Two of the most commonly used sets of hull and machinery insurance terms are the Nordic Marine Insurance Plan 2013 and the Institute Time Clauses Hulls 1983 (ITC). Both have long traditions, but with different approaches. For example, hull and machinery insurance on the Nordic Plan covers all risks unless they are specifically excluded, while the ITC is based on the 'named perils' principle.
Sellers and buyers of secondhand vessels are sometimes faced with the question of which standard contract to use. The Norwegian Saleform 2012 is the most commonly used contract in the market, with the Japanese Nipponsale 1999 coming in second. However, if one party is based in the east and the other in the west, negotiations sometimes begin with a battle of forms
As a consequence of the challenging times that the shipping industry faces, an increasing number of requests are being made regarding the procedure for arrest and forced sale of vessels. While arrest, or even the threat of arrest, may be a tempting way for a claimant to get the debtor's attention and hopefully receive payment, it may not be equally tempting to embark upon a forced sale procedure to collect the debt.
An arrest is normally obtained to provide security for a claim against the vessel owner, but it is also an effective way to press for a quick settlement of undisputed claims. The fact that vessels constantly change locations and continuously incur debt and liability means that an arrest, or the threat of an arrest, is an important tool for suppliers and other creditors to ensure payment of claims.
The Maritime Logistics Chains and the Environment Project, which commenced in October 2008, is a bold, progressive project focusing on how international sea transport may be optimized to reduce fuel emissions. Heavyweight DNV Maritime is the project owner and major players such as Höegh Autoliners, StatoilHydro and MARINTEK are involved.
Norwegian ship managers can reduce the potential risk of having to pay for goods or services ordered for the ship by specifying both that orders are made on behalf of a named owner and that orders are to be governed by Norwegian law and jurisdiction. Procedural conflicts and the uncertainty that often follows may be avoided by having explicit internal instructions regarding contractual procedures.