Main Engine Damage

Study

Check the findings

at page 14

Read about cause of damage

at page 13

2012

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Main Engine Damage Study

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 Main Engine Damage Study

Contents

Executive summary 4
Definitions 4
Introduction 5
Hull & Machinery claims 5
Machinery claims 7
Main engine claims 8
Observations on specific makes 9
Damaged parts 11
Cause of damage 13
Risks 13
Recurring issues 13
Limited experience 13
Prevention 14
Findings 14
Future analysis 14
Loss Prevention contact details 15

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Main Engine Damage Study

Executive summary Definitions

ff Vessels insured for Hull & Machinery (H&M)
Findings 2005-2011
ff Since 2004, the average cost of a main engine damage
ff Total number of vessel/years: 10,749
has risen by 52%, from USD 358,000 to USD 545,000.
ff All vessel types and sizes
ff Medium speed engines still represent a
disproportionately large share of main engine damage
costs. Vessels with medium speed engines accounted ff Claims equal to, or more than, USD 10,000 on
for 17.5% of Club entry yet generated 30.2% of total 100% basis considered
main engine damage cost. ff Deductibles included
ff Turbocharger damage remains the most common and ff All costs in US dollars adjusted to 2011 level
expensive damage category across all engine types,
accounting for 145 of the 370 main engine claims, at a
ff Total number of H&M claims: 1,941
cost of USD 49,800,000 or at an average cost of
ff Whereof number of Machinery claims: 982
USD 344,000.
ff Whereof number of Main Engine claims: 370
ff Crankshaft failure is the most expensive damage to
medium speed engines, with 12 failures at an average
cost of USD 1,130,000.
ff Inferior maintenance and/or repairs caused 52
casualties at an average cost of USD 576,000.

Cause of damage
ff Contaminated lubrication oil
ff Not having experts attending major overhauls
ff Using untested bunkers
ff Separators not operated as per manufacturers
instructions
ff Engine components not overhauled as per
manufacturers instructions
ff Crew with insufficient experience/training
ff Turbocharger damaged by foreign object

Recurring issues
ff Insufficient planning
ff Insufficient experience/training
ff Non-compliance with company procedures
ff Unclear procedures, not comprehensive enough or
have not been implemented
ff Not having experts attending major overhauls

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 Main Engine Damage Study

Introduction
In 2005, The Swedish Club presented the findings from a
6-year study of main engine damage (1998-2004). This
report sets out the results of a follow-up study, spanning
the 7-year period 2005-2011.
The objectives of this survey are to update the analysis
published in 2005, identify new claims trends, review and
reinforce the Clubs Main Engine Damage Loss Prevention
Programme. The fundamental aim is to reduce the
frequency/severity of main engine damage.
For the purposes of comparison, the new investigation
followed the same methodology adopted for the earlier
survey. Only claims exceeding USD 10,000 or more
(deductible included) were considered. It should be borne
in mind, however, that the costs cited understate the true
scale of the problem, as claims falling below the deductible
tend not to be brought to the Clubs attention.

Overview
The Swedish Club provides members with a range of
cover, including Protection and Indemnity (P&I), Freight
Demurrage and Defence (FD&D), Marine & Energy and
Ancillary covers and as of 1 September 2012, the Club
had 1,041 vessels entered for P&I, 744 for FD&D and
1,484 for Hull and Machinery (H&M).
The Swedish Club has always had a proactive policy,
directed at raising awareness of main engine damage and
encouraging manufacturers to respond with new and more
effective measures for reducing the frequency of engine
damage.

Hull & Machinery claims

The Clubs H&M claims in the 1998-2004 and 2005-2011
periods are shown in Graphs 1 and 2, respectively.
Seven claims categories are represented. It can be seen
that in proportion the machinery claims have risen since
2004. Machinery claims accounted for 45% of H&M claims in
the earlier study, increasing to 51% in this period.
In cost terms the proportion of Machinery claims have also
risen. In the 2004 analysis the cost of Machinery claims
accounted for 32% of the total H&M claims costs. In the most
recent analysis this proportion has risen to 36%.

Graph 1. H&M claims by number, 1998-2004 Graph 2. H&M claims by number, 2005-2011

11% 8%
11% 13%
Collision Collision

Contact Contact

14% Fire or explosion 12% Fire or explosion

Grounding Grounding

Heavy weather 2% Heavy weather

2%
Machinery or equipment Machinery or equipment

Other Other
12%
45% 11% 51%

3%
7%

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Main Engine Damage Study

Graph 3. H&M claims by cost, 1998-2004 Graph 4. H&M claims by cost, 2005-2011
8% 8%
Collision Collision
20%
27% Contact Contact
Fire or explosion Fire or explosion
Grounding Grounding
32% 7%
Heavy weather Heavy weather
36%
Machinery or equipment Machinery or equipm
4%
8% Other Other

8%
5%
2% 25%
12%

Across the seven H&M claims categories, The Swedish Club claims per vessel and year) in the 1998-2004 period. The
recorded 1,941 claims (0.18 claims per vessel and year) in the average H&M claim cost is USD 739,000, as opposed to USD
2005-2011 period (Table 2), as opposed to 1,238 claims (0.21 464,000 for the years 1998-2004.

Table 1. H&M claims, 1998-2004, Table 2. H&M claims, 2005-2011

costs adjusted to 2011s level
Claims type Number Total cost Avg. Cost Claims type Number Total cost Avg. Cost
(USD) (USD) (USD) (USD)
Collision 130 154,598,885 1,189,222 Collision 244 284,356,299 1,165,395
Contact 172 48,866,587 284,108 Contact 228 99,375,663 435,858
Fire/ 24 43,978,136 1,832,422 Fire/ 34 55,100,398 1,620,600
Explosion Explosion
Grounding 133 69,099,640 519,546 Grounding 228 354,266,149 1,553,799
Heavy 83 29,818,203 359,255 Heavy 63 24,426,137 387,716
Weather Weather
Machinery 558 179,968,394 322,524 Machinery 982 509,265,911 519,363
Other* 138 48,811,676 353,708 Other* 162 107,800,102 665,433
Total 1,238 575,141,521 464,573 Total 1941 1,434,590,659 739,099

*claims such as damage to hull, loss of anchor *claims such as damage to hull, loss of anchor

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 Main Engine Damage Study

Graph 5. Hull & Machinery claims and trends, 1988-2011

Graph 5 shows that the frequency of Hull & Machinery claims (claims number/Club entry) is approximately 0,2 claims
per vessel and year over the past 10 years.

2000 0.6
1800
0.5
1600

Number of claims per entry

1400
0.4
1200
Number of entries

1000 0.3
800
0.2
600
400
0.1
200

0 0
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Year

Club entry (No.) Frequency

H&M Claims (No.)

Club entry (No.) Frequency

Machinery claims
H&M Claims (No.)

The average cost per machinery claim has risen from USD
323,000 to USD 519,000 over the past seven years. As in
the previous survey, machinery claims are grouped into six
categories (Tables 3 and 4). There were 982 machinery claims
in the 2005-2011 period, costing USD 509,266,000.
Main engine damage remains by far the most expensive
category, contributing 39.6 % of total machinery claims cost
(46.0 % in the earlier study) and 14.0 % (14.4 %) of total H&M
claims cost. During the relevant period the Club's deductible
level has increased by 3% per year.

Table 3. Machinery claims, 1998-2004, Table 4. Machinery claims, 2005-2011

costs adjusted to 2011s level
Claims type Number Total cost Avg. Cost Claims type Number Total cost Avg. Cost
(USD) (USD) (USD) (USD)
Main engine 232 83,050,714 357,977 Main engine 370 201,536,086 544,692
Steering 66 18,619,761 282,118 Steering 55 36,319,922 660,362
gear gear
Aux. engine 120 32,457,705 270,481 Aux. engine 185 72,167,047 390,092
Boilers 65 21,598,508 332,285 Boilers 59 21,028,882 356,422
Propulsion 63 21,194,140 336,415 Propulsion 174 132,587,850 761,999
Other* 12 3,047,566 253,964 Other* 139 45,626,125 328,246
Total 558 179,968,394 322,524 Total 982 509,265,911 518,601

*machinery such as electrical equipment, cranes, cargo gear, *machinery such as electrical equipment, cranes, cargo gear,
deck equipment deck equipment

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Main Engine Damage Study

Main engine claims

Graph 6 is an overview of the main engine claims trend over a 23-year period. The trend line has broad similarities to that
shown in Graph 5 (for all H&M claims) and shows the trend has stabilized to almost 0.04 claims per vessel and year.

Graph 6. Main engine claims and trends, 1988-2011

2000 0.12
1800
0.10
1600

Number of claims per entry

1400
0.08
Number of entries

1200
1000 0.06
800
0.04
600

400
0.02
200
0 0
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Year

Club entry (No.) Frequency

ME Claims (No.)

Club entry (No.) Frequency

ME Claims (No.)

As mentioned above, this trend is reflected in the main

engine damage statistics, with the average cost rising 52%,
to USD 545,000 from USD 358,000 (1998-2004).
Main engine damage claims involved, on average,
3.4% of all vessels entered for Hull & Machinery with The
Swedish Club for the period 2005-2011. The total cost of
main engine damage between 1988-2004 was almost USD
180,000,000, adjusted to 2011s level. The latest survey
records 370 main engine claims costing USD 201,500,000.
The fact remains that medium speed engines continue to
be over-represented in the claims statistics. Graph 7 shows
that, while 17.5% of entered vessels had medium speed
engines, these vessels accounted for 30.2% of engine
damage costs. The corresponding statistics for the earlier
study are 19.5% and 48.1%, respectively.
Graph 7 shows that the proportion of entered
vessels with The Swedish Club with low speed engines
has increased somewhat, whilst repair costs have risen
significantly. This rise in costs can possibly be attributed to
the boom years in shipping, when repair capacity and spare
parts availability were scarce.

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 Main Engine Damage Study

Graph 7. Percentage of Club entry and damage

cost by engine type
90%

80% Club entryy

70% Claims cost

60%

50%

40%

30%

20%

10%

0%
Low speed Medium Low Speed Medium
9804 speed 9804 0511 Speed 0511

Observations on specific makes

Graphs 8 and 9 show claim distribution by cost and entry The surveys for 1998-2004 and 2005-2011 show a similar
for specific main engine manufactures. The identity of the picture, with the important exceptions of LS1 and LS3. These
eight specific makes surveyed is protected by the codes experienced an increase in claims cost.
LS1-LS4 and MS1-MS4. The abbreviation LS is low speed and
MS medium speed engines. The identity of these makes is
available to Club members upon request.

Graph 8. Percentage of Club entry and damage Graph 9. Percentage of Club entry and damage
cost by engine make, 1998-2004 cost by engine make, 2005-2011
60%
60%
Club entry (%) Claims cost (%)
50% Club entry (%) Claims cost (%)
50%

40%
40%

30%
30%

20%
20%

10%
10%

0%
0%
LS1 LS2 LS3 LS4 MS1 MS2 MS3 MS4 LS1 LS2 LS3 MS1 MS2 MS3 MS4

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Main Engine Damage Study

Graph 10. Average cost for main engine related Graph 11. Average cost per claim for medium
damages per year and vessel by engine type speed main engines with Inline or V
(USD) configuration
$35,000 $900,000
19982004
$800,000
$30,000
20052011
$700,000
$25,000
$600,000
$20,000 $500,000

$15,000 $400,000

$300,000
$10,000
$200,000
$5,000
$100,000

$0 $0
Low speed Medium speed Inline V

Graph 10 shows that claims costs (year/vessel) for vessels
with medium speed engines are twice as high as for ships
with low speed engines.
Graph 11 shows the average damage costs of medium
speed engines of Inline or V configurations. The V
configuration engines have approximately twice the
average cost. The claim frequency of these engine
configurations remains approximately the same.

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 Main Engine Damage Study

Damaged parts
Tables 5 and 6 focus on the eight most common damaged
parts in the main engine claims category. In terms of numbers
and total cost, turbocharger damage remains the most
common and costly engine component, accounting for 145
of the 370 claims and almost USD 50,000,000 of the USD
201,500,000 total cost. 114 of the 145 turbocharger claims
involved low speed engines.
In terms of average cost, crankshaft failures produced the
most expensive claims, USD 1,447,000 per damage. This is a
significant increase to the USD 722,000 average cost in the
period 1998-2004.
Tables 7 and 8 show the five most common claims for low
speed and tables 9 and 10 show the five most common for
medium speed engines. Turbocharger damage remains the
most common and expensive damage for low speed engines.
Crankshaft damage is the most expensive medium speed
engine damage category. There were 12 such claims in 2005-
2011, with an average cost of USD 1,130,000.
Our definition of multiple parts is damage where various
engine parts are involved. For example a claim involving
off-spec bunkers causing damage to fuel system components,
cylinder liners, pistons and turbochargers.

Table 5. The eight most common types of Table 6. The eight most common types of
claims (all engines) 1998-2004 claims (all engines) 2005-2011
Damaged Number Total cost Avg. Cost Damaged Number Total cost Avg. Cost
parts (USD) (USD) parts (USD) (USD)
Turbocharger 84 20,223,640 240,758 Turbocharger 145 49,821,354 343,596
(36.1%) (24.4%) (39.1%) (24.7%)
Crankshaft 23 16,611,275 722,229 Multiple parts 65 44,517,518 684,885
(9.9%) (20.0%) (17.6%) (22.1%)
Cylinder liner 17 5,082,020 298,942 Cylinder liner 35 19,389,949 553,998
(7.3%) (6.1%) (10.3%) (9.6%)
Entablature 17 4,174,652 245,568 Bearing 17 13,508,476 794,616
(7.3%) (5.0%) (4.6%) (6.7%)
Bearing 15 7,922,643 528,176 Crank shaft 16 23,154,607 1,447,163
(6.5%) (9.5%) (4.3%) (11.5%)
Fuel pump 12 3,765,173 313,764 Piston 11 4,823,366 438,488
(5.2%) (4.5%) (3.0%) (2.4%)
Camshaft 10 4,530,190 453,019 Entablature 8 7,242,901 905,363
(4.3%) (5.5%) (2.2%) (3.6%)
Piston 9 3,217,997 357,555 Crosshead 7 5,931,974 847,425
(3.9%) (3.9%) (1.9%) (2.9%)

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Main Engine Damage Study

Table 7. The five most common types of claims Table 8. The five most common types of claims
(low speed engines), 1998-2004 (low speed engines), 2005-2011
Damaged Number Total cost Avg. Cost Damaged Number Total cost Avg. cost
parts (USD) (USD) parts (USD) (USD)
Turbocharger 63 16,738,911 265,697 Turbocharger 114 43,224,263 379,160
(42.6%) (40.7%) (42.9%) (30.7%)
Entablature 17 4,174,652 245,568 Multiple parts 40 28,928,107 723,203
(11.5%) (10.2%) (15.0%) (20.6%)
Cylinder liner 15 4,537,317 302,488 Cylinder liner 28 11,660,199 416,436
(10.1%) (11.0%) (10.5%) (8.3%)
Bearing 9 3,472,564 385,840 Bearing 14 13,188,984 942,070
(6.1%) (8.4%) (5.3%) (9.4%)
Piston 7 1,916,671 273,810 Camshaft 12 7,866,634 655,553
(4.7%) (4.7%) (4.5%) (5.6%)

Table 9. The five most common types of claims Table 10. The five most common types of
(medium speed engines), 1998-2004 claims (medium speed engines), 2005-2011
Damaged Number Total cost Avg. cost Damaged Number Total cost Avg. cost
parts (USD) (USD) parts (USD) (USD)
Turbocharger 21 3,484,729 165,939 Turbocharger 31 6,597,091 212,809
(25.6%) (8.9%) (29.8%) (10.9%)
Crankshaft 21 16,187,464 770,832 Multiple parts 25 15,589,411 623,576
(25.6%) (41.5%) (24.0%) (25.7%)
Camshaft 8 4,110,406 513,801 Crankshaft 12 13,557,133 1,129,761
(9.8%) (10.5%) (11.5%) (22.3%)
Bearing 6 4,450,079 741,680 Cylinder liner 7 7,729,750 1,104.250
(7.3%) (11.4%) (6.7%) (12.7%)
Fuel pump 5 911,469 182,294 Piston 5 2,109,023 421,805
(6.1%) (2.3%) (4.8%) (3.5%)

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 Main Engine Damage Study

Cause of damage Recurring issues

ff Insufficient planning
ff Contaminated lubrication oil ff Insufficient experience/training
ff Not having experts attending major overhauls ff Non-compliance with company procedures
ff Using untested bunkers ff Unclear procedures, not comprehensive enough or
ff Separators not operated as per manufacturers have not been implemented
instructions ff Not having experts attending major overhauls
ff Engine components not overhauled as per manufacturers
instructions
Limited experience
ff Crew with insufficient experience/training It is a well-known fact that there will be a shortage of
ff Turbocharger damaged by foreign object experienced seafarers in the near future. This has been
highlighted before in our publications but it is worth
repeating again. There is a risk that officers are being
Table 11. Top 5 causes of damage, by number
promoted before they have acquired the necessary
Cause No of Avg. cost experience for senior command.
claims (USD) To ensure that seafarers have the required knowledge it
Inferior maintenance and/or 52 575,879 is essential that they receive proper training. This should be
repairs clearly defined in the SMS (Safety Management System) of
Lubrication failure 33 977,331 what is required of them.
It is further imperative that the maintenance of all engine
Foreign object 28 349,949 components is included in the PMS (Planned maintenance
system).
Off spec bunker 27 364,529

Latent defect 25 494,646

Inferior maintenance and/or repair are by far the most

frequent cause of damage. We have noticed numerous
cases where damage occurs shortly after the engines have
been overhauled by ship or shore staff. This emphasises the
importance of having experts in attendance during major
overhauls.

Risks
Before a critical job is started the risks have to be identified.
If they are not identified it could lead to very expensive
machinery failures or even loss of life.
In numerous cases there were risk assessments in place
but a failure in fully assessing the areas of concern. The
reason for this might be that the crew did not recognise the
benefit of following correct procedures. This means that
the company has not been able to establish a safety culture
onboard and explaining the importance and benefits of
approved procedures.

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Main Engine Damage Study
Prevention
ff Implement Onboard Fuel Management and fuel system
audits. During these audits, the various parts (including
separators) of the fuel treatment plant should be checked
for proper function.
ff It is imperative to monitor the quality of the lubrication
oil. Samples of lubrication oils should be sent ashore for
analysis at least every three months.
ff During major overhauls it is highly recommended to have
an expert in attendance.
ff To ensure a long service life for the boiler it is important
to implement a correct boiler water treatment.
ff To prolong the service life of the economiser it is very
important to keep the economisers clean. This will
increase the service life and minimise the risk of soot fires.
ff Invest in employee training.
ff Carry out comprehensive audits and inspections.
Fuel management
An in-depth investigation of multiple machinery claims shows
that a lot of engine damage is caused by off-spec bunker. It
is likely that this was avoidable or could have been minimised
if proper Onboard Fuel Management had been implemented
and followed at all times.
Effective Onboard Fuel Management will significantly
reduce the risk of engine break-down and lengthy/costly
repairs. The components included in the fuel oil system are:
bunker tanks, settling tanks, service tanks, various pumps,
heaters, filters and separators.
Unfortunately there are still some owners/operators who
do introduce untested fuel into their machinery to see how it
works, which can lead to catastrophic consequences.
During normal operation and over time, sediment including
cat fines will accumulate at the bottom of the settling and
service tanks. In heavy weather, the accumulated sediment
could dislodge and clog filters, heaters and separators.
In addition, dislodged cat fines could very quickly cause
abnormal abrasive wear to various engine components. Over
the years we have seen numerous cat fine-related damage
to main engines resulting in towage and very costly and
lengthy repairs.
It is therefore essential that settling and service tanks are
drained completely and manually cleaned at regular intervals.
www.swedishclub.com
Findings
The primary finding is that medium speed engines still
account for a disproportionate number of machinery damage
claims. Furthermore, the average cost of main engine claims
(on a per year/vessel basis) is twice as high for medium speed
engines, compared to low speed engines.
ff Since 2004, the average cost of a main engine damage
has risen by 52%, from USD 358,000 to USD 545,000.
ff Medium speed engines still represent a disproportionately
large share of main engine damage costs. Vessels with
medium speed engines accounted for 17.5% of Club entry
yet generated 30.2% of total main engine damage cost.
In comparison with a low speed engine, a medium speed
engine has more moving parts and operates at a much
higher rpm. As a consequence, the medium speed engine
is more susceptible to breakdowns.
ff Turbocharger damage remains the most common and
expensive damage category across all engine types,
accounting for 145 of the 370 main engine claims, at
a cost of USD 49,800,000 or at an average cost of
USD 344,000.
ff Crankshaft failure is the most expensive damage to
medium speed engines, with 12 failures at an average cost
of USD 1,130,000.
ff Inferior maintenance and/or repairs caused 52 casualties
at an average cost of USD 576,000.
Future analysis
The Club will closely monitor and compare the
performance of conventional two stroke engines with
electronically controlled engines. When sufficient
statistical data is available, the Club will release an update
to this report.
Furthermore we will monitor the effects/claims of slow
steaming practices, which are adopted in the shipping
industry today.
The Club will continue to share engine damage
information with members and draw the attention of
manufacturers to the survey results. Upon request,
Club members will have full and exclusive access to the
comprehensive data relating to leading engine makes and
models.
14
 Main Engine Damage Study

Loss Prevention
The Loss Prevention unit is placed within Risk & Operations and provides active loss prevention support, analysis, reports as well
as advice to members.

Lars A. Malm
Director, Risk & Operations

Tel +46 31 638 427

E-mail lars.malm@swedishclub.com

Joakim Enstrm
Loss Prevention Officer

Tel +46 31 638 445

E-mail joakim.enstrom@swedishclub.com

Anders Hultman
Loss Prevention, Project Co-ordinator

Tel +46 31 638 426

E-mail anders.hultman@swedishclub.com

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 Contact
Head Office Gothenburg
Visiting address: Gullbergs Strandgata 6,
411 04 Gothenburg
Postal address: P.O. Box 171,
SE-401 22 Gothenburg, Sweden
Tel: +46 31 638 400, Fax: +46 31 156 711
E-mail: swedish.club@swedishclub.com
Emergency: +46 31 151 328

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Tel: +30 211 120 8400, Fax: +30 210 452 5957
E-mail: mail.piraeus@swedishclub.com
Emergency: +30 6944 530 856

Hong Kong
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Wanchai, Hong Kong
Tel: +852 2598 6238, Fax: +852 2845 9203
E-mail: mail.hongkong@swedishclub.com
Emergency: +852 2598 6464

Tokyo
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Kawasaki, Kanagawa 210-0834, Japan
Tel: +81 44 222 0082, Fax: +81 44 222 0145
E-mail: mail.tokyo@swedishclub.com
Emergency: +81 44 222 0082

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House of Business, 6th Floor,
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Tel: +47 9828 1822/9828 0514
E-mail: mail.oslo@swedishclub.com
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