The collision of a Portuguese-flagged container vessel, Solong, with the then-moored oil tanker Stena Immaculate, led to an explosion in the North Sea off the coast of East Yorkshire. The incident, which occurred recently, has led to the death of one crew member and is posing a significant risk to the environment due to suspected leaks of aviation and marine fuel.
The Stena Immaculate, which was at anchor 21 kilometers off the coast of East Yorkshire, was carrying 220,000 barrels of aviation fuel on charter for the United States Air Force. The Solong, which was traveling at a speed of around 18 knots, struck the moored Stena Immaculate at 9:48 AM UTC, leading to a substantial hole in its hull, a ruptured cargo tank, and a fire breaking out along with jet fuel leaking into the sea.
The fire aboard the Stena Immaculate was extinguished by the next day; however, the fire on the Solong continued to burn even a day after the collision.
13 crew members from the cargo ship Solong and the 23 crew members of the Stena Immaculate were evacuated. The one missing crewmember from the Solong has been presumed dead after a search and rescue effort was called off on 10 March.
Environmental groups continue to warn of disastrous consequences to marine wildlife due to the jet fuel spill from the Stena Immaculate. However, authorities have assured that the impact from the leak remains limited. The Coast Guard has placed a 1 km exclusion zone around the accident site and both vessels.
There had been a moment of panic when a Lloyd’s List report revealed that the Solong had been carrying the highly hazardous and toxic sodium cyanide. However, these fears were quelled when the shipowner, Ernst Russ, explained that the containers carrying cyanide had been emptied prior to the collision. They further assured that the four containers that had held sodium cyanide are being actively monitored.
Despite the accident, both vessels are expected to remain afloat following the dousing of the fire. Coastguard agencies have stated that the Solong is expected to be towed away from the shore, following which salvage operations on the vessel can be initiated.
The captain of the Solong has been identified as a 59-year-old Russian national who has been apprehended under charges of gross negligence and manslaughter.
Questions have been raised regarding the incident as to why multiple safety systems on the Solong failed simultaneously and led to the accident. Reports indicate there has been no indication of malicious intent behind the accident; however, foul play has not been ruled out. Poor visibility at the time of the incident is also being claimed to have played a role.
Investigations by multiple authorities have been launched into the incident. The British Marine Accident Investigation Branch is to gather preliminary evidence, whereas the US and Portuguese authorities, the states where the vessels are registered, bear the burden of investigating the accident more thoroughly.
The nature of the accident and the resulting damages, multiple insurance claims from differing parties are expected to be made.
Hull and Machinery (H&M) Insurance, which covers damage to the ships, including their hulls, machinery, and equipment, is expected to be significant but still less than claims from liability and environmental cleanups. The combined insurance value of both the vessels is estimated to range between $50 million and $100 million, which includes potential salvage costs. Both the vessels involved in the collision are expected to be marked off as a total loss (the cost of repairs exceeds the cost of the vessel itself) following the incident.
Protection and Indemnity (P&I) Insurance is expected to be the biggest component in the insurance claims to come. These include third-party liabilities, including environmental damages, pollution cleanup, and injury or death of crew members. The high cost of environmental cleanup owing to the leaked jet fuel and potential legal liabilities is expected to be the biggest financial contributor to insurance claims.
Finally, the Marine Cargo Insurance, which covers the loss of cargo being transported, will also be a significant component of the claims. The jet fuel, which is estimated to be completely lost in the incident, is expected to be claimed for insurance by the owner of the cargo.
However, it is important to note that investigations by the US and the Portuguese governments into the incident have not yet been finalized. If malicious actors or sabotage are proven, it can significantly complicate insurance proceedings, with the denial of insurance coverage also becoming a possibility.
The total expected losses, including all of these factors, are estimated to range from $100 million to $300 million
