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YM Mobility declared a common sea loss!
Aug 21, 2024|
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On August 9. YM Mobility, a 6.600 TEU container ship of Taiwan-based Yang Ming Marine Transportation, suffered a bow fire and explosion while operating in the port of Ningbo.
According to the latest news, YM Mobility officially declared a common sea loss on August 18th to deal with the loss of goods and property on board.
According to Yang Ming Marine Transportation, Joint Marine Loss is a marine insurance clause that requires all beneficiaries to share the loss when the ship and its cargoes are sacrificed to protect the overall safety in case of emergency. This shows Yang Ming's serious attitude towards the cargo owner's responsibility and ensures that the loss of all stakeholders will be dealt with fairly.
Yang Ming Marine Transportation explained that after the accident, the company responded quickly and took immediate contingency measures in cooperation with the port authorities of Ningbo Port and local firefighting organizations. By the day of the announcement, the fire had been completely extinguished, and the specific cause of the accident is still under investigation by a third-party professional unit.
According to Yang Ming Marine's announcement, the company has appointed Richards Hogg Lindley, a professional adjuster, to assess and adjust the loss in accordance with the Common Maritime Losses Rules (York-Antwerp Rules). In addition, after ensuring the safety of the vessel and the environment at the site, the Company has commenced the unloading and transshipment of the cargo and will proceed with the delivery and collection of the cargo in accordance with the instructions of the adjuster.
What is a General Average?
When the ship's cargo or other property encounters a common peril during the same sea voyage, the special sacrifices and expenses incurred as a direct result of intentional and reasonable measures taken for the sake of common safety shall be shared proportionately by the beneficiaries. In simple terms, it means that “the loss resulting from the sacrifice for the sake of safety of everyone's cargo shall be compensated by everyone together.
What is included in common sea loss?
The loss of common sea loss needs to be shared by all beneficiaries, including the cargo owner and the shipping company, according to a certain proportion.
If the owner of the goods do not happen to buy insurance, then not only the loss of goods will have to compensate for a certain amount of common sea loss costs.
Common sea loss generally has three forms of expression:
Common loss of sea sacrifice, common loss of sea costs and replacement costs and other amounts included in the common loss of sea loss.
What is included in the common sea loss?
Generally, the common sea loss sacrifice mainly includes:
1. Loss of abandoned normal transportation goods.
2. Damage to the ship's bottom and wet loss of cargo in the hold caused by intentional grounding, etc.
3. further damage to the ship and cargo caused by fighting fire on board.
4. Damage to machinery and boilers caused by repeated use of machinery and boilers in order to run aground.
5. Further damage to the ship and cargo caused by the reduction of cargo on board a stranded ship.
6. Loss of ship's stores, materials and cargoes used as fuel.
In general, the common sea loss costs mainly include:
1. Salvage remuneration.
2. port of refuge expenses: including the cost of entering and leaving the port of refuge, towing costs incurred in transferring to the port of refuge, the cost of loading and unloading and storing goods and fuel materials in the port of refuge.
3. Other expenses such as crew wages, sustenance and fuel consumption for the voyage to and stay in the port of refuge.
4. Repair costs of the vessel: These costs are included in the loss of common loss on the premise that they are incurred in repairing a common sea loss, including dry-docking/docking fees and berthing fees.
5. Loss of freight at risk.
Separate Sea Loss
Separate sea loss is the symmetry of common sea loss:
It refers to the part of loss incurred in marine transportation due to shipwreck and other accidents that cannot be included in the common sea loss.
Separate sea loss only involves the loss of the respective interests of the ship and cargo (if the ship runs aground/bottom damage due to the negligence of the pilot; cargo theft, burning, etc.), the loss is borne by the respective parties in interest, such as insured, the insurer instead of the party responsible for the loss caused by the party responsible for the loss (only related to the loss of or damage to the subject matter, does not include any costs).
Separate sea loss has separate sea loss of the ship, separate sea loss of the cargo, and separate sea loss of the freight.
Separate vs.
Separate sea loss and common sea loss are both partial losses, but there is a strict difference between the two.
Separate sea loss is the loss directly caused by shipwreck and other accidents, without human factor.
Common loss of sea is in order to prevent or mitigate the former occurred, human subjective factors.
The difference between common sea loss and separate sea loss is shown in:
1. the cause of sea loss is different. Separate sea loss is directly caused by the insured risks of the ship, the loss of goods, while the common sea loss is in order to lift or mitigate the risk of mankind to consciously take reasonable measures to cause the loss.
2. the loss of the bearer is different. Separate sea loss of loss, by the damaged person himself, while the loss of common sea loss by the parties to the proceeds of the size of the interests of the salvation of the proportional share.
3. the content of the loss is different. Separate sea loss only refers to the loss itself, while the common sea loss includes the loss and the resulting costs.
4. The parties in interest are different. Separate sea loss only involves the interests of the losing party, while the common sea loss is for the common interests of the ship and cargo parties suffered loss.
