Incident Date: 6th March 2018


IMO No. 9784271

Type: Ultra Large Containership

Incident: Explosion and Fire in Cargo Holds

The Maersk Honam has evolved since the explosion on 6th March into a complex matter with all available information pointing to a large loss to insurers and cargo owners the world over. After being ablaze for almost 11 weeks the vessel was due to put in at Jebel Ali today. Inevitably as a result of the severity of the fire Maersk Line have already suggested all cargo in Holds 1,2 and 3 are Total Loss’ which is understandable when considering the incident.

Furthermore, the salvage demand has been posted at 42.5%. Combined with the general average guarantee of 11.5% being demanded by Average Adjusters, Underwriters will be required to post guarantees totaling 54% to enable cargo to be released.

To further exacerbate the issue, MSC, Maersk’s partner in the 2M alliance, have confirmed their customers will be subject to an extraordinary charge of $ 750 / 20 foot and $ 1250 / 40 foot to transship cargo to destination. If these charges are not met goods will be released to the customers local representative with storage and demurrage being imposed.

If you wish to discuss the most cost-effective way to approach this matter and mitigate any exposure W.E. Cox Claims Group would be more than happy to assist.

Our wholly owned survey company, CWH Europe, are travelling to Jebel Ali to undertake joint inspections with the General Average Surveyors and are putting in place an inspection schedule to prevent any unnecessary delay. Estimates suggest unloading will take two to five days predominantly due to expected issues with ballasting the vessel and we are very aware of the need to progress this matter in a timely fashion.

If W.E. Cox Claims Group can be of any assistance in arranging surveys, adjusting potential losses or undertaking recovery, please do not hesitate to contact us.

As appropriate, please contact:

United Kingdom Paul Friett
Hong Kong Wendy Lee
Singapore Paul Sansom
USA Charles Droll

Australia – Robert Hammersley

If this or future casualty notices should be forwarded to any of your colleagues, we would be pleased to receive their contact details and we will add them to our Client List.

The importance of securities 19/02/2024
Read More →