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Regional Winners of FIATA’s Young International Freight Forwarder of the Year Award Announced

July 11, 2018 by

London, 11 July 2018

In the year that leading international freight insurer TT Club celebrates its 50th anniversary, FIATA’s Young International Freight Forwarder of the Year Award (YIFFYA) also passes a significant milestone. The 2018 competition witnesses the 20th year of support and collaboration between TT Club and FIATA. Sponsorship of FIATA’s YIFFYA continues to be a priority for TT Club. 

TT Club believes the annual award and the associated entry process is crucial in identifying, recognising and encouraging young talent throughout the freight forwarding community around the world. 

The four regional finalists, selected this year from among 17 entries representing national forwarding associations globally, are:

Region Africa/Middle East:   Miss Tjaka Segooa, South Africa – SAAFF

Region Americas:   Mrs Kendyl Baptiste, Canada — CIFFA             

Region Asia/Pacific:   Miss Sarah Kate Skrypec, Australia — CBFCA           

Region Europe:  Mr Louis Perrin, UK – BIFA 

The entries this year were, as ever, of a high standard and drew from a wide range of dissertation topics. The work of the entrants demonstrated the complexity of processes carried out within the global supply chain and the logistics skills required to serve it.

The diverse subjects covered by the dissertations of this year’s entrants included live plants, super cars, flexi-tanks, aid shipments, aircraft components, Antarctic ice and a rhinoceros.   

Later this year the regional finalists will travel to FIATA’s World Congress hosted by the Federation of Freight Forwarders’ Associations India in New Delhi, India (26th – 29th September) in order to present their dissertations to the steering committee and for the final judging and announcement of the international award winner. 

The prize to be awarded to the winner principally consists of practical and academic training, including a week based at one of TT Club’s regional centres in London, Hong Kong or New Jersey plus a week in TT Club’s Head Office in London. Additionally, one year’s subscription to the International Transport Journal (ITJ) is granted to all four regional winners. 

Mike Yarwood, TT Club’s Senior Loss Prevention Executive and Chairman of the Award Steering Committee commented, “This award aims to contribute to the development of quality professionals in the freight forwarding industry and rewards young talent with valuable training. At TT Club, we are proud to have been a sponsor of the award since its inception and firmly believe in the importance of nurturing the talents and enhancing the skills of young individuals in freight forwarding.”

Thomas Sim, Chairman of FIATA’s Advisory Body Vocational Training, mentioned, “For an emerging young freight forwarder, the YIFFYA is a great platform to immediately be seen by such a wide audience and the press,  and the winning candidate receives generous support from the TT Club team and sponsor. I am extremely excited for this amazing opportunity to showcase young professionals in the pursuit of a successful career.”

ENDS

Notes to editors

TT Club

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

About FIATA

The International Federation of Freight Forwarders Associations (FIATA) was founded in Vienna, Austria on 31 May 1926. It is a non-governmental organisation that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 10 million people in some 160 countries. FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations, the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL) as well as many other UN related bodies such as the World Bank. It is recognised as representing the freight forwarding industry by many other governmental organisations, governmental authorities, private international organisations in the field of transport and logistics, such as the European Commission (through CLECAT), the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), and the World Trade Organization (WTO). Learn more at www.fiata.com.

Hans Guenther Kersten, Director General, kersten@fiata.com

Filed Under: TT Club

“K” Line to Provide Relief for Victims of Torrential Rains in West Japan

July 11, 2018 by

Kawasaki Kisen Kaisha, Ltd. announced that it will provide a monetary donation in the amount of 5 million yen toward relief efforts from the recent torrential rain damage in Western Japan. In addition, the “K” Line Group is now organizing fund-raising activities among officers and employees.

We would like to express our deepest sympathy to those in the disaster areas and sincerely wish for the earliest recovery from this most unfortunate event.

 

Filed Under: "K" Line

“K”Line Selected for FTSE4Good Index Series and FTSE Blossom Japan Index

July 11, 2018 by

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as a constituent of the FTSE4Good Index Series, one of the leading global indices for Socially Responsible Investment (SRI) (*1), for the 16th consecutive year since its initial inclusion in 2003 and FTSE Blossom Japan Index for two consecutive years.

FTSE4Good Global Index is an index developed by FTSE Russell (*2), whose constituents are selected by measuring their performance in terms of management and information disclosure utilizing globally-recognized Environmental, Social and Governance (ESG) standards (Japanese companies number 152 out of 925 global companies). The index is a leading indicator used by investors who place importance on corporate social responsibility and sustainability.

In addition, we were also selected as a constituent of the FTSE Blossom Japan Index which reflects the performance of Japanese companies that demonstrate strong ESG practices (155 companies selected). This index has been adopted as a benchmark of ESG investment by Government Pension Investment Fund (GPIF).  

Furthermore, as of June 2018, we have also been selected as a constituent of the MSCI (*3) Japan Empowering Women Index (WIN) which is constituted of companies that promote and maintain higher levels of gender diversity in individual industry sector (215 companies selected). This index has been also adopted as a benchmark of ESG investment by GPIF.

We have raised ESG as one of the important initiatives in our medium-term management plan. We will continue striving to fulfill our social responsibility through ESG initiatives and contribute to sustainable progress of the society.

*1 SRI (Socially Responsible Investment) describes an investment strategy which takes account of enterprises’ social, ethical and environmental aspects as well as financial performance.

*2 FTSE Russell is owned by London Stock Exchange Group, an index company offering indexing and analytical solutions worldwide.

*3 MSCI is listed on New York Stock Exchange, a provider of investment decision support tools worldwide.

Filed Under: "K" Line

Harren & Partner to acquire MV Blue Giant

July 11, 2018 by

Bremen-based shipping company Harren & Partner is proud to announce the acquisition of the offshore construction vessel, MV Blue Giant for an undisclosed pr180711 MV Blue Giant in Bremerhaven, Germany © Jan Meier - Harren & Partnerice from the English operator, OIG Group. Harren & Partner’s Offshore Department, headed by Robert Fowler (offshore@hp-shipping.de) will be responsible for managing the vessel.

Peter Harren, Founder and Managing Director of Harren & Partner, explains the strategy behind the purchase: “Although the oil markets are currently still recovering, we have deliberately opted for this investment despite its counter-cyclical nature. Alongside our classic offshore activities, we also wish to further strengthen our position in attractive niche markets such as the salvage business, where this vessel also has possibilities for deployment.”

“Blue Giant is a cutting-edge vessel which represents an important enhancement of our diversified H&P fleet. It extends our scope of action to provide our customers with comprehensive, yet customised solutions,” says Dr. Martin Harren, Managing Director of Harren & Partner.

The history of the MV Blue Giant has come full circle as it was built in 2008 to the order of Harren & Partner at Lloyd Werft Bremerhaven, Germany. It was one of the first ships to combine the functions of a dock ship with those of a Ro-Ro and heavy lift vessel. After several successful offshore and salvage projects in the Gulf of Mexico and the Gulf Coast of the United States, MV Blue Giant was sold in 2011 to the OIG Group. Since delivery the vessel has been continuously under the technical management of Harren & Partner. In 2017 during the ice-free summer months the vessel was used for extensive maintenance and repair work on a gas platform in the Pechora Sea, Russia.

The offshore construction vessel (length 179.63 m, breadth 25.40 m) has a variety of special features. For example its dynamic positioning system (DP2). This allows for fast and efficient changes of location without the need for tugs. With a combined crane capacity of up to 700 t and one height extended crane up to 60 m, MV Blue Giant is able to salvage containers from the top layers. Furthermore the vessel is equipped with a cabin block which can accommodate up to 200 people, a moon pool, a helideck and a fire fighting system reaching a distance of 180 m. Heiko Felderhoff, Managing Director of Harren & Partner, underlines the flexibility of MV Blue Giant: “It’s a highly adaptable ship that can also be used as an emergency response vessel. There are few things that it can’t do,” he enthuses.

Following its ten-year class renewal in Bremerhaven, MV Blue Giant will be in perfect shape to meet the upcoming challenges. Currently, Harren & Partner is holding intensive talks about future projects.

About Harren & Partner:

The Bremen-based shipping group was founded in 1989 by Capt. Peter Harren, and employs around 250 people ashore as well as around 2,300 regular crew members on board of vessels. Harren & Partner delivers the full range of services related to the entire life cycle of a ship – from the conceptual designs of new constructions and the extensive technical and nautical management of the fleet, to the sale and purchase of ships. Our core activity involves managing our own fleet as well as external tonnage: Harren Shipping Services GmbH & Co. KG ensures the flawless operations of our fleet of 65 vessels, comprising tankers, container feeders, heavy lift vessels, bulk carriers, dock ships and offshore vessels. With specialised teams for the different types of ships and a strong seafaring DNA embedded in our business culture, Harren & Partner guarantees the highest standards of quality – on both land and sea.

 

For more information about Harren & Partner, go to www.harren-partner.de

Filed Under: Harren & Partner

A Twenty-five Year Partnership in Safeguarding Russian Freight

July 10, 2018 by

1807 TT Club 50th Anniversary Dinner in Moscow

TT Club and its partner in Russia, the CIS countries and Baltics, Panditrans celebrate both TT Club’s 50th anniversary and their twenty-five year partnership in providing a unique insurance and risk management service to the freight industry.  TT Club insureds, both within the territory and those trading with the region, have enjoyed tailored extensive cover and accurate trusted advice on the special characteristics of this particular transport environment.London, Moscow 10 July, 2018

There has been a steady increase in importance of the container to Russian trade that began some twenty-five years ago and it was then, in 1993, that Panditrans became TT Club’s representative in Russia.  At this time the Club wanted to have experts on the ground in what was, and remains, a rapidly changing freight transport environment serving one of the largest potential consumer markets in the world. 

Panditrans, with its offices in Moscow, Russia and Odessa, Ukraine, as well as contacts throughout the region, has been a perfect fit with TT Club, serving the mutual’s membership of shipping lines, port and terminal operators and freight forwarding and logistics companies.

The fact is that Russia presents a number of particular challenges to freight traffic.  Customs clearance errors in documentation can result in the confiscation of cargo, while uninsured subcontractors, and even fake ones, remains an on-going problem.  It still can be quite difficult to find a subcontractor with appropriate liability insurance with the result that freight forwarders hire uninsured carriers without clearly understanding that there is little chance of holding it liable for any loss as it has very little capital and few assets.

In addition, the sub-standard nature of the region’s road and rail infrastructure causes more incidents that damage cargo and transport asset than might be expected to occur in other parts of the world.

“It is this type of circumstance that is very particular to the Russian transport environment,” comments TT Club’s Regional Director for EMEA, Kevin King.  “This makes it essential to have indigenous, extensive expertise at the disposal of the Members.  I’m very pleased to say that Panditrans has, by partnering with the Club for the past twenty-five years, provided that expertise. I hope that TT Club Members will benefit from our partner’s guidance in a challenging political, economic and legislative environment for a long time to come.” 

During this quarter of a century TT Club and Panditrans together have become adept at advising Members of the potential pitfalls in transporting freight to, from and around Russia and therefore been able to assess risk comprehensively and advise on appropriate cover. 

Throughout this period Panditrans has handled in excess of 20,000 claims, benefiting TT Club Members with its in-house surveying, legal and customs expertise, together with its knowledge of the market to allow the identification of the most appropriate option to investigate and defend a claim.  Furthermore, Panditrans’ extensive contacts with insurance and regulatory inspectorates, customs authorities and law enforcement bodies throughout the territory, are unique, enabling the complete legal and ethical position to be established.

To mark TT Club’s 50th anniversary and the 25th anniversary of this successful partnership, TT Club and Panditrans held a celebratory dinner at the iconic Metropol Hotel in central Moscow in April. Over 150 guests attended and included some of the five hundred companies insured by TT Club in the region from Belarus, Ukraine, Lithuania, Latvia, Estonia and of course Russia.  An honoured guest was Vladimir Tian, the General Director of Sovtransavto, TT Club’s first and oldest Member that began its relationship with the Club in 1989.

TT Club was founded in 1968 by some of the early adopters of the unitisation of cargo, the container. From its inception, the Club has had a philosophy of listening to its Members and sharing their experiences to make the industry safer and to minimise risk whilst lobbying for and embracing change when and where it’s required. The Club has marked its 50th anniversary by issuing a report entitled ‘Brave new world? – Container transport in 2043’. This is a wide-ranging, qualitative report, produced jointly with McKinsey & Company, summarising the thoughts and opinions of industry leaders on what the future holds for the container industry.

Kirill Berezov, Managing Director of Panditrans commented, “We are proud of our long and successful history with TT Club.  Both the number and variety of our guests at the celebration is testimony to the standard of service Panditrans and TT Club together have provided to the market.  Senior figures from both global carriers and forwarders, as well as Russian transport companies, ports and rail and road operators have supported us.  Brokers also have shown their appreciation of our services for which we are grateful.”

ENDS

About TT Club

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

TT Club is managed by Thomas Miller.

www.ttclub.com

Filed Under: TT Club

GEODIS and Maxi Sport strengthen their partnership with a new warehouse in Landriano, Italy

July 10, 2018 by

GEODIS, the logistics partner of Maxi Sport, opens a new dedicated storage space at its Landriano warehouse in order to ensure end-to-end delivery for the sportswear retailer throughout Italy.

GEODIS has been handling increasing volumes of both in- and outbound flows for Maxi Sport in Italy since 2012 in order to support its development.

This new storage space of 5,000 square meters located at the heart of the Landriano site fully meets the new storage location requirements of Maxi Sport. Landriano’s strategic location for Maxi Sport’s points of sale helps speed up deliveries to the retailers as well as to the end-users. Approximately one third of the 800,000 pieces of sportswear handled each year goes for e-commerce orders of the maxistore.com online site.

Furthermore, GEODIS provides a more flexible supply chain management to Maxi Sport when it comes to ensure management of seasonal peaks.

“Supporting the business of a leading customer like Maxi Sport drove us, once again, to search for new end-to-end solutions, especially in this sector where the care for the final product and smart logistics management are key elements” – says Francesco Cazzaniga, Contract Logistics Managing Director for GEODIS in Italy.

“Maxi Sport is a fast- growing and evolving company” – explains Ester Sala, Head of Marketing & E-Commerce at Maxi Sport – “Our most important demand is swiftness throughout the supply chain, from the choice of the product to the delivery to the final customer. This is the reason why the partnership with GEODIS is so successful, as they grant us high-level quality and yet flexible services.”

 

MAXI SPORT – www.maxisport.com   

Maxi Sport was founded in 1989 and is a sportswear retailer combining style and hi-tech design. With over 20,000 products of the best sports brands on the market, Maxi Sport offers wide range of sports clothing, sneakers and technical equipment for most sports.

With its three stores of over 8,500 square meters located in Lombardy, near Milan, and with its online shop www.maxisport.com, active throughout Italy, Maxi Sport successfully continues its expansion on the Italian market.

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its passion and commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #4 in Europe and #7 worldwide.

 

Filed Under: GEODIS

Japan’s First LNG Bunkering Vessel to Start Operation in 2020

July 9, 2018 by

Central LNG Shipping Japan Corporation (Hereinafter: CLS), a joint venture established by Kawasaki Kisen Kaisha, Ltd., Chubu Electric Power Co., Inc., Toyota Tsusho Corporation, and Nippon Yusen Kabushiki Kaisha, announces that CLS has ordered an LNG Bunkering Vessel (Hereinafter: LBV) from Kawasaki Heavy Industries, Ltd. today. The LBV, which is scheduled to be delivered around September to December 2020, will become the first to be operated in Japan.

The four companies jointly established CLS and Central LNG Marine Fuel Japan Corporation (Hereinafter: CLMF) in May of this year to launch the LNG Bunkering Business in the Chubu (central) region of Japan. The LBV will be owned and managed by CLS, and LNG will be supplied to end-users through CLMF.

Principal Particulars of LBV

LNG cargo tank capacity  : 3,500 m3

Gross tonnage : 4,100 tons

Length overall  : 81.7 m

Breadth  : 18.0 m

Delivery : Sept. – Dec. 2020

Shipyard  : Kawasaki Heavy Industries, Ltd.

 

Filed Under: "K" Line

GEODIS lends its expertise to Cdiscount, French e-commerce leader

July 5, 2018 by

GEODIS and Cdiscount are expanding their logistics partnership with the opening of an 80,000 square meter storage facility in Moissy-Cramayel (in the Seine-et-Marne department of France) in order to manage products weighing less than 30 kilograms sold by the French e-commerce leader.

As part of its development strategy, Cdiscount has entrusted GEODIS with the operation of its new logistics platform in Moissy-Cramayel, located in the Seine-et-Marne department in the southern Île-de-France region of France. In less than three months, GEODIS teams have successfully opened this 80,000 square meter facility, which can store up to 18,000 items and which will, over time, handle the shipping of 3.5 million packages per year.

“With the location of this new facility, our promise to the customer is strengthened in the Paris region,” explained Grégory LOCQUENEUX, Logistics Director at Cdiscount. He emphasized, “GEODIS has demonstrated its expertise and agility, not only by supporting us through the start-up phase of this facility but also by working alongside us over time as a true partner in our development strategy.”

GEODIS has taken responsibility for all logistics services, from reception and storage to preparation of products weighing less than 30 kg, at widely varying volumes. The facility houses eight product categories, ranging from landscaping products and animal care to bedding, tools, healthcare products, small household appliances, childcare, small leather goods, home décor and tableware, and furniture.

“We are proud to be a trusted partner of Cdiscount’s e-commerce leader in France. An increased acceleration flow in this market, combined with the management of a large and complex volume of products, requires expertise on our side,” explained Frédéric PASQUAL, Contract Logistics France Managing Director at GEODIS for FMCG-Retail, High Tech and Healthcare. “With this partnership, GEODIS has strengthened its position as the contract logistics leader in France’s e-commerce pure player sector.”

ENDS

GEODIS – www.geodis.com

GEODIS is a top-rated, global supply chain operator recognized for its passion and commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #4 in Europe and #7 worldwide.

In 2017, GEODIS accounted for over 40,500 employees globally and generated €8.1 billion in sales.

 

Filed Under: GEODIS

GEODIS recognized as a Leader in the 2018 Gartner Magic Quadrant for Third-Party Logistics, Worldwide

June 28, 2018 by

 

GEODIS’ highly structured customer segmentation strategies, strong innovation culture and active Corporate Social Responsibility strategies serve the efficiency of its full-fledged portfolio of services.

(Levallois-Perret, France, June, 28) – GEODIS, a worldwide leader in transport and logistics, was recently recognized as a Leader by Gartner, the world’s leading information technology research and advisory company, in its May 2018 Magic Quadrant for Third-Party Logistics, Worldwide. GEODIS has five Lines of Business (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express and Road Transport), which manages its customers supply chain by providing end-to-end solutions enabled by its people, its infrastructure, its processes and systems. GEODIS’ service portfolio is strongly supported by the highly structured customer segmentation strategy that clearly defines how the company supports and adds value to each customer segment.

“We are honoured to be recognized as a Leader in the Gartner Magic Quadrant” comments Marie-Christine Lombard, CEO of GEODIS. “We believe this recognition is a validation of our strategy to be the growth partner of our clients, and feel it testifies to the continued efforts the company makes to always better serve its customers.”

The world’s leading research and advisory company, Gartner equips business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow. Gartner’s Magic Quadrant for Third-Party Logistics, Worldwide evaluates third-party logistics providers’ ability to be a preferred global provider. Supply chain leaders in logistics can use this research to better evaluate these 3PLs and their capabilities when selecting the right set of providers to meet their global logistics needs.”

ENDS

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GEODIS – www.geodis.com 

GEODIS is a worldwide leader in transport and logistics operating directly in 67 countries and serving 120 countries through its agent network.

In 2017, GEODIS generated €8.1Bn in sales with 40.500 employees worldwide.

 

 

Filed Under: GEODIS

The American Club concludes 2017 Centennial Year with growth in tonnage and surplus despite a challenging business climate

June 25, 2018 by
George D. Gourdomichalis

George Gourdomichalis, new Chairman of the American Club, of Phoenix Shipping & Trading S.A.

Positive trends of recent years continue into 2018

  • P & I and FD & D entries grow by 8% and 6% respectively during 2017.
  • Headline premium declines by 5% to $98.7 million, but incurred losses fall by nearly 50% to $36.3 million.
  • 2017 policy year claims emerging more favorably than previous year.
  • Pool exposures continue at moderate levels.
  • Investment portfolio generates an 8.1% return, best in nearly a decade.
  • GAAP and statutory surpluses increase year-on-year, by 12% and 13% respectively.
  • New reinsurance program affords Club excellent net loss protection.
  • 2018 policy year claims developing very modestly at early stage.
  • 2015 policy year closed and $12 million surplus transferred to contingency account.
  • 2016 policy year release call margin reduced from 15% to 10%.
  • Eagle Ocean Marine maintains steady growth with excellent profitability.
  • American Hellenic Hull continues to expand its market footprint.
  • Safety and loss prevention initiatives gain further momentum.
  • Arnold Witte and Markos Marinakis retire as Chairman and Deputy Chairman of the Club’s Board. 
  • George D. Gourdomichalis of Phoenix Shipping& Trading S.A. elected as new Chairman, with Robert D. Bondurant of Martin Resource Mgmt. Corp. as Deputy Chairman.

NEW YORK, JUNE 25, 2018: Despite a challenging trading climate, the American Club made excellent progress during its 2017 centennial year.  Members attending the one hundred and first Annual Meeting of the Club in New York last Thursday heard that its business had developed positively over the previous twelve months, and 2018 had started on an encouraging note.

Following vigorous tonnage growth in 2016, the Club had experienced a further uplift of 8% in P&I entries and a 6% increase in FD & D business during 2017.  Moreover,  the portfolio renewed at February 20, 2018 continued to enjoy an outstanding profile, with a trailing five-year gross loss ratio of only 48%.

The Club recorded a net operating surplus of $5.7 million for the financial year to December 31, 2017 compared with a loss of just under $2 million in 2016.  With unrealized gains on investments taken into account, the Club’s bottom line earnings were $6.2 million for the year, a turn around of more than $11 million by comparison with 2016.These positive results led to increases in both GAAP and statutory surpluses at year-end 2017 of over 12% (to $57.6 million) and about 13% (to $74.8 million) respectively.

Incurred losses were significantly lower during the year to December 31, 2017 ($36.3 million) by comparison with the figure twelve months earlier ($70.8 million), a reduction of nearly 50%.  Although reinsurance costs grew during the year, having an impact on net premium earned over the period, management allowances declined by more than 5%.  Part of the increased reinsurance expense related to a new program covering the Club’s retained exposures, affording it excellent net claims protection for the current and future years.

As to policy year development generally, the favorable trends of the recent past had continued into 2017.  In particular, attritional claims for 2015 had been modest and had contributed to the substantial surplus for the year.  Retained exposures for 2016 were holding steady, while those for the 2017 policy year were following a similar direction.  Although not as favorable as they had been in earlier years, losses within the International Group’s Pool also continued to develop at a moderate pace.

Initial claims indications for the 2018 policy year were very favorable, with losses for the Club’s own account after the first four months emerging at a level some 35% better than the previous year at the same stage.

The Club’s investments had generated an overall return of 8.1% during 2017, the best result in nearly a decade.  This was a substantial improvement onthe return of 2.4% during 2016.

The Club’s Eagle Ocean Marine (EOM) fixed premium facility had performed strongly in 2017, and into the early part of 2018.  Annual compound premium growth had been in excess of 20% since 2015.  Gross income for the latest facility year, which was to conclude on June 30, was in excess of $10 million.  Since inception, EOM had enjoyed a cumulative combined ratio of about 70%, inuring to the benefit of both the Club and its co-venturers at Lloyd’s.

In consequence of these trends, and reviewing the results of the 2015 policy year specifically, the Club’s Board resolved formally to close the year without call in excess of the original forecast.  The surplus on closure, of approximately $12 million, would be transferred to the Club’s contingency account.  At the same time, in view of its improving development, it was decided to reduce the release call margin for the 2016 policy year from 15% to 10%.

The fortunes of American Hellenic Hull Insurance Co., Ltd. – the Solvency II–accredited investment of the American Club domiciled in Cyprus – had enjoyed a positive trajectory during 2017.  The company had largely exceeded its commercial targets during the period, being ahead of plan in relation both to gross premium written and to the number of vessels insured.  The Club also continued to benefit from the cross-selling opportunities for its P&I business which had arisen from its involvement with this internationally respected insurer of hull and war risks.

In July 2017, the American Club won the Seatrade Investment in People Award.  In September, Ms. Dorothea Ioannou, the Managers’ Chief Commercial Officer, won the Lloyd’s List Global Next Generation in Shipping Award, a testament to the Club’s current service reputation and the market’s expectations of an equally illustrious future       .

The implementation of new safety initiatives continued during 2017. They included two pocket guides – Good Housekeeping and Signing Bills of Lading; and guidance on seafarer mental health – What’s on your Mind?  In addition to publishing other loss prevention material, the Club had recently initiated a joint venture with the American Bureau of Shipping (ABS) and Lamar University of Texas to identify, assess and disseminate near-miss and casualty information relevant to the human element in maritime transportation.

At the Annual meeting of the Club’s Directors, which took place immediately after that of the Members, Mr. J. Arnold Witte of Donjon Marine Co., Inc. and Mr. Markos Marinakis of Marinakis Chartering, Inc. retired from their positions as, respectively, Chairman and Deputy Chairman of the Board.

Mr. George D. Gourdomichalis of Phoenix Shipping & Trading S.A. was subsequently elected as the new Chairman of the Board and Mr. Robert D. Bondurant of Martin Resource Mgmt. Corp. was elected as Deputy Chairman.  In recognition of their service over a period of great change and exceptional progress in the affairs of the Club, Messrs. Witte and Marinarkis were accorded the honor of continuing to hold their former offices emeritus on a special vote of thanks of their fellow directors.

In reviewing the results of the Club’s centennial year, Mr. Witte, the retiring Chairman, said: “I am pleased to have concluded my tenure as Club Chairman in celebrating its centennial year and being present to look forward to the Club’s next century of service to the global maritime community.  I have been supported with unwavering commitment by my Deputy, Markos Marinakis, for more than a decade, and most ably assisted by the distinguished professionals who have served with us over the years on the Board.  I have no doubt that the Club will go from strength to strength in the future.”

Mr. Gourdomichalis, the new Chairman, said:  “I am honored to have been elected by my fellow Directors to serve as their Chairman.  I salute Arnold Witte and Markos Marinakis for their exemplary service in the past and look forward to working with my friend and colleague Bob Bondurant in the discharge of our responsibilities in the future.”

Mr. Gourdomichalis continued: “We are all committed to the continuing success of the American Club and, working closely with our Managers, I am certain that we will build on the great progress of recent times to secure yet further achievement over the years ahead.”

In conclusion, Joe Hughes, Chairman and CEO of Shipowners Claims Bureau, Inc., the Club’s Managers commented:  “2017 was a year to remember for the American Club.  The celebration of its centennial proved to be an auspicious backdrop to the success it achieved in many areas of its activities.  The Club has commenced its second century of service better placed than ever to exploit the opportunities of the future.”

ENDS

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American Club) was established in New York in 1917. It is the only mutual Protection and Indemnity Club domiciled in the entire Americas and its headquarters are in New York, USA.

The American Club has been successful in recent years in building on its US heritage to create a truly international insurer with a global reach second-to-none in the industry. Day to day management of the American Club is provided by Shipowners Claims Bureau, Inc. also headquartered in New York.

The Club is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

For more information, please visit the Club’s website http://www.american-club.com

The full 2017 Annual Report for the American Club can be accessed on its website

P&I Insurance

Protection and Indemnity insurance (commonly referred to as “P&I”) provides cover to shipowners and charterers against third-party liabilities encountered in their commercial operations; typical exposures include damage to cargo, pollution, death/injury or illness of passengers or crew or damage to docks and other installations

Running in parallel with a ship’s hull and machinery cover, traditional P&I cover distinguishes itself from usual forms of marine insurance by being based on the not-for-profit principle of mutuality where Members of the Club are both the insurers and the assureds.

Filed Under: The American Club
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