Marine dredging carries unique challenges

Dredging and related marine contracting present unique challenges for marine underwriters, according to a new report issued by the American Institute for Marine Underwriters (AIMU) that examines the nature and exposures associated with this segment of the maritime industry. The report provides a discussion of the different types of dredging activities and equipment used and discusses the exposures both from a hull, crew, P&I and marine liabilities perspective.

Dredging is important to the conduct of maritime commerce throughout the United States and may include activities on inland waterways, within ports and harbors and in coastal areas, as well as in support of new construction projects. In short, dredging is essentially the underwater removal of sand, soil or silt, and its movement from one place to another, for purposes of deepening a channel or navigable waterway.

Maintenance of navigable waterways depths is a continuous process in many ports and harbors, whose bottom contours are constantly changing due to silting near the mouth of rivers. And, as ships become larger and draft requirements (depth of the ship’s hull below the waterline) increase, ports may need to deepen their channels to allow for deeper draft ships, in order to remain competitive with other ports. Dredging often makes use of the removed material for beach replenishment, land reclamation, or for fill in commercial or industrial projects.

Understanding exposures

Underwriters need to understand the dredging project and the scope of the work in order to understand the insurance exposures. The areas of operation for a dredging project can be private ponds or waterways, ports and harbors or coastal zones, including bays, inlets or sounds. The area of operation dictates the type of dredge utilized and the type of equipment used, which can range from portable dredges to crane barges.

The AIMU report describes the many types of dredges currently in use, such as the clamshell dredge, backhoe dredge, dipper dredge, hydraulic dredge, and pontoon dredge, among others. Some of the most common sources of severe losses aboard a dredge include fire, heavy weather, towing, mechanical damage, P&I exposures and environmental damages.

Most common losses aboard a dredge

Fire is one of the most common sources of severe losses aboard a dredge. Equipment often is operated 24 hours per day, with many hydraulic and fuel lines under high pressure, in hot, dirty environments. Once a fire starts, it can quickly spread, due to the design of the vessel and lack of fire fighting training of the crew.

The reports notes that to help with fire loss control fire fighting and training of the crew for use of portable fire extinguishers is essential, as well as the operation of any fixed fire extinguishing systems for the machinery spaces. Additionally, a self-inspection program should be in place to identify and correct potential sources of fire. Also, a Hot Work policy should be established for controlling any hot work, such as arc welding or torch cutting.

The P&I risks associated with dredging and marine contracting are also extensive. The typical P&I issues and risks might include crew injuries, third party injuries, or third party property damage.

Dredging is hard, dirty work that is often conducted around the clock, often under adverse and exposed weather conditions. Crew work often occurs in an environment that is heavily dependent on heavy machinery, high pressure hydraulics, high volume pumping, extensive vessel maneuvering, anchoring, fleeting, pipe handling, and crane work. Slips and falls, back injuries, hand/foot injuries, burns and eye injuries are all examples of common injuries to crewmen. Basic Personal Protective Equipment, including hard hats, life jackets, eye protection and other safety gear, for dredging employees should be used, the report says.

The report concludes that given the ongoing needs for maintenance and improvements in the nation’s ports, waterways and shorelines, as well as urban redevelopment along the water front, it is certain that dredging and marine contracting will remain a vibrant and important segment of the North American maritime industry.

A copy of the report can be downloaded at: www.aimu.org.