Wreck removal – a limitable liability?

Simon Rainey, of Quadrant Chambers, Rory Butler, and Michael Ritter, of Holman Fenwick Willan, consider the Baltic Ace judgment

Within the shipping industry, one of the largest risks now faced by an owner and their P&I insurers is the cost of wreck removal in the event a vessel is involved in a serious casualty. This is often the most significant claim (in terms of value). The wreck removal costs incurred to date in New Zealand in dealing with the Rena and in respect of the Costa Concordia in Italy are two recent high profile examples.