WAN HAI 307 collision with ALPHA ACTION

Vessel Name  WAN HAI 307 / ALPHA ACTION

Built                        25836 (Wan Hai 307) / 77211 (Alpha Action)

GRT                        2002 / 1994

Vessel Type          Container carrier / Bulk carrier

Voyage from/to    Yokohama to Hong Kong but containers worldwide / Nagoya to China

Casualty type       Collision

Casualty date        27th July 2007

Cargo                     Containers / bulk cargo

Update 9/8/07
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Our investigation into the collision is on-going. We understand the two ships have agreed Japanese Law & jurisdiction to determine their claims. Since Japan is subject to 1976 limitation convention limits, we are considering whether there are options available to cargo interests to obtain a higher recovery.

We can advise that the WAN HAI 307 has now been able to berth and the cargo is being discharged to the dock. The shipping lines have, we understand, arranged bridging guarantees to allow the cargo to be on-carried to destination. On arrival at destination, the salvage & GA guarantees are still required in the usual manner.

The salvage security demand is now set at 30% of CIF values. We recommend a reserve of 35% to include salvage & GA. For clients with links to Japanese underwriters in most cases salvage guarantees can be issued without a bail fee.

We already represent cargo with a value of approximately US$10m and are receiving further instructions.

UPDATE 3/8/07
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We can advise that lightering operations, to remove some of the 1000 containers on board are on-going. Inclement weather held up the operations somewhat. Hold 4 has some water ingress and the engine room is flooded.

Although the official level of salvage security is not yet set, our own estimate is that salvage security will be demanded for about 30% of CIF values.

We already represent cargo with a value of approximately US$10m and are receiving further instructions.

We have also commenced an investigation into the collision with the purpose of following up recovery against the colliding vessel.

UPDATE 31/7/07
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Following our message below, we can advise that salvors have been contracted (Nippon salvage and Fukuda salvage) and requested to separate the vessels and provide salvage services.

We believe the WAN HAI 307 was on voyage S072

Please note that the ALPHA ACTION is bound for Chile, not China as per original reports.

We are already instructed in this case on behalf of part cargo.

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Reports have been received that the Singaporean flag vessel WAN HAI 307, 25836 GRT, 2002 built has collided with the Greek flagged bulk carrier ALPHA ACTION (built 1994, GRT 25836).

The collision has taken place in lat 34 35N long 139 18 E. The ALPHA ACTION is damaged in the forecastle area and the WAN HAI 307 in the stern area. The WAN HAI 307 has water ingress reported in the engine room and is listing 15 degrees to starboard. Salvage services are quite likely to be required.

There are potential claims for salvage and General Average arising from this incident, as well as PA losses.

If salvage security is required, our personal corporate salvage guarantees are accepted by Lloyds. We can provide salvage security on your behalf (subject to internal procedures) for a bail fee from 0.8% of the guarantee amount.