Owners Alerted to Possible Rises in S&P Disputes & P&I Premiums

Thursday, September 21, 2006
The 'A' rated, 65 million GT North of England P&I Club has alerted shipowners in the Middle East and India yesterday (20 September 2006) to the possibility of more sale and purchase disputes and a further increase in their P&I premiums.

The warnings were given at a seminar attended by around 80 representatives of Middle-Eastern and Indian shipowners at the Dubai Beach Resort in the UAE, which North of England organised in conjunction with sale and purchase experts from international shipping law firms Ince & Co and Mills & Co.

According to the club's associate director Katherine Birchall, 'As a result of recent fluctuations in freight rates in both the dry cargo and tanker markets, we believe owners will experience increased volatility in second-hand tonnage prices, which in turn will increase the potential for disputes under sale-and-purchase contracts'.

North of England FD&D manager Mark Robinson noted the club had experienced relatively few sale and purchase cases over the past few years. 'It appears buyers were willing to accept ships in circumstances where they may not have in the past, and tended to ignore issues which could have led to disputes. However, we expect the commercial balance between buyers and sellers will soon become more equal and this, coupled with the changes in ship values, is likely to result in a higher number of disputes.'

North of England deputy managing director Paul Jennings then provided a review of the club's finances. 'With the support and commitment from a growing number of high quality members from the Middle East and India, we have been able to consolidate our 'A' rated financial strength,' he said. 'But we also believe the continuing industry-wide increases in shipowner liabilities and claims costs, combined with ongoing uncertainty in the investment markets, will put further upward pressure on rating at the forthcoming P&I renewal.'

Regional director and underwriter Savraj Mehta confirmed North of England's continuing development in the Middle East, which now accounts for 15% of entered tonnage. He highlighted the consistently high quality of ships from the region and the continuing influx of additional tonnage and newbuildings from existing members. He concluded, 'Our strategy going forward is one of concentrating on service excellence and a growing commitment to loss prevention support.'

The club's Middle-Eastern and Indian members include companies such as Emirates Trading, Gulf Energy Maritime, Great Eastern, IRISL, Emarat Maritime, Bakri, Mercator Lines, Qatar Shipping, United Arab Shipping, Shipping Corporation of India and Tolani.

The seminar is one of a series North of England is holding for members and their intermediaries around the world. Further events are planned later this year in Singapore, Hong Kong and Monaco. Other presenters at today's event included Michael Hope from North of England, Bob Deering from Ince & Co's Dubai office, and Guy Mills from Mills & Co in Newcastle.

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2234 sec (4 req/sec)