News Risk Management27 Jun 2018

Vessels with slow speed engines have lowest claims-Swedish Club

27 Jun 2018

Bulk carriers and tankers, vessels which have slow speed engines, are the best performers when it comes to claims, according to the Swedish Club.

The latest statistics from the Club reveal that vessels propelled by medium/high speed engines have a claims frequency 2.5 times higher than slow speed engines, with an average claims cost of close to $650,000. Thus vessel operators should always look to the long term, when specifying the type of engines to be installed across the fleet, said the Club.

Main Engine Damage, the latest loss prevention report from The Swedish Club, provides more information on this expensive category of damage that occurs all too frequently—statistically a vessel will suffer between one and two incidences of main engine damage during its life time. Considering the costly consequences for ship owners and their hull insurers, it is important to identify the main causes of this damage and examine how these can be prevented.

Senior technical advisor Peter Stalberg said, “Our investigation shows that bulkers and tankers are the best performers for claims cost in comparison with Club entry. Most of these vessels have slow speed engines. Conversely passenger vessels/ferries have the highest frequency of main engine claims – 0.066 claims per vessel and year. Often these vessels have multiple medium speed engine installations. The same is also true for Ro-ro vessels.

He also said that when there is a choice to be made between a slow speed engine and a medium/high speed engine, the Club’s experience demonstrates that the slow speed engine is the safer option, when you balance the space saving advantages of the medium/high speed engine against the increased costs of running the vessel in its lifetime.

In addition, not only is the claims frequency of medium/high speed engines higher, but they also have a disproportionate claims cost (43%) in relation to insured vessels (28%). Lubrication failure is still the most expensive and frequent cause of damage, followed by incorrect maintenance and/or repairs.

The publication also includes loss prevention advice from the major marine engine manufacturers, MAN Engines and Wärtsilä. It can be found here.

| Print | Share

CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.

Other News



Follow Asia Insurance Review