Maersk Line said the fire on its containership, Maersk Honam, which killed five crew members, is under control, with salvage operations led by Smit and Ardent.
“Next steps will be to bring the vessel safely alongside and discharge cargo in a port with proper facilities and capabilities,” said Janina von Spalding, a Maersk press officer. “We expect this port to be Jebel Ali, Dubai, however, it will probably take a few weeks and further investigations before we will be able to bring the vessel alongside and conduct discharge operations.”
On March 7, while the ship was traveling through the Arabian Sea, an explosion occurred and a fire broke out on board. The crew were unable to extinguish the fire. Maersk declared General Average in a notice to cargo and container owners issued March 9.
In an article giving advice to its members about the Maersk Honam, the British International Freight Association (BIFA) explained General Average “is a process whereby the parties whose interests have been sacrificed or who have incurred extra expense, are recompensed by the contribution of those whose interests have been saved. A simple example would be where to save a ship and her crew, a fire is put out which ruins half the cargo, all owners of cargo aboard will share the costs incurred to save the venture.”
The Practicing Law Institute's Maritime Law Answer Book explains that "an 'average adjuster' is appointed to calculate the costs of the salvage claim and or the value of the lost cargo, and the value of the vessel and cargo saved. After the valuation, the adjuster will generally allocate the loss against the vessel owner and the cargo owners on the proportionate basis of their respective interests in the voyage."
"The Maersk Honam is carrying the usual cargo that one would expect on an Asia to Europe string. Some of the cargo on board includes toys, clothes, furniture, consumer goods and other cargo,” said von Spalding.
The Maersk Honam was deployed on a 2M Alliance service between the Far East and Mediterranean. The service is called "AE11" by Maersk and “Jade” by MSC. The ship was carrying 7,860 containers, corresponding to 12,416 TEUs.
The AE11/Jade has a rotation of Qingdao, Busan, Ningbo, Shanghai, Xiamen, Nansha, Yantian, Singapore, Malta, Barcelona, Valencia, La Spezia, Gioia Tauro, Port Said, King Abdullah City, Dubai, Singapore, Shekou, Xiamen and Qingdao.
MSC, in a notice to customers, encouraged them to ensure their “insurers prepare the required GA and Salvage security bonds. The sooner that these are in place, the sooner cargoes are likely to reach their destinations.”
It added that Richards Hogg Lindley in London was been appointed as Maersk's General Adjuster and that it had notified MSC of its intention to keep all containers, including MSC’s containers, under their control until security arrangements have been made with the Average Adjusters, both for General Average and Salvage.
MSC said it expected the ship to arrive in Jebel Ali in about two weeks and that “based on a limited amount of information to hand, MSC reasonably expects that a substantial proportion of the cargo located after, behind the ship's accommodation area should be in sound condition. Unfortunately, we must assume, based on the details to date, that most containers located in front of the accommodation area are damaged by fire, heat or the water used to fight the fire.”
BIFA told its members that, “Any standard marine policy will include General Average losses, so if the goods have been insured, the importer should obtain a General Average guarantee from the insurers. If no insurance has been organized, then a cash deposit will be needed.”
The association added that, “Whatever the position, your first action upon receiving notification that a General Average has been declared for a vessel is to give immediate notice to the importer. The appointed average adjusters will need to be in possession of completed guarantees and bond forms or cash deposit before release of cargo so it is vital that the importer takes immediate action.”