north news 9
TRANSCRIPT
NEWS AND VIEWS FROM NORTH OF ENGLAND2007 ISSUE NINE
P&I INCREASESNEW OFFICE IN SINGAPORE
SOUTH KOREA UPDATELNG – A WHOLE NEW GAME OF RISK
WELCOME
We at North of England have an excellent track record of growth, expansion and,importantly, quality service and a strong commitment to our Members. All of thesethemes are reflected in the wealth of news and information contained in this editionof North News, which has been revamped to provide Members with clear andtransparent information about their Club.
My regular contact with North of England’s management and dedicated professionalstaff and my frequent visits to our head office in Newcastle continue to reinforce myconviction that we are ideally placed and equipped to continue our dynamic growthand development. Indeed, during the current policy year we have already seen furthersignificant tonnage growth from both existing and new Members of the Club. At theFebruary 2007 renewal, we announced that total entered tonnage had increased by15% to 70M GT. This growth has continued during the current year and, at the sixmonth point in August, membership tonnage had increased to over 75M GT. We aredelighted to have welcomed a number of new Members, who have joined the Clubsince the February 2007 renewal, and I am confident these Members will continueto enhance the Club’s growing worldwide quality membership.
Quality personal service is the foundation of North of England’s successful developmentand genuinely living up to our ethos of being “an extension of our Members’ offices” is akey strategy. Throughout this edition of North News we feature many initiatives which theClub is implementing and developing, all designed to further enhance the level of serviceto our membership.
Turning to worldwide shipping markets, the current freight market cycle is unprecedentedparticularly in the dry bulk sector of the market. Strong freight markets are, of course,very welcome news for the Club’s Members in terms of financial rewards and profitabilityin running their companies.
However, as the Club has been highlighting for quite some time, there is an inextricablelink between the strong freight markets and the dramatic increase in the numberof high value claims which all marine insurers, P&I Clubs in particular, appear to beexperiencing. Much has already been written about the reasons behind the sustainedincrease in claims costs, including such factors as strong freight markets, the largerworld fleet and the increasing shortage of quality crews.
CLUB AND CORPORATE UPDATE2
Welcome to this issue of North News which is the firstunder my Chairmanship. I am very proud to have takenover as Chairman of North of England in May 2007 andI am grateful to my predecessor Bill Thomson for hishard work during his three years as Chairman.
CLUB AND CORPORATE UPDATE
2 Welcome4 P&I Increases5 Finance6 Singapore Welcome for
North of England8 Hong Kong Office Review10 Greek Office Review
INDUSTRY NEWS
12 South Korea – A Key Marketfor Growth
14 LNG – A Whole New Game of Risk16 Short Term Profit or Long Term
Commitment?18 Charterers Beware! “Achilleas”
Ruling Could Cost You a Fortune20 Arctic Thaw Presents Lucrative
New Possibilities22 North East Networking
INTERNAL DEVELOPMENTS
23 Focus on Service26 Stephen Mills Comes Onboard27 Sport Specific28 2007 Staff News30 Club Charity Contributions31 Schedule of Events
CONTENTS
Albert Engelsman, Chairman
North of England and its Members are not immune tothis claims escalation. As a result, as Members will beaware, your Board have resolved to take positive actionto ensure that North of England’s strong financial positionis maintained. This has resulted in the decision to levya general increase to P&I premiums at the 2008 renewalof 17.5%, as well as a 10% increase in all Members’deductibles. The increase will be applied in two parts:7.5% is directly attributable to increased Pool claim costsand, as such, is not dependent upon the individual recordand risk exposure of Members and a balance of 10%which is dependent upon the individual record and riskexposure of Members. A general increase of 10% willalso be applied to FD&D premiums. Although increasesin premiums and, therefore, higher ships’ running costsare never welcome, the Directors and Managers arefiercely committed to maintaining the consistently strongfinancial position of the Club for the benefit of all Members.
There are challenging times ahead for the P&I industryas it seeks to maintain financial strength and stabilityin an ever more hostile claims environment. Our roleat North of England is to continue our focus on qualityservice and support as well as financial strength andwe will work with all of our Members to meet thesechallenges.
I am confident that the membership will continue tosupport the Club during the coming months and thatwe can look forward to a strong and positive renewalresult, which will enable the Club to continue itsprogress and development.
Albert EngelsmanChairman
3Red Arrows fly over the North of England Offices and the River Tyne at the start of the Great North Run.
P&I INCREASESThe P&I Industry suffered what appeared to be recordclaims levels in 2006/2007 and much has been writtenabout the significant increase in the number and value oflarge claims and pool claims. A review of Club financialstatements suggests that all of the major Clubs madeunderwriting losses for the 2006/2007 policy year.Collectively these losses account for close to 25%of premium income in the 2006/2007 policy year but,fortunately, unusually strong investment returns largelycountered these losses.
Claims in 2007/2008 do not appear to have diminished. Claims on the pool at the sixmonth point were very similar to the position at the six month point in 2006/2007 andour own Members’ claims are currently running at a higher level than the previous year.The recurring factor is the higher frequency of large losses. The Industry as a whole hasbeen considering the reasons for this with factors such as the rapid growth of the worldfleet, the shortage of seafarers, “convention creep” and the increased utilisationof existing vessels being cited.
Although investment returns have been greater than expected over the last five years,investment markets are currently particularly volatile and the P&I Industry cannotcontinue to rely upon higher than average investment returns propping up negativeunderwriting results; technical underwriting balance is essential if the Industry is toremain strong.
In these circumstances, large general increases across the Industry were to be expectedand indeed many commentators, including our Club, were suggesting in the summerthat increases around 20% would be required – clearly this is now a reality.
CLUB AND CORPORATE UPDATE4
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Without the very strong investment return of 12.47% theClub would not have been able to increase free reservesto US$190.2M at 20 February 2007. At this relativelyearly stage in the development of the 2007/2008 year,it would appear that these factors will continue to besignificant drivers of financial performance in thecurrent year.
Nervousness concerning the direction of investmentmarkets, and particularly the equity market, resultedin a decision in June to reduce equity exposure in theinvestment portfolio from 38% to 30%. This provedfortunate as the following two months were particularlyturbulent and, although equity markets producednegative returns, the bond market benefited from aresulting flight to quality and helped generate a returnfor July and August of 1.48%. Although equity marketsrallied in the following months, the markets are extremelyturbulent and nervous and the reduced equity exposuretherefore fits with one of the Club’s key primary financialobjectives – capital preservation.
The current environment facing the P&I Industry ischallenging. Factors at play include increased claims,volatile investment markets and the increased scrutinyof regulators and rating agencies. Against this backdrop,achieving the Club’s financial strategy of maintainingand improving financial strength will also be challenging.Breakeven underwriting is a pre-requisite if this strategyis to be met and consequently results in the generalincrease requirement of 17.5%.
FINANCE P&I CLASS INVESTMENT PORTFOLIO
Increased claims, both Members’and pool claims, coupled with stronginvestment returns were significantfactors which contributed to thefinancial performance of the 2006/2007 financial year.
20 FEBRUARY 2007
31 OCTOBER 2007
Bonds
58%
Equities
38%
Cash
4%
Bonds
58%
Equities
30%
Cash
12%
SINGAPOREWELCOMEFOR NORTHOF ENGLANDThe official opening of North of England’s newrepresentative office in Singapore was celebrated at areception held at the Raffles Hotel on 6 September 2007.
The Singapore office was established to provide local claims handling assistance andsupport to Members in the region and to support the claims handlers in our HongKong office. It is headed up by Manager and P&I claims expert Iain Beange. Iainis assisted by FD&D lawyer Chris Metcalf and administrator Elizabeth Er. A localclaims executive will also shortly be joining the team. As North of England’s secondoffice in the region, our Singapore presence clearly reflects the growing importanceof our membership in Asia. This new office will enable us to offer our Members thebest service in their own “back yard”, in their time zone.
At the reception, Brigadier General Tay Lim Heng, Chief Executive of the Maritimeand Port Authority of Singapore, officially welcomed North of England to Singapore.
Other organisations represented at the event included the Monetary Authority ofSingapore and the Ministry of Transport, as well as prominent local shipowners,brokers and law firms. Rodney Eccleston, Ian Henderson, Thya Kathiravel, Alan Loand Alan Wilson also attended on behalf of the Club.
Rodney told guests that he was delighted to see the strong base that already existsin the region being complemented by the growing number of Members from India,Japan, the Middle East and Europe who had chosen to set up and operate fromSingapore. Rodney noted that the current entry from the island now stands at around8 million GT and more than 200 ships, which represents some 10% of our enteredtonnage and reflects the tremendous support from our Members in Singapore.
North of England has provided Singapore-based shipowners with P&I cover for morethan 24 years. The Sumantri family, which operates ships in the Altus Group, hasbeen a Member since 1983 and Robertus Sumantri serves on North of England’sBoard of Directors. Evan Lim of Singapore-based Ocean Tankers, one of North ofEngland’s largest Members in the region, is also a North of England Director.
CLUB AND CORPORATE UPDATE6
Our Singapore Office, located in Fuji Xerox Towers
Brigadier General Tay Lim Heng
“North of England has certainly gone from strength tostrength in Singapore,” said Rodney. “The progressand development of the Club in the region is reflectedthroughout the world. This growth, however, has onlybeen possible with the loyal support of our Members,particularly here in Singapore. Singapore was one of myfirst ports of call when the Club embarked on its strategyof overseas development and growth back in the 1980s.I am therefore particularly pleased that our membershiphas grown with us as the Club has grown.”
The contact details for the Club’s new Singaporerepresentative office are:
80 Anson Road #26-04, Fuji Xerox Towers,Singapore 079907.Telephone +65 6411 0160Fax +65 6224 0160Iain Beange: mobile +65 82222895Chris Metcalf: mobile +65 83338094
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“NORTH OF ENGLAND HASCERTAINLY GONE FROMSTRENGTH TO STRENGTHIN SINGAPORE.”
RODNEY ECCLESTON
STRATEGICALLYLOCATED FORPERSONAL CONTACTIn the rapidly growing markets of the Far East, includingChina, South Korea and Japan, our Hong Kong office isstrategically placed to play a vital role in terms ofproviding excellent service.
P&I services are provided to about 50 Members from this office; combined, they ownor operate about 200 ships adding up to around 6.3 million GT. In addition, whenincidents occur in the Far East involving Members who are normally served from ourUK or Greek offices, we ensure that “round-the-clock” service standards are maintainedfrom Hong Kong.
CLUB AND CORPORATE UPDATE8View looking across Victoria Harbour, Hong Kong.
Indeed, with the expansion of the shipping community inthe Far East, and particularly in China, our Hong Kongoffice provides an invaluable resource for Members acrossthe world to assist in resolving disputes in the region. Asa result, our office in Hong Kong has been kept busy andcontinues to grow.
Our Hong Kong office is located on 25th floor of thegiant Cosco Tower, with views across Victoria Harbour.Six claims handlers work out of this office – Gary Chen,Alan Lo, James Moran, Iris Shiu, Paul Tsang and, themost recent arrival, Thomas Tsang Wentao. Thomas is aChinese national with practical experience at sea withCosco, attaining the rank of chief officer. He is also aqualified lawyer (in China), where he spent some timeworking for Sloma & Co. in Shanghai. Complementing theteam are Amy Ho and Katherine Yuen.
In the past few months frequent trips have been made tovisit Members in the region, particularly those in China,to give in-house presentations on specific subjectsrequested by those Members and also to discuss claimsissues. Claims handlers have also been travellingfrequently, mainly to China, to deal with difficultclaims in person.
Highlights in the past year have included an FD&Dseminar in Hong Kong which was well attended by thelocal shipping community. A strong team which includedKatherine Birchall, Chris Metcalf, Graham Pilkingtonand Stephen Purvis travelled over from the Club’s FD&Dteam based in Newcastle to assist in hosting the seminar.
In June, Alan Lo and Iris Shiu attended a seminar inHailaer organised by our Chinese correspondents, Huatai,to discuss pollution issues in China. This was attended bymanagers from different Huatai offices, shipping lawyersand surveyors from various ports in China.
Finally, in the summer, Gary Chen swapped desks withIain Gilchrist from the Newcastle office. This proveduseful as, at the time, Iain was dealing with an extremelycomplicated issue in Vietnam. The swap meant that hewas able to handle the matter from Hong Kong withinvirtually the same time zone. In September, ThomasWentao also spent two weeks working in our Newcastleoffice and two weeks in our Piraeus office.
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Our Hong Kong Office, located in Cosco Tower
Our team in Hong Kong
SEVEN YEARS OFGROWTH AND IT’STIME TO MOVE ONAfter seven years of steadily increasing business,our Greek office is on the move – to bigger premises.
Our existing Greek membership continues to grow and we are now proud to be providingP&I cover for almost 400 ships, representing nearly 15 million GT of Greek tonnage –20% of the total tonnage entered with the Club. In line with this growth, the numberof our staff in Greece has doubled since the office first opened to ensure that ourMembers continue to obtain the best possible service and this increase in staffnumbers has necessarily brought about the current move.
Recent highlights for our Greek team have included the Club’s biannual reception,organised by Anna Sarafidou, which was this year held at the Divani Appollon Hotelon the Attica coast in September.
The reception was attended by 350 Members and representatives from the Greekshipping industry. They were joined by Graeme Daines, Rodney Eccleston, Paul Jennings,Stephen Purvis, Mike Salthouse and Simon Williams, all from our Newcastle office.
As part of the Club’s ongoing commitment to risk management and loss prevention,the annual evening seminar, held at the Piraeus Marine Club in October, focused onthe issue of Admiralty claims and, in particular, casualties which occur when a pilotis on board. This is an area in which the International Group is also seeking to raiseawareness.
In addition, a series of in-house seminars covered topics such as bridge teammanagement, oily water separators, carriage of containers and letters of indemnity.The Greek office was supported at this event by Tony Baker and Andrew Kirkham ofNorth of England’s Risk Management Department. Stephen Mills also attended andgave presentations aimed at assisting Members to identify areas of risk and considerhow these might be better managed and controlled.
This year’s Greek Members’ weekend walk on the island of Hydra took place in June,which was very well attended by the Club’s Greek Membership. All were able to enjoythe island’s idyllic and timeless charms.
CLUB AND CORPORATE UPDATE10
Members of the Greek Team host their2007 reception
In addition, Tony Allen and Andrew Kirkham continuedthe established link with the Merchant Marine Academyon Hydra. This year’s presentation was again onAdmiralty claims, focusing on the so-called “humanelement”, its impact on claims and what practical stepsmight be taken to avoid or at least minimise the risks.
On the personnel side, Helen Yiacoumis was promotedto Greek Office Deputy Manager in July and continuesto deal with FD&D claims, together with U.S. qualifiedattorney Antigone Yanniotis. The office also welcomed anadditional secretary, Frances Eves, who has brought withher a wealth of experience from her previous position atthe law firm Norton Rose in Piraeus.
Emma Liddell left the Greek office in mid-October and hasreturned to the Club’s Newcastle office as an underwriter.Emma has been replaced by John Owen – who hasrejoined the Greek office team, having originally helpedto set up the office in 2000 with Mike Salthouse.
Last, but by no means least, congratulations to AntoniaChristoforidis, who gave birth to a bouncing baby boy inFebruary; and to Antigone Yanniotis, who was married inthe summer.
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Another excellent turnout for the GreekMembers’ weekend walk on Hydra
SOUTH KOREA -A KEY MARKETFOR GROWTHSouth Korea’s fleet is one of the largest in the world. Itsmaritime sector is expanding rapidly, its shipyards andtheir orderbooks are full trying to meet the needs of theworld’s shipowners – and there is much, much more tocome, as the country continues to increase its influencein the global shipping industry.
The country’s owners currently have about 13 million GT of newbuildings on order,which is expected to take South Korea into fifth position in terms of fleet size by 2010.Meanwhile, the government has announced plans to invest US$2.1 billion in a networkof maritime logistics hubs.
And the icing on the cake? The prospect of a thawing in relations between South and NorthKorea, with the two country’s leaders making headlines with their recent pledge to pursuepeace and end their decades-long stand-off.
When it emerged in August that the leaders of the divided Koreas were to hold a summit,shares soared – including, for example, those of Hyundai Merchant Marine (HMM) andHyundai Engineering & Construction. Both companies have been spearheading economiccooperation projects in North Korea. News of only the second summit ever between thetwo countries – who are technically still at war – brought a new wave of optimism for allbusiness in the region, including shipping.
Earlier in 2007, a North Korean cargo ship made news when it arrived in South Koreanwaters. The 1,850 ton Kang Song Ho was the first such ship to arrive in South Korea forcommercial business since the 1950-53 Korean War. This was another sign that relationshave warmed between the divided countries.
Announcing the intention to launch a $2.1 billion investment fund for a networkof maritime logistics hubs, South Korea’s Minister of Maritime Affairs and Fisheries,Moo Hyun Kang, said in September: “With this investment fund, we intend to makeKorea a leading world player in the logistics sector.”
North of England identified South Korea as a potential and exciting area for growthand development just before the turn of the millennium and has been pursuing qualitymembership there ever since. A number of senior Club personnel have made trips to Seoulto meet members of the shipping community – including correspondents, P&I brokers andsurveyors as well as shipowners – and find out more about the market. This work hassuccessfully set the stage for our continued development as a strong P&I player in the country.
INDUSTRY NEWS12
MV “Hyundai Bangkok”
Paul Jennings and Thya Kathiravelvisit our South Korean friends
Today, North of England’s South Korean Members includeChang Myung Shipping, Eukor Car Carriers, HyundaiMerchant Marine and Ji Sung Shipping.
The importance of meeting Members on a regular basis,and understanding their needs, remains paramount andthe Club’s personnel continue to make regular trips toSouth Korea which helps to build and maintain strongworking – and personal – relationships.
Following on from previous successful trips by seniorunderwriters Richard Bracken and Thya Kathiravel and,as part of the process of getting to know HMM better,Iain Beange, Adrian Durkin and Mark Robinson eachrecently spent a week in HMM’s offices in Seoul, meetingthe company’s claims and insurance team and staff inother commercial departments.
“We learned about their business and gave in-houseseminars on various P&I and shipping-related issues,both in their Seoul and Busan offices,” says Adrian Durkin,who is P&I Manager with responsibility for overseeingclaims and Member relationships in South Korea. “At thesame time, SC Hwang of HMM spent three weeks in ouroffices learning about the Club and life in the North Eastof England.”
Adrian’s role is to ensure that claims are handled to thehighest standard and in accordance with any Member-specific claims handling procedures. “Obviously part ofthe process is to learn as much as possible about ourMembers’ business and trading patterns so that we canadd value to our claims handling service,” he says. “Irecently travelled to South Korea and am confident thatthe visit has further strengthened our relationships.”
Also, a number of our team have been able to sail on anHMM container ship to gain an insight into life on boardone of their ships. “The voyage provided an excellent
opportunity to see the newly acquired Hyundai Bangkokand to meet her crew”, says Claire Andrews, part of theSouth Korean team.
Quite apart from working closely with North of England’sSouth Korean Members, the team has had the privilege ofgetting to know a little about South Korean culture,including its tradition for splendid hospitality, excellent food,the odd drink – including Soju – and its love of karaoke!
“The Club has some clear long-term targets for growing itspresence in South Korea and has identified the ownersand brokers with which it hopes to work and developrelationships over the coming months and years”,says Thya Kathiravel.
“North of England always knew the scale of the challengewhich lay ahead as we set out on our development pathin South Korea – but we are delighted with the progresswhich has been made to date and are committed todeveloping this further,” says Richard Bracken.
The North of England South Korean team comprises:
Claire AndrewsRichard BrackenAdrian DurkinIain GilchristIan HendersonThya KathiravelAlan Lo (Hong Kong)Brian McGregorJames Moran (Hong Kong)Maria PospisilMark RobinsonIris Shiu (Hong Kong)Andrew TaylorPaul Tsang (Hong Kong)
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“THE CLUB HAS SOME CLEARLONG-TERM TARGETS FORGROWING ITS PRESENCEIN SOUTH KOREA AND HASIDENTIFIED THE OWNERSAND BROKERS WITH WHICHIT HOPES TO WORK ANDDEVELOP RELATIONSHIPSOVER THE COMING MONTHSAND YEARS.”
THYA KATHIRAVEL
^
LNG - A WHOLE NEWGAME OF RISKThe transportation of liquefied natural gas (LNG) isnot new. As long ago as 1912, a LNG plant was builtin West Virginia. Then, in 1914, a liquid gas containerwas patented, proving that the transport of naturalgas by sea was, at least technically, feasible.
The first commercial shipment of LNG took place in 1959, when the Methane Pioneercarried a cargo of 5,000 m3 of LNG from Lake Charles, Louisiana to Canvey Island inthe Thames Estuary. From that time until the late 1990s, however, the industry retainedcertain characteristics that kept it apart from mainstream commercial shipping. The highcapital cost of the ships (typically double that of a VLCC), the fact that those ships werebuilt to perform long-term contracts and the consequent lack of a spot market restrictedthe ownership and participation in LNG projects to a select few.
Now, the industry is going through a radical change which has dramatic implicationsfor the way in which LNG ships operate – and the risks involved.
There have been a number of catalysts for this change, the twin desires for clean energyand viable alternatives to diminishing oil stocks being two of the more obvious; butunderpinning these changes is that, as shipping has become better capitalised, newplayers have become involved in projects that were previously open to a handful of theso-called “majors”.
“From the shipping and insurance point of view, we are seeing a wholesale change,” saysMike Salthouse, part of North of England’s LNG team. “Essentially, what has happened isthat ownership of LNG vessels has diversified significantly to meet the anticipated growthin the use of gas. This increased demand for LNG is going to set off a number of changeswithin the LNG shipping sector.”
The LNG industry used to revolve around capital-intensive projects, with shipping playinga relatively minor part – all that the vessels were required to do was go backwards andforwards between two set terminals for which they had been specifically designedand built.
Accordingly, LNG shipping was seen as a commercially safe and predictable trade, but ina sense the industry has opened up to competition and the new operators are planning tooperate the ships differently. This means shipowners are not designing and building for asingle route, but anticipating that a spot market will develop. As such, the operational risksmay be greater – because the ships will be designed and equipped to be more flexibleas they are likely to be calling at a number of different ports and terminals.
INDUSTRY NEWS14
“Even though these particular ships will be built andmaintained to a very high quality, the environmentis changing quite rapidly,” says John Owen, anothermember of the LNG team. “In that sense, it is a verydifferent game – everybody is learning and gainingexperience as they go along.”
North of England’s LNG team consists of specialistsdrawn from all of our frontline disciplines – P&I, FD&Dand Underwriting. Among the team, John Owen wasMaster on board LPG ships and Colin Trappe servedon LNG vessels. Others are members of the InternationalGroup committees which consider questions of coverposed by the unique features of these ships and thecommercial environment in which they trade.
Our team has developed an ongoing training programmeto keep abreast of the latest developments and liaisesclosely with Members in order to better understand theirneeds and concerns. We have organised specific trainingand a number of guest speakers have come in to talkabout the issues – looking at where LNG is going onthe legal, technical and operational side.
From the outset, the team has recognised that thechanges taking place within the LNG industry meant itwas important not so much to understand the industryas it had been but to anticipate the shape into whichit was most likely to evolve.
As new terminals come on stream, it seems owners areincreasingly required to accept a greater share of the riskassociated with the use of such facilities. As a marketdevelops for short-term charters, the ships and theircrews are required to have an unprecedented level ofoperational flexibility.
The Club’s LNG team understand that Members willrequire from us an appreciation of these changingcircumstances, a thorough knowledge of the way inwhich the market is developing and an appreciationof the risks posed by this rapidly evolving sector.
At the beginning of 2007, the LNG fleet worldwidestood at 217. With a large number of ships scheduledfor delivery over the coming years and little evidence ofscrapping of even the oldest trading units it continuesto grow. LNG shipping has a remarkably good record forproviding safe and reliable transportation but, given thegrowth, in particular in the volume of short-term trades,the risk profile of the industry will change and LNGoperators will need their Clubs – as with all their serviceproviders – to be able to look forward and understandthe new market environment in which they trade.
The Club’s LNG team recognises that this market ischanging and that service is crucial and becoming evermore important. With the current LNG team in place,North of England are certainly well placed to meetMembers’ needs.
The North of England LNG team comprises:
Tony AllenBarry AyliffeTony BakerRichard BrackenTricia ForrestMichael HopeThya KathiravelJohn OwenMark RobinsonMike SalthouseColin Trappe
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SHORT-TERM PROFITOR LONG-TERMCOMMITMENT?
WHISPER it quietly in these times of talk of creditcrunches and liquidity squeezes, but shipping is stillriding the greatest bull run in history. And when thehistory of shipping goes back to the Phoenicians andfurther, you have the evidence that we are livingthrough remarkable times.
Fortunes are being made by people you haven’t yet heard of, trading in markets sostrong that five years ago no one would have thought it possible.
But let us just step back from the gushing business journalese about Capesize bulkerstrading at US$200,000 per day and the Baltic Freight Index breaking 10,000 pointsfor the first time.
Let’s instead ask whether, in the long-term, shipping will be a better industry for allthe cash currently sloshing around?
Put that question to a tanker owner right now and you will get a very old-fashioned look.Better still, ask a salvor whether recent changes to the industry are for good or ill andyou risk receiving some thinly veiled abuse.
Yet, ask anyone with even a toehold in the bulk sector and they will hardly be able tocontain their extraordinary good fortune.
So why has all this come about? The simplistic answer is, of course, booming worldtrade, driven by the spectacular growth of China in particular and, to a lesser extent,India and other emerging economies.
Some put the shipping industry’s recent success almost entirely down to this surge indemand for both raw commodities and finished goods.
But look a little deeper and a more astute analysis gives equal importance to a supplysize squeeze, with provision of shipping capacity being limited.
And this is where it gets interesting, in that the squeeze in supply has not beencaused by a lack of newbuildings, which have been flooding on to the market atunprecedented levels.
INDUSTRY NEWS16
By Julian Bray, Editor, Lloyds List
It is at the other end of the age spectrum, where oldships have been driven out of markets by regulatoryand environmental concerns.
In the boom markets of the past, it has been exactlythese old ships which are now being forced out of tradesthat would have scooped up business at marginal rates,thereby undermining the market for investors eager tospend on new, more efficient and safer vessels.
With Port State Control inspectors targeting every old orquestionable vessel, and regions naming and shamingfailing flags with “black lists” of bad performers, at longlast a premium has been put on quality or competentship operation.
A further change which has surprised many is, thatwith spiralling rates, shipping has suddenly becomean industry where competent management ofoperations actually earns money – real profits.
Unlike the dark days of the 1970s, 80s and early90s, asset play on the value of the ship, althoughstill important, is not the only game in town.
If your Capesize is detained by Port State Controlfor failure to make a US$2,000 repair to a faultylifeboat davit, you face a week off-hire. When rates
were US$7,000 a day, who cared? With rates atUS$200,000 per day, that really matters.
Some argue that the recent broad decline in the absolutenumber of serious casualties reflects a higher level ofmanagement competence. But recent figures, showingcasualties rising again in some sectors, has raised thenew spectre of owners so desperate to keep vesselstrading that urgent repairs are being ignored.
The shipping industry is at a crossroads and its fate isnow in its own hands. It can use the money that is nowat its disposal, and under its own control, to choose aroute which leads it to greater competence, credibilityand, ultimately, commercial success.
Or it can take the low road – one driven by short-termcost savings, further devaluation of professional skillsand lingering ambivalence to environmental andregulatory concerns.
Will shipping be a better, more socially responsibleindustry, as a result of its current good fortune? I, for one,certainly hope so – but I fear that the future for shippingmay not be nearly so rosy, as the pressure for short-termprofits yet again undermines the drive for long-termbusiness competence.
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CHARTERERSBEWARE! ACHILLEASRULING COULD COSTYOU A FORTUNE
Charterers – ignore this one at your peril. You need tobe aware that, following the ruling in the case of theAchilleas, you could lose millions if you redeliver late.
The Achilleas case was based on the question of how much money a shipowner canrecover from a charterer when his vessel is redelivered late under a time charter. Theruling has certainly moved the goal posts – and charterers are extremely vulnerable asa result.
Under English law, if a claimant is to recover damages for breach of contract he mustprove that those damages were caused by the breach and that they are not too remote.
The concept of “remoteness” is designed to prevent a claimant from recovering unusualor very unexpected damages. Stripped of its legal language, it provides that any particulartype of loss will be recoverable as damages (provided it was caused by the breach) if thatloss was reasonably foreseeable by the parties when they entered the contract – either onthe basis of the parties’ knowledge of what would normally happen, or on the basis oftheir knowledge of special circumstances.
The degree of foreseeability which must be proved is not too great. The type of lossmust be one which is not unlikely to occur. If, however, the loss was not reasonablyforeseeable when the contract was agreed, it is not recoverable as damages.
In the context of late redelivery of a vessel, it had long been the view (probably of mostshipping lawyers) that the remoteness test meant that, unless a charterer specificallyknew when entering the time charter of a particular fixture that the shipowner intendedto perform after the end of the time charter, the damages payable would be the differencebetween the market rate during the period between the last contractual date for redeliveryand actual redelivery and the charter rate. In effect, damages would be paid by thecharterer generally only if the market had risen. Damages suffered from the loss of thenext intended fixture would be recovered only if the charterer knew of that fixture at thetime of the first charter.
The award and judgments of the arbitral tribunal, the Commercial Court and, finally,the Court of Appeal in the case of the Achilleas held, however, that this view is incorrect.The tribunal held that anyone involved in shipping would know in the ordinary course ofthings that late redelivery of a vessel was not unlikely to cause a loss of a fixture, a sale
INDUSTRY NEWS18
by Mike Smith, Partner, Mills & Co.
or a drydocking. It was, therefore, held that the ownercould recover the actual loss which he had suffered, eventhough this was greater than the difference between themarket rate for the period of the overrun and the charterrate. This was so even though the charterer had notknown of the next fixture.
In this case, the difference was significant. Damagescalculated on the difference of rates would have beenUS$158,301, whereas the loss suffered by the owner(who had been compelled to agree a significant reductionin the hire rate under the next fixture to maintain thatfixture following the late redelivery) was US$1,364,584.
This Court of Appeal decision is unlikely to be the endof the argument about how much a shipowner canrecover when a vessel is redelivered late. Some of thearguments made by the charterer were dismissed solelyon the grounds that they were precluded by variousfindings of fact made by the arbitrators and were,therefore, not subject to review by the Court of Appeal.Those arguments could still be made by a charterer infuture arbitrations.
In many cases, the difference between market loss andactual loss will be theoretical rather than real. In mostcases, the owner’s actual loss will be the same or closeto the difference between charter and market rates.
Arbitration tribunals in the past have looked to the rateachieved by the shipowner after a late redelivery asevidence of what the market rate was. In some cases,there may not be a market against which a market losscan be measured.
Nevertheless, the effect of the Court of Appeal’s decisionis that tribunals are now much more likely to look at theloss actually suffered by a shipowner when his vesselis redelivered late and (provided that the owner actedreasonably) to award that loss as damages rather thanbeing too concerned as to what was actually happeningin the market.
This means that charterers are likely to be morevulnerable than was previously the case. When there wasan expectation that damages would be awarded on thebasis of the difference between market and charter ratesfor the period of the overrun, a charterer could usuallypredict with some degree of accuracy how much a lateredelivery could cost him and work out whether a lastvoyage with a risk of a late redelivery was worthwhile.Such a calculation may now be impossible. The chartereris unlikely to know exactly what arrangements the ownerhas made for fixing the vessel after the time charter.Charterers might now find that they have to pay damageswhen rates have remained stable or even fallen overthe course of the charter.
19
ARCTIC THAWPRESENTS LUCRATIVENEW POSSIBILITIES
It is widely accepted that global warming is causing icein the Arctic to melt at an unprecedented rate – and theresults may have far-reaching implications for theshipping world.
According to the National Snow and Ice Data Centre (NSIDC) in Colorado, U.S., on16 September this year, the Arctic sea ice extent had fallen to an annual minimumof 4.13 million km2.
NSIDC research scientist Walt Meier says: “This 2007 record was by far the least amountof sea ice seen in the Arctic during the period of consistent satellite monitoring (since1979). It shattered the previous record, set on 21 September 2005, of 5.32 millionkm2 and is 2.6 million km2 below the long-term (1979-2000) average, an area largerthan ten United Kingdoms.”
“While pre-satellite Arctic-wide records tend to be sparse and, especially for periodsbefore 1950, of questionable quality, it is clear that the September 2007 sea ice coverwas easily the lowest of the 20th and 21st centuries. The 2007 minimum furtheraccelerated a long-term downward trend in summer sea ice extent. The linear trendsince 1979 is now –10% per decade. Over the past seven years, the linear trend is–40% per decade”, notes Walt.
This “Arctic thaw” could have a significant impact on shipping, with experts predictingthat as the Polar ice recedes both the Northeast and the Northwest Passages maydevelop into global trade routes.
Recent studies have shown that the Northwest Passage, which is the sea route runningalong the Arctic coastline of North America, is nearly ice-free for the first time sincerecords began.
Walt comments: “Punctuated by 2007, the Arctic sea ice declined much faster thanclimate models have predicted and the decline is accelerating. While previous forecastshave suggested that the Arctic could have ice-free periods during the summer sometimeearly in the next century, such conditions now appear likely within the next 25 yearsand possibly as soon as the next decade. A particularly notable character of this year’ssummer ice conditions is that the fabled Northwest Passage was open and nearlycompletely free of ice for several weeks during August and September. Even the widestand most direct route, via the Parry Channel, through the Northwest Passage, whichis traditionally ice-choked and had never been observed to be ice-free since the firstexplorations in the 1500s, was completely open.”
INDUSTRY NEWS20
by Steven Cockburn, Solicitor, FD&D
Some commentators believe that this route is notcommercially viable because of the lack of infrastructure,the navigational challenges and the unpredictability ofArctic ice. However, given that the Northwest Passagewill significantly reduce the distance between East andWest, it would clearly be a very attractive option.
In parallel to this, the notorious Northeast Passage,which winds its way along Russia’s northern coastlinepast Siberia, is also opening up. On present calculations,this could also be a viable commercial trade route withinthe next decade.
This Northeast Passage would obviously be attractive asan alternative to the Suez – creating a shortcut betweenEurope and Asia which would not only reduce distancesto be travelled but also avoid the security implications ofusing the Suez Canal.
In direct response to this climate change and thereceding ice sheets, countries bordering the Arctic havebeen making moves to secure the region’s oil and gasreserves – said to represent a quarter of the world’suntapped oil and gas reserves.
According to international law, the fives states withterritory inside the Arctic Circle – Canada, Denmark,Norway, Russia and the U.S., via its control ofGreenland, each have a 200-mile economic zonearound their northern coastline.
However, these states are clearly hoping to enlargetheir territories in order to step up their interest inthese potentially prosperous Arctic regions.
Canada and Denmark have argued that the Lomonosovrange is connected to their territories and dispatched ajoint expedition last year to bolster their claim. Norwayis also conducting a survey.
Canada has announced the establishment of a portand a training facility and the modernisation of itsparamilitary force in the far north of its territories,in what some people see as an attempt to secure afuture claim to the mineral resources of that area.
Russia took the most dramatic and symbolic step ofall by planting a titanium flag on the seabed below theNorth Pole in a claim to the vast mineral resources ofthe Arctic Ocean.
Who is actually entitled to the rich resources of the Arcticwill no doubt prove to be a complex issue of internationallaw. But clearly, the race is on as different countries seekto strengthen their positions.
Not only will the opening up of the Northeast andNorthwest Passages allow trade to develop more rapidlyin these regions but these rich Arctic resources will alsorequire shipping to the rest of the world.
Walt Meier concludes: “The 2007 minimum is anexclamation point on the transition towards a seasonalice cover in the Arctic Ocean. This will have profoundimpacts on regional and global climate, wildlife,indigenous cultures, political issues and transportation.There will continue to be large inter-annual variability inthe ice cover, with light and heavy ice years. However,it appears increasingly likely that thinner, weaker sea ice,along with improvements in ice-strengthened vessels,will allow routine commercial shipping, natural resourceextraction and other commerce within and acrossthe Arctic.”
With such unprecedented changes in the Arctic, theshipping industry is already looking at the options forincorporating these previously fabled routes in futurevoyages. Whether such routes will really be commerciallyviable remains to be seen.
21
NORTH EASTNETWORKINGThe North East of England is a growing centre ofexcellence in the maritime sector. There are now severalshipping companies with offices in the region, as well assurveyors, legal experts and academic institutionswhich are actively involved in the maritime world.
To help develop relationships, it was decided that we should meet once a quarterover a few drinks. The events, organised by Belinda Ward, have proved to be agreat success!
The following companies are involved in the North East Shipping Events:
• Allworld Marine & Technical Ltd
• Campbell Maritime Ltd
• ConsultIMS
• CTC Marine Projects
• Endeavour Marine & Technical Ltd
• Envision Partners
• Eversheds (Solicitors)
• Gillie & Blair
• Hanseatic Shipping Company
• Liley & Gillie
• Lloyd’s Register
• The Maersk Company
• Marine Law (Solicitors)
• Marine Response
• Maritime & Coastguard Agency
• Maritime Sector Specialists Ltd
• Mills & Co (Solicitors)
• MSMI
• Newcastle University
• North of England
• Northumbria University
• One NorthEast
• Overseas Shipholding Group (OSG)
• Port of Tyne
• Scientific & Technical Services Ltd
• Shiptalk Ltd
• South Tyneside College
• Stembridge Solicitors
• Stephenson Clarke Shipping Ltd
• Sunderland Marine Mutual
• Trinity House
• Watson Burton (Solicitors)
INDUSTRY NEWS22
23
FOCUS ON SERVICETEAMING UP TO DELIVER THE PROMISE
Our whole service ethos can be summed up in the phrase “we are anextension of our Member’s office”. We are proud to have this phrase atthe centre of what we do – but any ethos needs an overhaul every nowand then, if its delivery is to remain focused and fresh.
We already have over 170 staff worldwide, with multi-jurisdictional experience who are multi-lingual and havewide ranging disciplines, from ex-master mariners to topranking lawyers and insurance professionals. Indeed, ourClub has one of the highest ratio of staff to Members ofany P&I provider.
In order to maintain this service profile, all staff wereinvited to a series of conferences organised by the Club tofocus on the reasons for our success and then to considerways in which we could do even better to develop our keyproduct – service to Members.
These conferences led to a number of new initiatives andrecommendations for future development:
• Redefining the Club’s ethos – based on close workingrelationships and a broader knowledge andunderstanding of Members’ needs and expectations
• Enhancing our communication techniques to promotethe best ways of operating and sharing knowledge
• Implementing new technology-based systems todeliver a more effective, efficient and customisedservice to Members, including:
- BlackBerries for all claims staff - to improvecontactability
- Winscribe digital dictation system – to streamlineworkflow
- QKnow – to electronically manage documents(see further below)
- Knowledge Base – to introduce a new, sophisticatedinformation system (see further below)
• Encouraging teamwork through cross-departmentalactivities, team leadership, Member visits andsocial events
• Reviewing our recruitment and induction process togive new members of staff the best possible start
This has become an ongoing process and we discussoverleaf a few of the initiatives being rolled out acrossthe Club, for the benefit of our membership.
INTERNAL DEVELOPMENTS
INTERNAL DEVELOPMENTS24
A new electronic management system is being introduced to allow us to store centrallyall documents produced and received across the organisation; called QKNOW.
“We believe QKNOW is a major step forward for North of England and MSMI and that itwill lead to a better way of working for all,” says Jeff O’Neill.
“Our aim is to achieve a ‘less paper office’ rather than a ‘paperless office’ and existingpaper filing systems will continue to operate for the foreseeable future where requestedor required.”
QKNOW is being implemented in a phased programme and the system should be upand running during 2008.
FOCUS ONSERVICEINFORMATION - A RESOURCE THAT NEEDS MANAGING
An enormous amount of information is now availableto us all on a daily basis. Managing and controlling thatinformation is paramount if we are to make the mostof what is a valuable resource.
In response to that need, Joy Branigan has joined the Club as our InformationServices Executive. Joy is in charge of organising information from various sourcesinto a central electronic library.
The new system, called the “Knowledge Base”, will hold legal cases, articles,presentations and reports. It will be a one stop shop for the vast wealth ofknowledge that the Club possesses.
Coupled with the launch of the “Knowledge Base” will be a new, improved intranetfor the Club. Thanks go to Richard Ford and Mark Widdows of our IT department fortheir efforts in this development. Each department will have its own page holding theinformation that it needs in order to operate more efficiently. With a “News” and “What’sNew?” page, the intranet will also be used as a communication tool, with breaking newsin the industry being posted as and when it happens, so that the Club is always keptup-to-date.
We should also mention the Club’s website, which is currently being redevelopedto improve Members’ access to core information www.nepia.com.
NOT ‘PAPERLESS’ BUT LESS PAPER
The “new look” North of England Intranet
Joy Branigan – Information Services Executive
25
Finally, this item wouldn’t be complete without mentioningthat Craig Murphy has been employed as our new IT trainer.Craig has been running a comprehensive range of courses,over the past twelve months to ensure that all staff keepabreast of the new technology and systems.
Everyone knows that in businessthe customer is king. It is thereforeparamount that information aboutthe customer is properly managed.At North of England, our customersare our Members.
But how do we store all their details and ensure that theinformation Members pass to us is kept up-to-date andavailable to all? This is achieved by our computeriseddatabase, PRISM, which stores all data relating to ourMembers and other contacts.
PRISM was developed internally by our IT departmentand, in addition to managing contact details, it controls thedistribution of circulars and publications to the membershipand ensures that correspondence is accurately addressed.
An update of PRISM will complement the introductionof QKNOW and will manage the production of allcorrespondence. In particular, it will ensure thatcorrespondence is automatically filed electronicallyin the relevant claim file.
TIP TOP TRAINING
PRISM: INFORMATION FROMALL ANGLES
Claire Andrews and Steve Cockburn are largely responsiblefor this revamped version of North News. If you have anycomments about North News (good or bad!), please sendthem to [email protected]
NORTHNEWS
STEPHEN MILLSCOMES ONBOARDNorth of England’s already considerable in-house legalcapabilities have been boosted by the appointmentof Stephen Mills, who has joined the Club as anAssociate Director.
A founding partner of maritime law firm Rayfield Mills and a well-known and respectedadvisor on the carriage of goods by sea, Steve has had a long relationship with the Club– as a legal advisor to the P&I and FD&D teams and also as co-author of some of ourwell-regarded loss prevention guides.
In his new role, Steve will continue to work with the P&I and FD&D departments. Forthe P&I team he serves as General Counsel, advising on P&I claims and cover issues,while for FD&D he has line management responsibility for the Greek office. Steve willalso assist both departments in their continuing provision of seminars on topics ofinterest for Members.
“I spent many happy years in private practice as a solicitor and as a mediator, butI wanted to widen my opportunities for playing a wider and more immediate andeffective role in dispute resolution and dispute avoidance within the shipping andmarine insurance industry,” says Steve. “I am sure that this innovative and forward-looking Club, with its like-minded Members, will give me the opportunity to explorethese new ideas alongside my more traditional legal work”.
26 INTERNAL DEVELOPMENTS
SPORT SPECIFICTHAT’S THE TEAM SPIRITNorth of England colleagues can regularly be seen atthe home games of the Newcastle Falcons Rugby Club.(Even if you know nothing about rugby, you will knowthe name of the team’s fly half … Jonny Wilkinson.)
When the Falcons ran a summer touch rugby competition,a few of the regular crowd decided to get some exerciseand enter a team. With matches played once a weekover eight weeks, every team in the competition playedeach of the others at some point.
After a fairly unimpressive first two weeks, the North ofEngland team turned things around in week three andwon quite a few games from then on. Not quite enoughto win the competition – but nevertheless, great fun washad by all.
Hopefully we will put a team together again for nextsummer. At least we will know the rules next time!
GOLF GALORENorth of England’s Golf Society had their final outing ofthe year at Matfen Hall, Northumberland. The ForsterShield was won by Phillip Eccleston, who also won“The Putter” for the highest overall stableford score forthe year. John Howe won prizes for the longest driveand “nearest-the-pin” competition.
North of England’s annual broker’s golf event wasalso held at Matfen Hall at which £1,000 was raisedfor St. Oswald’s Hospice.
IRON RESOLVECongratulations to Ian Goulson, who completed the“Ironman-Distance” Triathlon in Roth, Germany.Ian swam, biked and ran his way to an 11 hour31 minute finish time in the long-distance contest.Approximately 4,000 people took part and theevent attracted around 100,000 spectators.
TAKING UP THE CHALLENGEOther challenges completed by the Club’s staff include:
St Oswald’s Way Walk for Tynedale Hospice –Claire Andrews
Three Peaks Challenge for British & InternationalSailors’ Society –Ian Goulson, Andrew Lilliendale and Stephen Purvis
Great North Run –Paul Jennings (for Cancer Research), Ben Roberts(for Cystic Fibrosis) and Michael Wynes (for LeukaemiaResearch)
Race for Life – Nicola Campbell and Jenifer Hare
NSB Cup Sports Day – Richard Bracken,Phillip Eccleston and Henry Woods
Ian crosses the finish line in 11 hours 31 minutes
27
The North of England Rugby Team
2007 STAFF NEWS
INTERNAL DEVELOPMENTS28
PROMOTIONSNIML DIRECTORSKatherine Birchall, Thya Kathiravel, Jeff O’Neill and Colin Trappe have been promotedto Directors of NIML.*
NIML MANAGERSMichael Asherson, Tricia Forrest and Ken Govan have been promoted to Managersof NIML.
Gary Chen has been promoted to Senior Claims Executive in the Hong Kong office.
Lucy Dixon has been promoted to Senior Claims Executive in the Personal Injurydepartment. She also has recently gained her law degree from Northumbria University.
James Moran has been promoted to Senior Claims Executive in the Hong Kong office.
Helen Yiacoumis has been promoted to Deputy Manager in the Greek office.
RECENT ARRIVALSP&ISean Durr, as a Senior Claims Executive, is a solicitor who previously worked for Millsand Co. and Dawson & Associates (South Africa).
Andrew Stichbury, as a Senior Claims Executive, who previously worked for WK Webster,British Marine Managers, Ocean P&I Services and Steamship Mutual.
John Webb, as a Claims Executive, who previously worked for Sintons, Evershedsand Norwich Union.
UNDERWRITINGGary Henderson, as an Underwriting Executive, who previously worked with AAInsurance Services.
Aaron Levers, as an Underwriting Executive, who previously worked for Zurich Insurance.
FINANCE, ADMIN & ITJoy Branigan, as an Information Services Executive, who previously worked for lawfirm Berrymans Lace Mawer as their national information manager.
Darren Heaviside, as a Systems Developer in the IT department.
Lesley Marshall has joined Postal and Filing.
*North Insurance Management Limited (NIML) (a management company 100% owned by North of England P&I Association)
Katherine Birchall
Sean Durr
Gary Chen
Jill Copeland
29
^
Phillip Eccleston
Iris Shiu
Sylvia Steel with Julie Ives
OVERSEAS OFFICES
SINGAPOREElizabeth Er, as Office Administrator.
INTERNAL DEPARTMENTAL/OVERSEAS MOVESIain Beange, Manager, has moved to our Singapore office.
Maureen Conway, PA, becomes Deputy Secretarial Supervisor, FD&D.
Jill Copeland, has moved from Postal and Filing to our Accountsdepartment.
Emma Liddell, Senior Claims Executive, is moving from our Greekoffice to return to our Newcastle office as an underwriter.
Chris Metcalf, FD&D solicitor, has moved to our Singapore office.
John Owen, Senior Claims Executive, has returned toour Greek office.
QUALIFICATIONSPaul Andrew, Survey Executive, completed his Diploma in MarineSurveying, with distinction.
Phillip Eccleston, Claims Executive, recently achieved ACIIqualification and was awarded the Marsh Shield as the top candidate.
Marija Pospisil, Claims Executive, completed her nautical studiesand is now officially a Maritime Transport Engineer.
Stephen Rebair achieved ACII qualification.
Iris Shiu achieved her LLM.
RETIREMENTMarcia Ledger retired in June 2007 after more than 16 years servicesupervising Postal and Filing.
Sylvia Steel retired in November 2007 after more than 40 yearsservice as a PA to senior management.
PERSONALCongratulations to Claire Burt on the birth of Zak, to Debbie Watsonon the birth of Joseph, to Colin Gillespie on the birth of Lily and toAdrian Durkin on the birth of Sebastian.
Congratulations also to Joanne Fisk (nee Campbell), who wasmarried in the summer.
Nicola Campbell, Joanne Fiskand Dawn Makepeace
INTERNAL DEVELOPMENTS30
CLUB CHARITYCONTRIBUTIONSCHARITY BEGINS...IN THE OFFICE
The Club are very conscious of the needs of charities, both locally and further afieldand we make great efforts to raise money for worthy causes.
Dressing-down days are held on the last Friday of the month – staff pay £1 to weartheir jeans and trainers, or casual clothes, instead of work suits. Each quarter, themoney raised goes to one of four charities chosen for the year.
North of England has helped many charities over the years – too many to list – butthe highest single amount ever raised was for the tsunami appeal. A total of £2,560was raised through dressing-down days, raffles and an “in-house bakery” sellingcakes, pies and scones baked by staff.
Our staff are always very generous – and remember, Margaret will never refuse anygifts or donations for the charity raffles!
Two key projects supported by the North of England with a donation of US$100,000by the Board of Directors in the wake of the December 2004 tsunami disaster, arenow complete.
“Two projects were identified – one with a distinctly maritime flavour, involvingthe repair of lighthouses and navigational aids in and around Sri Lanka that weredamaged by the tsunami, and the other being a humanitarian project, buildinghousing in Sri Lanka for those left homeless” says Paul Jennings.
North of England was one of the major donors to the project for repairing navigationalaids, which was undertaken in conjunction with Trinity House and involvedsignificant reconstruction and rebuilding work. To mark its successful conclusion,Rodney Eccleston and Captain Michael of Zodiac Maritime, one of our non-executiveDirectors, attended a reception in London hosted by the Duke of Edinburgh, who isthe President of Trinity House.
The humanitarian project involved the construction of a number of homes inSri Lanka for displaced victims of the tsunami. Non-executive Director RobertSumantri provided valuable input to this worthwhile project, which was co-ordinatedand organised by a group of Roman Catholic priests operating out of Singapore, whoprovided missionary and practical aid.
If you visit North of England and happen to hear the soundof money jingling, you will know that Margaret Smithurst,our fundraising organiser, is not very far away!
TSUNAMI DONATION DELIVERS DIRECT RESULTS
Top: entrance of Maria Sevana Village -Mary’s Domain.Middle: the plaque.Bottom: the happy beneficiaries.
31
SCHEDULEOF EVENTS200716 March P&I Broker Event, London
28 March P&I Loss Prevention Working Party Meeting, Newcastle
2 June Greek Members Weekend Walk, Hydra
9-15 June Lumley Castle Residential Course, Durham
20 June P&I Brokers’ Golf Day, Matfen Hall
6 September Singapore Office Opening
12 September Danish Reception at Langeline Pavillonen
25 September Maritime Cyprus
27 September Greek Reception at Divani Apollon Palace
8 October Trustees, Nominations & Advisory Committee Meetings,
followed by Directors’ Dinner, Newcastle
9 October AGM, War, Board, FD&D Meetings, Newcastle
10 October P&I Loss Prevention Working Party Meeting, Newcastle
16 October Annual Piraeus Marine Club Seminar, Greece
200814 January Audit, Nominations & Advisory Meetings,
followed by Directors’ Dinner, London
15 January EGM, War, Board, FD&D Meetings, London
19 May Nominations, Remuneration & Advisory Meetings, Newcastle
20 May War, Board & FD&D Meetings, Newcastle
21 May P&I Loss Prevention Working Party Meeting, Newcastle
2 June Posidonia Week, Greece
6-13 June Lumley Castle Residential Course, Durham
24 June Group Managers' Meeting, Newcastle
June/July P&I Brokers’ Golf Day
16 October Nominations & Advisory Meetings, Singapore
17 October AGM, War, Board, FD&D Meetings, Singapore
Please feel free to contact the North News editorial team:
North of England P& I Association Limited
Newcastle OfficeThe Quayside Newcastle upon Tyne NE1 3DU UK
Telephone: +44 191 2325221
Facsimile: +44 191 2610540
Hong Kong OfficeRoom 2503 COSCO Tower 183 Queen’s Road Central Hong Kong
Telephone: +852 2544 6813
Facsimile: +852 2542 4424
Greek OfficeAkti Miaouli & Iassonos Street 2 GR 185 37 Piraeus Greece
Telephone: +30 210 4283038
Facsimile: +30 210 4280920
Singapore Office80 Anson Road 26-04 Singapore 079907
Telephone: +65 641 10160
Facsimile: +65 622 40160
Websitehttp://www.nepia.com