Barclays estimates the charge could be as high as $3 billion; other estimates are higher as the global insurance industry (i. e. , reinsurers) begins to load claims that are already arising after the destruction of Baltimore’s Francis Scott Key Bridge via the container shipped by Dali. .
Insurers note, however, that it’s too early to be definitive on the most productive estimate of the charge, which will be higher because the U. S. is a highly insured and highly litigious economy, by the way.
And it will most likely involve a combination of insurance types, claims, and negotiations that have rarely been observed in the same incident.
Six other people remain missing after a collision Tuesday forced the closure of the Port of Baltimore, which is worth $82 billion a year in imports (cars in particular) and exports (coal).
But analysts and insurers say it will take a long time to settle claims and other costs, and then settle the amounts to be paid.
“The economic disruption and suffering suffered by businesses and Americans in Maryland and the Baltimore Economic Zone will be widespread and will most likely take years to fully perceive and compensate those affected,” said Julien Horn, partner at Ports.
According to Horn, this is most likely a million-dollar-an-hour problem, suggesting that this may be the biggest example of port blockade seen by insurers and reinsurers in recent times.
This requires business interruption insurance and, more particularly, a less common form of policy that protects against port blockade or denial of access to ports.
Horn explains that this type of business interruption insurance covers well “vessels that are unable to dock, whether the blockade is directly on or next to an impediment 500 miles away. “
Prior to any insurance settlement, it will be necessary to assess the damaged vessel, verify its seaworthiness, the shipment to be removed from it (or anything possible to allow it to be towed to a shipyard for repair, if possible). . ser).
The owners of the shipment will demand payment of the refund or the diversion of their boxes to Sri Lanka, where the Dali was headed. The cost of this operation will be in the millions of dollars, with the rental of huge marine cranes and smaller barges or container ships. discovered and arranged the transfer of the boxes to the Dali. This will have to be paid through the charterer, Maersk, the Danish shipping giant, the Singapore-based manager or the owner.
Media reports that Singapore-based Grace Ocean is the indexed owner of Dali, while shipping is controlled through a company called Synergy Group.
Insurers and analysts, agents and regulators now assess the most likely losses suffered by insurers across a diversity of insurance product lines, adding property, cargo, transportation, liability, industrial credits, and contingent business interruption.
Some analysts warn that lawsuits for elegance action are not out of the question, and that the most likely recourse is travelers, small businesses without a good enough or not good enough insurance policy (such as tour operators).
“While the total cost of the bridge collapse and related losses may not be transparent for some time, it may be in the billions of dollars,” said Mathilde Jakobsen, senior director of research at insurance ratings firm AM Best.
A key area of claims will come from the Dali and its owners, charterers and shipment owners. They will most likely be covered through what is known as marine liability insurance, which covers damage to the marine environment, and is provided through coverage and indemnity insurers known as P’s
The International Group of Clubs P
According to AM Best, the organization has $3. 1 billion in excess loss reinsurance coverage.
Brandan Holmes, an analyst at Moody’s Ratings, told Reuters that about 80 other reinsurers had such a policy for the ship’s insurers.
“While the total number of claims is expected to be high, it is unlikely to be significant for individual reinsurers as it will be spread across a huge number of reinsurers,” he said.
The Britannia P Insurer
According to John Miklus, president of the American Institute of Marine Insurers, the incident and, specifically, the collapse of the bridge may result in “one of the largest claims ever recorded in the marine (re)insurance market. “
Moody’s also issued a note saying the bridge crisis is likely to be a “credit negative” occasion for the coal organization Consolidated Coal, which owns one of the two coal export terminals at the Port of Baltimore (the other is owned by rail giant CSX).
Initial estimates for the bridge’s reconstruction, which is expected to be paid for through the federal government, are $600 million, economic software analytics firm IMPLAN said.
And data from German insurance giant Allianz shows that while incidents in which ships collide with objects in ports are common, overall losses are very rare.
Allianz data shows that while ship collisions with bridges are rare, ship collisions with port infrastructure, such as walls, jetties and locks, were the fourth most common cause of maritime injuries over the past decade, with only around 2,000 reports of such collisions this period. . based on the insurer’s Shipping and Commercial Security Review.
Total shipment losses as a result of collisions are rare: Allianz reports that in the last decade there have been only 30 total losses due to incidents in which shipments collided with others, and only 4 to incidents in which a shipment collided with port infrastructure.
In total, these make up 4% of the 807 vessels lost between 2013 and the end of 2022, according to the insurer.
Get updates delivered straight to your inbox.
Terms of Use | Privacy Policy | Contact | Mail
Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trading company, signed a memorandum of understanding for up to 25,000 t/year. Subject to execution, this is a feat as Ford and Hanwa are in a position to engage in longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing, but they should, i. e. if Ford and Hanwa inject new capital into LKE, it will further reduce the risk of the financing of the assignment and thus ensure that LKE and Kachi are fully funded.
Two recent severity studies have particularly exceeded expectations and revealed the possibility of expanding the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade-long Tier 1 SOP production facility around Throssell Lake.
TMG is currently completing paintings for the planned PFS in early 2023, adding start of drilling in Q3 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have risen to around 940 USD/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that every 10% accumulated in value effects at a cumulative $144 million in NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an allocation NPV of approximately $1. 4 billion.
Despite the decline in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to record an improvement in its key industry indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive study report on ASX-listed biotech Immutep Ltd (ASX: IMM). It was so inspired by IMM that Corporate Connect deemed it imperative to publish a follow-up report valuing the company, as the market did not see the great prospects of eftilagimod alpha (efti).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.