London-based underwriters may be relieved that Hurricane Gustav proved much less destructive than Katrina when it hit New Orleans in 2005.

The strong contingent travelling to Vancouver, some 40 from the Lloyd’s market and 20 from member companies of the International Underwriting Association, for the International Union of Marine Insurance (IUMI) annual conference will however be acutely aware that the hurricane season still has three months to run.

Deirdre Littlefield, IUMI president, said in New York: “Fortunately, Hurricane Gustav did not turn as vicious as predicted, but still left a trail of destruction across the southern Caribbean and where it made landfall in the United States.”

IUMI notes that, hurricanes apart, this year’s conference comes at a time when the marine insurance industry, like most other industries, is facing up to the effects of the worldwide economic downturn and financial pressure from all directions, and predictions of worse to come.

Ms Littlefield said: “All marine insurance markets are struggling with a whole raft of problems: reducing premium income and aggravated competition as both seaborne trade and freight rates continue to slide; dramatic reductions in company and syndicate profits and significant deflation of the investment income cushion; newbuild orders being cancelled or delayed as talk grows of ships being laid up; continuing adverse casualty experience despite a welcome slowing of total losses; and the growing shortage of experienced mariners to crew ever more complex ships.”

One of the keynote speakers to address the conference will be Rolf Tolle, director of franchise performance at Lloyd’s. More than 400 marine underwriters representing 47 countries will meet in Vancouver as well as 42 guest speakers, 10 delegates from affiliate members and 13 observers and special guests will swell the total to around 470.

The London P&I Club has warned that owners and masters who do not realise their vessels are subject to enhanced scrutiny under Paris Memorandum of Understanding on Port State Control rules are risking heavy fines.

The club says that, in two recent incidents involving states which are parties to the Paris Memorandum of Understanding on Port State Control, P&I correspondents have been called to assist masters who were unclear why the local PSC officer considered their ships to be “high risk” and had threatened to impose a fine because of the masters’ failure to report that their ships were eligible for a Mandatory Expanded Inspection (MEI).

All ships falling within the “high risk” definition in EU Directive 2001/106/EC (bulk carriers over 12 years old, oil tankers over 15 years old and bigger than 3,000 gt, gas and chemical tankers over 10 years old, and passenger ships over 15 years old, excluding those covered by the EU Ferry Directive) are required to undergo an MEI every 12 months.

This has also been extended to apply to non-EU members of the Paris MoU.

If such a ship has not been subject to an MEI within the previous year and is about to call at a port within the Paris MoU area, the master or owners must send a notice of arrival for MEI form to the PSC office in that port. Failure to do so can result in delay to the ship, the raising of a PSC deficiency against Section 10 of the ISM Code and, in some cases, a substantial fine.

The Lord Mayor of London pictured on a recent Maritime London visit to India

Representatives from Maritime London, the Baltic Exchange and the London Stock xchange will be joining the Lord Mayor on a trip to Moscow this week in a bid to strengthen links with Russian tanker giant Sovcomflot.

The delegation will be meeting the company’s chief executive Sergei Frank, the former Russian Transport Minister who took over the company’s reigns last autumn. This will be followed by a maritime reception and dinner hosted by Sovcomflot.

Maritime London hosts a range of networking events throughout the year

Chartering managers, port executives, shipbrokers and ship yard management from across Europe studying for the shipping MBA offered by Copenhagen Business School were in London last week for a field trip.

This Maritime London evening event was hosted by the Baltic Exchange and, in addition to the 30 MBA students, it was also attended by about 30 members of Maritime London.

Maritime London chief executive Doug Barrow commented: “We were delighted to welcome so many shipping people from around Europe to the capital of shipping and give our members an opportunity to make new contacts.”

Maritime London organises numerous networking events for its members with the next one taking place at Norton Rose on 18 September which will be addressed by the Lord Mayor.

The Red Ensign flew over the headquarters of the Department for Transport last Wednesday to mark the UK's ninth Merchant Navy Day.

Shipping Minister Jim Fitzpatrick said: “Shipping is vital to our nation- we rely on it for the majority of our foreign trade. Merchant Navy Day provides an opportunity both to honour the memory of the merchant seamen of the past and to look forward to a brighter future for British shipping and seafarers.

Mr Fitzpatrick said: "Today, the British merchant fleet and our shipping industry is in better shape than it has been for many years, but we must not forget the sacrifices of the past. Merchant seamen kept us supplied during the two World Wars and more than 20,000 of them lost their lives during the Second World War alone.”

He added: "The Government is working hard to improve shipping and I'm proud of the increase that we have seen in the number of ships on the UK Ship Register and in UK tonnage, which has been achieved without compromising standards."

The Joint War Committee (JWC) comprising underwriting representatives from both the Lloyd’s and IUA company markets is due to meet on Wednesday this week, against a background of an increasing number of hijackings in the Gulf of Aden. According to the International Maritime Bureau there are now nine commercial vessels, including a 50,000 dwt bulker, and a French-owned yacht being held for ransom.

The JWC represents the interests of those writing war and related risks within the London market and usually meets every quarter and provides a forum for the London hull war market. While it is likely that insurance premiums will increasingly reflect the greater risk of hijacking while transiting the Gulf of Aden, the spike in attacks has also galvanised Coalition naval forces into to establishing a formal patrol corridor through the area and and has steeped up patrols.

In addition Malaysia has reacted to the hijacking of two MISC-owned, Malaysian-flag chemical tankers by sending three frigates to the area. The ships are reportedly specifically tasked with protecting MISC ships in the area, though not with attempting to intervene to rescue the crews of the hijacked ships.

A recent decision by the English High Court has clarified owners' obligations in respect of maintaining RightShip approval in the dry bulk shipping trades, according to the Maritme Advocate. RightShip is a member of Maritime London.

The online maritime legal publication notes that RightShip is a private ship vetting organisation maintained by BHP Billiton, Cargill and Rio Tinto. Major dry bulk shippers in Australia, Brazil and elsewhere increasingly require vessels to be approved by RightShip. Vessels which are not so approved face difficulties in finding employment in trades where those shippers predominate. Accordingly, disputes between owners and charterers about RightShip approval are becoming more common.

In his recent judgement on Seagate Shipping v Glencore International, on appeal from a London arbitration award, Justice David Steel ruled that the charter party relating to the capesize bulker Silver Constellation could not be interpreted to require RightShip vetting. However he ruled in favour of the charterers on a second point, that the owners should not have refused to allow a RightShip inspection arranged by the charterer to go ahead. He agreed that the owners' refusal to co-operate with the charterers' efforts to obtain RightShip approval rendered the vessel unemployable on trades which were otherwise permissible under the charter terms.

Commenting on the decision in its latest Client Alert, international law firm Reed Smith says, "Both sides were given leave to appeal, but the decision provides welcome clarification to the industry. The lesson for charterers is that if they wish to employ a chartered ship between ports where RightShip approval is required by most shippers, then this needs to be an express term of the charter (as is the case with oil major approvals in tanker charter parties). The lesson for owners is that they ignore a request by their charterer to allow access to inspectors employed by a private vetting agency at their peril."

The full text of the judgment can be read at: www.bailii.org/ew/cases/EWHC/Comm/2008/1904.html

The Baltic has announced the appointment of William Lyth, formerly of Paccship (UK) and Clarksons, as its senior freight market reporter. He joins the London based Baltic Exchange team responsible for the production of its daily shipping indices and fixture lists.

Baltic Exchange chief executive Jeremy Penn said: "We are delighted to have strengthened our team with the appointment of Willy, who has a wealth of shipping experience and is a very well-known and respected figure in the London market."

The International Marine Purchasing Association is once again holding its exhibition and conference in London. Coinciding with the organsiation's 30th anniversary, IMPA 2008 takes at London’s Kensington Town Hall on September 17-18. The trade show is reported to be another sell-out and will be supported by a comprehensive schedule of company presentations.

Three exhibition floors will be filled to capacity with almost 80 stands showcasing ship chandlers as well as companies ranging from equipment manufacturers to e-commerce providers.

Supply chain authority Alan Waller, vice-president of Solving International Norway’s Eric Jakobsen, from research and business consultancy MENON Business Economics will be the two keynote speakers.

IMPA is making full use of London's attractions to put on a impressive 30th anniversary celebration. The event starts with a debut IMPA dinner in the Great Hall at Lincoln’s Inn and finishes with a gala dinner at St Paul's cathedral; and the delegates will be transported between locations by Routemaster buses.

This recently published book comes at an extremely opportune time. Although bunker prices have fallen by 10% since their all time high a couple of months ago, fuel oil is still selling at over $600 per tonne and distillates over $1,000 per tonne in major ports; it focuses the mind on the value of a commodity known as residual fuel – potentially a waste product.

Everyone concerned with ship operations should be aware of how the vessels are powered, especially when it accounts for such a significant part of the ship’s operating costs, and, for anyone not experienced in bunkering, this is an ideal tome.

To paraphrase a popular TV advert, “It does what it says on the cover”. It provides an introduction to bunkering. It does not purport to be the definite reference work of all aspects of bunkering, but does give a very good point from which to start.

The author, Nigel Draffin, has had many years experience in the industry having worked for Shell, afloat and ashore he is a well respected bunker broker, but has also been involved in the International Bunker Industry Association (IBIA) from the outset where he has been prominent in leading the development of the various IBIA courses.

The book covers the origin of bunkers; the roles of the players involved commercial operational and technical aspects of fuel delivery; the quality of bunkers and bunker specifications; measurement, handling and usage of the bunkers and concludes with some of the potential problem areas and how to deal with them.

It is a well written book in very readable language and all of the technical terms are well explained. Illustrations are used to good effect throughout the book and it essential reading for anyone new to the industry.

Not only is it up-to date in its content, it is now available in Spanish as well as English giving an even greater possible readership.

Published by Petrospot Ltd. it costs £39.95 per copy and provides a good value alternative for those who may not be able to attend IBIA Basic Bunkering courses.

Tel: +44 1295 814455
www.petrospot.com

Biodiesel and ethanol charterers as well as shipowners will be in London next week for the second Biofuels Maritime Trade & Transport at the Hyatt Regency Hotel (18-19 September).

The event focuses on both wet and dry feedstocks as well as a focus on carriage requirements, storage and supply chain issues.

Speakers include John Cusick of Renewable Biofuels, Harvey West of Vo-Gen Energy and Gier Olavsen of Inge Steensland. Dr Alan Whitehead MP, chair of the UK’s All Party Parliamentary Renewables and Sustainable Energy Group will be opening the event with a key note address.

See www.navigateconferences.com for further details.

Following on from the success of Seafarers UK and Fullers Ale’s collaboration last year, Seafarers Ale is back for the month of September and available in Fullers pubs throughout the country. Every pint sold will raise 5p for maritime community charity Seafarers UK.

Last year 78,336 pints were purchased and this year that number is expected to increase with even more pubs stocking the popular ale.

Conal Presho, head of fundraising at Seafarers UK said: "We are delighted to be working with Fullers for a second year, Seafarers ale was hugely popular in 2007 and we are certain that our partnership with Fullers will be even more successful this year."

To coincide with the launch of the beer, the charity is encouraging supporters to hold their own pub quizzes throughout the UK this autumn. Quizzes can be held anywhere and anyone wanting to host their own should contact Lee Dobbins for quiz templates, bunting etc on 020 7932 5960 or lee.dobbins@seafarers-uk.org