Mercury Ocean

-------------------- 2nd Update --------------------

30 October 2020

* Salvage assistance is now being rendered to the MERCURY OCEAN with the cargo on board being lightered from the vessel to assist with the refloating operations.

*The vessel still remains aground on the shoreline although it was reportedly pulled 40 meters from its original position by a tug at high tide. Efforts will continue in this regard.

* The extent of any bottom damage is still unknown.

* It is not yet confirmed on what basis the salvage assistance is being rendered, whether under Lloyd's Open Form or on commercial terms. If a LOF has been entered into, salvage security will be required for the cargo on board in order that on-carriage and delivery can be undertaken. WKW security is acceptable to the Council of Lloyd's and is a preferred option for professional salvors.

* Given the apparent seriousness of the situation, it is unclear whether the vessel interests may also declare general average, but if so, general average security will need to be provided. WKW may also be able to assist in the provision of such security.

*Claims against the vessel interests may now comprise possible loss and/or damage to cargo; additional costs of completing the voyage; if declared a defence to general average and a salvage indemnity if cargo is required to settle a proportion of the salvors' claim. Accordingly, should you be concerned with the cargo on board this vessel, please contact as soon as possible in order that we may start taking immediate steps to protect your interests.

-------------------- 1st Update --------------------

* We have received reports that bulk carrier, MERCURY OCEAN, dragged its anchor in poor weather and went aground at Boshnyakovo Anchorage, western Sakhalin Island, Russia on 25 October 2020.

* Tug assistance is understood to have been rendered from Korsakov Port, Russia to assist refloating / salvage operations.

* It is reported that the vessel was partially loaded with in excess of 12,000 metric tonnes of coal at the time of the incident.

* It is possible that this matter will result in a claim for salvage and general average may also be declared by the vessel owners. If so, there will be a need to provide general average and/or salvage security and WKW may be able to assist in this regard. The cargo may also have suffered physical loss and/or damage with consequent recovery issues.

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