Circular to Indonesian Members 26th February 2024

To
Indonesian Members of Maritime Mutual Insurance Association (NZ) Limited.

SUBJECT: CIRCULAR LETTER ON THE SUSPENSION OF SERVICES FOR VESSELS HOLDING CLC, CLC B, AND WRC INSURANCE CERTIFICATES GUARANTEED BY THE CLUB BY THE MINISTRY OF TRANSPORTATION OF THE REPUBLIC OF INDONESIA

In connection with reports from several Members of Maritime Mutual Insurance Association (NZ) Limited (the “Club“) regarding the Ministry of Transportation c.q. Directorate General of Sea Transportation c.q. Directorate of Marine Safety and Seafearer c.q. Directorate of Sea and Coast Guard (“Ministry of Transportation“)’s refusal to provide services to vessels holding insurance certificates guaranteed by the Club with respect to:

  1. International Convention on Civil Liability for Oil Pollution Damage (CLC”);
  2. International Convention on Civil Liability for Bunker Oil Pollution Damage “CLC B”; and
  3. Nairobi International Convention on the. Removal of Wrecks (“WRC“);

through this letter, the Club wishes to provide the following information and clarifications:

  1. On 13 February 2023, the MT Aashi ran aground in the waters of Humene Sihene‘asi village, North Nias Regency, North Sumatra, Indonesia, (“MT Aashi Incident“). The owner of MT Aashi is registered as a Member of the Club.
  2. With respect to the MT Aashi Incident, the Club has endeavored to provide assistance and fulfil its obligations in accordance with the applicable law and international conventions by issuing 2 Letters of Undertaking dated 28 November 2023 to the Ministry of Transportation and the Ministry of Environment and Forestry. The Club has also appointed representatives in Indonesia for the purpose of resolving the dispute as well as experts to provide reports and opinions on various aspects related to the MT Aashi Incident.
  3. Pursuant to the applicable Indonesian laws and regulations as well as international conventions, namely the Nairobi International Convention on Wreck Removal of 2007 (Nairobi Convention), the Club only assumes limited liabilities. The Club’s role is limited to pay for the costs related to such wreck removal in accordance with the terms and conditions of the Insurance, which are further subject to the provisions of the Nairobi Convention.
  4. While the Club is negotiating to strive and resolve the issues faced, the Ministry of Transportation issued letter with ref.no.: UM.006/3/4/DK/2024 Subject: Postponement of services for Certificates of CLC, CLC B and WR Guaranteed by Maritime Mutual Insurance Association (NZ) Limited dated 13 February 2024 (“Letter of 13 February 2024“), which in essence stated that the Ministry of Transportation has decided to temporarily suspend services to vessels holding certification of insurance related to the CLC, CLC B, and WRC which are guaranteed by the Club.
  5. The Club does not understand the action taken by the Ministry of Transporation in issuing the Letter of 13 February 2024 as the Club has always coordinated with the Ministry of Transportation and in good faith has entered into discussions with the Ministry of Transportation to discuss the appointment of the salvage company (salvor) who will be assigned to carry out removal of the MT Aashi shipwreck.
  6. In consideration above, the Club will submit its objection against the suspension of services to the Ministry of Transportation and is currently pursuing all available avenues to have the Letter of 13 February 2024 revoked so that services for vessels holding insurance certificates guaranteed by the Club is resumed.
  7. in connection with all of the above, the Club would kindly request the Members’ patience and understanding with regard to the circumstances currently faced by the Club. The Club wishes to reiterate that the Club remains committed to defending the interests of the Members of the Club and will pursue all available avenues to preserve all the rights and interests of the Club and its Members.

Thus we convey. Thank you for your understanding and cooperation.

New Zealand, [*] February 2024

MARITIME MUTUAL INSURANCE ASSOCIATION (NZ) LIMITED
Name: Paul Martin Rankin
Title: Director

Download Circular

More Circulars

OIL AND OIL PRODUCTS PRICE CAP NOTICE AND ENDORSEMENT

The members of the G7, the European Union and Australia (together, the “Price Cap Coalition”) have agreed to implement a prohibition on the maritime transportation of certain oil (HS code 2709 / CN code 2709 00 / HTS code 2709.00) and oil products (HS code 2710 / CN code 2710 / HTS code 2710) (together “Russian Oil Products”), originating in or consigned from Russia, from a place in Russia to a third country or from one third country to another.

Read More »

Oil and Oil Products Price Cap
Notice and Endorsement

The members of the G7, the European Union and Australia (together, the “Price Cap Coalition”) have agreed to implement a prohibition on the maritime transportation of certain oil (HS code 2709 / CN code 2709 00 / HTS code 2709.00) and oil products (HS code 2710 / CN code 2710 / HTS code 2710) (together “Russian Oil Products”), originating in or consigned from Russia, from a place in Russia to a third country or from one third country to another….

Read More »

STS Transfers Circular 24-11-2021

Transferring crude oil and petroleum products from one tanker to another at sea has been a common practice for many years. STS transfers involving tankers of 150 gross tons or above have since 1 January 2011 been regulated by MARPOL, Annex 1, Chapter 8 (Regulations 40 to 42). Such vessels are required to carry an STS operations plan which complies with these regulations and has been approved by the flag state of the vessel.

Read More »