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Protection and indemnity insurance

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Protection and indemnity insurance , more commonly known as P&I insurance , is a form of mutual maritime insurance provided by a P&I club . Whereas a marine insurance company provides "hull and machinery" cover for shipowners, and cargo cover for cargo owners, a P&I club provides cover for open-ended risks that traditional insurers are reluctant to insure. Typical P&I cover includes: a carrier's third-party risks for damage caused to cargo during carriage; war risks ; and risks of environmental damage such as oil spills and pollution . In the UK, both traditional underwriters and P&I clubs are subject to the Marine Insurance Act 1906 .

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90-440: A P&I club is a mutual insurance association that provides risk pooling , information and representation for its members. Unlike a marine insurance company, which reports to its shareholders, a P&I club reports only to its members. Originally, P&I club members were typically shipowners , ship operators or demise charterers , but more recently freight forwarders and warehouse operators have been able to join. Whereas

180-592: A carrier of goods by sea ). Should the Rotterdam Rules come into effect, they would cover not merely the sea voyage, but all parts of any contract of multimodal carriage with a sea leg. Thereafter, land carriers, warehouses, and freight forwarders would also need P&I cover. This would inevitably lead to an increase in the scope and importance of P&I cover, and might diminish the prevalence of standard cargo insurance. Conventional P&I cover has been taken up primarily by shipowners and demise charterers, but

270-554: A 2500 tonne crude oil spill from an unknown tanker in 2019. Similarly, tourism in Ibiza was severely impacted in 2007. Just 20 tonnes of oil were spilled from the Don Pedro in July 2007, a relatively limited volume compared with other spills. Whilst this caused just a small amount of environmental damage, the economic damage was disproportionately large. Most beaches were reopened within a week, just

360-453: A P&I club and any P&I club member who incurs reckless or avoidable losses to the club may be asked to leave. Thus, marine cargo is generally covered twice by insurance standards. The shipper or cargo-owner will be covered by a marine insurer likely with 'all risks' cover. The carrier or shipowner will be covered by the P&;I club but will typically limit their liability to goods owners to

450-408: A carrier’s liability to a cargo-owner for damage to cargo, a shipowner ’s liability after a collision, environmental pollution and P&I war risk insurance , or legal liability due to acts of war affecting the ship. Marine insurers are usually for-profit companies that charge customers a premium to fully cover ships and cargo in the time period when the policy applies. In contrast, a P&I club

540-483: A conventional premium, rather than a P&I call. In addition to brokerage services, such a company may offer conventional "our man on the spot" P&I services. The following is a list of P&I clubs around the world. The International Group of P&I Clubs (based on Leadenhall Street, London) comprises twelve clubs, which provide P&I liability cover for approximately 90% of the world's ocean-going tonnage. Mutual insurance A mutual insurance company

630-414: A dozen seabirds were affected, and there were no reports of injured sea mammals. Nonetheless, 27 percent of hotels in Ibiza were negatively affected, with two thirds of these being seafront hotels. Thus, 32 claims were made by tourist firms, equating to approximately 1.5 million euros of compensation. This provides a clear example of an oil spill resulting in massive economic disaster. Furthermore, following

720-514: A further call to replenish the pool. The International Group of P&I Clubs is based on Leadenhall Street in London. These clubs cooperate to provide funds in the event of huge claims using a complex system to determine liability. The ancient Greeks created the practice of general average in Rhodos island, and ancient Romans could be said to have had a rudimentary form of marine insurance. However,

810-518: A generation pathway for particulate matter during an oil spill. During the Deepwater Horizon oil spill , significant air quality issues were found on the Gulf Coast, which is the downwind of DWH oil spill. Air quality monitoring data showed that criteria pollutants had exceeded the health-based standard in the coastal regions. The majority of oil from an oil spill remains in the environment, hence

900-452: A new development is P&I cover for time- and voyage-charterers. Since these charterers may have no long-term relationship with any vessel, and may well have periods when they are not chartering at all, the mutual model based on common-pool sharing of liability is not necessarily ideal. Some non-mutual "charterers P&I clubs" have arisen whereby a private company may act as broker to provide third-party cover via underwriters, on payment of

990-630: A novel type of insurance that one would recognise as modern emerged in the London "coffee shops" in the 19th century. Shipowners and charterers would seek underwriters to insure their ships, and cargo owners (whether shippers, importers or consignees) would insure their cargoes. Carriers soon realised that often they might themselves be at fault should cargo be lost or damaged at sea, and they sought to take out third-party indemnity insurance in respect of cargo liability. Underwriters showed an unwillingness to take on such open-ended risks, so shipowners responded by forming their own mutual P&I clubs, acting as

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1080-443: A result of a blowout . They can go on for months until relief wells have been drilled, resulting in enormous amounts of oil leaked. Notable examples of such oil spills are Deepwater Horizon and Ixtoc I . While technologies for drilling in deep water have significantly improved in the past 30–40 years, oil companies move to drilling sites in more and more difficult places. This ambiguous development results in no clear trend regarding

1170-464: A result, oil spill accidents have initiated intense media attention and political uproar, bringing many together in a political struggle concerning government response to oil spills and what actions can best prevent them from happening. An oil spill represents an immediate negative effects on human health, including respiratory and reproductive problems as well as liver, and immune system damage. Oil spills causing future oil supply to decline also effects

1260-562: A result, these compounds have great potential to supplement the existing suite of hydrocarbons targets to fine-tune source tracking of petroleum spills. Such analysis can also be used to follow weathering and degradation of crude spills. Crude oil and refined fuel spills from tanker ship accidents have damaged vulnerable ecosystems in Alaska , the Gulf of Mexico , the Galapagos Islands , France ,

1350-481: A shipowner's co-operative. An advantage was that a club worked for the shipowners, thereby eliminating the underwriters' profit margins and making P&I Insurance significantly cheaper. In the second half of the 19th century, the number of claims greatly increased due to the number of passengers emigrating to North America and Australia. Shipowners became aware of their insurers' compensation limits, especially when it came to damages caused by ship collisions. While

1440-463: A small fraction of the retail value of goods. If the cargo is lost or damaged, the cargo-owner needs to first make a claim against the shipowner. However, the shipowner may avoid liability if it did not cause the loss or if the Hague–Visby Rules grant exemption from liability. In that case, the cargo-owner will claim against its own insurance company. If the cargo-owner fails to claim first against

1530-551: A source of secondary pollution. Therefore, it is crucial for ports to manage and mitigate any oil spills, in order to limit the damage to ships and shipping operations. Otherwise, should large disruption occur, the economic damage can be extensive due to costly clean-up processes and delayed shipments. The economic impact of oil spills on tourism, fishing, and ports is substantial and important to assess. Coordinated efforts are necessary to mitigate these impacts, including effective clean-up measures, public relations campaigns to restore

1620-672: A spill from an operation in the ocean is different from an operation on tundra or wetland. Wetlands are considered one of the most sensitive habitats to oil spills and the most difficult to clean. Oil spills can be caused by human error, natural disasters, technical failures or deliberate releases. It is estimated that 30–50% of all oil spills are directly or indirectly caused by human error, with approximately 20–40% of oil spills being attributed to equipment failure or malfunction. Causes of oil spills are further distinguished between deliberate releases, such as operational discharges or acts of war and accidental releases. Accidental oil spills are in

1710-522: A spill, all boats entering or leaving the port must be closely managed in order to prevent further spread. Furthermore, specialist cleaning contractors must be hired to effectively clean the various port structures. Oil spills are relatively regular occurrences in ports, as small spills often happen due to the large volume of boats, and these are not as well documented in the media as larger events are. However, these spills must still be dealt with, and they can still have damaging economic repercussions. Both

1800-780: A stock insurance company are distributed to the investors without necessarily benefiting the policyholders. The concept of mutual insurance originated in England in the late 17th century to cover losses due to fire. The mutual/casualty insurance industry began in the United States in 1752 when Benjamin Franklin established the Philadelphia Contributionship for the Insurance of Houses From Loss by Fire. Mutual property/casualty insurance companies exist now in nearly every country around

1890-670: A thin oil slick which can cover beaches with a thin coating of oil. These can kill seabirds, mammals, shellfish and other organisms they coat. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily. Oil spills can have devastating environmental impacts; however, we cannot allow these to overshadow their often equally detrimental economic consequences. These disasters do not only pose immediate threats to marine ecosystems, but also leave lasting impacts on local and regional economies. This section will explore

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1980-412: Is also a division for sub-tidal habitats which are equally important to coastal biodiversity including kelp, coral reefs and sea beds which are not commonly mapped within the shoreline ESI type. Human-use resources are also often referred to as socio-economic features, which map inanimate resources that have the potential to be directly impacted by oil pollution. Human-use resources that are mapped within

2070-415: Is an insurance company owned entirely by its policyholders . It is a form of consumers' co-operative . Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums. In contrast, a stock insurance company is owned by investors who have purchased company stock; any profits generated by

2160-421: Is difficult and depends upon many factors, including the type of oil spilled, the temperature of the water (affecting evaporation and biodegradation), and the types of shorelines and beaches involved. Physical cleanups of oil spills are also very expensive. Until the 1960s, the best method for remediation consisted of putting straw on the spill and retrieving the oil-soaked straw manually. Chemical remediation

2250-424: Is estimated that runoff oil and oil from rivers are responsible for 11% of oil pollution to the oceans. Such pollution can also be oil on roads from land vehicles, which is then flushed into the oceans during rainstorms. Purely land-based oil spills are different from maritime oil spills in that oil on land does not spread as quickly as in water, and effects thus remain local. Cleanup and recovery from an oil spill

2340-519: Is run as a non-profit co-operative and the insurance is financed by “calls”. Club members contribute to the club’s common risk pool according to the Pooling Agreement's rules . If the risk pool cannot cover current claims , the club members will be asked to pay a further call. If the pool has a surplus, the club will ask for a lower call the following year or make a refund to members. Only shipowners with acceptable reputations are allowed to join

2430-419: Is the norm as of the early 21st century, using compounds that can herd and thicken oil for physical recovery, disperse oil in the water, or facilitate burning the oil off. The future of oil cleanup technology is likely the use of microorganisms such as Fusobacteriota (formerly Fusobacteria), species demonstrate potential for future oil spill cleanup because of their ability to colonize and degrade oil slicks on

2520-800: Is the release of a liquid petroleum hydrocarbon into the environment, especially the marine ecosystem , due to human activity, and is a form of pollution . The term is usually given to marine oil spills, where oil is released into the ocean or coastal waters , but spills may also occur on land. Oil spills can result from the release of crude oil from tankers , offshore platforms , drilling rigs , and wells . They may also involve spills of refined petroleum products , such as gasoline and diesel fuel , as well as their by-products. Additionally, heavier fuels used by large ships, such as bunker fuel , or spills of any oily refuse or waste oil , contribute to such incidents. These spills can have severe environmental and economic consequences. Oil spills penetrate into

2610-438: Is threatened, endangered or rare. The way in which the biological resources are mapped is through symbols representing the species, and polygons and lines to map out the special extent of the species. The symbols also have the ability to identify the most vulnerable of a species life stages, such as the molting , nesting, hatching or migration patterns. This allows for more accurate response plans during those given periods. There

2700-614: Is to date the most commonly used mapping tool for sensitive area plotting. The ESI has three components: A shoreline type ranking system, a biological resources section, and a human-use resource category. ESI is the most frequently used sensitivity mapping tool yet. It was first applied in 1979 in response to an oil-spill near Texas in the Gulf of Mexico. To this time, ESI maps were prepared merely days in advance of one's arrival to an oil spill location. ESMs used to be atlases, maps consisting of thousands of pages that could solely work with spills in

2790-589: The Deepwater Horizon oil spill impacted beach tourism and fishing along the Gulf Coast, and the responsible parties were required to compensate economic victims. The threat posed to birds, fish, shellfish and crustaceans from spilled oil was known in England in the 1920s, largely through observations made in Yorkshire . The subject was also explored in a scientific paper produced by the National Academy of Sciences in

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2880-461: The MARPOL convention . Operational releases are frequent, but small in the amount of oil spilled per release, and are often not in the focus of attention regarding oil spills. There has been a steady decrease of operational discharges of oil, with an additional decrease of around 50% since the 1990s. As of 2007, accidental oil tank vessel spills accounted for approximately 8–13% of all oil spilled into

2970-526: The Sundarbans , Ogoniland , and many other places. The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Deepwater Horizon oil spill , Atlantic Empress , Amoco Cadiz ), but volume is a limited measure of damage or impact. Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill because of

3060-427: The substrate with oil. The differing substrates between shoreline types vary in their response to oiling, and influence the type of cleanup that will be required to effectively decontaminate the shoreline. Hence ESI shoreline ranking helps committees identify which clean-up techniques are approved or detrimental the natural environment. The exposure the shoreline has to wave energy and tides, substrate type, and slope of

3150-455: The water associated fraction of the oil. Methods for cleaning up include: Equipment used includes: Spill response procedures should include elements such as; Environmental Sensitivity Indexes (ESI) are tools used to create Environmental Sensitivity Maps (ESM). ESM's are pre-planning tools used to identify sensitive areas and resources prior to an oil spill event in order to set priorities for protection and plan clean-up strategies. It

3240-427: The 1990s recorded 1,134,000 tonnes lost, mainly from 10 major spills. This figure decreased to 196,000 tonnes in the 2000s and 164,000 tonnes in the 2010s. In the early 2020s, approximately 28,000 tonnes have been lost, predominantly from major incidents. Accidental spills from oil platforms nowadays account for approximately 3% of oil spills in the oceans. Prominent offshore oil platform spills typically occurred as

3330-491: The ESI will have socio-economic repercussions to an oil spill. These resources are divided into four major classifications: archaeological importance or cultural resource site, high-use recreational areas or shoreline access points, important protected management areas, and resource origins. Some examples include airports, diving sites, popular beach sites, marinas, hotels, factories, natural reserves or marine sanctuaries. When mapped,

3420-547: The International Tanker Owners Pollution Federation (ITOPF) documented a significant oil spill incident of over 700 tonnes and nine medium spills ranging between 7 and 700 tonnes. The major spill occurred in Asia involving heavy fuel oil, and the medium spills were scattered across Asia, Africa, Europe, and America, involving various oil types. The total volume of oil released from these spills in 2023

3510-493: The UK Merchant Shipping Act 1854 had determined that, when evaluating insurance claims, the value of ships should be no less than £15 per ton, many ships had an actual lower market value and existing insurance policies did not cover this gap in liability. The compensation for collision damages also excluded a quarter of such damages. Existing hull insurance policies included damages to the insured ship and liability for

3600-549: The US in 1974 which considered impacts to fish, crustaceans and molluscs. The paper was limited to 100 copies and was described as a draft document, not to be cited. In general, spilled oil can affect animals and plants in two ways: dirесt from the oil and from the response or cleanup process. Oil penetrates into the structure of the plumage of birds and the fur of mammals, reducing their insulating ability, and making them more vulnerable to temperature fluctuations and much less buoyant in

3690-466: The United States, the tool has made impressive advancements in developing tidal bay protection strategies, collecting seasonal information and generally in the modelling of sensitive areas. Together with Geographic Information System Mapping (GIS) , ESI integrates their techniques to successfully geographically reference the three different types of resources. The ESI depicts environmental stability, coastal resilience to maritime related catastrophes, and

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3780-520: The absolute amount of seaborne oil trade is steadily increasing. However, there has been a reduction of the number of spills from oil tankers and of the amount of oil released per oil tanker spill. In 1992, MARPOL was amended and made it mandatory for large tankers (5,000 dwt and more) to be fitted with double hulls . This is considered to be a major reason for the reduction of oil tanker spills, alongside other innovations such as GPS , sectioning of vessels and sea lanes in narrow straits. In 2023,

3870-736: The amount that environmental salvors could be paid to mere "out-of-pocket expenses", with no allowance for any profit margin. As an antidote to this, the marine insurance industry and P&I clubs jointly developed the "SCOPIC clause", which is a codicil that may be appended to an LOF and invoked should the statutory payment provisions prove inadequate. The first SCOPIC clause was in 2000, and there have been several iterations since. Marine insurers offer insurance on measurable risks: hull and machinery insurance for shipowners, and cargo insurance for cargo owners. P&I clubs provide insurance for broader, indeterminate risks that marine insurers usually do not cover, such as third party risks. These risks include:

3960-412: The area that is to be mapped, and secondly, a meeting with local and regional experts on the area and its resources. Following, all the shoreline types, biological, and human use resources need to be identified and their locations pinpointed. Once all this information is gathered, it then becomes digitized. In its digital format, classifications are set in place, tables are produced and local experts refine

4050-470: The assured pays a premium to an underwriter for cover which lasts for a particular time (say, a year, or a voyage), a P&I club member instead pays a "call". This is a sum of money that is put into the club's pool , a kind of "kitty". If, at the end of the year, there are still funds in the pool, each member will pay a reduced call the following year; but if the club has made a major payout (say, after an oil spillage) club members will immediately have to pay

4140-412: The atmosphere to form fine particulate matter after they evaporate into the atmosphere. These particulates can penetrate lungs and carry toxic chemicals into the human body. Burning surface oil can also be a source for pollution such as soot particles. During the cleanup and recovery process, it will also generate air pollutants such as nitric oxides and ozone from ships. Lastly, bubble bursting can also be

4230-483: The configurations of a stress-response relationship between all things maritime. Created for ecological-related decision making, ESMs can accurately identify sensitive areas and habitats, clean-up responses, response measures and monitoring strategies for oil-spills. The maps allow experts from varying fields to come together and work efficiently during fast-paced response operations. The process of making an ESI atlas involves GIS technology. The steps involve, first zoning

4320-539: The current marine insurance class. After 1874, many clubs added a marine indemnity class to respond to these new claims. This class was later merged with the marine insurance class reserved for the original protection risks and the distinction between the two classes virtually disappeared. After the Torrey Canyon grounding in 1967, covering the liabilities, costs and expenses of oil spills became an increasingly important aspect of P&I insurance. Following on from

4410-521: The damages it had caused, while the maximum amount shipowners could recover after collisions was the ship's insured value, injured crew members might seek compensation from their employers. Later, the Fatal Accidents Act 1846 made it easier for passengers or their survivors to file claims . Perhaps the first protection association, the Shipowners' Mutual Protection Society, was formed in 1855. It

4500-492: The digestive process. Animals can be poisoned, and may die from oil entering the lungs or liver. In addition, oil spills can also harm air quality. The chemicals in crude oil are mostly hydrocarbons that contains toxic chemicals such as benzenes , toluene , poly-aromatic hydrocarbons and oxygenated polycyclic aromatic hydrocarbons . These chemicals can introduce adverse health effects when being inhaled into human body. In addition, these chemicals can be oxidized by oxidants in

4590-549: The directive may be expelled or refused entry into any EU port, although ships may be allowed time to comply before expulsion. As EU competence does not generally extend to penology , (see Re Tachographs (CJEU) 1979), the directive requires the member states themselves to set penalties for any breach. The Rotterdam Rules are a set of rules designed to replace the Hamburg Rules and the outdated Hague–Visby Rules (both of which are international conventions to impose duties upon

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4680-460: The equipment and boats of fishermen. Clean-up operations can also interrupt usual fishing routes, and sometimes fishing bans are imposed. This further illustrates the damaging economic effects of oil spills on commercial fishing, which is particularly detrimental for regions whose economy relies heavily on fishing. Ports are major hubs for economic activity; thus, an oil spill in or near a port can have significant consequences. During and following

4770-959: The everyday life of humans such as the potential closure of beaches, parks, fisheries and fire hazards. The Kuwaiti oil fires produced air pollution that caused respiratory distress. The Deepwater Horizon explosion killed eleven oil rig workers. The fire resulting from the Lac-Mégantic derailment killed 47 and destroyed half of the town's centre. Spilled oil can also contaminate drinking water supplies. For example, in 2013 two different oil spills contaminated water supplies for 300,000 in Miri , Malaysia ; 80,000 people in Coca, Ecuador . In 2000, springs were contaminated by an oil spill in Clark County, Kentucky . Contamination can have an economic impact on tourism and marine resource extraction industries. For example,

4860-411: The fish are tainted with oil, and they cannot be used commercially due to safety reasons. Then, the oil can spread and sink below the water's surface. If fish swallow the oil, they are also inconsumable due to the health risk posed to humans. Therefore, massive economic damage is caused to the fishing industry following an oil spill, as the stock is vastly reduced. Furthermore, the oil can cause damage to

4950-528: The focus of the literature, although some of the largest oil spills ever recorded, the Gulf War Oil Spill (sea based) and Kuwaiti Oil Fires (land based) were deliberate acts of war. The academic study of sources and causes of oil spills identifies vulnerable points in oil transportation infrastructure and calculates the likelihood of oil spills happening. This can then guide prevention efforts and regulation policies Around 40-50% of all oil released into

5040-687: The frequency of offshore oil platform spills. As of 2010, overall, there has been a substantial increase of pipeline oil spills in the past four decades. Prominent examples include oil spills of pipelines in the Niger Delta . Pipeline oil spills can be caused by trawling of fishing boats, natural disasters, pipe corrosion, construction defects, sabotage, or an attack, as with the Caño Limón-Coveñas pipeline in Colombia. Pipelines as sources of oil spills are estimated to contribute 1% of oil pollution to

5130-591: The globe. The global trade association for the industry, the International Cooperative and Mutual Insurance Federation, claims 216 members in 74 countries, in turn representing over 400 insurers . In North America the National Association of Mutual Insurance Companies (NAMIC) , founded in 1895, is the sole representative of U.S. and Canadian mutual insurance companies in the areas of advocacy and education. The "mutual holding company" structure

5220-558: The halt in fishing activity. The examples of the Deepwater Horizon and the Prestige clearly illustrate the severe economic consequences when oil spills prevent commercial fishing. Water pollution due to oil spills can be severe, often resulting in the death or injury of many sea creatures, including birds, sea mammals, fish, algae, and coral. The impact on fish caught in the spill has both immediate and longer-term impacts. Immediately,

5310-498: The hotels, restaurants, and bars in the immediate vicinity will have significantly fewer customers. Local car park owners and shopkeepers will be affected too. Then, this decline in tourists will cause further damage to travel agencies, tour guides, and transport companies. The beaches will likely stay shut for several days whilst clean-up operations take place, and there may be disruption caused by an increase in clean-up vehicles. Overall, several businesses will be negatively impacted by

5400-422: The human-use resources the need protecting must be certified by a local or regional policy maker. These resources are often extremely vulnerable to seasonal changes due to ex. fishing and tourism. For this category there are also a set of symbols available to demonstrate their importance on ESMs. By observing the thickness of the film of oil and its appearance on the surface of the water, it is possible to estimate

5490-418: The incident and the response require expensive and time-consuming management which is disruptive to port activity. Furthermore, special care must be taken during clean-up operations to ensure that the oil does not get stuck under the quayside, as this could act as a continual source of oil contamination. This can also be seen with sea defenses; should the oil penetrate deep into the structures, they may become

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5580-402: The increasingly sensitive types and cooler colours are used for robust shores. For each navigable body of water, there is a feature classifying its sensitivity to oil. Shoreline type mapping codes a large range of ecological settings including estuarine , lacustrine , and riverine environments. Floating oil slicks put the shoreline at particular risk when they eventually come ashore, covering

5670-620: The innovations of the LOF 1980 , the 1989 International Salvage Convention permitted salvage rewards to be made to salvors who acted to limit damage to the coastal environment after oil spills. Articles 13 & 14 of the Convention made provision for "Special Compensation", but the UK House of Lords case of the Nagasaki Spirit revealed that the convention had been poorly drafted, thereby limiting

5760-439: The maps and tweak certain flaws that might have occurred in the previous steps. Shoreline type is classified by rank depending on how easy the target site would be to clean up, how long the oil would persist, and how sensitive the shoreline is. The ranking system works on a 10-point scale where the higher the rank, the more sensitive a habitat or shore is. The coding system usually works in colour, where warm colours are used for

5850-426: The multifaceted economic repercussions of oil spills, specifically considering: the decline in tourism, the reduction in fishing, and the impact on port activity. In the short term, an oil spill will prevent tourists from partaking in usual recreational activities such as swimming, boating, diving, and angling. As such, the area will witness a decline in tourism. This will negatively impact several industries. Firstly,

5940-488: The ocean. This disaster has had severe economic consequences, alongside the environmental damage. Large zones were cordoned in which fishing was banned, with these bans lasting for more than eight months. This affected several groups, including fishermen, ship owners, and the companies who bought and sold the fish. Several compensatory actions were introduced, including tax benefits and aid. This resulted in expenses of approximately 113 million euros in an attempt to compensate for

6030-409: The oceans stems from natural seeps from seafloor rocks. This corresponds to approximately 600,000 tons annually on a global level. While natural seeps are the single largest source of oil spills, they are considered less problematic because ecosystems have adapted to such regular releases. For instance, on sites of natural oil seeps, ocean bacteria have evolved to digest oil molecules. Vessels can be

6120-415: The oceans. The main causes of oil tank vessel spills were collision (29%), grounding (22%), mishandling (14%) and sinking (12%), among others. Oil tanker spills are considered a major ecological threat due to the large amount of oil spilled per accident and the fact that major sea traffic routes are close to Large Marine Ecosystems . Around 90% of the world's oil transportation is through oil tankers, and

6210-419: The oceans. Reasons for this are underreporting, and many oil pipeline leaks occur on land with only fractions of that oil reaching the oceans. Recreational boats can spill oil into the ocean because of operational or human error and unpreparedness. The amounts are however small, and such oil spills are hard to track due to underreporting. Oil can reach the oceans as oil and fuel from land-based sources. It

6300-572: The oceans. In the past 3 decades, this product has been transformed into a versatile online tool. This conversion allows sensitivity indexing to become more adaptable and in 1995 by the US National Oceanic and Atmospheric Administration (NOAA) worked on the tool allowing ESI to extended maps to lakes, rivers, and estuary shoreline types. ESI maps have since become integral to  collecting, synthesizing, and producing data which have previously never been accessible in digital formats. Especially in

6390-988: The oil. Within the biological resources, the ESI maps protected areas as well as those with bio-diverse importance. These are usually identified through the UNEP-WCMC Integrated Biodiversity Assessment Tool. There are varying types of coastal habitats and ecosystems and thus also many endangered species that need to be considered when looking at affected areas post oil spills. The habitats of plants and animals that may be at risk from oil spills are referred to as "elements" and are divided by functional group. Further classification divides each element into species groups with similar life histories and behaviors relative to their vulnerability to oil spills. There are eight element groups: birds, reptiles, amphibians, fish, invertebrates, habitats and plants, wetlands, and marine mammals and terrestrial mammals. Element groups are further divided into sub-groups, for example,

6480-474: The popular image of a destination with exaggerated stories of oil on beaches and deserted hotels. This aggravates the economic losses, as people continue to choose to travel elsewhere. Such a scenario is particularly damaging for regions which are very reliant on the tourism industry. For example, the Brazilian Northeast can be very vulnerable to drops in tourism, thus, they were badly impacted following

6570-649: The product before it gets released. ESI's current most common use is within contingency planning. After the maps are calculated and produced, the most sensitive areas get picked out and authenticated. These areas then go through a scrutinization process throughout which methods of protection and resource assessments are obtained. This in-depth research is then put back into the ESMs to develop their accuracy and allowing for tactical information to be stored in them as well. The finished maps are then used for drills and trainings for clean-up efficiency. Trainings also often help to update

6660-437: The quantity of oil spilled. If the surface area of the spill is also known, the total volume of the oil can be calculated. Oil spill model systems are used by industry and government to assist in planning and emergency decision making. Of critical importance for the skill of the oil spill model prediction is the adequate description of the wind and current fields. There is a worldwide oil spill modelling (WOSM) program. Tracking

6750-528: The remoteness of the site or the difficulty of an emergency environmental response. Oil spills in the Niger Delta are among the worst on the planet and is often used as an example of ecocide . Between 1970 and 2000, there were over 7,000 spills. Between 1956 and 2006, up to 1.5 million tons of oil were spilled in the Niger Delta . Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in

6840-588: The scope of an oil spill may also involve verifying that hydrocarbons collected during an ongoing spill are derived from the active spill or some other source. This can involve sophisticated analytical chemistry focused on finger printing an oil source based on the complex mixture of substances present. Largely, these will be various hydrocarbons, among the most useful being polyaromatic hydrocarbons . In addition, both oxygen and nitrogen heterocyclic hydrocarbons, such as parent and alkyl homologues of carbazole , quinoline , and pyridine , are present in many crude oils. As

6930-455: The sea surface. There are three kinds of oil-consuming bacteria. Sulfate-reducing bacteria (SRB) and acid-producing bacteria are anaerobic , while general aerobic bacteria (GAB) are aerobic . These bacteria occur naturally and will act to remove oil from an ecosystem, and their biomass will tend to replace other populations in the food chain. The chemicals from the oil which dissolve in water, and hence are available to bacteria, are those in

7020-542: The shipowner, but claims instead against its own insurance company, the insurer, having reimbursed its client, will through subrogation pursue the claim in its own right against the shipowner. The following are the major exceptions to P&I coverage: The European Union Directive 2009/20/EC was implemented in all 27 member states by January 1, 2012. The directive requires compulsory P&I to cover for EU and foreign ships in EU waters and ports. Foreign vessels that do not comply to

7110-445: The shoreline are also taken into account—in addition to biological productivity and sensitivity. Mangroves and marshes tend to have higher ESI rankings due to the potentially long-lasting and damaging effects of both oil contamination and cleanup actions. Impermeable and exposed surfaces with high wave action are ranked lower due to the reflecting waves keeping oil from coming onshore, and the speed at which natural processes will remove

7200-416: The source of oil spills either through operational releases of oil or in the case of oil tanker accidents. As of 2007, operational discharges from vessels were estimated to account for 21% of oil releases from vessels. They occur as a consequence of failure to comply with regulations or arbitrary discharges of waste oil and water containing such oil residues. Such operational discharges are regulated through

7290-407: The spill in the short term, which can lead to further long-term damage should companies be forced to reduce staff or shut down entirely. Often, this process is intensified by disproportionate media attention. Usually, the affected area returns to normal relatively soon after an oil spill, as the clean-up process is fast. However, media stories will drive future tourists away, as they work to degrade

7380-603: The structure of the plumage of birds and the fur of mammals, reducing its insulating ability, and making them more vulnerable to temperature fluctuations and much less buoyant in the water. Cleanup and recovery from an oil spill is difficult and depends upon many factors, including the type of oil spilled, the temperature of the water (affecting evaporation and biodegradation), and the types of shorelines and beaches involved. Spills may take weeks, months or even years to clean up. Oil spills can have disastrous consequences for society; economically, environmentally, and socially. As

7470-642: The survival rate can also exceed ninety percent, as in the case of the MV Treasure oil spill . Oil spills and oil dumping events have been impacting sea birds since at least the 1920s and was understood to be a global problem in the 1930s. Heavily furred marine mammals exposed to oil spills are affected in similar ways. Oil coats the fur of sea otters and seals , reducing its insulating effect, and leading to fluctuations in body temperature and hypothermia . Oil can also blind an animal, leaving it defenseless. The ingestion of oil causes dehydration and impairs

7560-934: The water. Animals who rely on scent to find their babies or mothers cannot do so due to the strong scent of the oil. This causes a baby to be rejected and abandoned, leaving the babies to starve and eventually die. Oil can impair a bird's ability to fly, preventing it from foraging or escaping from predators. As they preen , birds may ingest the oil coating their feathers, irritating the digestive tract , altering liver function, and causing kidney damage. Together with their diminished foraging capacity, this can rapidly result in dehydration and metabolic imbalance. Some birds exposed to petroleum also experience changes in their hormonal balance, including changes in their luteinizing protein. The majority of birds affected by oil spills die from complications without human intervention. Some studies have suggested that less than one percent of oil-soaked birds survive, even after cleaning, although

7650-485: The world's largest oil spill, the Deepwater Horizon Oil Spill in 2010, the U.S. Travel Association estimated 23 billion dollars’ worth of associated costs for affected tourist infrastructure. After the Deepwater Horizon crisis, the Gulf of Mexico suffered an estimated 1.9-billion-dollar loss in revenue from fishing. This is because fishing closures were imposed due to fears of the safety of seafood, there

7740-455: The ‘marine mammals’ element group is divided into dolphins , manatees, pinnipeds (seals, sea lions & walruses), polar bears , sea otters and whales . Necessary when ranking and selecting species is their vulnerability to the oil spills themselves. This not only includes their reactions to such events but also their fragility, the scale of large clusters of animals, whether special life stages occur ashore, and whether any present species

7830-536: Was also a decline in demand, as seafood restaurants and markets suffered such severe losses that many were forced to shut. Usually, the Gulf sees an average of 106,703 fishing trips per day, equating to 1 million metric tonnes of annual fishery landings. Therefore, the necessary fishing ban following the disaster was highly damaging. Similarly, following the sinking of the Prestige oil tanker near Galicia, Spain, in November 2002, 77,000 tonnes of crude oil were spilled into

7920-417: Was approximately 2,000 tonnes. This contributes to a trend of decreased oil spill volumes and frequencies over the decades. Comparatively, the 1970s averaged 79 significant spills per year, which drastically reduced to an average of about 6.3 per year in the 2010s, and has maintained a similar level in the current decade. The reduction in oil spill volume has also been substantial over the years. For instance,

8010-724: Was first introduced in Iowa in 1995, and has spread since then. There have been concerns that the mutual holding company conversion is disadvantageous for the owners of the company, the policyholders. The major disadvantage of mutual insurance companies is the difficulty of raising capital. In the 111th Congress , Carolyn Maloney sponsored a bill that she claimed would have protected mutual holding company owners. The measure, H.R. 3291 , died in committee. Mutual holding companies are one way to undergo privatization, also called demutualization . General Mutual insurance companies Health insurance companies Oil spills An oil spill

8100-743: Was intended to compensate for loss of life, injuries and collisions that were excluded from marine insurance policies beyond the monetary limit of these policies. Similar associations were later formed within the United Kingdom , in Scandinavia , Japan and the United States . In 1874, the risk of liability for cargo carried by the insured ship was added to the insurance cover provided by a P&I club. Cargo value had risen and cargo underwriters , encouraged by UK courts, filed more claims to recover their losses from shipowners. These claims were not covered by

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