Class II - General Trade Disruption Insurance

Tanker suffers breakdown to specialist loading equipment

An Assured operated a tanker vessel fitted with specialist equipment to facilitate the loading of crude oil cargoes from a submerged turret buoy/tanker connection located near to the production platform of a deep sea oilfield. The vessel was engaged under a long-term contract to load oil from one particular installation.

Whilst preparing to berth and link up, a breakdown occurred to part of the shipboard machinery required to make the connection between the vessel's mating cone and the submerged turret buoy. As a consequence, the vessel was unable to fulfil her requirements under the long-term contract of affreightment and was put 'off hire'.

The vessel was insured with Transmarine for net loss of earnings as a result of the inability to load or discharge cargo caused by breakdown of machinery. The damaged machinery was removed for repairs, which took 33 days. During this period, whilst the vessel was unable to fulfill her contractual obligations, owners were able to obtain some employment for the vessel on the normal spot market. Such employment, whilst mitigating the Assured's loss, left a considerable shortfall as compared to earnings made under the long-term contract. Transmarine was able to compensate the Assured for the net loss of earnings as a result of this casualty.