FD&D COVER

Nordisk’s core expertise lies in FD&D, which is an acronym for “freight, demurrage and defence”. Historically, mutual FD&D clubs were created to pursue owners’ claims against charterers for freight and demurrage, to defend owners against claims by charterers, and to insure the legal costs.

Today the cover is wider and in principle FD&D cases include all disputes that arise in relation to contracts specifically related to an entered vessel, provided that the matter is not covered by insurance such as P&I or Hull & Machinery insurance. FD&D cases relate typically to the building, repair, conversion, sale, purchase or chartering of vessels, or claims against or by brokers, agents and other parties providing goods or services to vessels.

Hence, FD&D cover includes, inter alia:

• drafting and advising on interpretation of contracts
• collecting debts
• pursuing and defending claims, including pre-litigation assistance
• commencing and conducting arbitration and litigation worldwide
• attaching assets to secure claims
• enforcing arbitration awards or judgments
• releasing members’ vessels under arrest or seizure

When Nordisk handles a case, the member is responsible initially for the legal fees and costs incurred. On the basis of Nordisk’s Statutes & Rules, however, its board of directors may subsequently decide to indemnify the member wholly or in part for such expenses. Hence the governing principle in covered cases is “pay to be paid” as in P&I insurance.