Page 26 - Insurance Times March 2024

The SALEM, formerly the SOUTH SUN, was an oil tanker money from the Lloyds in London. The research by Lloyd’s
built in 1969 by Kockums Shipyard at Malmo, Sweden. Her revealed that SASFFA had bought the cargo for US$43 million
length was 1037 feet, breadth 160 feet and depth 80 feet in Durban, under the name of a South African oil company
4½ inches. She was of 92,228 gross tons with a deadweight SASOL. Thus, they put a hold on the payment pending
of approximately 215,000 tons. She was powered by a steam investigation. The ‘Salem’, had been purchased by the
turbine developing 32,000 shaft horsepower to a single Soudan couple in December 1979. The Soudan couple were
propeller, with her engine room and bridge structure aft. bent on making a “killing.” They had sold 200,000 tons of oil
The then name ‘Sea Sovereign’, was commissioned in 1969 to South Africa through a subsidiary of the Shell Group, and
in Stockholm for Salénrederierna AB. they were going to cash in on the insurance money.

In 1977 Salénrederierna sold the tanker to Pimmerton But, things turned sour. The Liberian President William
Shipping Ltd. (Liberia), as ‘South Sun’ and ship management Tolbert, who had taken a lot of beating for allowing a visit
was placed in the hands of Wallem Ship Management Ltd. by the Apartheid South African Premier John B. Vorster, was
(Hong Kong). Two years later ‘South Sun’ was sold to Oxford bent on proving to the world that he was not engaged in
Shipping Inc. (U.S.). The ship was renamed ‘Salem’ but sanctions breaking and was not dealing with South Africa.
remained under the Liberian flag. He resisted pressures from the Findley Law Firm which
represented the Soudan couple interest, as well as his son
On 30 November 1979, M/T Salem left the port of Piraeus A. B. Tolbert and many dignitaries of the government.
to load oil in the Kuwaiti port of Mina Al Ahmadi, on behalf
of an Italian charterer. She loaded approximately 194,000 There were questions about the fact that 220,000 metric
tons of light crude oil to be discharged in Genoa. The tons of crude oil could just disappear in thin air. Investigators
charterers in Genoa sold the cargo to the Shell Group for did not find a single drop of oil where the tanker is said to
US$ 56 million. The tanker, with its cargo, was insured at have exploded. Furthermore, the crew had managed to
Lloyd's of London. She left Mina Al Ahmadi on 10 December, evacuate with all their belongings from the ship, including
and proceeded down the East African coast. blankets, boots and radios. And finally, the ship had spent 7
days more in route to where it sank. Lloyds suspected foul
On 27 December, under the name ‘Lema’ she entered the play and launched an investigation with the help of Scotland
port of Durban, South Africa. There, the ship discharged Yard.
around 180,000 tons of cargo, and took on the same amount
in ballast water in order to stay on a laden draft. She The Liberian Deputy Commissioner of Maritime Affairs,
departed Durban on 2 January 1980. On 17 January 1980, Captain Alister Crombie submitted a report far different
under the name Salem, she was found off the Senegalese from what Scotland Yard had found. The investigation was
coast in distress. According to the loading documents, the conducted primarily at the Port of Monrovia, Liberia in
crude oil was destined for a European country. But rather February and March, 1980. Captain Tzamtzis, Liberian
than going through the Suez Canal, the ship went around Maritime investigator interviewed eleven of the Greek crew
the African continent, passing through the Cape of Good members at Piraeus in February and obtained signed
Hope. statements.

As far as the reason for the sinking is concerned, the story According to the report, on 16 January, 1980, at
went that there had been a series of explosions which approximately 0355 hrs, the fire alarm sounded and Captain
caused the Master to give the command to abandon ship. Georgoulis, who was in bed, immediately went towards the
The vessel had gone down very quickly due to ingress of bridge. As he reached the bridge there was a muffled
water, without leaving any time for the crew to investigate explosion which sounded as though it were just forward of
the damage. the deck house in the vicinity of the pump room. When he
entered the wheelhouse, where Chief Mate Anivas was on
Two days after the ship supposedly sank; a Lebanese- watch with seaman Mahmoud, Georgoulis could see smoke
American couple, Frederick Ed Soudan from Houston, Texas, coming from the bow of the ship. Yet, the Captain could
and his wife Anna Maria Soudan went to claim insurance never explain nor remember the colour of the smoke.

24 March 2024 The Insurance Times