Smart Sanctions: West Targets P&I Clubs to Limit Russian Shipping
The European Union and the United States are now targeting maritime protection and indemnity (P&I) insurance clubs to limit Russian shipping capacity and cap the price of its oil, meaning we’re finally beginning to see some smart sanctions for a stupid war.P&I clubs are maritime insurance groups that specialize in open-ended, large-risk claims. P&I insurance is a requirement for all heavy cargo and container vessels. Under the new sanctions, European P&I clubs can no longer offer insurance to a vessel carrying Russian oil at a price higher than $60 a barrel.Since February 2022…
China's Military Drills Near Taiwan Disrupt Key Shipping Lanes
China's military exercises in the waters around Taiwan have prompted some ships to navigate around the Taiwan Strait and give the island a wide berth, disrupting key trading routes for cargo and commodities sailing around the world, analysts said.Angered by U.S. House of Representatives Speaker Nancy Pelosi's visit to Taiwan, China on Thursday began four days of military drills around the disputed island, including firing live missiles and deploying fighter jets.Although Taiwan's ports are operating as normal…
Brexit Prompts North P&I Club to Set up Dublin Subsidiary
British ship insurer North is setting up a new European Union subsidiary in Dublin in case Britain loses access to the single market after Brexit, becoming the first of these specialised providers to announce such a move. Insurers are making contingency plans after Britain’s vote to leave the EU means they could risk losing “passporting” rights that allow UK financial services firms to trade in Europe without the need for locally regulated entities. Britain dominates the global marine insurance market and losing access to specialist Protection and Indemnity (P&I) clubs like North could weaken other parts of the country’s multi-billion pound shipping services sector.
Obituary: Michael E. Ford, USMMA '60
Michael E. Ford, 75, of Waretown, NJ, passed away on January 4, 2014. Born in Washington, DC and raised in Chevy Chase, Md., he graduated from the #United States Merchant Marine Academy, Kings Point, NY, in 1960 with a degree in Marine Engineering, and earned a master’s degree in International Business from Bernard M. Baruch College, New York, in 1979. He served his country as an officer in the United States Naval Reserve. Following his graduation from Kings Point, he sailed for the Alcoa Steamship Company, raising his Coast Guard license to Chief Engineer, unlimited.
CENTRE GROUP, TUFTON OCEANIC STRUCTURE HIGH-YIELD CDO
Shipping Bond Fund Ltd. A member of the Centre Group and TuftonOceanic have completed what is believed to be the first collateralized debt obligation (CDO) comprised entirely of high-yield shipping bonds. The $50 million CDO, Shipping Bond Fund Ltd., is unique due to its size and the fact that it selected assets solely from a select group of shipping industry bonds with high asset coverage ratios. Centre looks for opportunities to work with experienced partners to structure and provide capacity to CDOs and other asset-backed structured finance transactions through the application of non-traditional insurance and reinsurance products.
