states: Dairy products worth $5 million were ruined when mv Tasman Pioneer, heading for Korea, hit a rock and was beached off Japan On May 2, The Dairy Board said today. The Board supplied some customers by air freight and this week dispatched a replacement shipment, external communications manager Neville Martin said. “She was beached so that she didn’t totally sink but was pretty worse for wear and the stuff which was in containers was badly affected,” he said. All the casein (milk product) and cheese bound for Korea had to be abandoned, but was covered by insurance, Mr Martin said. “We managed to organise air shipments of the same product to customers, just to keep the customers happy, and backed that up with an immediate replacement shipment which is now on the water and will be with the customers within a week.”
Vero Marine is commercial marine division of the Royal & SunAlliance New Zealand. We have an extensive worldwide network, more comprehensive than any of our local competitors. Our Asia Pacific colleagues in Singapore assisted us in negotiating a financial guarantee with the Japanese salvors and a general average guarantee to the shipowner's appointed average adjusters in Greece. Despite the number of containers we had to process, we were considerably faster than the rest of the NZ market in allowing the release of the containers from lien. We had to get our cargo inspected and salvaged! For some containers there was no hope, having been immersed in seawater for days, but for most it was a race against time to get the contents in to the hands of salvage experts. Again, this is where our worldwide network of offices assisted. Many of the containers of hides and skins were destined for Korea and China. Our Korean marine colleagues we actively involved in negotiating with the Korean quarantine officials and obtaining the maximum amount of salvage. Royal SunAlliance Korea alone saved some US$200,000 of product from being condemned by the authorities.
The photograph above shows a container of hides and skins on arrival in Korea. The cargo had been totally immersed in seawater, which affected the pelts' acidic preservative.
Salvage and General Average are specialised topics, arising only in marine casualties such as this. Without an experienced cargo insurer, NZ exporters would have a very steep learning curve, and bewildered clients. Without a secure insurance company providing a guarantee, cargo owners may be asked for hefty cash deposits before they can secure the release of their cargo. (Bank guarantees are usually not acceptable, as they are invariably limited in duration or amount.) As general averages can take a few years before the final settlement, the use of that money is lost for that time, with a substantial amount (possibly up to 80% of the undamaged value) due to the salvors and for other common expenses incurred in bringing the cargo to a safe haven. For our 67 insured containers, we're currently holding financial claims reserves of over NZ$3,500,000 (September 5th, 2001) because of the financial guarantees given to release the cargo.
Cargo owners cannot expect to recover from the vessel's insurers. Exports from NZ by bill of lading are subject to the Hague-Visby Rules 1968. One defence available to a ship owner is one of "nautical error" - essentially, a ship owner can escape liability for negligence by laying the blame on their employees, the master and crew. (This is generally not the case for air and land transport disasters). Even if the vessel was found liable for cargo damage, liability is limited to a set amount per unit or kilo, and an overall cap set by the size of the vessel.
As Lead insurer, Vero Marine and Royal & SunAlliance have paid in excess of NZ$7,400,000 for damaged cargo. We have done this quickly, having verified the claims presented to us. Our export clients have not lost any customers through their own efforts in resupplying - and our service and prompt payment of their customers' claims.
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