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SAN DIEGO — Risk management in the ocean shipping industry depends on strong seamanship, a keynote speaker said during the International Union of Marine Insurance’s annual conference held this week in San Diego.
In the shipping industry, risk management often is viewed as “all of the risk with none of the management,” Richard T. du Moulin, president and owner of Intrepid Shipping L.L.C. in Stamford, Conn., said Monday at the conference.
Intrepid Shipping manages a fleet of eight oceangoing ships, ranging from capeside bulk carriers to chemical tankers.
“It all comes down to good old-fashioned seamanship,” Mr. du Moulin said, noting that seamanship refers to the knowledge of and skill in the navigation and maintenance of a ship.
Ship owners need to understand the leadership role of the captain, who should have power and accountability aboard the ship, he said.
Leadership — or the lack thereof — was a factor in the sinking of the Titanic in 1912, a definitive event in the shipping industry, Mr. du Moulin said. “Nothing comes close” to the benefits of good leadership, he said?.
“Does seamanship matter? 100 years later it sure does matter,” Mr. du Moulin said, referring to the sinking of the Costa Concordia in January, where Captain Francesco Schettino failed to visualize the risks of a tricky maneuver and allegedly did not help crew members and passengers.
At $1 billion split between hull and liability underwriters, the Costa Concordia shipwreck resulted in the largest claim ever for a single ship.
Marine insurance underwriters and brokers need to perform due diligence among ship owners with a strong emphasis on seamanship, Mr. du Moulin said.
“You want to put your money where their commitment is,” he said.
SAN DIEGO—The marine insurance industry faces a difficult year, with continued soft pricing for ocean hull insurance rates, according to speakers at the annual International Union of Marine Insurance conference, being held this week in San Diego.