The risks arising from the use of tankers for floating storage have been highlighted by top insurance broker Marsh against a background of renewed interest in contango opportunities.
The broker warns that a “contango marriage of convenience” between oil traders and owners is not without risks for all involved.
Marsh is not promoting a new product designed to address uninsured risks but highlighting that the agreement of underwriters should be sought where a vessel or cargo is to be involved in storage, and that a good proportion of charterers and oil traders may not have appropriate liability cover.
