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

Contracts

Japan's MHI Bags Indian Oil's LNG Storage Tank Contract

Indian Oil Corp (IOC) has awarded a contract to build two football stadium-sized liquefied natural gas (LNG) storage tanks at its upcoming Ennore LNG import terminal

Gazprom, Gasunie Sign Framework Agreement - LNG

At a Meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Han Fennema, CEO and Chairman of the Executive Board of Gasunie a Framework

De Nora Acquires Severn Trent's Water Purification Business

De Nora announces the completion of the acquisition of the Water Purification group of Severn Trent Services. The new business line, called De Nora Water Technologies,

Finance

Greece Port Operations Update

An update on Greece’s port operations and local conditions was issued today by maritime services provider Inchcape Shipping Services (ISS).   According to ISS,

Container Shipping Lucky to Break Even in 2015

A toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening liner shipping industry profitability for the rest of 2015, according

Dry Bulk Market Crisis: Opportunity or Threat?

The shipping industry is experiencing the biggest dry bulk market recession since the 1980s, as uncertain global economic outlook and increased imbalance between

Casualties

Shell's Icebreaker Vessel Damaged in Alaska

Royal Dutch Shell Plc's  icebreaker vessel Fennica returned to the Dutch Harbor in Alaska with a small breech in the hull, raising concerns about the company's

As First Victims Mourned, Italian Navy Searches On

Italy held a funeral service on Tuesday for 13 migrants who died in the worst shipwreck in the Mediterranean in recent history, while the navy continued its search for other victims of the disaster.

Migrant Sailboat Sinks in Aegean, 17 Missing

A sailboat carrying migrants sank in in the Aegean sea between Turkey and Greece on Tuesday and at least 17 people were missing, Greek authorities said. Greece's

P&I Clubs

Parkinson Retires from Sunderland Marine

Geoff Parkinson, chief executive officer of North P&I Club’s subsidiary Sunderland Marine, retired on 30 June 2015 following a period of ill health. Tom Rutter,

Philippine Ferry Sinks, 36 Dead

A ferry carrying 189 passengers and crew capsized off the central Philippines in heavy waves on Thursday, killing at least 36 people but the majority of those on board were rescued,

 
 
Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
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: 0.1869 sec (5 req/sec)