Collision with another ship…

December 1st, 2022-Nordic Irregular Blog-1 min-

Collision with another ship…

Collision with another ship,

or alliding with any fixed or floating object other than another ship…

A 59-meter luxury yacht collided with a bridge in the Pisa Canal, Italy. The yacht had been ongoing a refit and was seriously damaged by the collision.
According to available sources, the yacht tried to pass the bridge during high tide, but for vessel of such size the bridge is crossable only during low tide.

Such large yachts are usually exploited by the owning company through specialised yacht management companies that do the technical and commercial management, usually in the shape of week charters at considerable amounts.

Following the incident the yacht will not be available for charter, and if a charter had been fixed prior to the incident this will mean a cancellation, and a considerable loss of charter hire for the owning company and loss of commission for the management company.

… Find a replacement yacht…

Usual market practice in this special segment is, for the yacht managers, to find a replacement yacht.

Of course, even if a replacement yacht is found it will mean a partial loss of charter income, but still a loss.

Nordic Marine have adapted their delay cover to respond to charter cancellation up to an agreed charter amount, so in such a case the loss would be avoided either for the agreed full amount or for the partial amount lost in mitigation.

Nordic Irregular Blog

Archives