Tanker Operators Asking Charterers To Cover Oil Spill Costs

Stemming from the U.S. Oil Pollution Act of 1990, tanker operators are transferring rising liability insurance premiums and the costs of covering Coast Guard spill response plans to their charterers.

As a result of U.S. legislation, the International Association of Independent Tanker Owners wants the charterer to bear all extra expenses incurred. The Association is also asking for the additional costs to be broken down, allowingU.S. consumers to see the negative effect the Oil Pollution Act is having on their oil prices.

Tanker owners and their representatives are most immediately concerned with the increased insurance premiums for vessels carrying crude oil to the U.S.

Without indicating who should pay for the additional premiums, the protection and indemnity clubs, composed of shipowners and charters are recommending that charter contracts have clauses written into them that specifically reference the U.S. law.

Maritime Reporter Magazine, page 76,  Apr 1992 LA Equitable Shipyards Inc.

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.