The Chinese owners of the “ASL Bauhinia” have signed a Lloyd’s Open Form with Smit Salvage.
The subsidiary of Boskalis has been awarded the contract under the standard Lloyd’s Open Form agreement. This is according to a general average note from the Lloyd’s of London insurance exchange, which manages the execution and settlement of the contracts centrally. A clause was activated that suggests very high claims and salvage costs.
According to the report, Smit signed the contract on January 28 – one day after the fire broke out on the container ship, which was built in 2022 and has a slot capacity of 1,930 TEU. The “ASL Bauhinia” belongs to the Chinese shipping company Asean Seas Line (ASL) in Shanghai and operates as a charterer between ports in the Persian Gulf and the Red Sea on behalf of Emirates Shipping Line (ESL).
It is said to be located around 120 nm northwest of Al-Hudaida. So far there has been no official statement on the accident. HANSA ‘s inquiries to the shipping company, charterer and salvage company have remained unanswered for the time being.
According to the Joint Maritime Information Center (JMIC) of the international naval alliance Combined Maritime Forces, the fire on the “ASL Bauhinia” is not connected to attacks by the Houthi rebels in Yemen.
Photos on social media platforms from last week show flames between stacks of containers and a huge cloud of smoke rising from the forecastle. The Chinese crew is said to have abandoned the ship and been rescued by another Chinese freighter.
The extent of the damage to the “ASL Bauhinia” must now be enormous, as Smit Salvage has activated the so-called Scopic Clause – Special Compensation P&I Clause – in the Lloyd’s Open Form, according to Lloyd’s announcement. Under this clause, the salvor’s remuneration is converted to a fixed rate for personnel and equipment.
Normally, the basic principle of the Lloyd’s Open Form is: “No cure, no pay”. Remuneration is based on the value of the salvaged assets. If the prospects for this are poor and there is a risk of total loss of the ship and cargo instead, it only makes sense for the commercial salvor to use “scopic”. (mph)
