World News
Gard: A Busy Arctic will be a Better One for Insurers
Gard CEO Rolf Thore Roppestad says a busy Arctic will be a better one from an insurance point of view, Lloyds List reports.
Speaking at last week's seminar on Arctic risk at Nor-Shipping 2015, Roppestad explained that while the region has an increased seasonal risk from ice, the remoteness of the area means there is a year-round risk of little or no immediate search and rescue, or salvage capabilities.
A busier Arctic, he argued, would therefore result in increased response capabilities to deal with emergencies, lowering risk.
Roppestad also noted concern over substandard vessels being given insurance cover to enter the Arctic, a view echoed by shipowner Felix Tschudi who said that that regardless of traffic levels, vessels traversing the Arctic should be accompanied by mandatory icebreaker escorts.
Travelling through the Arctic using routes such as the Northern Sea Route (NSR) is attractive to vessel operators as it can reduce overall voyage time and save on bunker costs.
However delays can occur while vessels wait for icebreakers.
Örjan Karlsson, insurance manager for Sweden's Stena Bulk, noted one voyage involving Stena Polaris in 2013, where the expected fuel savings were made but four days were lost waiting for an icebreaker escort to arrive - one of the insurance requirements for the vessel.
Earlier this month, Total S.A. was reported to order 16 LNG icebreakers for their gas extraction project in northern Russia.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 629.00 | 2.00 | 738.00 | 1.00 |
| Rotterdam | 572.50 | 6.50 | 740.00 | 13.50 |
| Houston | 593.50 | 6.00 | 753.50 | 11.00 |
| Fujairah | 626.50 | 4.50 | 885.00 | 3.50 |
| Global 20 Ports Average | 646.00 | 0.50 | 825.50 | 1.50 |
| Global 4 Ports Average | 604.00 | 2.50 | 784.00 | 4.50 |
| Global Average Bunker Price | 700.00 | 3.50 | 883.00 | 3.00 |
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