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Photo of the Maersk Frankfurt shared by the Indian Coast Guard on July 23, 2024.

Photo of the Maersk Frankfurt shared by the Indian Coast Guard on July 23, 2024.

Shipowner Declares General Average Over Maersk Frankfurt Fire

The Loadstar
Total Views: 7347
July 25, 2024

By Angelo Mathais, India correspondent (The Loadstar)

Shippers with cargo on the Maersk Frankfurt, which has suffered fires on board for six days, have been, or will be, served General Average (GA) notices by vessel owner Tokei Kaiun, according to the latest Maersk update.

“We have received notification that the vessel owner has decided to declare General Average, and has appointed Richards Hogg Lindley as the GA adjusters to collect relevant securities,” the Danish carrier, which had chartered the vessel, told affected customers.

“This means that, once the onboard containers are discharged from the vessel at a safe location, they would not be released for on-carriage or delivery until cargo interests have made the required security arrangements through the GA adjusters,” it explained.

Maersk said it would soon issue guidelines regarding the GA process.

A Maersk source told The Loadstar firefighting operations were still being carried out, claiming the vessel remained in a stable condition in all operating respects.

“Some visible flames have been reported from the vessel, and smouldering from containers continues,” the carrier said.

The Indian Coast Guard reported yesterday that sporadic fires “in smouldering containers” were being tackled with dry chemical powder, dropped onto the ship from a helicopter.

Maersk told customers it was not in a position to ascertain and confirm the exact status of the cargo on board, adding that it remained “in continuous contact with the vessel owner”.

It’s also unclear where the vessel will berth for cargo unloading once declared “seaworthy”.

Some 1,100 containers were reportedly onboard when the fire broke out during the vessel’s maiden voyage, according to industry sources. But Maersk didn’t release any official data.

The 2024-built Maersk Frankfurt, owned by Japan’s Tokei Kaiun and managed by Bernard Schulte Shipmanagement and on a time-charter to Maersk, was part of the FI3 (Far East-India) service, with a rotation of Qingdao, Xingang, Busan, Port Klang, Nhava Sheva, Pipavav, Karachi, Mundra, Colombo, Port Klang, Singapore and Qingdao. ONE recently joined the weekly FI3 as a co-loader.

According to industry experts, apportioning salvage costs to each cargo owner, and its recovery, will be challenging and time-consuming. GA adjustors could take months, or even years, to raise claims, sources believe.

“Containers will be released subject to shippers covering their portion of claims,” one source, familiar with maritime cargo insurance matters, told The Loadstar.

“It’s a daunting task, and any cargo loaded without insurance coverage could just be abandoned, just as low-value shipments,” the official added.

The Loadstar is known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

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