A long detainment of the bulk carrier at an Iraq port has been a cause of great concern for its owners, ship managers, and insurers.
What happened?
Since August 2017, the bulk carrier ‘Royal Arsenal’ has been detained at the port of Umm Qasr in Iraq after being involved in an accident.
The ship was involved in an collision with the dive support craft “Al Misbar” owned/operated by the GCPI (General Company for Ports of Iraq) ,which was being used to ferry port employees from an offshore oil terminal.
21 personnel dead
A compulsory Iraqi Pilot was designated on board for supervising the navigation but maller vessel overturned and many of the 23 passengers and eight crew were trapped inside. Despite the rescue efforts of the GCPI salvage teams, 21 personnel died.
Since the incident, no quantified claims have been filed at Court or requests for security presented and the vessel has been forced to remain at Umm Qasr.
Request for compensation
Iraq’s Transport Minister, Kazem Finjan, has directed that compensation be paid to the victims’ families, which in addition to a cash payment from the GCPI includes land for a new home and employment at the GCPI for a family member. Accrued retirement benefits will also be paid.
The families have made large unsubstantiated claims for additional compensation from the Royal Arsenal, whilst the GCPI have failed to quantify any of their alleged claims.
Owners frustrated
This incident has been causing major concern and frustration to the owners, ship managers, and insurers. The master of the vessel was detained for further investigation and released on bail after three days.
Little substantive progress has been made before the local Courts and in appeals to the Court of Cassation in Baghdad and the owners were now commencing proceedings before ITLOS (International Tribunal for the Law of the Sea) in Hamburg based on breaches of the United Nations Convention on the Law of the Sea by the Iraqi authorities.
The owners and West of England P&I Club want to settle all claims on a basis which reflects the merits and the failings of the GCPI. Till date, discussions to date have not been successful since the demands of the claimants have far exceeded the value of the vessel.
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Source: Vessel Tracker
