On July 21, 2023, a Palau-flagged container ship named Angel sank in the waters of Port of Kaohsiung due to water ingress, resulting in marine pollution and severe losses for local fishermen. Hydor, the Norwegian insurance company responsible for the ship, failed to effectively address the incident with prompt and adequate contingency measures. In response to the inadequate handling of the situation by Hydor, the Maritime and Port Bureau (MPB) promptly placed Hydor on a warning list and demanded the insurance company to actively resolve the incident. Furthermore, a stern ultimatum was conveyed: should Hydor persist in its passive approach toward the incident, it shall be blacklisted. The consequences of such a blacklisting would involve barring all commercial vessels insured by Hydor from entering the seven major international commercial ports of Taiwan.

Taiwan International Ports Corporation (TIPC), the Ocean Conservation Administration, the Coast Guard Administration, the Fisheries Agency, Ministry of Agriculture, and local governments have collectively endeavored to mitigate the consequences of the sinking of Angel. According to the MPB, Hydor has not demonstrated proactive engagement in addressing the incident. Although the company participated in a contingency meeting, as strictly demanded by the MPB, it unilaterally asserted that the insurance contract was invalid. In response, the MPB demanded Hydor to fulfill its responsibilities by taking active measures to contain the oil spill, address the issue of drifting containers, and provide compensation for the losses incurred by local fishermen due to the sinking of Angel. This demand stands firm even in the absence of clarity regarding the legal relationship between Angel and the relevant responsibilities involved. 

The MPB has made it clear that Hydor has been officially placed on the warning list. This means that any commercial vessels insured by Hydor seeking access to the ports of Taiwan will undergo a meticulous review of their policy terms on a case-by-case basis. Only if these terms are free from ambiguities and meet the requisite standards will the vessels be granted permission to enter the ports. Furthermore, the MPB has requested TIPC to insist that both the shipowner of Angel and Hydor actively participate in contingency operations while preparations are made to examine whether Hydor has demonstrated improved commitment to resolving problems in the future. Should Hydor fail to do so, it will be blacklisted, and no commercial vessels insured by this company will be permitted to access the ports of Taiwan. The MPB also encourages shipping companies to reconsider whether they should be insured by Hydor to avoid damage to their rights to access Taiwan’s ports. 

Contact person: Section Chief Wei-En Chen, South Taiwan Maritime Affairs Center
Contact Number:02-89787585