- When a vessel sinks inside harbour limits and lacks proper insurance, the port may be legally and financially responsible.
- Wreck removal, pollution control and business disruption can create costs running into hundreds of thousands of dollars.
- Ports must strengthen due diligence, inspection procedures and insurance arrangements to reduce exposure.
The risk of abandoned or uninsured vessels has become a serious concern for port authorities. When a ship becomes unseaworthy or sinks within harbour limits and ownership cannot be confirmed, the port may be obligated to remove the wreck. This can be necessary to prevent pollution, keep navigational channels clear or avoid disruption to commercial operations.
When Costs Quickly Escalate
Wreck removal is complex and expensive. Ports may be forced to fund fuel extraction, heavy-lift salvage, divers, specialist equipment and environmental protection measures. In one recent case, a port faced more than US$400,000 in combined costs to remove fuel and scrap a vessel that posed navigation and pollution risks fortunately, liability insurance covered the expense. Without cover, the port would have paid the full amount.
Smaller Craft and ‘Grey Area’ Vessels Increase Risk
Ports handle a wide range of vessels, many of which are outside the scope of strict inspection rules. Smaller crafts, including fishing boats, leisure craft, and barges, often have limited or no insurance. Some may lack hull cover for wreck removal, and with fewer inspections, the risk of unseaworthiness is higher.
For larger vessels, challenges arise when ownership is unclear, crews are unpaid or the vessel is linked to sanctions or complex operating structures. Once a vessel is abandoned or flagged as unseaworthy, removing it may be restricted by class or state rules, making the problem even harder to resolve.
What Ports Should Do Now
Ports should not assume an owner’s insurance will cover wreck removal. Due diligence before arrival is essential verifying pollution and wreck removal cover, checking ownership and hull condition, and ensuring minimum insurance standards through port terms and conditions.
For smaller vessels, permit or inspection schemes are recommended. Ports should also pre-plan emergency response with local salvage and heavy-lift partners.
Finally, ports must review their own insurance arrangements, ensuring coverage for pollution, obstruction, salvage and disposal including cases where a vessel’s insurer fails to respond.
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Source: TT Club
