YML declares common sea loss! Ningbo Harbour explosion follow-up
On August 20th, Yang Ming Marine Transport Corp. officially announced on its website that its vessel, YM Mobility, suffered a bow fire incident while operating at Ningbo Port on August 9th. To protect the common interests of the vessel and all its property, Yang Ming Marine Transport Corp. has declared the incident as a General Average, in accordance with relevant regulations.
According to Yang Ming Marine Transport Corp., after the incident, the port authorities and local fire departments at Ningbo Port responded swiftly and implemented effective emergency measures. With professional guidance, they successfully controlled the fire. As of the announcement, the incident has been fully resolved.
Regarding the specific cause of the incident, Yang Ming Marine Transport Corp. stated that a thorough investigation by a third-party professional organization will be conducted.
To ensure the safety and interests of the vessel, cargo, and crew, and to properly handle subsequent matters, Yang Ming Marine Transport Corp. has declared the incident as a General Average in accordance with the General Average adjustment rules. Richards Hogg Lindley has been appointed as the adjuster to handle related matters, including collecting the necessary guarantees from the cargo interests.
The notice states that, to facilitate the smooth release of customers’ cargo and avoid unnecessary delays, please contact the adjuster and provide the necessary guarantees and relevant documents. Please treat this notice as an urgent matter to prevent unnecessary delays: cargo cannot be collected until the guarantee is submitted.
Additionally, under the premise of ensuring the safety of the vessel and the site, and with the approval of the port authorities, Yang Ming Marine Transport Corp. has begun planning the unloading and transshipment of the cargo on board.
Regarding the schedule for the delivery and collection of affected cargo, Yang Ming Marine Transport Corp. will arrange it according to the adjuster’s instructions to ensure transparency and fairness throughout the process.
It is reported that at about 13:50 on 9 August, a serious container combustion incident occurred on a container ship named YM Mobility (IMO9457737) under Yang Ming Marine Transportation at Berth 2 of Phase III of Beilun Second Container Terminal in Ningbo Zhoushan Port, Zhejiang Province.
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In its response on the day of the incident, Yang Ming Marine Transport Corp. stated that the preliminary investigation indicated an explosion occurred in a hazardous cargo container on board. The container, declared by the cargo owner as a refrigerated container used in place of a dry container, did not require power connection.
On August 10th, Yang Ming Marine Transport Corp. provided an update on the incident, reporting that there was no open fire on the vessel, and water was continuously being sprayed to cool down the area. All crew members and on-site personnel were reported to be safe.
On August 12th, Yang Ming Marine Transport Corp. issued a notice stating that the estimated loss amount depends on the subsequent handling of the incident, with an initial estimate ranging between $1.5 million and $9.5 million. The company also mentioned that arrangements for transshipment, vessel repairs, and initiation of P&I insurance, hull insurance, and container insurance were underway.
Yang Ming Marine Transport declared that the accident constituted a common maritime loss. This means that all cargo owners who loaded cargo on board the vessel are jointly liable for the resulting losses and responsibilities. Specifically, cargo owners are required to provide a joint sea loss guarantee to ensure that their cargoes can be picked up smoothly before they can collect their cargoes.
General Average manifests as both General Average Sacrifice and General Average Expenses.
General Average Sacrifice includes:
Throwing overboard cargo to save the vessel.
Cargo and vessel damage resulting from efforts to extinguish a fire on board.
Losses from jettisoned damaged items.
Damage to machinery and boilers.
Cargo used as fuel.
Losses from ship's materials and supplies.
Damage incurred during the unloading process.
General Average Expenses include:
Salvage rewards.
Costs related to lightening the vessel if it is grounded and any damages incurred.
Expenses for refuge ports.
Wages and other expenses paid to crew members during voyages to and at refuge ports.
Repair costs.
Substitute expenses.
Advance payments for fees and insurance.
Interest on General Average losses.
General Average is a principle that involves intentionally and reasonably making special sacrifices or incurring special expenses to save the ship or cargo from a common peril.
When a vessel experiences a General Average situation, cargo owners are required, according to relevant laws and international practices, to provide a General Average guarantee so that the adjuster can compensate for the losses. Freight forwarders may need to advance these guarantees and have the right to recover the costs from the principals.
According to the latest ship updates, the vessel is still berthed in Ningbo harbour, awaiting further processing.
In addition, in view of the fact that the vessel used to call at Shanghai port before the accident in Ningbo port and was involved in the business of sharing space with a number of shipping companies, we would like to remind shippers who have cargoes on board the vessel in the near future to maintain close communication with freight forwarders, shipping companies and other parties, and keep a close eye on the latest progress of the accident and the subsequent handling of the situation.
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