In its latest claims review ITIC, a leading professional indemnity mutual managed by Thomas Miller, reports on a case where a pool manager fixed a ship on the basis that it could transit the new Panama Canal. The ships in that fleet were all of a size to be able to transit the canal and the pool manager believed that all the ships were equipped appropriately for Panama Canal transit.
However it transpired that the nominated ship’s bollards were not strong enough. The Panama Canal authorities would not let the ship transit and urgent rectification work had to be done on board.
Although the work would have usually cost about $70,000 if done as part of scheduled maintenance it ended up costing $200,000. The owners claimed the additional costs from the pool manager and ITIC reimbursed the claim.