The UK government has published its draft Marine Bill which includes a new marine planning system which will enable it to take a strategic approach to managing activities in UK waters. The bill includes new powers to put in place a network of marine conservation zones to protect marine life where it is needed and will have implications for shipping - especially the aggregates dredging sector.
The proposed legislation has been welcomed by the Chamber of Shipping which said that the shipping industry's long-term objective is active partnership with the government and the Marine Management Organisation (MMO) to ensure the development of appropriate protection for the marine environment. Deputy director-general, Edmund Brookes, said: "We will study it with interest. We have contributed to the development of the Bill, both as the representative body for the UK’s successful, high-tech and growing shipping industry and in partnership with the wider commercial maritime sector. We are grateful to DEFRA for their extensive consultation before the Bill’s publication and we look forward to playing our part in the ongoing consultation process ahead."
In particular, the Chamber says it is pleased to see the recognition in the draft Bill that it is essential that the MMO should have board members with experience and expertise in shipping, ports/harbours, fishing and aggregate extraction.
It adds: "As the leading maritime nation in Europe (indeed a nation that, in London, the home of the world’s pre-eminent centre for the shipping industry) it is vital that the MMO has the necessary commercial maritime experience on board."

In a separate development, the Chamber has announced that Martin Watson, one of the UK's leading maritime lawyers, will succeed David Dingle as its president. Maersk Company chief executive Jesper Kjaedegaard was elected as vice-president.

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Specialist shipping accountant Moore Stephens says it has carried out a new shipping industry survey which shows that most people in the industry expect financing costs to rise over the next years.
The firm says that owners and managers were significantly more confident about market performance over the coming year than were charterers, while operating costs, demand trends and crew supply were cited most frequently as the most significant factors likely to impact on business performance.
Factors adversely influencing the confidence of respondents included the possibility that recession in the US could affect the Chinese market as a major driver of shipping business, and doubts about the ability of shipyards to deliver sufficient numbers of ships to cope with demand. A continued growth in world trade based on the booming economies of China and India, and a second-half growth in trade predicated on an expected upturn in the US economy, were meanwhile cited as reasons for optimism.
Overall, 56% of respondents expected finance costs to be higher in twelve months’ time than they are at present, while 20% expected them to be lower. There were interesting variations between the different business types, with 76% of advisers expecting an increase in costs, but only 47% of brokers holding the same view. More than 50% of owners and managers, meanwhile, expected finance costs to rise.

Opinions about the direction in which freight rates in the tanker market were likely to move over the next twelve months showed some sharp variations, with 62% of charterers expecting rates to be higher, compared to only 35 per cent of owners. On the other hand, 36% of owners who responded expected tanker rates to be lower, compared to just 15% of charterers. Regionally, 36% of European respondents – the largest group overall – anticipated lower tanker rates, compared to the 31 per cent who expected them to be higher.

In the dry bulk sector, meanwhile, 40% of respondents expected rates to be lower in twelve months' time, with 28% anticipating an increase. Charterers differed in their view from the other business types, with 62% predicting higher bulk rates.
Finally, 43% of charterers felt that rates in the containership market would be higher in twelve months’ time, as against only 28% of owners.

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ACM/GFI, a joint venture between Maritime London member ACM Shipping and GFI Group, Inc. has launched a cleared tanker FFA trading platform.
The screen will offer OTC wet FFA broking on routes TD3, TD5, TD7 and TC2. The electronic platform will provide a clearing link to LCH.Clearnet and GFI is in talks with the Singapore Exchange (SGX) with the aim of creating a multi-clearing platform."Having developed an extensive client base through our global reach since the inception of the freight swap desk in 2002, I expect that this roll-out will greatly enhance ACM/GFI’s value proposition for our clients," said Will Leslie, globally responsible for wet freight at ACM/GFI.

"Combining our voice execution expertise from three different centres with first class trading and clearing technology, I believe will be a huge step forward by adding efficiency to facilitate the continuous growth and development of the wet freight/FFA market."

Isabella Kurek-Smith, director of energy and freight markets at LCH.Clearnet said: "ACM/GFI has delivered a valuable development in the tanker FFA marketplace, which more than supports our recently announced decision to offer additional benefit to our members and market customers through a three month clearing fee holiday for tanker routes starting 1st April." 

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The London P&I Club's entered fleet owned by its members grew by nearly 2m gt in the last policy year, to about 37.5m gt. In addition, the club's portfolio of charterers' entries brought overall tonnage to nearly 40m gt.

Bilbrough underwriting director Michael Hill said: "As well as the positive news involving the size - and quality - of the Club's membership, it is also heartening to note the success enjoyed in terms of the meeting of its premium targets. A variety of factors, which include further evidence of an increasingly severe claims environment, have combined to provide industry-wide challenges for P&I clubs. But it is a testament to the commitment of the London’s members - and the significance which they attach to its drive for the highest long-term qualities of service and security - that the Club is able to move forward into the new P&I year against the backdrop of a very satisfactory renewal season."

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Multi-modal transport insurer TT Club today announced what it described as positive results for 2007 with net worth showing a year-on-year increase of 9% at USD 148.7m for the sixth consecutive year. Total surplus and reserves rose to an unprecedented USD126.9m, an increase on 2006 of some 7%, and gross premium income was steady at USD 205.6m.
TT notes in statement: "Despite a softening insurance market the results were satisfactory and capped a year of both consolidation and progress for TT Club."
Club Chairman Sir David Thomson (who steps down in June after 25 years as TT Chairman) noted: "The Club can face the strategic and financial challenges of 2008/9 with confidence. We are financially strong with a very high level of solvency, are less dependent on reinsurance than ever before and have an excellent reputation as the market leader in our chosen sectors."
As in 2006, the insurer comments, the twelve months ending December 2007 was largely 'disaster-free' for the insurance and reinsurance industry, although the long-term trends in natural and man-made catastrophes remain on the rise. A marked change however, was seen in the investment environment. In the first half of 2007 the industry saw strong returns from high interest rates and buoyant stock markets but this came to an abrupt halt in the third quarter when the effects of defaults in the US sub-prime sector spread to global financial markets.

The club's chief executive, Paul Neagle said: "While the Club's investment portfolio is not directly exposed to losses arising from sub-prime debt, our conservative investment strategy has been, and remains, sensitive to changes in the interest rate environment." TT Club achieved a investment return in 2007 of USD 23.1m, which was slightly down on the record high of USD 25.2 million returned in 2006.

In terms of claims the club says its experience has been one of improvement in comparison with the previous year and when matched against expectations.
"Concerns remain high over the rising tally of bodily injury and handling equipment claims," stated Neagle, "But our adverse experience of 2006 with its late surge in claims was not repeated in 2007." The Club remains vigilant in this respect however and continues to address the situation through detailed analysis of causal factors and the related loss prevention activity necessary to reduce risk and consequent exposure.

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Cory Brothers Shipping, a subsidiary of shipping services company Braemar Seascope, has been awarded a five year hub agency contract by BP Shipping covering the Baltic, Europe, Black Sea and Mediterranean regions.
This is the largest region awarded by BP Shipping within its global system and covers some 6,000 port calls per year. Cory Brothers will be responsible for managing the agency network for BP's own fleet and voyage chartered vessels employed on BP business.
The Hub Agency system 'ShipTrak' developed by Cory is linked to BP's internal management system BPOSS providing a direct data link between the local port agent and BP.

Apart from vessel reporting and port information, the hub team provides operational and financial control encompassing audit procedures through 'ShipTrak'.
Commenting on the contract, Cory managing director Mike Harrison said:
"This is an exciting time for the company as we develop our Hub Agency coverage.

With more than 10,000 port calls currently handled through 'ShipTrak', the system has proved to be very robust, user-friendly and well liked throughout the world. Continuous development of ‘ShipTrak’ ensures that Cory can provide its principals with the type of procedure control and information they require whether it be on a regional or global basis."

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The world's leading specialist insurance market, Lloyd's, made a whole-year profit of £3,846 million for 2007.
Profit before tax was £3,846m, up from £3,662m in 2006. The Chairman of Lloyd's, Lord Levene, said: "2007 was another profitable year for Lloyd's with the market reporting a £3.8 billion profit and continuing to outperform its major international peers.

"Lloyd's benefited from a limited exposure to catastrophes but this has resulted in increased pressure on rates across all lines of business. The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential."

Lloyd's chief executive, Richard Ward, added: "Lloyd's is in good shape to meet the challenges that face us but we cannot expect the strong underwriting conditions and low levels of catastrophes to continue. Last year's softening market conditions reinforced, once again, the need for a clear strategy to enable the market to maintain discipline and strength in the face of increasing competition. As a marketplace we have a responsibility to our policyholders and to ourselves to ensure that we maintain our financial strength and security throughout the course of a cycle."

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Bunker supplier BP Marine Fuels has named Graeme Alexander as its new chief operating officer. He replaces Parris Beverly, who has taken up a new role working directly with large customers on a strategic basis across the wider BP group.

Mr Alexander said: "BP Marine Fuels enjoyed a successful 2007, including the expansion of capacity in both Rotterdam and Singapore, the opening of a new bunkering service in the Panama Canal and another year without any recordable spills. This year looks set to be another exciting one for us, and while I am looking forward to driving the business forward and securing new opportunities, our focus will be to continue to deliver a high value distinctive service to our customers."

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Norwegian-based IM Skaugen and Canadian head quartered Teekay are to jointly develop the liquid CO2 transportation side of the UK’s Carbon Capture and Storage demonstration project being led by and affiliate of German power utility RWE npower. The two carriers will become part of an industrial group formed to encompass the full range of expertise needed to demonstrate carbon capture, transport and eventual undersea storage.

IM Skaugen CEO Morits Skaugen said: "The Carbon Capture and Storage project is the first of its kind, and we look forward to working with our long-standing partner, Teekay, to enable the large-scale shipping of CO2."

"For Teekay, this is another example of our unique competence in finding reliable technical offshore solutions," said Teekay Gas Services president David Glendinning. "We're pleased to join both IM Skaugen and the international consortium under the management of RWE npower in this exciting project."

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A high level delegation of Maritime London members will accompany the Lord Mayor of London on a promotional trip to India next week. The group which includes representatives from the Baltic Exchange, Braemar Seascope, RightShip, Steamship Insurance, Ince & Co, Watson Farley & Williams, Thomas Cooper, Institute of Marine Law and Holman Fenwick & Willan will be in Chennai and Mumbai giving an in-depth overview of a range of issues impacting on the fast growing Indian shipping sector.

Maritime London is grateful to the Institute of Chartered Shipbrokers and its many members in Chennai and Mumbai who have been instrumental in putting this programme together. The event is also supported by UK Trade & Investment. 

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Attendees at the next Maritime London lunch (11 April) will be able to hear Holman Fenwick & Willan partner Richard Baines' views on the effect of the credit crunch on shipping.  The event will take place at HFW’s offices (1230 - 1430). The presentation will be followed by a buffet lunch.
Members are welcome to invite guests.

E: blines@maritimelondon.com