Strong Demand for Strike Club's Protective Covers

press release
Wednesday, November 21, 2012

General Increases of 10% and 5% are Maintained for 2013/14 Mutual Entries.

 

The Strike Club, the market leader in the niche area of delay insurance for the marine trades, reports continuing strong demand for its mutual and fixed-premium covers. Shipowners and charterers are boosting the club’s mutual entries as shipping operations are stamped by uncertainty resulting from the widening economic crisis and growing civil unrest, such as the protests by millions against government austerity measures seen in some of Europe’s largest countries last week. All this is fomenting industrial action which can and often does disrupt the maritime supply chain.

 

Bill Milligan, chairman and chief executive of S.C. Management, said today that all the signs pointed to a continuation of the uncertainty that is undermining attempts to bring stability to the industrial scene. In particular, he pointed to the policy review on ports by the European Commission that could lead to plans to liberalise port employment conditions. “Not surprisingly,” he said, “such threats have incensed dockworker unions, which have pledged to fight any such moves.

 

“In a further ominous sign we have seen increasing labour unrest in South America where there have been strikes and demonstrations by transport and other workers, particularly in Brazil, Chile and Argentina, marching in solidarity with European workers.”

 

Like other mutual insurers, the club is suffering from low fixed income investment returns. However, at their recent board meeting in Luxembourg, the directors noted the club’s fixed-premium war risks and loss of earnings business continued to make a welcome contribution to offset investment negativity. More than 1,000 vessels are now covered for war risks and some 700 for loss of earnings. War risks provide cover up to $200m, and LoE cover up to $3.375m, using standard market wordings, for periods up to 180 days.

 

In addition, the club offers bespoke fixed-premium cover for other delay risks in excess of or outside the mutual rules, such as delays up to 180 days, plus expenses, caused by discovery of drugs or contraband on board.

 

In the 2012/13 policy year to date, the mutual business has seen normal levels of ship-related claims (Class lll) from events such as collision, grounding, machinery damage, crew strikes, pollution and piracy which is now causing growing concern, having spread from the Indian Ocean to the west coast of Africa. But there have been higher levels of shore-related claims (Classes l and ll ) from a wide range of causes, including general, port, land transport, customs and pilot strikes, port closures, blockades by fishermen, physical obstructions and mechanical equipment breakdowns, as well as political and civil unrest.

 

At this preliminary stage, the club is not anticipating large claims from Hurricane Sandy.

 

The directors have agreed a general increase of 10% for Classes l and ll for the new policy year commencing February 1, 2013, and a general increase of 5% for Class lll (in both cases the increases are the same as for 2012 policy year). All three classes are subject to a full review of each member’s exposure, cover, deductibles and record. Further, some members have records which will require increases well above the figures declared, the directors said.

 

A release call of 30% is set across the three classes.

 

At the board meetings in Luxembourg, Johan Hagn-Meincke of Clipper Group was elected chairman, succeeding Costas Los of Vrontados SA, who will remain a director. Hans Olsen of Leonhardt & Blumberg was re-elected a vice-chairman and Alain Le Guillard of Louis Dreyfus Armateurs was elected a vice-chairman. Also, Steve Scheidegger of Bunge SA in Geneva joined the two Bermuda boards and will be nominated for the Luxembourg board at the next AGM.

 

In Standard & Poor’s latest report in August, the club maintained its rating of BBB+ with stable outlook. The Strike Club is now in its 55th year of business.  -ends-

 

NOTES:

 MUTUAL DELAY INSURANCE


Classes l & ll cover a ship during or following delays caused by a wide variety of onshore incidents such as strikes (either at the port or elsewhere in the cargo supply chain), war, civil war, riots, fire, earthquake, port closure, obstruction, imposition of export controls, etc.

Class III covers the costs of delays resulting from a wide variety of onboard incidents, such as war, civil war, piracy, kidnap, ransom, officer or crew strikes, collision, grounding, drugs on board, stowaways, machinery damage etc., leading to a ship going off-hire

 

FIXED-PREMIUM BESPOKE DELAY RISKS COVER
• The club now offers bespoke cover for other delay risks in excess of, or outside, the mutual rules, for example a delay up to 180 days, plus expenses, caused by discovery of drugs or contraband 

FIXED-PREMIUM LOSS OF EARNINGS COVER
• US$3.375m limit each incident
• Cover on terms to meet charterers’ particular requirements
 
FIXED-PREMIUM WAR RISKS COVER
• US$200m limit each incident
• Cover for owners and for charterers, with terms tailored to meet individual requirements
 

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

Contracts

OSV Power

The continued maturation of Offshore Service Vessel design is embodied in recent contracts and deliveries.  Ulstein Verft subsea newbuild Island Performer was

Kongsberg to Supply FPSO Safety System

Kongsberg Maritime Engineering (KME), the wholly owned Engineering, Procurement and Construction (EPC) subsidiary of global maritime technology developer Kongsberg Maritime,

CWind Wins 3-year O&M Services Contract

CWind, a provider of services to the offshore wind industry, have signed a three-year contract to provide crew and equipment transfer for DONG Energy and Scottish

Finance

Info-X Invests in $5m Headquarter Expansion

Transportation solutions provider capitalizes on outsourcing trend Info-X Software Technology, provider of software solutions and back-office support to U.S.

US Rail Jams Force Rush to Roads and Rivers

U.S. coal-burning power utilities are being forced to turn to barges and more expensive trucks to move coal, desperate to shore up stockpiles left dangerously low

Jones Act is Critical to Conn. Economy

Study shows Connecticut shipbuilding industry worth $2.5 billion to state’s economy, supports nearly 23,000 jobs The American Maritime Partnership (AMP) joined

Casualties

Coast Guard Responds to Capsized Tug in Chicago

The Coast Guard is responding to the capsizing of a tug on the Calumet River near the 106th St. Bridge in Chicago in which two crew members were able to escape and swim to shore.

Crippled Pine Galaxy Arrives in San Francisco

The disabled mixed-products tanker Pine Galaxy arrived in San Francisco for repairs Wednesday. Commercial tugs towed the ship safety into the Port of San Francisco

Tugboat Capsizes Near 106th Bridge, Chicago

The Coast Guard informs it is responding to the capsize of a tug on the Calumet River near the 106th St. Bridge in Chicago, in which the two crew members were able

Insurance

Panama Canal: The Billion Dollar Challenge

Panama Canal expansion will cost operators, insurers As the Panama Canal prepares to celebrate its 100th anniversary, insurers are warning of the increased risks

Pine Galaxy to Arrive SF Bay Wednesday

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

Maersk Line Still the Leading Carrier on Reliability in Q2

During the second quarter, the overall industry reliability has improved. However, Maersk Line is pleased to have improved their performance so that they can

P&I Clubs

Pine Galaxy to Arrive SF Bay Wednesday

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

Ballast Water Management: California Update

The California State Lands Commission (CSL) has promulgated a letter to clarify its interpretation of existing ballast water requirements under the California's

Swedish Club Results Show Improvement

The Swedish Club today announced its half-year results in which it reported that the club continued to demonstrate a solid performance in the first six months of

 
 
Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators 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: 0.1514 sec (7 req/sec)