Profits from COFRs

We were going to dedicate an entire issue to the subject of COFRs, but as has been the case every day now for a month or more, events overtake plans and so with a solution – but certainly not the final solution – seemingly at hand, we scale back our coverage to examine just the most realistic choices owners currently have, what the choices might cost, what impact they may have on owners and their financial backers, and the possibility of some better longer term solution.

Make no mistake about it – a bullet has been narrowly dodged. Two weeks ago, speaking in front of a gathering of the Norwegian Shipowners on the subject of COFRs, the possibility of the “train wreck” seemed decidedly real. There was talk that night in early October that the eleventh hour lack of a viable COFR solution provided the owners their last best hope to not only cause the Coast Guard to delay the December 28 COFR deadline but also, if the subsequent actual or threatened shortage of tonnage calling at the US were serious enough, perhaps even provide the opportunity to revisit the mind boggling threat of unlimited liability.

This is only an excerpt of Profits from COFRs

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