Nanyang Technological University ( NTU ) is a cosmopolitan international university based in Singapore, NTU has more than 100 nationalities on its campus. Believing in the benefits of global exposure and immersion for its students, 72 students from NTU follow an exchange program this year with the Erasmus University Rotterdam (EUR). The newly established “Maritime Studies” program provides diversified courses like ship management, ship ownership as well as marine insurance.
In the marine insurance course RMSC member Erwin van Geyte of AON gave several lectures discussing the general principles, Hull & Machinery/War insurance cover as well as the fascinating world of P&I clubs. Rotterdam as a marine hub in Europe has many assets in respect of insurance, these were highlighted during the course.
The impact of the current global geo political situation on marine insurance was explained by various examples like ; Northern Sea Route (NSR)
Due to melting of the North Pole a new shipping route (NSR) in the summer time is bringing goods from the far east to Europe; not through the Suez canal but passing the arctic waters. The route is within Russia’s exclusive economic zone. Parts are free of ice for only two months per year. In general these routes are excluded from marine insurance policies. Some shipowners are very keen on exploring these routes and adapting their insurance covers; others like CMA CGM stay away from these new challenges…
Another item was the Attacks on vessels in the Arabian Gulf: With the latest attacks on vessels in the Arabian Gulf, cargo owners are facing freight increases of as much as $300,000 per day, after global marine insurers imposed an additional war risk premium of 0.35 per cent to 0.40 per cent of the value of the ship, for every transit through the Strait of Hormuz – the world’s busiest oil shipping lane – in the wake of recent attacks on oil tankers.
The freight rates for an Arabian Gulf to India run for a modern Suezmax tanker or a very large gas carrier (VLGC) have gone up by $150,000 to $300,000 per day because of the additional war risk premium on the ship’s hull and machinery levied by underwriters, an executive with an Indian shipping company said. The extra war risk premium for a modern very large crude carrier or VLCC will be much more and the freight rates will be higher to that extent, he said.
Besides Erwin, also Bart Hoogstad, our former RMSC board member, spread his light on the Maritime Insurance part, by lecturing two mornings. RMSC welcomed the Nanyang students and look forward to intensified cooperation between the Erasmus and RMSC for the second edition.