Insurance Implications & Financial Impact Of North Sea Incident

The Portuguese-flagged container ship Solong collided with the moored oil tanker Stena Immaculate in the North Sea off East Yorkshire on March 10, triggering an explosion and a significant environmental threat due to suspected fuel leaks.

At the time of the collision, the Stena Immaculate was anchored 21 kilometers off the coast of East Yorkshire, carrying 220,000 barrels of aviation fuel on charter for the United States Air Force. The Solong, traveling at approximately 18 knots, struck the stationary tanker at 9:48 AM UTC, creating a large breach in its hull and rupturing a cargo tank, which led to a jet fuel spill and a fire.

Although the fire aboard the Stena Immaculate was successfully extinguished the following day, the fire on the Solong continued to burn for over 24 hours.

A total of 36 crew members—13 from the Solong and 23 from the Stena Immaculate—were evacuated safely. However, one crew member from the Solong remains missing and is presumed dead after search and rescue efforts were called off on March 10.

Legal and Investigative Actions

The captain of the Solong, a 59-year-old Russian national, has been arrested on charges of gross negligence manslaughter.

The incident has led to questions about multiple safety system failures on the Solong. While there is no evidence of deliberate wrongdoing, investigators have not ruled out foul play. Poor visibility at the time of the incident is also being considered as a contributing factor.

Multiple investigations have been launched:

• The UK’s Marine Accident Investigation Branch (MAIB) is collecting preliminary evidence.
• Authorities in the US and Portugal—the respective flag states of the vessels—are leading deeper inquiries.

Insurance Implications & Financial Impact Of North Sea Incident

The accident is expected to result in substantial insurance claims, with estimates ranging from $100 million to $300 million. Various types of insurance are expected to cover different aspects of the losses:

1. Hull and Machinery (H&M) Insurance – Covers damage to the vessels, including structural and mechanical repairs. While significant, these claims are expected to be less than liability and cleanup costs.
2. Protection and Indemnity (P&I) Insurance – Covers third-party liabilities, including:
3. Marine Cargo Insurance – Covers loss of cargo, including the jet fuel, which is presumed completely lost. The owner of the fuel cargo is expected to file an insurance claim for the full value of the lost shipment.

Potential Complications

If US and Portuguese investigations uncover evidence of sabotage or malicious intent, insurance payouts could be delayed or denied. Such findings could further complicate the legal and financial resolution of the incident.

Authorities continue to assess the full impact of the collision as the investigation unfolds.