Fire on board the vessel Hyundai Fortune on AEX Service

APL was advised Wednesday 22 March by Hyundai Merchant Marine of a fire on board the vessel Hyundai Fortune they operate on the AEX Service (Asia Europe Express).

The AEX is a line-haul service between Asia and Europe utilised by The New World Alliance (TNWA) partners Hyundai, APL and MOL.

Hyundai has since advised that a salvage team arrived at the vessel in the Gulf of Aden and that fire fighting is in progress.

We do not know at this time the extent of cargo damage or whether cargo aboard the vessel will be subject to salvage or general average liens, although there is a possibility this may occur. We have contacted customers with cargo aboard the vessel informing them of the situation and suggesting they inform their cargo insurers. We are committed to keeping customers informed as soon as more details are available.

Please direct any customer enquires to your local Customer Service Manager and any media enquires to NOL Corporate Affairs on + 65 371 5171.

1. How did this fire happen?
2. Was this the result of a terrorist attack?
3. What is APL doing to push vessel owner to get a formal answer of what happened?
4. What is APL doing to push for the salvage of the vessel?
5. What’s the extent of damage?
6. Where was the crew when this happened? Couldn’t they prevent this?
7. What’s the latest on the condition of the ship?
8. Which is the exact location of the vessel?
9. Is there any danger to the ship, crew, cargo or marine environment?
10. What if vessel is not recovered?
11. I’ve heard or read in reports that the vessel has been damaged. Does that mean the ship or the cargo are in danger?
12. Is there any intention at this moment of doing repairs to the vessel?
13. Has the ship spilled fuel?
    
    Status of Cargo
14. What is the condition of my cargo?
15. When and where can I take possession of the cargo?
16. What are we going to do if vessel is not able to discharge?
17. I’m not sure about whether my cargo was insured. What can I do?
18. I was counting on this cargo to fulfill contracts (or, I am facing contract penalties, or, I advertised these goods and couldn’t supply my customers, or my company’s assembly line is going to shut down because my cargo hasn’t been delivered, etc.). What compensation is APL going to pay me?
19. In case that vessel is not recovered, will the value of cargo be paid to consignee by APL?
20. Am I going to get back what I pay for the freight if I lose the cargo?
21. My cargo was supposed to be discharged in xxx. Will I be able to collect the containers at that location?
22. How long is this going to take?
23. Do I have to ask for more raw material? Who is going to pay these extra charges if I ask for more material? What expenses is APL be responsible for?
24. How can the ownership be identified if the bill of lading has been transferred or negotiated? What kind of documents are necessary to recover the cargo?
25. Who is going to pay the customer the letter of credit and L/C penalties, if any?
26. What is the status of my refrigerated cargo?
27. Has General Average been declared?
28. What should I do if General Average has been declared?
29. What is General Average?
30. What is salvage?
31. I am not aware of any contract addressing General Average or salvage. What contracts apply to this situation?
32. Who is handling legal questions from APL?

1. How did this fire happen?
The vessel owner is currently focused on extinguishing the fire and the cause is not yet known.

2.Was this the result of a terrorist attack?
We are not aware of any information at this time suggesting this casualty was linked to a terrorist or pirate attack.

3. What is APL doing to push vessel owner to get a formal answer of what happened?
We are confident that the causes of the accident will be investigated in due course.

4. What is APL doing to push for the salvage of the vessel?
Vessel owners have appointed a salvage company, Wijsmuller Salvage B.V. which currently has one fire-fighting vessel on the site and three more en route. APL is working closely with the vessel owner, salvors and authorities to investigate and understand the circumstances of the casualty. We are also encouraging the vessel owners and salvors to work with all deliberate speed to resolve this situation.

5. What’s the extent of damage?
The extent of the damage to the ship will be assessed once the vessel is in a safe condition to board and inspect.

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6. Where was the crew when this happened? Couldn’t they prevent this?
This is being investigated.

7. What’s the latest on the condition of the ship?
Hyundai Merchant Marine has indicated (as at 24 March, 2005) that the ship is overall in a stable condition and not at immediate risk of sinking. While a fire has been extinguished fore of the Bridge, fire continues to burn aft of the Bridge.

8. Which is the exact location of the vessel?
The vessel is located off the coast of Yemen at the location 12 degrees,16 minutes North, 47 degrees 23 minutes East.

9. Is there any danger to the ship, crew, cargo or marine environment?
Hyundai have indicated the crew has left the vessel and the vessel and cargo have sustained damage. The impact on the marine environment is not known at this stage.

10. What if vessel is not recovered?
In the event cargo is lost or damaged, this will be addressed through the normal cargo claims process.

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11. I’ve heard or read in reports that the vessel has been damaged. Does that mean the ship or the cargo are in danger?
Hyundai Merchant Marine have indicated that the ship is considered to be in a stable condition and not at immediate risk of sinking. However it does appear that cargo has been damaged or lost, and that the vessel has been damaged.

12. Is there any intention at this moment of doing repairs to the vessel?
The extent of required repairs can only be determined once the vessel has been inspected by classification society surveyors and technical personnel. However at this time we don't have further details about the nature of the repairs the vessel will require nor the timing of such repairs.

13. Has the ship spilled fuel?
The status of any fuel spill is unknown.

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Status of Cargo

14. What is the condition of my cargo?
We do not know the status of individual containers at this time. However it does appear cargo on the ship has been damaged.

15. When and where can I take possession of the cargo?
The place of discharge, and therefore the location where the cargo will be available for delivery have not been determined at this point.

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16. What are we going to do if vessel is not able to discharge?
We cannot speculate at this point about recovery of cargo on the ship. We will of course keep you advised of developments in this regard.

17. I’m not sure about whether my cargo was insured. What can I do?
Contact the shipper, freight forwarder or cargo broker responsible for booking your cargo.

18. I was counting on this cargo to fulfill contracts (or, I am facing contract penalties, or, I advertised these goods and couldn’t supply my customers, or my company’s assembly line is going to shut down because my cargo hasn’t been delivered, etc.). What compensation is APL going to pay me?
We will undertake best efforts to deliver cargo in accordance with the terms and conditions of the bill of lading. Claims will be settled in accordance with the terms of the bill of lading and applicable law. Claims for delay or consequential damages are typically not recognized under applicable law. We encourage you to discuss these issues with your cargo underwriter.

19. In case that vessel is not recovered, will the value of cargo be paid to consignee by APL?
In the event that the vessel and cargo are lost, APL reserves the right to assert appropriate defenses under applicable law, including but not limited to limitation of liability.

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20. Am I going to get back what I pay for the freight if I lose the cargo?
Freight is payable to the ocean carrier upon receipt of the cargo by the carrier at the place of origin. In the event your cargo is lost, the freight paid by cargo interests to the ocean carrier would be addressed as part of the cargo claim process.

21. My cargo was supposed to be discharged in xxx. Will I be able to collect the containers at that location?
We do not yet know if and where the vessel will discharge its cargo, and therefore have not determined where and when cargo will be made available for pick-up. We will of course keep you apprised of developments in this regard.

22. How long is this going to take?
Attempts to recover the vessel continue round the clock. We are not able to provide more definitive information as to if and when the cargo will actually be available for delivery.

23. Do I have to ask for more raw material? Who is going to pay these extra charges if I ask for more material? What expenses is APL be responsible for?
The rights and responsibilities of the parties will be determined in accordance with the terms and conditions of the bill of lading or the governing contracts

24. How can the ownership be identified if the bill of lading has been transferred or negotiated? What kind of documents are necessary to recover the cargo?
The holder of properly endorsed negotiable bills of lading will be entitled to recover the cargo - if this proves physically possible - assuming adequate general average and salvage financial security (if required) has been posted and other requirements such as Customs formalities are met.

For non-negotiable bills of lading, the named consignee and holder of the bill of lading is entitled to recover the cargo - if this proves physically possible - again assuming adequate general average and salvage financial security (if required) has been posted and other requirements such as Customs formalities are met.

25. Who is going to pay the customer the letter of credit and L/C penalties, if any?
The costs associated with letter of credit arrangements are for cargo’s account. You should consult your insurance carrier and/or legal representative.

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26. What is the status of my refrigerated cargo?
It is very likely there have been power disruptions or variations of temperature in reefer containers. We have no additional information at this time.

27. Has General Average been declared?
Hyundai Merchant Marine have informed us that as 10.00am Singapore Time 24 March 2005, General Average has not been declared, however they are evaluation that option. We will advise you promptly if we learn of any developments on this point. We urge you in any event to promptly notify your cargo underwriter regarding this casualty.

28. What should I do if General Average has been declared?
We urge you to provide the adjuster information, when it becomes available, to your cargo underwriter immediately. We also recommend that you compile commercial invoices pertaining to your cargo, as we expect you will be required to provide these to the average adjusters. We will forward further information to you immediately upon receipt.

29. What is General Average?
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.” The costs the vessel owners will claim will likely include certain salvage-related and other expenses necessary to recover and repair the vessel and complete the voyage. All property owners involved in the casualty including the owners and charterers of the ship itself and the owners of all cargo and containers on board at the time of the casualty and salvage share these costs in the proportion that their own particular property (vessel, bunkers, cargo, etc.) bears to the total value of all the property put together.

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30. What is salvage?
Salvage is the practical operation needed to protect and recover the ship and its cargo and everything else on board. In this case the salvage company is working to put out the fire and prepare the ship for movement to a safe port.

The salvage company will also helping assure that power is available on the ship to run reefer containers, if this is technically feasible.

The owners and salvage company have signed a Lloyds Open Form salvage contract. This is a standard salvage contract which entitles the salvage company to obtain compensation based on a formula established by the International Convention on Salvage 1989. The Lloyds Open Form also establishes a right of the salvage company to place a lien on the ship and its cargo to assure payment for the salvage services. The amount of compensation paid to the salvor will likely be determined through a Lloyds salvage arbitration. The vessel owners, charterers and cargo interests will contribute to an eventual salvage award under a formula similar to the general average cost sharing mechanism.

31. I am not aware of any contract addressing General Average or salvage. What contracts apply to this situation?
General Average and salvage are addressed in the APL bill of lading in several places, including Clauses 15 and 24. The terms and conditions of the APL bill of lading are available for review on the APL website at http://www.apl.com/help_center/html/bl_terms.html.

32. Who is handling legal questions from APL?
Legal questions in relating to cargo should be addressed to APL’s P&I representative