MSC Michaela

Details
Instruct Us
Name MSC Michaela
Date 01 April 2020
Year of Build 2020
Casualty type Machinery Failure
Vessel Type Container Carrier - VT UCC
Report

------------------UPDATE 2-------------------

* Further to our last update, we are pleased to confirm that our application for the appointment of a Court Surveyor in Antwerp has been successful.

* Today a Court Surveyor attended on board the vessel in conjunction with our local technical expert and that appointed by the Owner. Our experience is that the reach of the Court Surveyor in accessing material is much greater than that which is expected of a traditional joint survey, to the benefit of our principals investigations.

* As the casualty is reported to have occurred as a result of damage to the rudder it is imperative from the point of view of cargo interests that the circumstances surrounding the damage are fully investigated. This is to ensure the best possible chances of a Rule D defence to the Carriers General Average claims. In order to ensure that no evidence is compromised it was vital that a surveyor attended on board as soon as possible. We would add that Court Survey proceedings are a provisional measure, so they do not prejudice any rights or remedies of the parties, including any jurisdictional issues that may arise.

* We have already received instructions from insurers concerned with a significant number of containers onboard the vessel. As such we are able to offer certain economies of scale in respect of any third party costs which may need to be incurred, including that of the Engineer Surveyor and Court Surveyor. Our principals will receive the full benefit of the investigations and expertise but at a fraction of the cost.

* With consideration to casualties over the last year, specifically those concerning container carriers, we have made representations to Average Adjusters and associated governing bodies regarding the requirement of Average Bonds. We are pleased to advise that as a result on this case, Average Bonds are not required to be issued in conjunction with Average Guarantees for insured cargoes. This decision has been made to help streamline the GA process and with consideration to the working restrictions some are experiencing as a result of the COVID-19 pandemic.

* Cargo discharge operations were completed in Antwerp on 24th April 2020 with cargo being liened ashore. Cargoes will not be released for delivery or transhipment to destination until acceptable GA security has been provided.

* We strongly recommend that you contact us urgently if you are concerned with any cargo on board this vessel so that we can immediately seek to protect your interests and, where necessary, to provide General Average security in respect of that cargo.

------------------UPDATE 1-------------------

* We confirm having retained an experienced Engineer Surveyor to investigate the circumstances and possible cause(s) of the failure of MSC MICHAELA's rudder during the voyage. It is imperative from the point of view of cargo interests that the circumstances surrounding the failure are fully investigated in order to properly evaluate the prospects of asserting a defence to the Carriers' General Average claim based upon Rule D of York-Antwerp Rules and as may otherwise applicable pursuant to the relevant contracts of carriage.

* In terms of the surveyor being allowed access to the vessel we are now proceeding with an application for the appointment of a Court Surveyor in Antwerp to expedite matters. This should ensure that the survey takes place at the earliest possible opportunity and that the investigation is carried out thoroughly under the auspices of the local court.

* It is understood that cargo discharge operations are expected to be completed over the next two days, following which the MSC MICHAELA will be dry docked to undertake repairs. This makes it all the more important that the surveyor attends as soon as possible to capture the necessary evidence.

* We confirm having already been instructed by a number of Cargo Insurers representing a significant quantity of the cargo on board and we may therefore be able to offer certain economies of scale in respect of any third party costs which may need to be incurred, including that of the Engineer Surveyor and Court Surveyor.

* Insofar as the provision of General Average security is concerned, the Average Adjusters have advised they will only be collecting security from cargo carried under Maersk / Safmarine and Hamburg Sud bills of lading, but that no General Average security will be required for cargoes carried under MSC bills of lading. It is understood that MSC have put in place separate arrangements with their own insurers regarding cargo's proportion of General Average applicable to cargoes carried under MSC bills of lading.

* We strongly recommend that you contact us urgently if you are concerned with any cargo on board this vessel so that we can immediately seek to protect your interests and, where necessary, to provide General Average security in respect of that cargo.

------------------ORIGINAL-----------------

We have received the following new casualty report:

* MSC MICHAELA encountered a technical issue with its rudder in a position approximately 238 nautical miles from the Hibernia Oil Field in the North Atlantic Ocean on 1 April 2020.

* Attempts to repair the rudder were unsuccessful and the vessel was later taken under tow by tugs toward Antwerp where it is reported to have arrived safely on 22 April 2020.

* General Average has been declared. Consequently, General Average security will be required from all Cargo Interests prior to the delivery of their cargo and we are likely to be able to assist. We are currently in contact with Average Adjusters.

* We have already been instructed by certain cargo insurers concerned with cargo stowed on board the vessel and may be able to offer certain economies of scale in respect of any third party costs which may need to be incurred.

* We recommend that you contact us urgently if you are concerned with any cargo on board this vessel so that we can immediately start taking steps to protect your interests.

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MSC Michaela