September 17, 2008 by Canadian Underwriter
Marine insurers are concerned some shipyards may be compromising quality to increase production, according to BestWire.
There’s some indication the increasing cost of steel might be forcing shipyards in certain countries to cut back on the quality of steel used in constructing vessels, A.M. Best adds.
“I’ve seen pictures of vessels under construction and the plates on the side of the vessel are a markedly different color, which tells you that the steel has been used before and it’s been painted,” Fred Robertie, president and CEO of American Hull Insurance Syndicate, told A.M. Best. “[It is] tantamount to trying to build a new car with spare parts from the junkyard.”