Strike Club Reports Strong Performance

By Michelle Howard
Thursday, May 15, 2014

The Strike Club reported a strong start to its new policy year that commenced on February 1, with continuing demand for its mutual entries and fixed-premium products covering war risks, loss of earnings and profit protection for time-charterers.

When the club’s directors met recently in Hong Kong they noted an encouraging renewal rate of 99% among mutual members (by premium) for the 2014/15 year.

Further, despite the challenging trading environment, the club continues to maintain its reserves, on a combined basis, at $35m. And the club retains its S&P rating of BBB+ with stable outlook.

In Hong Kong, the directors reviewed the future structure of the club in view of the increasing EU insurance regulatory climate under Solvency ll (now delayed until 2016). It was decided in principle to obtain a licence for a new mutual located in the UK to enable the transfer of the European business currently conducted by The Shipowners’ Mutual Strike Insurance Association Europe to the new UK mutual. The directors will take a final decision in due course so that detailed proposals can be put to members.

During 2013 and into the first months of 2014, the continuing fragility of the geopolitical and economic landscape has put further pressure on ship operators trying to trade vessels at a profit against a background of freight markets which remain stubbornly sluggish.

The club points to the insidious effects of strikes and other delay incidents, whether shore or ship related, bringing uncertainty, legal actions, cancellation of contracts, and severe disruption to sailing schedules.

Bill Milligan, chairman and chief executive of S.C. Management, says that extremely damaging labour strike action continues to occur in various parts of the world, hitting shipowners and charterers.

Some of the worst trouble spots for delays have been all too familiar. For instance, this year many strikes have erupted in South America, affecting numerous vessels entered in the club and producing a large number of claims, as well as recurring problems on the US west coast and a fragile labour situation on the east coast. The Middle East continues to present considerable risks, said Mr Milligan, while the Ukraine situation is another pressure point.

“And now in China we are hearing reports about a significant rise in labour militancy, fuelled by higher living costs and a decline in the working population from the 2011 peak,” added Mr Milligan.

On a more upbeat note, Mr Milligan states: “The club has developed and grown over 56 years to its present position as the world’s largest mutual insurer of marine strike and delay risks with the gradual introduction of several carefully assessed product innovations.

“The latest product, launched late in 2013, provides fixed-premium profit protection for time-charterers. It covers financial losses resulting from cancellation of charters following total losses or constructive total losses, by insuring the total expected profit between hire receivable and hire payable. We will continue to explore possibilities to expand our product range to meet members’ needs.”

Mutual Cover
For Classes l and ll (shore-related risks), claims are now almost all settled for the 2012/13 policy year, and the directors have levied a closing call of 20%. In spite of a number of claims this year for the 2013/14 year, the release call is maintained at 30%. The new policy year has begun in line with recent trends, and the release call remains at 30%.

For Class lll (ship-related risks), there is a closing call of 20% for 2012/13, while a call of 30% is maintained for 2013/14. Some significant claims have been submitted for the new policy year but the release call remains at 30%.

Fixed Covers

The club offers ‘one stop shop’ fixed-premium war risks cover to owners and charterers, with a limit up to $200m, combining traditional hull and machinery risks with tailored extensions as required; for example, loss of hire due to piracy even in the absence of a H/M incident, or charterers’ loss of bunkers resulting from a hijacking etc.

Cover is up to $4m for loss of earnings, using standard market wordings.

Tailored delay is offered for longer periods than those covered by the mutual rules, such as delays up to 180 days, plus expenses, caused by discovery of drugs or contraband, as well as for delay risks outside the mutual rules.

Finally, there is profit protection for time-charterers as detailed above.


 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

Great Lakes Shipyard to Build Guatemalan Harbor Tug

U.S. shipbuilding and repair yard Great Lakes Shipyard informs it has signed a contract to build another of its HandySize Class, 3,400 HP twin-screw tugboat for

BAE Systems Welcomes Record Number of Paid Interns

More than 140 university students from across the country are being given a unique insight into working life at BAE Systems, as part of the company’s 12-week summer internship program.

Finance

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

ASRY 2015 Strategy Combats Challenging Market

Up to May 2015, ASRY (Arab Shipbuilding & Repair Yard), was seeing encouraging results from it’s 2015 strategy to combat the widespread challenges facing the maritime repair market,

News

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

Fisherman Hit by Parted Line Lifted to Safety

A fisherman struck and injured by a parted line was medevaced south of San Juan Island and transported to Olympic Medical Center in Port Angeles, Wash. Thursday morning.

Maritime Safety

Fisherman Hit by Parted Line Lifted to Safety

A fisherman struck and injured by a parted line was medevaced south of San Juan Island and transported to Olympic Medical Center in Port Angeles, Wash. Thursday morning.

Fishing Boat Catches Fire off Maine

U.S. Coast Guard crews from Station South Portland, Maine, and Air Station Cape Cod responded to a report of a fishing boat fire Wednesday, about six miles from Jeffreys Ledge,

Two Injured in Pipeline Blaze off Louisiana

A natural gas pipeline has caught fire approximately 25 miles south of Marsh Island, La., Wednesday, injuring two vessel crew members working on the pipeline, according to the U.

Vessels

Great Lakes Shipyard to Build Guatemalan Harbor Tug

U.S. shipbuilding and repair yard Great Lakes Shipyard informs it has signed a contract to build another of its HandySize Class, 3,400 HP twin-screw tugboat for

Austal Delivers for USN

Austal’s U.S. operation consists of more than 4,000 employees supporting the design, construction and sustainment of two U.S. Navy programs, the 127-meter, trimaran

MES Delivers Bulk Carrier STH Athens

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 60,000 dwt type bulk carrier M.V. STH Athens (MES Hull No. 1898) at its Chiba Works on August 27,

Insurance

Mariners Dread Port Calls

Seafarer social media site Crewtoo, part of KVH Industries, Inc., has published the results of its second Crewtoo Seafarers Happiness Index report detailing job satisfaction at sea.

Coast Guard Responds to Delaware River Grounding

The Coast Guard is overseeing salvage efforts Tuesday for a motor vessel aground on the Delaware River. The 328-foot Netherlands-flagged motor vessel, Bermuda Islander,

Marine Claims & Casualty Investigation Conference

HINODE Maritime Events is conducting the "Conference on Handling Marine Claims and Investigating Marine Casualties". According to the organisers, the program

P&I Clubs

Coast Guard Responds to Delaware River Grounding

The Coast Guard is overseeing salvage efforts Tuesday for a motor vessel aground on the Delaware River. The 328-foot Netherlands-flagged motor vessel, Bermuda Islander,

Maritime Tribunal Rejects Plea to Free Italy's Marines

An international maritime tribunal on Monday rejected Italy's request that India provisionally release two marines accused of killing two Indian fishermen, a setback

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | 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: 0.1898 sec (5 req/sec)