Newstead is able to provide their clients with a range of credit insurance solutions tailored for the marine industry. These include:
Charter Hire Default Insurance – CharterSEACURE
CharterSEACURE has been designed to satisfy the requirements of good corporate governance within those shipping companies that are focused on minimising the impact of their charterers default on their long term charter hire payment obligations.
CharterSEACURE offers shipowners and their shareholders certainty with respect to their long term charter income by providing exclusive access to one of the world’s leading credit insurers and a breadth of cover thus far unrivalled in the shipping sector.
Marine Fuel Supplier’s Credit Insurance – BunkerSEACURE
This coverage has been designed to protect bunker suppliers from the non-payment for marine fuels supplied on open account credit terms.
The BunkerSEACURE policy will protect the Insured against the risk of non-payment by their clients for marine fuels. The trigger for non-payment is the event of Insolvency of an insured customer or protracted default. Protracted Default (or slow pay) is usually defined as occurring between 90 and 180 days after the contractual due date for payment.
Shipbuilding Credit Risk Insurance
In today’s market many of the traditional shipbuilding yards’ order books are full until 2012. Shipowners looking to secure a new build contract are forced to look further-a-field to yards in China, Vietnam, India, Poland and Croatia etc.
Often shipowners find that the yards they are contracting with are unable to secure bank or sovereign guarantees and they are forced to decide whether to proceed without adequate security in place.
In these circumstances Newstead can advise what credit risk insurance solutions may be available to the shipowner which would provide cover for the loss of advance payments in the event of the yard’s insolvency.