Freight Demurrage and Defence (FD&D)

Why Does a Shipowner or Charterer Need FD&D?

While Shipowners P&I and Charterers P&I insurance provide coverage for legal and associated defense costs directly related to liability claims under those policies, many shipping business disputes arise that are outside the scope of these insurances. For example, Shipowners and Charterers often find themselves in disputes over laytime and demurrage, which are not covered by standard P&I insurance. FD&D (Freight, Demurrage, and Defence) is a specialized legal expenses insurance that covers the cost of expert legal advice, mediation, arbitration, or litigation needed to resolve disputes. However, it does not cover the cost of the underlying claim award or settlement. Amana Marine’s FD&D cover addresses a wide range of disputes and legal matters in the shipping industry. Below is a summary of the principal FD&D matters covered under our insurance, with specific details outlined in Amana Marine’s Entry Rules, Class I, Rule 2.

Matters Covered:

BILL OF LADING AND CHARTERPARTY CONTRACTS

Disputes relating to:

 ➢ Shipowners' alleged obligation to issue clean bills of lading as per the specific terms of a charterparty.

 ➢ Charterparty cancellation or entitlement to withdraw from a charter.

 ➢ Exercise of liens against cargo for non-payment of freight.

 ➢ Hire payment, off-hire issues, and rights of set-off.

 ➢ Laytime, demurrage, and dispatch disputes.

 ➢ Vessel misdescription and/or underperformance.

SUPPLY AND SERVICE CONTRACTS

Disputes relating to:

 ➢ Supply of inferior bunkers or ship supplies.

 ➢ Repair and/or modification of a ship.

 ➢ Provision of agency services.

 ➢ Detention of the ship by third parties.

 ➢ Contracts for the sale, building, or mortgage of a ship.

MISCELLANEOUS

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Disputes relating to:

 ➢ Passenger and crew claims.

 ➢ Claims for salvage and general average contributions.

 ➢ Costs of protecting the Member’s position at official inquiries and inquests.

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COVERAGE?