Marine

Cold chain shipping is an integral part of the global shipping industry. In this post, we will outline the key risks in cold chain shipping and how to manage them, so as to guarantee maximum efficiency while maintaining the integrity of your goods.

What is Cold Chain Shipping?

Cold chain shipping is the specialist transport of goods that must be kept at a certain temperature to retain their integrity. This can include food, horticultural products, chemicals, and pharmaceuticals. These goods are stored in a temperature controlled environment, and they are packed in specialist containers that will keep them at the desired temperature during transit, usually with the use of dry ice, gel packs, or liquid nitrogen.

Real time monitoring and specialist handling techniques are required throughout the goods’ journey to their final destination. The goods are stored in cold warehouses at every stop of the journey, and they are transported in temperature controlled vehicles, such as refrigerated trucks.

The specific temperature requirements will depend on the goods being shipped. Some goods will simply require refrigeration at temperatures between 2°C and 8°C. Other goods must remain frozen at temperatures of around -18°C throughout their journey. Some goods require transporting at ultra-low temperatures, around -80°C.

Key Risks of Cold Chain Shipping

Any issues with the cold chain shipping process can result in spoilage, which will invariably lead to significant losses, and damaged customer trust. But in cold chain shipping processes involving chemicals and pharmaceuticals, any issues could lead to additional health risks, and even death.

Below we will outline some of the key risks of cold chain shipping, before exploring how you might address these risks, including:

• Poor temperature management
• Inadequate packaging
• Poor training
• Lack of contingency planning

Poor Temperature Management

Unless you act to ensure that all goods are kept at the required temperature throughout the entire shipping process, there will be a strong risk of spoilage, deterioration, and even the potential for pathogen growth.

This is a particular issue when goods are shipped overseas in refrigerated containers (reefers). If reefers lose power during a voyage, either as a result of mechanical breakdown or human error, then the temperature control can fail, which could cause entire shipments to be lost.

Issues with reefers during overseas cold chain shipping processes can lead to additional issues, as it is often difficult to determine just who is liable for the container losing power. This can lead to costly disputes between shippers and carriers.

Inadequate Packaging

The packaging used in a cold chain shipping process should do more than keep the goods cool. It should also protect them from humidity, light, and impact.

Poor Training

Employees may assume that all products involved in a cold shipping process have the same temperature storage requirements, which may not necessarily be the case. Some products may carry additional storage or handling requirements beyond the temperature requirements. If your employees are not familiar with these procedures, it could lead to losses, and even certain health risks.

Poor training could also lead to inconsistent labelling and recording, which could lead to compliance issues, along with considerable delays to the end-to-end shipping process.

Lack of Contingency Planning

Many things could go wrong during the cold shipping process. Power outages, equipment failures, traffic delays, and other factors could compromise the integrity of your goods. If you are not prepared for such unforeseen circumstances, then the slightest setback could lead to severe problems down the line.

How To Mitigate the Risks of Cold Chain Shipping

There are a number of ways you can start mitigating the risks of cold chain shipping to reduce spoilage and potential risks, including:

• Risk assessments and contingency planning
• Staff training
• Packaging
• Technology

We’ll address each of these in more detail below, covering how you can follow these processes and reduce risk.

Risk Assessments and Contingency Planning For Cold Shipping Issues
Take the time to consider anything that could go wrong at every stage of the cold shipping process, and outline how you would address each issue. Create a document that describes the actions that should be taken in the event of each specific setback, along with who is responsible for taking these actions.

Staff Training for Monitoring and Handling Shipments
Any employee involved in a cold chain shipping process should be trained to treat each specific shipment as its own unique case, with specific temperature, storage, and handling requirements. To ensure compliance and operational efficiency, employees should also be trained in the correct labelling and documentation procedures.

Packaging Best Practice
Never cut corners when it comes to your packaging solutions. Always choose the most durable solutions that are validated for the specific temperature ranges required for the process.

Invest in Tech for Real-Time Temperature Monitoring
Do not rely on outdated tools to monitor your temperatures and record your shipments. Instead, invest in advanced tools to allow for continuous real-time temperature monitoring, so that you can respond to any issues as soon as they become apparent.

Get Specialist Marine Insurance for Cold Chain Shipping

Everard Insurance Brokers provides specialist cargo insurance solutions, which can include dedicated cover for cold chain shipping operations. We can help ensure your cargo is properly protected from origin to destination.

Your specialist marine insurance could include parametric cargo insurance cover. If a temperature fluctuation takes place during the shipping process, GPS sensors in the container can automatically notify your insurer. As well as helping to avoid liability disputes between the shipper and the carrier, you may also be able to get a settlement even before the container is opened and the damage is discovered.

Find out more about our specialist marine insurance services.

If you’re new to logistics, the terms project cargo and general cargo can be confusing. The main difference is simple:

• General cargo is standard freight that fits into containers or pallets and can be moved using normal shipping methods.
• Project cargo consists of large, heavy, high-value, or oversized items that require specialist equipment, planning, and handling.

Understanding the difference helps businesses choose the right transport and insurance solution.

What Is General Cargo?

General cargo includes everyday commercial goods that can be shipped using standard containers, trucks, aircraft, or vessels.

Examples of General Cargo:

• Consumer electronics
• Furniture
• Clothing and textiles
• Food and beverages
• FMCG products

General Cargo Key features:

• Standard size and weight
• Routine handling and transport
• Standard customs procedures
• Lower cost and complexity

Best for: Regular commercial shipments.

What Is Project Cargo?

Project cargo refers to oversized, heavy, or complex shipments used in industries such as mining, energy, construction, and oil & gas.

Examples of Project Cargo:

• Mining equipment
• Generators and transformers
• Wind turbine components
• Construction machinery
• Oil and gas equipment

Project Cargo Key features:

• May exceed standard container dimensions
• Requires cranes and specialist trailers
• Often involves detailed route planning
• May need permits and escorts

Best for: Infrastructure, industrial, and engineering projects.

Key Differences Between General Cargo and Project Cargo

Why Marine Insurance Matters For General Cargo and Project Cargo

General cargo and project cargo both face risks during transit, but project cargo often involves higher values and greater complexity. The right insurance helps protect against loss, damage, delays, and unexpected costs.

Everard Insurance Brokers provides specialist marine general cargo and project cargo insurance solutions, helping businesses protect valuable shipments throughout the supply chain. Whether you’re moving standard freight or large-scale project equipment, Everard Insurance Brokers can help ensure your cargo is properly protected from origin to destination.

Find out more about our specialist marine insurance services.

With over 12 billion tonnes of cargo being shipped each year, global shipping is responsible for around 90% of the world’s trade.

Yet global shipping also has a significant environmental impact. As a result, there are numerous strict regulations designed to control and reduce pollution at sea, along with some ambitious targets to address the environmental impact of global shipping.

In this post, we’ll explore the impact of shipping on the environment, followed by key regulations which aim to reduce  harm to the environment.

The Impact of Shipping on the Environment

According to the International Maritime Organization (IMO), international shipping is responsible for nearly 3% of all global greenhouse gas emissions. One report found that, in 2023, global shipping was responsible for over 900 million tonnes of CO2 emissions.

International shipping has further environmental impacts beyond the emissions:

• Ships may introduce invasive species to new habitats, via organisms that migrate in their ballast tanks.
• Vessels can pollute waters with sewage, oil spills, anti-fouling substances, chemical leaks, and solid waste.
• Underwater noise produced by vessels can disturb marine habitats.

Shipping Regulations to Reduce Environmental Impact

Next, we’ll look at some of the regulations in the shipping industry which aim to improve and reduce the environmental impact of shipping on the environment.

International Convention for the Prevention of Pollution from Ships (MARPOL)

MARPOL is the International Convention for the Prevention of Pollution from Ships. This convention was introduced in 1973, and further protocols were adopted in 1978 in response to a spate of tanker accidents. The combined regulations finally came into force in 1983, and the regulations have been updated multiple times since.

MARPOL regulations are designed to prevent and minimise both accidental pollution from ships, along with pollution arising from routine operations.

For more, you can read a full guide to MARPOL regulations, along with all additional protocols and annexes.

ISM Code

The ISM Code promotes a proactive approach to safety and environmental protection by requiring ship operators to establish effective management systems and procedures. Key areas of focus include:

Key preventative strategies in the ISM Code include:

• Management responsibilities, including a Designated Person responsible for overseeing and reporting on all pollution prevention strategies.
• Training to guarantee awareness and competence of all environmental compliance tasks for every voyage.
• Waste stream analysis, and sufficient allocation in the operating budget for each ship to meet the required compliance costs.
• All environmental equipment to be considered critical, and any failure in any of the equipment should be reported to the Designated Person immediately, along with a timeline for repairs and replacements.
• Use of monitoring equipment, seals, interlocks, and other techniques for preventing deliberate non-compliance.

For more, you can read a full guide to the numerous elements of the ISM Code.

Carbon Intensity Indicator (CII)

The International Maritime Organisation introduced the Carbon Intensity Indicator (CII) in 2023. These regulations are designed to reduce the carbon intensity of all ships by 40% by 2030.

As part of these new regulations, all ship owners must calculate their ship’s CII rating. This is a measure of the total carbon emissions compared to the amount of cargo transported over the distance travelled.

CII ratings range from A to E, with an A rating being the most efficient. If a ship gets a D rating for three years running, or if it gets even a single E rating, then shipowners must submit a Ship Energy Management Plan to outline their intended decarbonisation roadmap.

For more, you can read a full guide to CII ratings.

Fuel EU Maritime

Fuel EU Maritime regulations came into force on 1 January 2025. These regulations establish maximum limits for the yearly average greenhouse gas intensity of the energy used by ships of 5,000 gross tonnage and above, whenever they call at European ports.

The regulation introduces progressively stricter greenhouse gas intensity limits, culminating in an 80% reduction by 2050 compared with the baseline established in the legislation.

Fuel EU Maritime focuses on all greenhouse gases, and not just carbon. So, it requires shipowners to account for their methane and nitrous oxide emissions, in addition to their carbon emissions.

For more, you can read a full guide to Fuel EU Maritime.

Marine Insurance and Regulatory Compliance

Everard Insurance Brokers are the specialist marine trading division of James Hallam Limited who are accredited Lloyd’s insurance brokers.

While we cannot help you meet these environmental regulations, we can help you understand the numerous legal obligations you may have to meet. We can then help you access a cost-effective insurance package to help you ensure you at least have the right cover in place to meet all the risks you face both at port and at sea.

Find out more about our specialist marine insurance services.

International commercial terms (incoterms) are a set of standard trade definitions that outline the specific responsibilities of buyers and sellers in international trade agreements. You can read our full guide to incoterms.

In this post we will take a closer look at two specific incoterms: DDP and DAP. We will explore the key differences between these two terms, and outline how they might affect your risks, responsibilities, and costs in an international shipping agreement.

DDP and DAP – A Brief Introduction

DDP (Delivered Duty Paid) and DAP (Delivered at Place) are both seller-focused incoterms. These terms apply to transactions where the seller, exporter, or manufacturer takes on most or all of the costs and risks associated with delivering goods to a named place of destination.

What is DDP in Shipping?

The DDP (Delivered Duty paid) incoterm places maximum responsibility on the seller.

Under a DDP contract, the seller, exporter, or manufacturer takes full responsibility for delivering goods to the agreed destination. They will cover all associated costs and risks, which includes all relevant customs and duties. Typically, the seller will include all of these expenses in the price of their goods, which can result in clear and transparent costs for all parties involved.

In a DDP arrangement, the buyer’s only responsibilities involve unloading the goods once they reach their destination. So, while the buyer will likely have to pay a higher price for the shipping, DDP remains a popular choice for buyers who are new to international shipping, and for those who want a frictionless and streamlined approach to entering new markets.

What is DAP in Shipping?

The DAP (Delivered at Place) incoterm is similar to the DDP incoterm, in that the seller is responsible for delivering goods to an agreed destination, covering all transport costs and bearing all risks until the goods reach their destination port.

The key difference between DAP and DDP is that, in a DAP arrangement, the seller does not take responsibility for covering any customs, taxes, and duties that may arise during the shipping process. Instead, the buyer will take responsibility for covering these costs. The seller generally will not include these charges in the total costs of their goods, meaning that the buyer will have less clarity and transparency when it comes to the total cost of the shipping.

However, the buyer will have full control over all import procedures, which often makes DAP the preferred arrangement for companies with pre-existing relationships with customs brokers, or for larger companies with established logistics expertise.

Is DDP or DAP Better For Sellers?

If you are a seller, you will have extensive responsibilities and liabilities regardless of whether you choose DDP or DAP. These will include:

• Preparing and packaging all goods for shipping.
• Arranging for shipping to the specified destination.
• Bearing all costs and all risks until the point the goods arrive at their destination – including all marine insurance costs.
• Providing all necessary documentation for customs and so on.

The only difference is that, with DDP, you will have to cover all customs, taxes, and duties on top of this.

If you would prefer an arrangement in which the buyer takes on more risks, or in which the buyer and the seller share the risks and the costs, read our complete guide to incoterms.

DDP or DAP – Which is Best For Buyers?

If you are a buyer, choose DDP if:

• You are inexperienced with international shipping, or you are looking to enter a new market, and you are happy for the seller to take care of everything.
• You want total clarity and transparency with the price you pay for shipping. In most cases, the price the seller quotes for shipping will include everything, including the costs of customs, taxes, duties, and insurance cover.

However, you might prefer DAP if:

• You want flexibility with your transport options. DAP arrangements are compatible with all forms of transport, including air, rail, road, and sea.
• You have established relationships with customs brokers, or you have in-house logistics expertise, so you would prefer to handle all customs, duties, and tax procedures yourself.

One more thing to consider: Choosing either DDP or DAP will tie you to your seller’s price structure and supply chain. For one reason or another, this might not suit your needs. Alternative incoterm arrangements would give you greater flexibility, but most would require you to take on additional costs, risks, and liabilities.

For more information, read our full guide to incoterms.

How DDP and DAP Affect Insurance in Shipping

The incoterms you use during your transactions will determine the level of insurance cover you need, whether you are the buyer or the seller.

In both DDP and DAP transactions, the seller takes on the most risk. The responsibilities only transfer from the seller to the buyer at the point of delivery, at which point the buyer is responsible for ensuring all goods are safely unloaded.

Whichever code you use, and whichever party you are in the transaction, it is essential that your insurance covers you for all the risks and responsibilities as outlined in your contract.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you understand the cost, risk, and insurance implications of any incoterm you use, and we can help you get the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services, or call us on 020 3148 9540 or email info@everardinsurance.co.uk.

Hundreds, and sometimes thousands, of shipping containers are lost at sea each year, resulting in significant financial losses for global shipping businesses. Lost containers can also present a collision risk for other vessels at sea, and depending on their contents, they could even lead to serious environmental damage.

In this post we will explore why so many shipping containers get lost at sea each year, and discuss how you can best protect your shipping business against financial loss.

How Many Shipping Containers Get Lost At Sea Every Year?

The World Shipping Council routinely surveys its member companies in order to estimate the number of shipping containers that get lost at sea each year.

The most recent survey, from 2025, covers the years up to and including 2024. Here are the total number of containers lost at sea over the past few years, according to World Shipping Council members:

• 2024 – 576
• 2023 – 221
• 2022 – 661
• 2021 – 2,301
• 2020 – 3,924

The World Shipping Council points out that over 250 million containers are shipped each year. 576 lost containers equate to just 0.0002% of this total. They also highlight how approximately 33% of all containers lost each year are ultimately recovered.

The World Shipping Council has been surveying their members in this way since 2011. Each year, they report a rolling three-year average. In the latest report, this stood at 489. In the previous report, the rolling three-year average was more than double this, at 1,061.

So, there is an encouraging downward trend. But the council also report a 10-year average of 1,274 containers lost each year. Every single lost container will lead to significant expenses, and each one poses a hazard to other vessels, and potentially to the environment too.

What Causes Shipping Container Loss?

Container falls
A container might fall from a vessel as a result of bad weather, collisions, or other incidents at sea. Human error can also play a part, should someone fail to correctly secure a container, for example. A ship may also choose to jettison its cargo in response to an onboard incident, such as a fire.

Global events
Global events can influence the total number of containers lost in a year. In recent years, unrest in the Middle East has forced many shipping routes to detour away from the Red Sea, and around the Cape of Good Hope.

Converging weather systems make extreme weather events, along with steep wave patterns, relatively common in this area. According to the South African Maritime Safety Authority, around 200 containers were recently lost around the Cape of Good Hope in the space of one year.

Isolated events
Occasionally, isolated events cause a major spike in the number of shipping containers lost in one year. 5,578 containers were lost in 2013, making this the worst year for losses in recent memory. This was largely due to a single incident in which an entire vessel was lost. Large scale incidents also occurred in 2020, when 3,924 containers were lost in a year, and 2021, which saw total losses of 2,301.

TopTier is an ongoing research project which is currently investigating these large scale losses in order to determine what went wrong, in the hope of identifying potential actions that could help prevent container loss.

Who is Liable For Shipping Container Loss?

Claims involving lost containers can get complicated. As well as the physical loss of the container, insurers must also consider any other containers that get damaged as a result of collapsing stacks, along with any damage the vessel itself sustains during the incident. Plus, as we mentioned above, a container lost at sea could ultimately damage other vessels, and could also have an environmental impact.

A shipping contract should outline who is responsible for costs and losses at each stage of the process. Whichever party is responsible for the goods during the passage at sea, whether that is the buyer or the seller, will have to ensure they are fully covered for potential container losses, along with the subsequent damages and costs that may arise.

Beyond this, the specific circumstances of the incident will determine who takes ownership of the container after it is lost. The cost of recovering lost containers, for instance, often falls on third parties. You can read our full guide to the different types of marine insurance loss claims.

Get Comprehensive Marine Insurance From James Hallam

Everard Insurance Brokers are the specialist marine trading division of James Hallam Limited who are accredited Lloyd’s brokers.

We can help you understand your liability concerning incidents of containers lost at sea, and we can help you ensure you have the dedicated insurance you need to cover you for all risks.

Find out more about our specialist marine insurance services. Or to speak to one of our team Call us on 020 3148 9540 or email info@everardinsurance.co.uk

If you want to ship goods internationally, it is essential that you understand incoterms.

In this post we will outline the full list of incoterms, with meanings and definitions, before exploring why they matter.

What are Incoterms?

Incoterm is short for “international commercial terms”. These are a set of standard trade definitions introduced by the International Chamber of Commerce to transcend global language barriers.

Each incoterm features three letters, and each outlines the specific responsibilities of buyers and sellers in international trade agreements.

Because banks and customs agencies across the world use the same incoterms, anyone involved in international shipping can avoid ambiguities.

Some incoterms apply to all modes of transport, while others are exclusively for sea and inland waterway transport.

Full List of Incoterms

The current edition of incoterms is INCO 2020. There are 11 incoterms in total, and they are grouped into four categories:

The E Term

EXW

EXW is the only E term. It stands for “Ex Works”.

This term is used exclusively to refer to transactions where the seller, exporter, or manufacturer makes the goods available at their own premises. This means that the buyer takes on all subsequent risks, responsibilities, and costs for the goods’ ongoing journey to the final point of delivery.

The F Terms

These terms apply to transactions where the seller or exporter is responsible to deliver the goods to a carrier.

Usually, the buyer arranges for the carrier, meaning that the buyer and the seller share risks and costs. The seller handles the risks and costs up to the handover, and the buyer handles the risks and costs for the rest of the process.

There are three F terms:

FCA (Free carrier)
The delivery point is an agreed location, such as a port or a terminal.

FAS (Free Alongside Ship)
This term refers exclusively to marine shipping. The delivery point is a port of shipment, and the risk and cost transfer takes place when the goods are placed alongside the ship.

FOB (Free On Board)
Another marine shipping incoterm. Like FAS, the delivery point is a port of shipment, but this time the risk and cost of transfer takes place when the goods are loaded onboard the ship.

The C Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for arranging for, and paying for, the carriage of goods. However, they are not responsible for any additional risks or costs that may emerge once the goods have been shipped.

There are four C terms:

CPT (Carriage Paid To)

The delivery point is a named place of destination, and the seller is responsible for all transport costs until the goods are handed to the first carrier.

CIP (Carriage and Insurance Paid To)

The delivery point is a named place of destination, and the seller is responsible for all risks and costs until the goods are handed to the first carrier. In this case, the costs include some insurance cover for any loss or damage to the goods during that first part of their journey.

CFR (Cost and freight)

This term refers exclusively to marine shipping. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship.

CIF (Cost, Insurance, and Freight)

Another marine shipping term. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship. But they will also pay for insurance, to cover any loss or damage to the goods during that first part of their journey.

The D Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for all costs and risks associated with delivering goods to a named place of destination.

There are three D terms:

DAP (Delivered At Place)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. However, this does not extend to any costs or risks associated with unloading the goods, or taking them to a further destination.

DPU (Delivered At Place, Unloaded)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. This time, the seller takes additional responsibilities for the costs and risks associated with unloading the goods at the destination.

DDP (Delivered Duty Paid)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. In this case, these costs will include any duties incurred during the delivery.

Why Incoterms Matter for Liability

Each incoterm clarifies both the buyer’s and the seller’s responsibilities when it comes to both costs and risks. The terms also clarify the limits of these responsibilities, and the point at which they might transfer from one party to another.

Get incoterms right, and it can lead to streamlined global shipping, even when there is no shared language. But get them wrong, and it can lead to delays, extra costs, custom issues, and even legal disputes.

This is why it is important to not just choose the right incoterm for each transaction, but also to ensure that the contract reflects the implications of the term you use. For example, most incoterms require a named destination. If this is not included in the contract, it could lead to ambiguities and disagreements should anything go wrong.

How Incoterms Affect Insurance

The incoterms you use during your transactions will also determine the level of insurance cover you need, whether you are the buyer or the seller.

In an EXW transaction, the buyer takes on the most risk. In a DDP transaction, the seller takes on the most risk. Other incoterms will require the buyer and the seller to share the risks and the costs, with the specific code determining the precise point at which the responsibilities transfer from one party to another.

Whichever code you use, it is essential that your insurance covers you for all the risks and responsibilities as outlined in your contract.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you understand the cost, risk, and insurance implications of any incoterm you use, and we can help you get the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services, or call us on 020 3148 9540 or email info@everardinsurance.co.uk.

In commercial shipping, vessel availability is directly tied to revenue generation. When a vessel is unable to trade due to physical damage, the financial consequences can be immediate and significant.

While Hull and Machinery (H&M) insurance covers the cost of repairing physical damage, Loss of Hire insurance protects shipowners against the commercial impact of lost income during periods when a vessel is off-hire.

For owners operating in volatile freight markets, this coverage can play a critical role in protecting cash flow and maintaining operational stability.

What Is Loss of Hire Insurance?

Loss of Hire insurance provides financial protection when a vessel is taken off-hire due to physical damage that is recoverable under an underlying Hull and Machinery policy.

Common triggering events include:

• Collision
• Grounding
• Machinery breakdown
• Fire
• Other insured marine casualties

When a valid claim arises, the policy indemnifies the assured for lost daily income during the repair period, subject to agreed policy terms, including deductibles and indemnity limits.

How Does the Loss of Hire Excess Work?

Unlike many insurance policies where deductibles are based on monetary amounts, a Loss of Hire excess is time-based. This means the policy only begins responding after a vessel has been off-hire for a specified number of days.

Key features include:

• The excess represents the initial off-hire period retained by the assured
• A common excess period is 14 days, although this varies based on risk profile and underwriting terms
• The policy responds only once downtime exceeds the agreed excess period
• Claims are typically paid on a daily indemnity basis
• Most policies include an annual aggregate limit on claimable days

Example: 14/60/180

A common structure may be written as 14/60/180, which means:

• 14 days excess – the owner absorbs the first 14 days of downtime
• 60 days indemnity per claim – maximum payable for any one incident
• 180 days annual aggregate limit – total maximum claimable days in a policy year

This structure helps shipowners balance premium costs against risk tolerance.

Why Loss of Hire Insurance Is Commercially Important

For many shipowners, lost earnings during downtime can exceed the actual repair costs of a casualty.

Even when a vessel is not trading, fixed costs continue, including:

• Crew wages
• Insurance premiums
• Technical management fees
• Loan repayments
• Mortgage servicing costs

Loss of Hire insurance helps businesses:

• Maintain cash flow stability
• Reduce earnings volatility
• Protect profitability during market peaks
• Improve financial resilience after unexpected incidents

This is particularly important during strong freight markets, where the opportunity cost of downtime can be substantial.

Why Lenders Often Require It

Marine lenders and mortgage providers often require shipowners to maintain Loss of Hire insurance as part of financing agreements.

This helps ensure:

• Debt repayments continue during downtime
• Vessel financing risk is reduced
• Lenders have greater confidence in operational continuity

For highly leveraged fleets, this cover can be an important component of broader risk management.

Why It Matters for Charterers

Loss of Hire insurance can also be relevant for charterers, especially when contractual obligations rely on the continuous availability of a specific vessel.

An insured casualty may result in:

• Replacement vessel costs
• Delayed cargo delivery
• Contractual disruption
• Increased operational expenses

This makes downtime risk a commercial concern for both owners and charterers.

Key Benefits of Loss of Hire Insurance

• Protects revenue during insured repair periods
• Improves cash flow resilience
• Supports financing and lender requirements
• Reduces the impact of unexpected downtime
• Helps stabilise earnings in volatile markets

Specialist Marine Insurance

In commercial shipping, downtime can quickly translate into lost revenue. While Hull and Machinery insurance protects physical assets, Loss of Hire insurance helps protect earnings.

For shipowners, lenders, and charterers alike, it remains an important tool for managing operational and financial risk in an unpredictable maritime environment.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you access the specialist cover you need at a competitive price, including Loss of Hire insurance.

Find out more about our dedicated marine insurance services.

Whether you own and operate a boat, or you run a marina, the right safety equipment and procedures are vital for preventing and effectively responding to incidents on the water.

In this post we will list all of the essential safety equipment that every UK boater should have onboard.

For further information about keeping yourself, your passengers, and your vessel safe on the water, take a look at our guide to boat safety certificates.

What are the Most Common Boating Safety Risks?

There are a number of common risks to be aware of in and around boats, in particular:

• You, a crew member, or a passenger falls overboard
• Someone sustains an injury while onboard your vessel
• A fire breaks out
• Collisions with other vessels
• Your engine breaks down, leaving you stranded

Essential Safety Equipment For All UK Boaters and Marinas

In the UK, the specific safety regulations that apply will depend on the size of the vessel, and its crew. In short, the bigger your boat, the more safety regulations you will have to meet.

Below we will list the essential safety equipment that all vessels of all sizes should consider having onboard, including:

• Lifejackets
• First aid kit
• Navigational tools
• Communication tools
• Maintenance equipment

We’ll explore each of these in more detail below.

Lifejackets

Everyone onboard should have a properly fitting lifejacket, which should meet ISO 12402 safety standards. A good lifejacket will have additional safety features including lights and whistles for attracting attention.

You should also ensure your vessel has a lifebuoy or throwing line, in case someone falls overboard.

First Aid Kit

You should also routinely check your first aid kit to ensure that all materials are still in date, and you should replace or replenish items whenever necessary.

Navigational Tools

You will need charts, navigation books, a compass, binoculars, and a GPS device for navigating unfamiliar waters.

All vessels should be equipped with navigation lights too, even if you do not intend to sail after dark. At the very least, you will need a green starboard light, a red port light, and a white centre light, all of which should be visible from at least a mile away.

Communication Tools

A VHF radio is necessary for staying in touch with the shore, and with other vessels. For this, you will also need an MMSI number and an Ofcom licence.

If you do not have the means for a radio, you should still stock flares and other distress signals, so you can attract attention in the event of an emergency.

Maintenance Equipment

Depending on the type of boat you operate, you may need a toolkit for basic repairs, cleaning supplies, spare engine parts, and a bilge pump for removing excess water.

Ongoing maintenance can help you recover from engine failure and other incidents, while keeping everything clean can help prevent faults and fires.

How to Check Your Boat is Compliant With Safety Regulations

The specific safety regulations will also depend on the type of waterway in which you will be operating. Different organisations govern different waterways, and local regulations and restrictions also apply to some areas.

The following organisations govern UK boat safety equipment regulations:

• Maritime and Coastguard Agency (MCA) – The MCA regulate the safety equipment for all UK recreational vessels under 13.7 metres (45 feet).
• Royal Yachting Association (RYA)
• Boat Safety Scheme (BSS)
• International Convention for the Safety of Life at Sea (SOLAS) – You will have to meet SOLAS regulations for any excursion that takes you into international waters.

When planning an excursion, check first what regulations apply to the waters you will be navigating. And remember that regulations will only list the minimum safety standards. For total peace of mind, and to prepare you for any situation, it pays to go beyond the minimum safety standards.

Boat Safety Equipment and Insurance

Finally, your insurer may also specify some essential safety equipment you need to keep onboard as a condition of your cover. If you are involved in an incident, they may reject your claim if they find you did not have certain items onboard, or if it transpires that you did not keep on top of essential cleaning or maintenance tasks.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure your boat meets all relevant safety standards, and we can help you access the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services.

Pirate attacks on cruise ships are relatively rare, but they remain a threat no cruise ship operator should ignore.

In this post we will list some examples of cruise ship piracy, before exploring how you can prevent pirate attacks and keep your vessel and your passengers safe.

How Common Are Pirate Attacks Against Cruise Ships?

Though pirate attacks against cruise ships do happen, they are relatively rare. Pirates are unlikely to target cruise ships for a number of reasons. They are large, they travel at high speeds, and they tend to travel through waters that are patrolled by naval forces. Plus, cruise ships tend to have advanced radar systems, meaning they would be able to detect any approaching pirates with ease.

In addition, pirates know that cruise ships tend to have multiple anti-piracy systems onboard, which would make an attack too risky. In 2011, the Spirit of Adventure was approached by pirates off the coast of Tanzania. The pirates seemed to observe the ship, but they left before taking any action. A spokesperson later said that, most likely, the pirates thought better of attacking once they got a good look at the ship’s security systems.

But pirates can be opportunistic. And if they suspect that a cruise ship will be unable to defend itself, they may attempt an attack. This is why all cruise ship operators should put measures in place to prevent and respond to pirate attacks, no matter how low the risk may be.

Examples of Cruise Ship Pirate Attacks

• The hijack of an Italian cruise ship, the MS Achille Lauro, with with 97 passengers and hundreds of crew on board.
  Find out more about the Achille Lauro hijacking, Mediterranean Sea, 1985
• The pirate attack of the Seaborn Spirit cruise liner, with 300 crew and passengers targeted off the Somali coast.
  Find out more about the Seabourn Spirit, Somalia, 2005
• The attack on a German cruise ship sailing from Eygpt to Dubai with 492 passengers and a number of crew.
  Find out more about the MS Astor, Gulf of Oman, 2008
• The pirate attack of an Italian cruise ship with almost 1,000 passengers on board, resulting in gunfire.
  Find oure more about the MSC Melody, Somalia, 2009

The pirates’ motives and methods varied in each of these cases. But usually when it comes to cruise ships, pirates will attempt to hijack the ship, using the passengers and crew as hostages.

However, most pirate attacks against cruise ships tend to be thwarted before the pirates can even get onboard. This means it is hard to gauge the pirates’ motivations: Whether they wanted to take control of the ship, or simply to steal valuables from guests.

How Do Cruise Ships Protect Themselves and Passengers Against Pirates?

Crew and Passenger Drills

Everyone onboard should know exactly what steps to take in the event of piracy. You can arrange for specialist training for your crew, and you can outline your piracy response procedures as part of your mandatory passenger safety drills.

Safety Procedures

When sailing through waters where there is a risk of a pirate attack, cruise ships should temporarily move all outdoor activities indoors. They should also aim to darken the ship’s lights at night, to make them less of a visible target for pirates.

In the event of an attack, all passengers should stay below decks, ideally in their cabins with their doors locked, until further notice.

Detection and Communication

Cruise ships should make use of their advance radar systems to detect potential piracy attacks as early as possible. You should also stay in constant communication with all other ships in the area, including the naval forces, and notify them of any emerging risks.

If all the ships in a body of water coordinate in this way, pirates will find it harder to approach vessels without warning, and to isolate vulnerable vessels for attack.

Onboard Deterrents

Cruise ships often make use of water cannons and acoustic weaponry to ward off attacks. During the attack on the MSC Melody in 2009, crew members also used pistols that were stored onboard to deter a pirate attack.

Certain maritime officials criticised this approach, saying that non-lethal weaponry would have been just as effective. Any cruise ship using live ammunition will need to ensure that all onboard firearms are registered, and that only trained and authorised crew members have access to them.

Is Your Cruise Ship Covered For The Risks of Piracy?

If your cruise ship will be travelling through a location with a risk of piracy, then you must ensure that your maritime insurance covers you for the increased risk. Your policy should include war risk insurance, which can protect against losses from acts of piracy, along with kidnap and ransom insurance (K&R) for you, your crew, and your passengers.

Everard Insurance Brokers is the specialist marine division of accredited Lloyd’s broker James Hallam Limited. We can help you secure comprehensive protection against piracy and related risks, to help you respond effectively to any incident at sea.

Learn more about our dedicated marine insurance services.