Titanic Group 3

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TITANIC DISASTER, AN ENDURING

EXAMPLE OF

MONEY MANAGEMENT

V/S

RISK MANAGEMENT

NIKITA DALMIA 201089

NITIN GANDHI 201096

PRATEEK JAIN 201107

RAKESH MALHOTRA 201117


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Over 90% of world trade

50,000 merchant ships trading internationally

Bringing benefits for consumers through low and

decreasing freight costs

fleet is registered in over 150 nations


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Shipmentorigination,routing andcapacity

procurement

Customersales

Shipmentrouting

Capacityprocurement

Billing

Tracking

ProvideContainers

Ownership ofcontainers

Storage andMaintenance

Provide and

operatevessels

Ownership ofvessel

Operation ofvessel

Load and

Unloadshipments

Terminal

control Terminal

operation

ContainerHandling

Inlanddelivery

Control oftrucks

Ownershipof railroads

ContainerHandling


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Price risk

Interestrisk

Exchange

riskAsset price

risk

Freight risk


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Country Risk

Compliance with foreign regulations and standards

Delivery Risk

Financial risk( funding risk)

Credit risk

Political riskLicense Risk

Logistic Risk

Poor Quality Risk


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Unforeseen Risks(pirates)

The risk of a collision

Accidents or liability from oil or chemical spillage.

Risk of Fire, Theft.

Weather disturbances

Natural barriers

Technical faults

Loading and unloading.

Spoilage of the cargo due to insects, rats, rodents etc.System Failure


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tanker ship.


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Bulk CARRIER


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Line Car Carrier (RoRo) Services


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Ferries and Cruise ship


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Lack of attention or Oversight(speed)

Fatal mistake by Messenger(asked the

senders to stop transmitting them.


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A layout of the watertight compartments and the damage from the collision The

thick black lines below the waterline indicate the approximate locations of the

damage to the hull. Water tight compartments, their tops were open and the walls

extended only a few feet above the waterline.


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Material Failures(The Hull Steel. Was very brittle tested by charpy test)

Results of the Charpy test for modern steel and Titanic steel. the Titanic steel, On

the right, was extremely brittle; it broke in two pieces with little deformation.


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Lifeboats: Life boats for each and every

passenger

24 hours radio watch -Radio Act of 1912

International Ice Patrol- locates ice bergs

Ship design changes- mandatory double hull

IMO in 1948

Regulations-Marpol, Solas


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Adequate number of life Boats:

Adequate number of life jackets:

Flexibility of Rules:

Negligence of safety norms:

Double Hull Vessel:

Emphasis on Risk Management:


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Stakeholders need for profit maximization

Not fully assessing the risks

Creating a false feeling of safety

Lack of accountability

High cost involved

Oversight or Lack of attention: It is failure to identify the underlying risk.

To gain competitive advantage- By attracting customers


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MARINE INSURANCE

Marine insurance covers the loss ordamage of ships, cargo, terminals,and any transport or cargo by whichproperty is transferred, acquired, or

held between the points of originand final destination


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Principles of Marine Insurance

I.Utmost good faith:

II. Insurable Interest:

III. Indemnity:

IV. Cause Proxima:


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HULL INSURANCE

Insurance of vessel and itsequipments are includedunder hull insurance.


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TYPES OF MARINE INSURANCE

HULL INSURANCE

CARGO INSURANCE

FREIGHT INSURANCE

LIABILITY INSURANCE


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TYPES OF VESSELGeneral Cargo Vessel Built for specific purpose like car carriers, live stock carriers, log carriers, heavylift vessels etc.

Dry Bulk carriers Heavy weather damage

Liquid Bulk carriers- shorter life, fire & explosion, risk of pollution

Passenger vessels fire damage

Container vessels loss of containers

Offshore Oil and Gas Exploratory units blowout

Fishing vessels moral hazard

Other vessels like Tugs, Barges, Supply vessels, Yachats etc


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Brown waters:- businesses that

operate primarily on or near inlandand coastal waterways,

Blue waters:- denotes ocean-goingships and larger vessels used ininternational shipping or trade.


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CARGO INSURACE

Insurance on goods ,wares,merchandise and other movableproperties which may be exposedto marine hazards or perils

during their transportation fromone location to another


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Liability Insurance

Liability insurance is that type ofmarine insurance where

compensation is sought to beprovided to any liability occurring onaccount of a ship crashing or colliding

and on account of any other inducedattacks


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Freight Insurance

Freight insurance offers and provides protection tomerchant vessels corporations which stand a chance

of losing money in the form of freight in case the

cargo is lost due to the ship meeting with an accident.

This type of marine insurance solves the problem of

companies losing money because of a fewunprecedented events and accidents occurring.


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Different types of marine insurance

policies

Voyage Policy

Time Policy

Mixed Policy

Open (or) Un-valued Policy

Valued Policy

Port Risk Policy

Wager Policy

Floating Policy


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TITANIC INSURANCE COVER

The Titanic took about three years to build andcost $7.5 million to build

One million British pounds in hull insurance

coverage through Willis Faber & Co. a brokeragefirm that assembled a consortium of insurerswho each took a piece of the risk.


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One of the major insurers of the Titanic's hull wasAtlantic Mutual who held a $100,000 share ofresponsibility

Lloyds of London paid $3,019,400 on the Titanicdisaster

Insurance claim by Lloyds in full within 30 days of

the ships sinking.

Date post:	05-Apr-2018
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Titanic Group 3

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