Oil spill clean-up: Yacht charters stuck in limbo, unsure about receiving compensation on economic losses

SINGAPORE: Yacht charters in Singapore are haemorrhaging losses from the recent oil spill nearly three weeks ago, and have been lowering boat rates and relying on social media to bring back customers. 

But these moves are not enough to cover the full extent of losses, they said.

This comes even as government agencies develop rental deferral measures to help businesses struggling in the aftermath of the incident, Minister for Sustainability and the Environment Grace Fu said on Tuesday (Jul 2).

SEEKING COMPENSATION FOR ECONOMIC LOSSES

On Jun 14, oil spilt into the sea after a Netherlands-flagged dredger hit a Singapore-flagged bunker vessel at Pasir Panjang Terminal.

The oil spill stained several beaches along Singapore's southern coastline. Marinas at Sentosa and Keppel Bay were among the worst hit areas after the incident, and cancellations for boat charters swiftly followed.

“I have easily about 10 charters being cancelled in the first two weeks, and that amounts to roughly S$80,000 (US$59,000),” said Mr Daniel Ong, owner of a super yacht docked in Sentosa's Marina One.

He added that the oil spill also stained the boats.

To reduce his losses, Mr Ong plans to compile invoices from these cancelled bookings before filing a claim with the Singapore-flagged bunker tanker and his private insurer.

Ms Zheng Libin, owner of a yacht berthed at Keppel Bay, has decided to absorb the loss incurred, instead of seeking compensation.

“The concern is if we were to do a claim, in the future they may increase our premium,” she said. 

“And of course, filing insurance claims (may not be) so straightforward, and we may need to wait for maybe months or even a year for the claims to come in.”

Seaside businesses had previously told CNA about their fears that they cannot tide over a three-month hiatus and a potentially lengthy compensation process.

DEMAND FOR SERVICES HAVE SLOWED

While boat charters are now allowed to sail out to sea, owners said demand for their services has slowed.

They added that there is still a stigma among customers that the surrounding waters are dirty. 

The drop in demand has made it tough for owners to cover the berthing fee of these yachts, which can go up to thousands of dollars.

They are hoping for more to be done to help them tide through this period, and are exploring more ways to raise revenue to stay afloat.

Mr Ong said: “We have to do some promotion to encourage charters to come back, or even drop prices easily by 30 per cent or so to help push through this period of time.”

Ms Zheng said: “Instead of the chance to leave the marina, we can still carry out the activities on board.

“So we have a KTV set, we play some poker cards, then we carry on with the barbecue and still do a potluck.”