As members may recall, Skuld amended its rules in 2010 to clarify Defence cover requirements for legal costs arising under disputes concerning Contracts of Affreightment. The amendment was announced in the advisory circular for the year 2010 rule changes (which is issued every year).

As is mentioned in the above advisory circular, disputes occasionally arise for failure to deliver a vessel under a COA. The situation may also be that the charterers do not provide any cargo. Under normal circumstances, no vessel will have been declared to which Defence cover is attached.

The amendment to Rule 27.1.6 was effected to provide members with the opportunity to take out cover for Defence which would not otherwise attach in respect of a COA. Should any member wish to declare COAs for Defence cover, they should contact their particular syndicate.