Some thoughts on the Stena tanker and Solong cargo collision that occurred recently;
On February 10, 2025, the MV Solong, a Portuguese-flagged cargo ship, collided with the MV Stena Immaculate, a tanker transporting jet fuel for the U.S. military, off the eastern coast of England in the North Sea. Both vessels sustained severe damage from the collision and the subsequent fire. According to the operator of the Stena Immaculate, the tanker suffered a ruptured cargo tank containing Jet-A1 fuel when the Solong struck it, which triggered a fire and multiple explosions on board, resulting in fuel being released into the sea.
Fortunately, most of the crew escaped unharmed; however, a sailor from the Solong is still missing.
The Stena Immaculate was part of the U.S. government’s Tanker Security Program, which contracts commercial vessels to transport fuel for the military worldwide when necessary. Marine traffic tracking data indicates that the Stena Immaculate was safely anchored when the Solong hit it.
Given the nature of the Stena Immaculate’s cargo, the U.S. government has launched an investigation to rule out sabotage. The findings of this investigation could have significant implications for the handling of any insurance claims related to the incident.
Multiple Marine Insurance Policies Will Be Affected
The cause of the recent collision between the Solong and the Stena Immaculate is still unclear, as are the details regarding the available insurance coverages. However, this incident is expected to activate multiple insurance policies as a result of its nature and the parties involved.
Key Highlights
• The collision between the Solong and the Stena Immaculate will activate multiple insurance policies, including those for hull and machinery, liability, and marine cargo.
• We estimate that liability and salvage losses will exceed the cost of hull and cargo claims.
• Total insured losses in the range of $100 million to $300 million will remain manageable for the global marine insurance industry.
• However, this incident adds to our concerns regarding the profitability of this business line given substantial claims in 2024, including the collapse of the Baltimore Bridge and the Red Sea attacks.
Visual reports indicate significant physical damage to both vessels, suggesting that H&M insurance will likely be triggered. Preliminary footage shows that both ships may be considered a total loss.
The Solong and the Stena Immaculate are relatively small, measuring 140 meters and 183 meters in length, respectively. We estimate their combined insured value to be between $50 million and $100 million, which includes the potential costs of salvage operations.
We anticipate that most financial losses will fall under the P&I insurance policies because of the potential cleaning costs associated with any pollutant spill. Depending on the volume of chemicals and fuel released into the ocean, recovery and cleaning costs could significantly exceed claims made under the H&M policy, even if both vessels are declared a total loss. The collision will likely activate the P&I insurance policies for both the Solong and the Stena Immaculate, especially given the possible environmental repercussions of the incident.
Potential Impact on the Global Marine Insurance Market
We anticipate that the total insured losses resulting from this event will range between $100 million and $300 million for all coverages. While this level of estimated losses is manageable for the global marine insurance industry, it raises concerns about the profitability of this business sector. This is particularly true considering significant losses incurred from the collision of the cargo container ship Dali with the Francis Scott Key Bridge in Baltimore early last year, as well as the ongoing challenges with maritime traffic around the Red Sea and the Suez Canal. However, we do not expect this event to materially affect the credit profile of marine insurers in 2025.
STENA STATEMENT
The latest statement from the Stena line on the incident;
Stena Bulk reports that at approximately 1000 hrs UTC today, its oil/product tanker Stena Immaculate (IMO 9693018) was involved in an allision with the container ship SOLONG (IMO 9322554) while anchored off Hull in the North Sea. As a result of the incident, a cargo tank on the tanker carrying Jet A-1 fuel was breached, and a fire broke out.
The crew of the Stena Immaculate abandoned the vessel and are all safe and accounted for.
Stena Immaculate is operated and managed by the US-based logistics, marine and energy solutions company Crowley, serving government and commercial contracts. Crowley immediately initiated its emergency vessel response plan and is actively working with partners and the authorities to contain the fire and secure the vessel.
A significant support operation is present in the vicinity and is being coordinated by HM Humber Coastguard.
Crowley are taking primacy with communications on this incident.
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