Month: June 2024

Operating a yacht is not only a pleasure but also a responsibility. Every sailor, regardless of experience, should be aware of the risks associated with sailing. Proper yacht insurance is key to ensuring peace of mind and financial protection in the event of unforeseen circumstances.

Types of yacht insurance

There are many types of insurance available for sailors. Let’s review the basic products:

• liability insurance (OC) – covers damage caused to third parties during a yacht voyage. This insurance protects the yacht owner from claims made by third parties,
• casco insurance – covers material damages to the yacht, such as damage to the hull, equipment, or other elements of the vessel. It is particularly important if the yacht is new or valuable. Casco insurance can also cover damages caused by weather conditions, collisions, or acts of vandalism,
• accident insurance (NNW) for crew members – protects the crew from the consequences of accidents that may occur on board. The policy covers medical expenses, rehabilitation, and compensation in the event of permanent injury of death,
• personal belongings insurance – protects items on board of yacht, such as electronic equipment, clothing, or other valuable possessions. This is particularly important for those who frequently carry valuable items on their yachts.

Key element of a good insurance offer

When choosing yacht insurance, we always want to select the best option. The aspects to pay attention to vary depending on the specific product, but there are a few universal elements of a good insurance offer, such as:

• sum insured – the maximum amount that can be claimed from the insurance. It should be adequate to the value of the yacht and potential repair costs. Make sure the sum insured covers the full value the yacht and the costs of possible repairs or replacement.
• navigational area – the geographical scope where the policy is valid. Ensure it covers the areas where you plan to sail, whether in Poland, the European Union, or other waters. It’s important that the geographical scope matches your sailing plans,
• force majeure – the definition of events not covered by the insurance, such as extreme weather conditions or acts of war. The fewer exclusions, the better for the insured. It’s crucial to fully understand which events are excluded from the insurance protection,
• deductible – the policyholder’s contribution to the damage. The lower the deductible, the better for the policyholder. It’s worth checking the amount of the deductible in different scenarios, such as total loss, partial damage, or theft. Often, increasing the premium can remove the deductible entirely.
• reputation of the insurer – it is important that the insurer is reliable and has a good reputation. The speed of response to claims and reliability of contact are key. It’s a good idea to check reviews from other clients and gather information about their experiences with the insurer.

Summary

There are many yacht insurance products on the market. When choosing a specific type of insurance, we should be guided by our needs. Insurance provides real protection in the event of unforeseen incidents – so it’s worth taking the time to choose wisely and consulting with a broker who can select the best product.

The Posidonia 2024 maritime exhibition took place in Greec at the beginning of June. Although some time has passed since the event, experts and participants are still sharing their opinions on this year’s edition. And no wonder – it was the largest maritime industry exhibition in Europe’s history.

We were there too. We walked through the entire exhibition hall, visited every pavilion, and spoke with many industry representatives. Now it’s time for our observations!

Every two years

Posidonia gains importance with each edition. The size of the exhibition hall where it’s held is astounding. Yet, this year’s edition could not accommodate all participants, and organizers had to move some exhibitors outside into tents. The scale of the event was impressive.

Around 2,000 exhibitors from around the world presented their products or services. It is estimated that more than 40,000 people participated in the event. Posidonia had never reached such a scale before.

This may be why the organizers don’t attempt to hold Posidonia annually. Since its inception, all 28 editions have been held every two years. Given the size of the fair, this is understandable – preparing such a large event in every detail might even make two years seem insufficient.

Who is on the rise

The exhibition hall was divided into several segments with pathways leading to pavilions. There were many interested attendees around them, occasionally making idt difficult to move through.

The presence of Asian citizens was particularly noticeable, with their numbers far surpassing others. Organizers reported that of all countries participating, China saw the biggest increase in the number of companies attending. After a two-year break, they returned with 180 companies, which marks a nearly 50% increase the previous edition.

This perfectly illustrates who is on the economic rise. After a slight pandemic-induced slowdown, the Chinese economy revived in the last three quarters of 2023. This trend has continued in 2024, as confirmed by the strong presence of Asian representation at events like Posidonia.

China’s economic growth enables them to open up to new markets, especially in Europe. Global trade is also picking up, along with maritime transport and ports. The Chinese, who were among the first to notice this, see great development and profit opportunities in the maritime economy. Posidonia was therefore the ideal place for them to acquire new business partners, which they did – and with notable success.

China leads the way

The significant presence of Chinese representatives at Posidonia is also due to their dominance in the shipbuilding market. Chinese production of components for energy transformation is also growing rapidly. Asian wind farm and photovoltaic components are cheaper than Europeans ones, as are electrolyzers. This is becoming a challenge for Europe, as European offshore wind energy will have to compete with cheaper Chinese products.

Chinese manufacturers are also relocating their production to ASEAN countries, increasing maritime transport and the supply of goods from these countries to Europe, the Americas, and Africa. The growth of Chinese component imports is driving demand for maritime transport, which is evident from the rising container throughput in European ports. Asians also aim to take the lead in this area. The acquisition of a majority stake in the Port of Piraeus by the Chinese maritime giant COSCO confirms this. In the context of Posidonia, located just 10 kilometers from the port, this gave symbolic significance to China’s presence in Europe.

Where does Poland fit in?

Polish companies were not absent at Posidonia. The national pavilion featured Poland’s largest ports, including Gdańsk, Gdynia and Szczecin-Świnoujście, as well as state-owned shipyards and private enterprises. We showed the world that we have great potential and are simply good in this industry.

Additionally, private companies set up individual stands in the exhibition hall, seeing this as an opportunity to establish new contacts and secure business partners from around the world.
Despite being somewhere overshadowed by the overwhelming presence of foreign companies, particularly from China, the Polish stand performed very well. Each presented its best products and services. The Polich Embassy in Greece even organized a special seminar dedicated to the Polish maritime industry.

Whether the efforts and presence of our state-owned companies at Posidonia will yield the desired results remains to be seen over the next two years. By then, the next edition of the exhibition will take place. It also depends on how many foreign entities will trust us and in which direction the broadly understood maritime economy will develop.

Buying or selling a yacht is a significant decision that requires careful preparation and the drafting of a detailed agreement. One of the important elements of such an agreement is contractual penalties. In this article, we will explain what contractual penalties are, who they protect, and what their limitations are.

What are contractual penalties

Contractual penalties are predetermined amounts specified in the contract that one party agrees to pay to the other in case of non-performance of the contract.

For example, if the seller fails to deliver the yacht on time, they may be obligated to pay an additional amount as a contractual penalty.

Contractual penalties differ from compensation, as they are agreed upon in advance and do not require proving any damages.

Who do contractual penalties protect

Contractual penalties are designed to protect the interests of both parties to the contract. They ensure that both sides will make an effort to fulfill the contract to avoid additional costs. Additionally, the responsible party will know in advance the cost of their potential negligence.

Contractual penalties in other countries

Contractual penalties are not only present in Polish law but also in other countries.

In most European countries, contractual penalties are widely accepted and regulated by civil codes. However, in exceptional cases, courts may reduce their amount, but only in situations of extreme disproportionality.

In the United States, contractual penalties are also accepted and enforced, provided they are reasonable and proportional. It is important to remember that the rules surrounding penalties may vary by state, with additional requirements or limitations that must be met.

Limitations on contractual penalties

Contractual penalties must be proportional to the value of the contract and the potential damages. If a court finds that the panalty is too high, it may reduce or invalidate it. It is also important to note that penalties cannot be used as a tool for abusing the other party in the contract.

It is significant to understand that contractual penalties apply to obligations other than payments. If a party delays in making a payment, they will be required to pay interest, not a penalty. Interest, however, is a broad topic, much like penalties, and will be discussed later.

There may also be instances where contractual penalties do not cover the full extent of the damage. It is worth considering this in the contract and specifying what should happen in such cases.

Practical tips for drafting contractual penalties

When drafting a yach purchase agreement, it is important to keep a few key points in mind:

• clearly define the conditions – contractual penalties should be clearly outlined and understandable to both parties,

• proportionality – the amount of the penalties should be adequte to the value of the contract and the potential damages,
• negotiations – it is worth negotiating the amount of the penalties to ensure they are acceptable to both parties.

Summary

Contractual penalties are an important element of yacht purchase agreements that protect the interests of both parties. It is essential that they are proportional and well-formulated to avoid legal problems. In case of doubts, it is advisable to consult with a lawyer specializing in yacht law.

FAQ (Frequently Asked Questions)

• How do contractual penalties differ from compensation?
  Contractual penalties are predetermined amounts that do not require proving damage, whereas compensation requires evidence of the incurred damage.
• Can the amount of contractual penalty be negotiated?
  Yes, the amount of the contractual penalties can and should be negotiated to make them acceptable to both parties.
• What are the consequences of not including contractual penalties in the agreement?
  The absence of contractual penalties may result in less protection for the parties’ interest on case on nor-performance of the contract.