Research undertaken by OneVoice, the body representing UK maritime services and supported by Maritime London, has revealed that the UK maritime services sector cluster supports around half a million jobs and contributes £25bn to the UK economy or 2% of the country’s GDP.

The report was launched at the Houses of Parliament

Launched at a reception at the Houses of Parliament today, the research was conducted by economic consultants Oxford Economics and reveals the economic significance of UK ports, shipping and maritime business services and offers comparative data updating research undertaken in 2008.

“The report confirms how crucial the UK maritime services sector is to UK plc” said Michael Drayton, chairman of OneVoice and the Baltic Exchange. “OneVoice is in its infancy, but this report provides real flesh to the bones of the initiative as the maritime industry looks to establish a substantial and telling political footprint on a range of issues – from the Marine and Coastal Access Bill, and overall fiscal environment facing maritime business services, to the rates revaluations affecting statutory ports.”

The report recognises that shipping and ports make a significant contribution to the UK economy handling 95 per cent of the country’s international trade by volume, supporting employment dependent on access to a port in sectors such as fishing and chemicals, supplying the offshore energy sector and supporting water based sports and coastal tourism.

Richard Everitt, chairman of the UK Major Ports Group said: “This is an important and timely report. For the first time we have a comprehensive overview of the vital economic contribution of the ports sector. Ports get on with the important job that they do and don’t often hit the media headlines but that doesn’t mean they do not play a crucial role in supporting the wider economy. This report puts ports and the maritime sector firmly on the national economic map.”

Martin Watson, president of the Chamber of Shipping, said: “With this report, OneVoice brings together the maritime services sector to deliver solid data to inform key stakeholders and decision makers. This will underpin our common positions on key issues.”

Building upon the shipping and ports reports, next year’s account will include a full investigation including the maritime business services sector in the City and throughout the UK.

To receive a copy or the report, please contact: info@onevoice.uk.com

London’s status as the world’s leading maritime arbitration centre will be enhanced with the news that the London Maritime Arbitrators Association (LMAA) has introduced a new procedure designed to deal with claims of between $100,000 and $400,000.

Developed in conjunction with the Baltic Exchange, the new procedure is intended to limit the cost of arbitrating to suit a wide range of shipping and commodity related disputes.

The Intermediate Claims Procedure 2009 has been designed to enable any party using arbitration to settle a commercial dispute to predict the cost of proceeding from the outset of the case.

LMAA honorary secretary Simon Gault said: “This is a big step for the LMAA and one designed to help the end users of arbitration services. This new procedure has been developed by an LMAA sub-committee chaired by immediate past president Robert Gaisford to address the need for more predictable and proportional costs involving claims that can be resolved using a condensed mechanism that goes beyond the limitations set by the small claims procedure but which does not merit dealing with the dispute under the full LMAA terms.”

He added: “A right of appeal has been introduced only where the tribunal certifies in its award that a question of law is involved that is of general interest to the trade or industry. This is a novel provision intended to avoid a dichotomy of views between the tribunal and the Courts and avoids the costs of applying for leave and establishing before the Court for a second time that which would have already been demonstrated to the tribunal.”

Under the intermediate procedure parties’ respective recoverable costs are capped at a sum equivalent to 30% of the claimants’ monetary claims and distinct counter claims. The percentages are increased to 50% if an oral hearing is involved. The tribunal’s costs are similarly capped at up to one third of the total at which the parties’ costs are capped where a sole arbitrator is involved or two thirds in respect of a tribunal comprising two or three arbitrators.

An Employment Appeal Tribunal (EAT) has ruled that a UK resident seafarer working on a ferry registered in Bermuda, sailing between Portsmouth and the Channel Islands could make a claim of unfair dismissal against his employer.

Overturning an Employment Tribunal ruing that it had jurisdiction to hear claims from mariners only if they were resident in Great Britain, and their ship was registered in Great Britain and did not trade wholly outside Great Britain, the EAT decided that the appellant seafarer was a peripatetic employee who was based in the UK and, hence, was able to claim – even though the ship was registered outside Great Britain.

Nicholas Humphreys of law firm Hill Dickinson comments: “The EAT ruling is significant for the shipping industry because it now opens the door to claims from UK based employees on foreign registered vessels, a matter which previously had looked as if it was beyond the remit of the Employment Tribunals. Employers should therefore consider whether any of their workforce may be affected by this decision and may have UK employment rights as a result.”ritimelondon.com

Cross channel ferry

Responding to what it sees as a major threat to ferry operators, global trade association Interferry says it is using its consultative status at IMO to act on two major environmental and safety initiatives involving greenhouse gas (GHG) emissions and ro-pax vessel design.

The environmental issue comes to a head this week when the IMO’s GHG Working Group meets for renewed consideration of a proposed energy efficiency design index (EEDI) for new ships. In a briefing paper sent to the IMO, Interferry says the suggested calculation methodology – based on a ship’s capacity - does not take account of power arrangements and trading patterns relevant to ro-pax and passenger ferry operations and has set out a sector-specific alternative for the working group’s consideration.

Interferry is worried that shortsea shipping could lose out to other forms of transport such as trucks. The EEDI formula was presented at last October’s meeting of the IMO Marine Environment Protection Committee.

The MEPC 58 session approved the proposal as an interim calculation guideline but acknowledged the need for further development and refinement. Interferry’s submission concedes that a capacity-based formula might be applied to ship types engaged in trans-ocean trades where seagoing transit is the absolute dominating mode in an operational profile – but argues that this fails to provide a fair comparison basis for ships on short-sea, timetabled line services or for vessels with unconventional propulsion systems.

Overall customer satisfaction with Lloyd’s of London has improved year on year, with its 2008 customer satisfaction survey revealing the highest results for its front end processes, such as speed and accuracy of quotations and contracts.

According to the fourth annual survey, overall customer satisfaction – which includes brokers, insureds and reinsureds – has risen year on year, and is now rated 7.9 out of 10. Over half of respondents agreed that processes covered in the survey have improved in the past 12 months while Lloyd’s receives highest scores for speed (8.1) and accuracy (8.3) of quotation.

In addition 57% believe the Accounting & Settlement repository has improved the speed with which premiums are processed while satisfaction with speed of contract has improved for the fourth consecutive year, from 5.2 in 2005 to 7.3 in 2008. Satisfaction with speed of confirmation of coverage has increased to 7.9.

The survey revealed that speed of claims payment and keeping customers informed during the process had improved, but did not score as highly as other areas.

Global maritime recruiter and Maritime London member Faststream has launched a dedicated seagoing recruitment division. The company already provides a comprehensive service for on-shore maritime related jobs.

Headed by Dan Curry, the seagoing recruitment division will be headquartered in the company’s global base in Southampton, UK, but will also run through Faststream’s network of offices in the USA. Planned future expansion will see this business area span across the companies Asia-Pacific and Scandinavian operations.

Mark Charman, group CEO and founder said: “This is an exciting chapter in Faststream’s development. Although this is our first planned step into the seagoing market, we’re certainly not wet behind the ears. We are shipping people through and through and our specialist consultants hold a wealth of knowledge of the shipping industry in its entirety”.

“Our business is based around supply and demand. Our clients have a huge demand for seagoing staff. The quantity of enquiries we’ve received about providing seagoing recruitment over the years had reached a level where launching a stand alone seagoing division was a must.”

He added: “The seagoing market currently lacks a quality recruitment model. Industry knowledge is all very well, but it’s critical that this is combined with best recruitment practice.”

AXA Corporate Solutions, the specialised lines insurer within the AXA Group, says that, despite a tumultuous year in global economic and financial terms, most of the company’s lines of business remained steady compared with 2007. In particular, marine grew by 14% due to a high volume of new business both in hull and cargo insurance, and has now advanced from 18% to 21% of the company’s total turnover of euros 1.954bn.

Patrick de La Morinerie, deputy chief executive of AXA Corporate Solutions and responsible for marine and aviation operations, said: “We continue to strengthen our position in areas like marine, particularly in the Far East and emerging markets like India and the Emirates. The dramatic downturn in the shipping industry is affecting all marine insurers, whether hull, cargo or liability, and extremely difficult and challenging trading conditions lie ahead.”

“However,” he added, “by expanding our range of insurance products, retaining dedicated and very experienced staff and offering ever higher levels of service to clients, we will be in a strong position to take advantage of opportunities when markets return to a more even keel.

AXA Corporate Solutions is one of the world’s top players in marine insurance and leads some 60% of the lines it writes. It covers approximately 25% of the world merchant fleet. Broadly, in 2008, 25% of its marine business came from French clients, and 75% from the rest of the world.

Major renewals of programmes were secured at the beginning of this year, Mr de La Morinerie reported.

Southampton move delayed

Lloyd's Register has been granted final planning permission to develop, with the University of Southampton, the Boldrewood Campus in Southampton but work on the project will not now start until late 2011 at the earliest.

An LR statement says: “We remain committed to the Boldrewood development, but following a review of the planned programme for construction of the new building, it has been decided to postpone commencement of any new construction work as demolition work on the main building at Boldrewood will not be completed until the third quarter of 2011. We have taken the view that commencing construction following the completion of the majority of the demolition work is the sensible and prudent path to follow.”

It adds, however that the “rapid and significant deterioration in the UK economy” has also created great uncertainty in the financial and property markets, as well as affecting the confidence we would have in choosing a contractor to deliver the construction aspects of the project.

LR's ceo Richard Sadler said: “It is important that we remove as much risk and uncertainty from our plans as possible. Our action to delay the start of construction will facilitate a much clearer view of the attendant risks in what we hope will be a significantly improved economic climate. The important commitment we have made to the University of Southampton to jointly stimulate innovation and develop further direct co-operation will continue in the interim, despite the postponement in developing the Boldrewood site.”

The UK P&I Club’s total mutual owned tonnage fell 7% at latest renewals and now stands at 104m gt. However the club points out that about three-quarters of the tonnage which moved was from five members, of whom only three left the club completely.

The club says 95% of the existing member fleets renewed their entries with the UK Club. Less than 4% of those renewing chose to move a part of their entered fleets to other P&I providers.

Hugo Wynn-Williams, chief executive of Club managers Thomas Miller P&I, said: “As the largest club to announce a supplementary premium before renewal, the UK Club has been very much in the headlines. It was inevitable that its rivals would make a competitive challenge for some of the Club’s prestigious membership. We are grateful for the loyalty and support our Members have shown the Club at this difficult time. The increase in renewing premium achieved is an important element in the Club’s long term financial strategy of correctly pricing risk and preserving capital.”

UK Club says it has achieved a renewal just one per cent short of its general premium increase of 12.5 per cent for the 2009 policy year.

It adds: “The depth of support was evident in the Club’s two strongest markets, Greece and Japan. Although totalling 40% of the membership, only 18 ships out of 1,300 from these regions did not renew. Support was particularly strong across the Asia-Pacific region where the UK Club’s regional office network is well established. Overall, there was a small increase in tonnage entered from this region. New tonnage also came from China, Germany, Saudi Arabia and the United States.”

The number of chartered entries in the UK Club also fell, to 5.5%. Before allowing for changes in terms of cover, renewing members’ premium achieved the general increase requirement for fixed premium entries of 7.5%.

The club’s chartered entries of around 60m gt at the end of the 2008 policy year contributed to a total entered fleet of over 170m gt.

British-based Chemring Marine, which claims to be the world’s leading supplier of SOLAS, MED & USCG-approved marine distress signals says its managing director Robert Hill has had separate meetings with both the Chancellor of the Exchequer and the Trade Minister to discuss marine safety issues.

The head of the company which produces the Pains Wessex and Comet brands attended the marine industry lunch and briefing with the Chancellor, Alistair Darling, held as part of the Cabinet’s visit to Southampton. He attended both in his company MD capacity and as chairman of the Marine Sector Advisory Group (MSAG).

Mr Hill stressed the importance of the Government supporting the marine industry’s export activities through more UK Trade and Industry (UKTI) initiatives and placing additional commercial officers in foreign embassies.

He said: “How can the Government help our industry in the current financial crisis? The answer is simple – support our export activities. UKTI is universally regarded by industry as one of the most business-savvy departments of government. When times are tough, the UK needs to increase marketing and sales activity across all sectors. The majority of marine exporting companies are SMEs and the loss of free services, free market advice and the use of embassies is driving companies and trade bodies away from this historically valuable resource.”

At a separate meeting a few days later, Mr Hill discussed similar issues with Trade Minister Lord Mervyn Davies, the head of UKTI. To hear more about the sector’s concerns, Lord Davies has accepted an invitation to address the next meeting of the MSAG.

Mr Hill said, “It was a very positive meeting. Lord Davies was made aware of the issues in the marine safety industry and gave us a good hearing.

Maritime London member Thomas Miller has a new director of underwriting. Christopher Brown, previously claims director in London, is to lead underwriting policy for the UK Club with effect from 20 February. He takes over from Hugo Wynn-Williams who has led underwriting policy as chief executive of Thomas Miller P&I. Mr Wynn-Williams will maintain his responsibility for reinsurance and continue to represent the Club on the Group Reinsurance Sub-Committee in addition to continuing his other roles within the position of ceo of Thomas Miller P&I.

Commenting on his new role, Mr Brown said: “The Club’s underwriting strategy is focused on one simple but essential objective - ensuring the correct premium for the risk. Balanced underwriting, and the preservation of capital it supports, maintains confidence in the P&I system as a whole and facilitates the strong focused support our members expect in the year ahead.”

BMS Harris & Dixon Marine is the latest firm to join Maritime London. The marine insurance broker is one of a broad range of UK maritime service providers to benefit from membership and will participating in next week’s promotional visit to Turkey with the Lord Mayor. The event, hosted by the Turkish Chamber of Shipping will feature around 15 Maritime London members.

For further details on membership of Maritime London contact Doug Barrow.

E: dbarrow@maritimelondon.com

The Lord Mayor paid a visit to Edinburgh and Glasgow last week to gain a greater understanding of the financial, business and maritime activities of the region. As part of that process, following a visit to the First Minister of Scotland, he attended a lunch, hosted by the SSBA, and was joined by Maritime London.

It provided a rare opportunity for the leaders of the local ship managers, ship owners and other maritime services including those involved in maritime education to discuss common interests and brief the Lord Mayor on the strength of services provided by the region.

Bill Christianson, the Mission to Seafarers' secretary general, is to retire at the end of June after 42 years service with the Mission Canon Christianson says: “The Mission to Seafarers has undergone significant change since being founded in 1856 and now operates in 230 ports around the world. Seafarers are still the most important people within the shipping industry and their welfare will remain at the heart of our work as the society develops its ministry for those who work at sea.”

His various port roles with the organisation include chaplain’s assistant, chaplain, and senior chaplain. In 1993, Canon Christianson moved to central office to become ministry secretary and was appointed Secretary General of the society in 2001.