LOSS PREVENTION FOR FISHING VESSELS Bruce E. Verweij Bsc. Principal surveyor, management director Verweij & Hoebee marine surveyor and consultants at Amsterdam.

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Marine surveyor for over 30 years

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AGENDA § 

Basis of loss prevention Changing behavior and awareness responsibility

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Example: Dutch fishing fleet Typical risks per group of vessels

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On what do we need to focus? What are the tipical risks?

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Actions taken by Dutch insurers Damage prevention and fire prevention plans

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How to prevent damage and fire Learning experience and working together

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Achievements

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§  Control of habits and ignorance THE BASIS OF LOSS PREVENTION §  Awareness of responsibility and importance

AWARENESS OF LOSS PREVENTION §  Achieve a change of habits and mindset §  Convince shipowners of necessity §  Convey that prevention is possible and workable

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AWARENESS OF LOSS PREVENTION §  Safe working must be learned until it becomes a (good) habit again

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BELIEVE IN PREVENTION, OR IT WILL NOT WORK!

DUTCH FISHING VESSEL FLEET 4 major groups of fishing vessels Smaller fishing vessels §  12-13 meters §  < 200HP or 150KW

Large/unrestricted fishing vessels §  > 25 meters §  < 2000HP or 1470KW

Euro type fishing vessels §  > 25, < 50 meters §  300HP or 211KW

Factory trawlers §  < 150 meters §  < 10.000HP or 7352KW

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DIFFERENT VESSELS, DIFFERENT RISKS Different types of vessels face different risks of damage or fire, depending on: §  The degree of maintenance §  The chance on failure §  The complexity of vessels §  The presence of insulation 15.09.15

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SMALLER FISHING VESSELS §  12-13 meters §  < 200HP or 150KW §  Day fishing only §  No complex or flammable equipment §  i.e. Trawling winches, insulation or refrigerated fish storage

Low risk of major technical damage Lower insured values 15.09.15

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EURO TYPE FISHING VESSELS §  < 25 §  300HP or 211KW §  Fishing within 12 mile zone §  Equipment: Stationary fishing winches, insulation, cooled fish storage

Average risk of major technical damage Insured values up to 1 million EUR 15.09.15

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WHEN IT COMES TO PREVENTING DAMAGE… …the focus should be on the larger unrestricted vessels and the Pelagic factory trawlers. Where: Small preventable mistakes can cause multimillion EURO Damage 15.09.15

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LARGER UNRESTRICTED VESSELS §  > 25 meters §  < 2000HP or 1470KW §  Operates on deep and open water §  Technically Complex vessels: Wheelhouse, accommodation, large fish holds, complex fishing equipment, insulation

High risk of major technical/fire damage Insured values up to 6-7 million EUR 15.09.15

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EXAMPLE: PREVENTABLE DAMAGE Engine crew discovered a small leak in water cooled exhaust manifold §  §  §  § 

Fixed with small screw Second time à screw Strange color à extra coolant Third time à informed owner

massive corrosive damage due to excessive use of additives Crew was not aware of the litmus test to check PH of coolant Damage à more than 100.000 EUR 15.09.15

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POOR RESULTS ON THE LARGER FISHING VESSELS §  A loss ratio of 110% § Despite a engine day value clause

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PELAGIC FACTORY TRAWLERS §  < 150 meters §  < 10.000HP or 7352KW §  Technically highly complex vessel

High risk for major damage and fire Insured values up to 70 million EUR 15.09.15

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EXAMPLE: UNAWARENESS OF DANGER Multi million damage on trawler Repair work: §  Clear work plan §  Permits where ok §  Firefighting equipment ready §  Fire guard inspection Procedure went well, till.. Welder (unplanned) cutted off a pipe support and hit an hydraulic line 140 bar of hydraulic oil pressure was sprayed around and ignited. 15.09.15

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ACTIONS TAKEN BY INSURERS Insurers faced poor results due to preventable damage Verweij & Hoebee was asked to: §  1993: Set up a damage prevention plan (for the larger unrestricted vessels)

§  2006: Set up a fire prevention plan (for the trawlers) 15.09.15

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DAMAGE PREVENTION PLAN

DAMAGE PREVENTION PLAN Easy solutions for crew: §  Checklists §  Scheduled inspections §  Advice / teaching moments The purpose is not to act as a police officer, but to work together with the insured to prevent events.

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DAMAGE PREVENTION PLAN The Damage Prevention Form

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DAMAGE PREVENTION PLAN Positive results where visible for: §  Owner §  Crew §  Insurance Above all: The plan resulted in a changed mindset

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EFFECTIVE DAMAGE PREVENTION PLAN Needs: §  Annual inspection §  Working together with insured §  Recommendations with a high degree of effect §  Inspections lead to a feeling of achievement and self-esteem 15.09.15

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FIRE PREVENTION PLAN (2007)

FIRE PREVENTION PLAN FRAMEWORK For Pelagic factory trawlers the number of damage incidents still increases during scheduled repairs and refits. à Mainly due to fire damage à The risk became too high

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FIRE PREVENTION PLAN FRAMEWORK Offshore protocols are not translatable to the fishing industry à So a new fire prevention plan was needed

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FIRE PREVENTION PLAN FRAMEWORK The Standard protocol

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WHEN DEVELOPING A PLAN §  Owners engage with a safety company §  Owners can adapt and tailor the plan §  Surveyors verify the plan to underwriters satisfaction §  Owners integrate the plan into their project §  Surveyors mediate between owners and underwriters 15.09.15

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ACHIEVEMENTS

FOR BOTH THE DAMAGE- AND FIRE-PREVENTIONPLANS

§  Prevention plans reduce damage risk §  Awareness regarding prevention is key §  Uncontrollable risks will become controllable §  Prevention costs less than damage

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BOTH PLANS RESULTED IN: §  Loss ratio improved to 85% (larger unrestricted Fishing Vessels) §  Number of fire incidents reduced, despite increased numbers of refits (Pelagic factory trawlers)

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Questions ?

VERWEIJ HOEBEE GROEP Osdorper Ban 17BC

Take home: Awareness is key

1068 LD Amsterdam

+31 (0)20 – 610 72 60

Bruce E. Verweij Bsc Management Director

[email protected]

www.verweij-hoebee.nl