M/V Stadt Bremen
Grounding Barranquilla, Colombia
DOI: November 18, 2010
2 December 2010
Dear Valued Customer,
We write to further update you on the status of the motor vessel Stadt Bremen.
1. The Stadt Bremen has been refloated. The vessel will proceed to Cartagena to discharge all of her cargo once inspections are completed and she has been cleared to proceed. It is not yet known whether the vessel will require repairs. The cause of the grounding remains under investigation.
2. The owners of the Stadt Bremen, MS Stadt Bremen T+H Schiffahrts GmbH & Co. KG, have declared General Average.
3. General Average is a long established, internationally-recognized legal procedure where the vessel owners, charterers and cargo owners are required to share the cost of “any extraordinary sacrifice or expenditure . . . voluntarily and reasonably made or incurred in time of peril to preserve the ship and cargo.” As part of the process, the vessel owner will require your cargo insurance company to provide a bond, bank guarantee, cash or other financial guarantee before they will release your cargo to you. This is done to assure that funds will be available to cover General Average costs. Typically the amount of the security is established as a percentage of the value of the cargo.
4. Owners have appointed a General Average adjuster, Groninger & Welke, who will issue instructions to all cargo owners regarding what will be needed. Instructions from the General Average adjuster will be forthcoming.
5. We recommend you contact your cargo insurer immediately and advise them that your cargo is subject to a General Average declaration related to the grounding of the Stadt Bremen. In our experience most cargo insurance policies cover General Average circumstances, and the insurer is able to quickly provide security satisfactory to the General Average adjuster. Your cargo insurer will require documentation and information related to your cargo and the circumstances of the casualty. We further recommend that you compile commercial invoices pertaining to your cargo, as we expect you will be required to provide these to the General Average adjuster.
6. We are making arrangements to discharge the vessel in Cartagena, but will hold the cargo at the Port pending instructions to the contrary from vessel owners and the General Average adjuster.
We will update you as soon as we receive additional information from the owner and/or the General Average adjuster.
On behalf of APL, we sincerely regret any inconvenience this incident has caused.
In the meantime, if you require further help, please contact your local Customer Service or APL representative.