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“K” Line announce construction of New Cold Storage in Vietnam Completed and now Open for Business

July 21, 2016 by

We are pleased to announce that construction of a Cold Storage Warehouse in Ho Chi Minh City, Vietnam, by CLK COLD STORAGE COMPANY LIMITED – a joint-venture established by Kawasaki Kisen Kaisha, Ltd. (“K” Line), Cool Japan Fund Inc. (“Cool Japan”) and Japan Logistic Systems Cor160721 New Cold Storage in Vietnamp. (“Japan Logistic Systems”) – has been completed with Opening Ceremony held on July 21, after which operations start.

Persons involved in the project, including Mr. Tran Thanh Liem, Chairman of Binh Duong Province, Vietnam, Mr. Satoshi Nakajima, Council General of Japan in Ho Chi Ming City, Mr. Eiichiro Nakanishi (Chairman) and Mr. Hirotake Nakanishi (President) of Japan Logistic Systems Corp., Mr. Nobuo Sugiuchi (Senior Managing Director) of Cool Japan, as well as parties concerned, joined Eizo Murakami, President & CEO of “K” Line, at the completion ceremony.

Warehouse location

About 22 km from central Ho Chi Minh City (about one hour via Route 1). Good access from Cat Lai Port and the international airport.

Warehouse features

As a Cold Storage project based on an all-Japan set-up, this was the first time in Vietnam for both the “hard” and “soft” aspects, from design and construction to cooling equipment and operation of the warehouse, to be led entirely by Japanese companies. Various protective measures for goods as well as energy-saving measures have been taken based on the know-how accumulated by Bangkok Cold Storage Ltd, member of the “K” Line Group, which has been operating Cold Storage services in Bangkok, Thailand since 1989, to safely and hygienically store the precious merchandise of our customers. In consideration of environmental conservation, natural refrigerants (NH3 and CO2) have been adopted.  The temperature can be controlled to address the various needs of customers from −50°C to +25°C.  This is the first facility to provide super frozen storage room in Vietnam.

We will continue to contribute to the promotion of Japanese foods and ingredients in Vietnam, which is expected to grow even further in the future, using the knowledge and network of Japan Logistic Systems, which has been operating in Vietnam for over 20 years, and “K” Line group’s marine and air transport services.

Outline of joint venture and freezing and refrigerating warehouse

1. Name CLK COLD STORAGE CO., LTD
2. Address Binh Duong Province, Vietnam
3. Representative Naoki Sakai
4. Business details Cold Storage Warehouse and Related Services
5. Capital US $15 million
6. Date of foundation April 25, 2015
7. Start of business July 7, 2016
8. Investment ratio “K” Line                                   25.0%Japan Logistic Systems               26.0%

Cool Japan                                49.0%
9. Access About 22 km from central Ho Chi Minh City; about 25 km from Cat Lai Port
10. Area  Land: approx. 19,000 m2Total floor space: approx. 7,000 m2
11. Structure, etc. One-story warehouse divided into 13 rooms
12. Temperature range Super Frozen: −50°C; Frozen: −25°C ~ −18°CChilled: −5°C ~ +5°C; Low: 0°C ~ +15°C

Constant: +5°C ~ +25°C
13. Other 17 dock shelters, 4 dock levelers, emergency power generator, advanced thermal insulation equipment, temperature/atmospheric pressure control within the warehouse, and external air infiltration-suppression functions, 24-hour security system with security guards, pest-proofing measures, etc.

Under our medium-term management plan, “Value for our Next Century -Action for the Future -” which is “K” Line’s management strategy for our 100th anniversary in 2019, we have complemented our highly volatile marine shipping services, and positioned logistics business as a sector for steady income. We will continue to expand our logistics business, especially in Southeast Asia, where economic growth has been remarkable.

 

 

Filed Under: "K" Line

Evergreen’s Inaugural Voyage through Expanded Panama Canal

July 11, 2016 by
160711 Inaugural Voyage Celebration

Evergreen held a special ceremony at Panama Canal’s Cocoli Locks. Representatives from shipping related industries and government agencies were present at the event to witness the significant milestone. Important guests are listed below (from left) Third left : Panama Canal Authority, Manager of the Division of Economic Analysis and Market Research, Ms. Silvia de Marucci Seventh left : Unigreen Marine S.A. Chairman Mr. Scott Chang Eighth left : Panama Maritime Authority General Director of Merchant Marine, Mr. Fernando Solórzano Ninth left : ambassador of the Republic of China (Taiwan) in Panama, Mr. Jose Maria Liu, Tenth left : Unigreen Marine S.A. President Mr. Frank Zeimetz Eleventh left : Colon Container Terminal Chairman – Captain Yen-I Chang

Ever Lambent, an 8,452 TEU containership owned by the Evergreen Group, passed through the expanded Panama Canal on the ninth of July (Panama time), marking a new era for Evergreen Line’s all-water services connecting the Far East with the US East Coast.  Evergreen held a special ceremony to mark the occasion at the Canal’s Cocoli Locks.  Representatives from shipping related industries and government agencies were present to witness and celebrate the significant milestone.

Ever Lambent is 334 meters in length, 45.8 meters wide, with a deadweight tonnage of 104,408 tons and scantling draft of 14.2 meters. The vessel is not only Evergreen’s first large containership to pass through Panama Canal’s third set of locks but also the first Taiwanese operated cargo ship of over 100,000 DWT to transit the expanded waterway. Ever Lambent is deployed on the NUE service, which serves Qingdao, Ningbo, Shanghai, Coco Solo (Colon Container Terminal), Savannah, Charleston, Baltimore and New York.

In light of the business opportunity presented by the expansion of the Canal, Evergreen recently upgraded the size of the ships it utilizes on its Far East – USEC services, introducing 8,452 TEU L-class containerships to replace the 4,211 TEU D-type vessels previously deployed. Evergreen’s internal research indicates that the eco-friendly L-class vessel can offer the equivalent capacity as two traditional Panamax ships while at the same time reducing fuel consumption by 40% and lowering carbon emissions by the same percentage.

Together with the fleet upgrade program, Evergreen has further enhanced its service cooperation with strategic partners to offer both a direct service from the Far East to US Gulf ports, including Houston, Mobile and Miami through a capacity swap arrangement and to offer a more comprehensive service to its existing network of destinations.

In light of the demand for increased terminal capacity to handle larger vessels following the completion of the Canal’s expansion program, Evergreen has built the new Berth No. 4 at its Colon Container Terminal. At CCT, Evergreen will continue with the next stage of a planned expansion program, which on completion, expected around the first quarter of 2017, will enable the terminal to handle two large vessels of 12,000 – 14,000 TEU simultaneously.

Furthermore, Evergreen is developing 32 hectares of land adjacent to the terminal into a sizeable logistics park. Expected to be completed in two years, the new facility will connect with the terminal operation and provide seamless, efficient logistic services for customers.

ENDS

 

Filed Under: Evergreen Line

“K” Line and KLPL to Invest in Next Generation VLCC and AFRAMAX

July 7, 2016 by

Kawasaki Kisen Kaisha, Ltd. (“K” Line) and “K” Line Pte Ltd. (KLPL), have signed the ship building contracts for three next generation VLCCs and two AFRAMAX tankers in line with their fleet upgrading plan under the newly-reformed Medium-Term Management Plan, “  　 Value for our Next Century – Action for Future -“.

Orders for two VLCCs were placed by “K” Line with Kawasaki Heavy Industries, Ltd. (KHI) which will deliver them in 2017 and 2018, respectively, and order for one VLCC with Namura Shipbuilding Co., Ltd. which will be delivered in 2018, whereas orders for two AFRAMAX tankers were placed by KLPL with Namura Shipbuilding Co., Ltd., which will deliver them in 2018 and 2019, respectively.

These VLCCs and AFRAMAX tankers are designed to comply with all existing regulations as well as forthcoming rules such as the International Convention for the Control and Management of Ship’s Ballast Water and Sediments.

 

Main Particulars of VLCCs

Shipyard　Nantong Cosco KHI Ship Engineering Co., Ltd.　 Namura Shipbuilding Co., Ltd. Imari Shipyard

Delivery                        2017, 2018                    2018

LOA                              339.5m                         338.9m

Beam                            60.0m                           60.0m

DWT                             311,360MT                    310,300MT

Tank Capacity                348,500m3                    351,500m3

Main Particulars of AFRAMAX tankers

Shipyard                        Sasebo Heavy Industries Co., Ltd.

Delivery                        2018, 2019

LOA                              243.8m

Beam                            42.0m

DWT                             113,000MT

Tank Capacity                125,400m3

 

With these five new ships, “K” Line and KLPL will continue to provide reliable and stable service to our valued customers with the highest standard of safety.

 

Filed Under: "K" Line

Handling Dangerous Goods is a Global Concern – comment from TT Club

July 7, 2016 by

Peregrine Storrs-Fox, Risk Management Director at TT Club, discusses the need for increased rigour in the handling of dangerous goods:

“The explosion at Tianjin Port last August should be seen as a spectacular example of why those operating throughout the global supply chains should examine their work practices and risk procedures more thoroughly. With estimated insured losses between US$2.5 and US$3.5 billion, this incident becomes a focal point, drawing attention to underlying vulnerabilities within global supply chain processes. It underlines how cargo in transit, potentially mis-declared, or packed or handled incorrectly, can cause widespread damage and loss of life.

“TT Club’s analysis of its claims history reveals that incident causation is concentrated within just five classifications. Approximately two thirds by both value and number relate to the sum of vehicle accidents, including both road traffic and cargo handling equipment collisions, fire, theft and poor cargo packing. This rolling five year analysis takes in over 7,500 insurance claims, with a total insured claim value of around US$500 million. The total economic costs, which studies have indicated could be many multiples of the insured losses, should in reality account also for hidden losses, such as management time and distraction, and reputational damage. While there is substantial consistency in the relative significance of each major causation year-on-year, it is notable that the costs related to fire are almost invariably disproportionate to the number of incidents.

“Risk assessment surveys at ports over the last 12-18 months have found worryingly little adherence to segregation requirements for dangerous goods. As with the well-established rules for transport by each mode, there is relevant guidance for activity within the port area. At international level, this is provided in the International Maritime Organization’s (IMO) document ‘Recommendations on the Safe Transport of Dangerous Cargoes & related Activities in Port Areas’ (MSC.1/Circ.1216 (2007). National guidance or regulations are likely also to be applicable

“Considering the continuing need in other parts of the supply chain, not only to review regulation and guidance, but also to promote sound corporate culture, it is perhaps time that the existing IMO recommendations are reviewed and some teeth added to bring about greater adoption at national level. Clearly, such matters need to be better integrated globally, in order to improve practice in handling dangerous goods, resulting in the safety of workers and third parties, as well as maintaining the integrity of cargo and transport infrastructure.”

ENDS

 

Notes to editor

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.

Thomas Miller

Thomas Miller is an independent and international provider of insurance, professional and investment services.

Founded in 1885, Thomas Miller’s origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Thomas Miller also manages insurance facilities for all the self- employed barristers in England & Wales, as well as trustees of pension schemes, patent agents and housing associations.

Principal activities include:

  • Management services for transport and professional indemnity insurance mutuals
  • Investment management for institutions and private clients
  • Professional services
  • Building defects insurance
Filed Under: TT Club

American Hellenic Hull Insurance Company COMMENCES operations

July 4, 2016 by

CYPRUS, JULY 1, 2016: The American Hellenic Hull Insurance Company (AHHIC) Ltd is pleased to announce that the Cyprus regulatory authorities have approved the company’s operating license.

The company, established in Cyprus in 2015 by the cooperation between the American P&I Club and Hellenic Hull Management, is now officially in operation with immediate effect. AHHIC is a global insurer and covers all hull and machinery risks for shipowners worldwide.

American Hellenic Hull is the first marine insurance company in the region that meets all the requirements of the European Solvency II Directive.

Management and operation of the new insurer has been undertaken by Hellenic Hull Management, led by managing director Ilias Tsakiris. Hellenic Hull’s team has already been working to ensure the new company’s initial growth.

American Hellenic Hull was recently presented to the international shipping market with a large reception at the Posidonia 2016 international fair in Greece. The company’s first event attracted 4,000 people from the maritime sector including senior representatives of 350 shipowning groups. The sponsors and managers of American Hellenic Hull thanked the shipowners present for their support of the new venture. It was underlined that the company is ready to compete for a significant share of marine business worldwide in all the major markets.

“I wish to thank the teams from both companies that have worked hard to create American Hellenic Hull, but above all thank you to the Greek and international shipping community for their immediate support,” said the chairman of the American P&I Club’s board of directors, Arnold Witte.

Ilias Tsakiris, managing director of Hellenic Hull Management, said: “My colleagues and I are extremely proud of our strategic alliance with the American Club. Our 20-year history of management and operating knowledge in the marine insurance market guarantees the success of this major new international marine insurer, which will offer clients the benefits of a local service approach.”

ENDS

AMERICAN P&I 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. Τhe 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 2015 Annual Report for the American Club can be accessed on its website.

SOLVENCY II

EU insurance legislation unifies a single EU insurance market and enhances consumer protection. The third-generation Insurance Directives established an “EU passport” (single license) for insurers to operate in all member states. Solvency II is a fundamental review of the capital adequacy regime for the European insurance industry. It has established a revised set of EU-wide capital requirements and risk management standards that replaced the previous solvency requirements. Solvency II aims to achieve consistency across Europe and includes the following key ideas:

  • market consistent balance sheets
  • risk-based capital
  • own risk and solvency assessment
  • senior management accountability
  • supervisory assessment
Filed Under: The American Club

TT Club Seeks to Calm the Troubled Waters of VGM on the Eve of Effective Date

July 4, 2016 by

[[With the effective date of the container weighing regulation, known as Verified Gross Mass (VGM), at hand, the freight insurance specialist TT Club is accentuating the positive and assures the industry that help remains available.  The mutual insurer, which sees VGM as one of the key safety measures for container operations worldwide, has published a pithy, user-friendly summary for all those involved

London 30 June 2016

Clarity is what TT Club believes is required when tackling the amendment to SOLAS[1], requiring a Verified Gross Mass (VGM) for all packed containers loaded onto ships from 1st July.  Clarity and collaboration.

The mutual insurer’s latest pithy, ‘Stakeholder digests’, providing guidance to the regulation and how it affects various parties in the container supply chain, from shippers to forwarders and terminals though to carriers, has been made available on its website[2].  The guidance is simple to follow and seeks to build on the everyday cooperation between all stakeholders in the diverse and efficient containerised industry that exists today.

In launching the Stakeholder digests, as part of an extensive micro-site on container weighing, TT Club’s Peregrine Storrs-Fox commented, “VGM is a safety initiative that many in the industry have been seeking. TT Club’s commitment continues, its discussions with industry figures having started years before the initiation of the work at the IMO[3]. In a true spirit of collaboration, representatives of all parties involved in the container trades have been consulted during the four years of IMO debate.  The regulation, effective tomorrow, is the result of an industry working together to improve safety, efficiency and its own professional practices.”

Reaction from many quarters of the industry has been positive, engaging to resolve the complexity and potential difficulties.  According to the regulation VGM shall be obtained either by weighing the packed container [‘Method 1’] or weighing all constituent parts in the load [‘Method 2’].  A substantial number of container terminals around the world have now announced arrangements to assist shippers with ‘Method 1’.

Shipping lines are posting the tare weights of their containers online to assist with the calculation inherent in ‘Method 2’, a compromise process that was included in the SOLAS amendment as a result of shipper representation.  Furthermore, BIC[4] has announced the launch of its ‘Technical Characteristics Database’[5], intended to provide easy access to tare information. Thus, while harmony will never reign supreme in any industry, the container business has come together well in this case.

On the other hand Government bodies, the competent authorities to which the IMO is looking to consistently enforce the regulation across the globe have been surprisingly reticent.  Despite encouragement from the IMO for governments to communicate fully with industry stakeholders, around 80% of SOLAS signatory States have yet to publish guidance on national implementation. There are, of course, notable exceptions, where national competent authorities have engaged actively with industry and other maritime administrations to ensure common understanding of the processes and interpretation of the regulation.

Consistency, however, across the international governmental spectrum has been lacking, causing much frustration. TT Club highlights the less-than-helpful and confusing messages from some governmental bodies.  It has, therefore, been left to industry partners to step into the breach and provide practical support for implementation of this mandatory international regulation. Working with World Shipping Council, ICHCA and Global Shippers’ Forum, TT Club has twice published ‘Industry FAQs’, however, it is recognised that national governmental authorities and enforcement officers will ultimately be responsible for final interpretation.

Collaboration across the container industry remains key, since it epitomises the ‘global village’. For TT Club, Storrs-Fox concludes, “The broad safety issues that VGM goes part way to addressing should be our chief concern.”

ENDS

[1] International Convention for Safety of Life at Sea, 1974 as amended

[2] www.ttclub.com/loss-prevention/container-weighing/stakeholders-digest

[3] International Maritime Organization

[⁴] Bureau International des Containers et du Transport Intermodal

[5] www.bic-code.org/bic-tcd

 

News 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.

Thomas Miller

Thomas Miller is an independent and international provider of insurance, professional and investment services.

Founded in 1885, Thomas Miller’s origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Thomas Miller also manages insurance facilities for all the self employed barristers in England & Wales, as well as trustees of pension schemes, patent agents and housing associations.

Principle activities include:

  • Management services for transport and professional indemnity insurance mutuals
  • Investment management for institutions and private clients
  • Professional services
  • Building defects insurance

www.thomasmiller.com

 

 

 

 

 

 

 

 

 

Filed Under: TT Club

“K” Line joint development project of “K-IMS”; Integrated vessel operation and performance management system

June 28, 2016 by

“K” Line Group are focusing on maintaining and improving vessel safety operations and environmental preservation as we regard these as our first principle in running our business sustainably, fulfilling our social responsibility.

As part of confirming this principle, “K” Line and Kawasaki Heavy Industries, Ltd Group have developed “K-IMS”*1 ; Integrated vessel operation and performance management system.

“K-IMS” is based on two systems which already exist in our fleet ; “SPAS”(Ship Performance Analyzing System) which is the electrical AB log and vessel performance analyzed, and “EP-Monitor”(Engine Plant Monitor) which is a remote monitoring system for the vessel engine plant condition. However, we have developed a new system by integrating “EP-Monitor” which is able to collect and observe all kinds of operation data including navigation data and “NAVI” (Optimum Navigation System) which we have newly adopted. Integrating these individual systems enables us to utilize the real-time operation data from vessels, so-called Big data, into a mutual system and also enables us to support vessel operation and manage vessel performance in a simple way by taking real-time vessel operating conditions, optimum safety route selection, the latest vessel performance and so on, through the new data browsing system that we have developed.

“K-IMS” and the Big data are managed in the cloud system via a shore server and they have various functions such as observing the operating condition of vessels, analyzing the performance of vessels and deciding the safest and recommending the lowest course cost based on the analysis results and weather information. “K-IMS” can be shared among operation teams, ship management companies and vessels. Therefore, it will contribute not only to safety navigation and saving fuel costs but also dramatically improving efficient vessel operations and management.

Furthermore, Kawasaki Heavy Industries, Ltd and “K” Line Ship Management Co., Ltd., part of the “K” Line group, recently applied for the project “to support R&D of advanced technology for safe vessels” offered by the Ministry of Land, Infrastructure and Transport.  Our development project “Enhancing analysis accuracy by automatic correction function with hull property model and applying it to safety operation” was adopted because it merits the development of “advanced safe vessels” by IoT (Internet of Things) for vessels’ equipment with marine broadband and making use of Big data.  With the success of this project the accuracy of the Optimum Navigation System in the “K-IMS” is much improved and it is expected that further improvement of ship safety and economic operations will be achieved in appropriate navigation route selection.

“K” Line will continue to work on environmental preservation and economic operation, continuing to build a reliable safety operation organization by improving the accuracy of the optimum navigation system and further developing and utilizing of bottom fouling analysis system, trim optimization system, engine diagnose system on “K-IMS”.

*1 K-IMS : Kawasaki – Integrated Maritime Solutions

Filed Under: "K" Line

Broad Industry Coalition provides guidance for the smooth implementation of Container Weighing Regulations

June 27, 2016 by

27th June 2016

Today, the World Shipping Council (WSC), the TT Club, the International Cargo Handling Coordination Association (ICHCA), and the Global Shippers’ Forum (GSF) jointly released a second Frequently Asked Questions (FAQ) document designed to support the smooth implementation of the container weighing regulations that take effect globally on 1 July 2016. The amendments to SOLAS (International Convention for the Safety of Life at Sea) require packed shipping containers to have a verified gross mass (VGM) before they can be loaded on a ship for export.

Like the initial joint industry FAQ document, published last December, these new supplementary FAQs are based on actual questions from affected stakeholders regarding proper implementation of the new regulations.  The supplementary FAQs include new questions and answers as well as expanded answers to some of the questions listed in the December FAQs.  As such, these FAQs do not introduce new interpretations or approaches, but seek to provide further assistance in explaining the SOLAS VGM requirements by building on existing guidance material.

Some of the supplementary FAQs explain in more detail how the SOLAS container verified gross mass requirements should be fulfilled in various circumstances as described in questions received from supply chain parties.  Other supplementary FAQs are intended to give additional information regarding the two methods that may be used under the SOLAS VGM requirements to obtain the verified gross mass of a packed container.

Stakeholders are urged to continue to approach any of our collaborating organizations with additional questions that may arise after the enforcement date of the regulation on 1 July. Contact details of subject-matter experts from each of the organizations can be found at the end of the FAQs document.

Container safety is a shared responsibility, and all parties have an interest in improving the safety of ships, their crews and others throughout the containerized supply chain while reducing the risk of damages to cargo.

The FAQs document can be accessed here:

http://www.ttclub.com/loss-prevention/container-weighing/tt-club-briefings/

 

ABOUT MEMBERS OF THE INDUSTRY COALITION:

The World Shipping Council (WSC) represents the global liner industry on regulatory, environmental, safety and security policy issues.  The WSC has observer status at the IMO and was actively involved in the development of the SOLAS container gross mass verification requirements. More information is available at: www.worldshipping.org.

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated throughout the IMO consultation process leading to the amendment of SOLAS and the related implementation guidelines. More information is available at: www.ttclub.com.

The International Cargo Handling Coordination Association (ICHCA) is an independent, not-for-profit organization dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA actively participated in the debates leading to these SOLAS amendments. More information is available at:  http://ichca.com

The Global Shippers’ Forum (GSF) is the world’s leading global trade association representing shippers engaged in international trade moving goods by all modes of transport. GSF was actively involved in the debates at the IMO leading to these SOLAS amendments. More information is available at: www.globalshippersforum.com

Filed Under: TT Club

New Director Elected at American Club

June 27, 2016 by

NEW YORK, JUNE 27, 2016:

At the Annual Meeting of the Members which took place in New York on June 23, Panagiotis Christodoulatos of Athens-based Ikaros Shipping and Brokerage Co., Ltd., was elected as a Director of the American Club for the forthcoming year.

At the Director’s meeting that followed, Arnold Witte of Donjon Marine Co., Inc. and Mr. Markos Marinakis of Marinakis Chartering Inc. were re-elected as, respectively, Chairman and Deputy Chairman of the Club.

Joe Hughes, Chairman and CEO of the Club’s Managers, Shipowners Claims Bureau Inc., was re-elected as Club Secretary, and Lawrence J. Bowles was re-elected as General Counsel.

The American Club reported solid progress during 2015 to its Members at the meeting. Despite a challenging economic climate, the Club’s business developed respectably, and 2016 had started on a positive note.

The full Annual Report 2015 is available at www.american-club.com/page/annual-report

 

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 2015 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

The American Club reports solid progress in 2015 despite a difficult business climate

June 27, 2016 by

 

  • International P&I insurer maintains positive trends into 2016
  • membership risk profile continues to develop favorably
  • retained claims for 2015 at multi-year low
  • moderate Pool exposures
  • Eagle Ocean Marine maintains strong profitability
  • investment in American Hellenic Hull expands product range
  • new Houston office extends regional service reach
  • Club wins prestigious industry award

 

NEW YORK, JUNE 24, 2016: The American Club reported solid progress during 2015 at the annual meeting of its members held in New York yesterday. Despite a challenging economic climate, the Club’s business developed respectably, and 2016 had started on a positive note.

The Club’s tonnage and revenue experienced some attenuation in 2015 as global trade slowed and freight markets continued to struggle. Following the 2016 renewal, year-on-year tonnage entered for P&I and FD&D risks was stable at about 14 million GT for the former and 9 million GT for the latter class of business, but the Club’s charterers’ entry had showed encouraging growth.

Elevated levels of vessel turnover over the previous twelve months had caused an erosion of the Club’s dry bulk constituency (which, for 2016, has fallen from 44% to 40% of the total) but tanker tonnage had grown by a commensurate margin (rising from 40% to 44%). Premium rating, however, had remained comparatively firm, despite the enduring effect of “churn” as older, higher-rated vessels continued to be replaced by younger, lower-rated ships.

Claims for the Club’s own account proved to be exceptionally benign during 2015. Indeed, at the fifteenth month (as at May 20, 2016) of development, retained claims for the 2015 policy year were $29.5 million, 44% lower than those of 2014 at the same stage. International Group Pool claims were also exhibiting a modest level of development both for 2015 and its two predecessor years.

The risk profile of the American Club’s membership had further improved over the 2016 renewal. Entries at the outset of the current policy period had a trailing five year gross loss ratio of only 52%. This indicator had been on a favorable trajectory for several years, and augured well for the future.

Net premiums earned during the 2015 financial year were about 14% lower than the figure for the previous period. Total income, at $87.6 million, was also down by comparison with 2014, an increase in net interest and dividend income being offset by a year-on-year reduction in net realized capital gains.

However, incurred losses for the 2015 financial year, at $49.4 million, were more than 25% lower than the figure recorded for the previous twelve months, while operating expenses were also down, in this case by about 2.5%.

While the Club’s net income for the 2015 financial year increased from $1.2 million to $3.6 million, this was offset by an unrealized loss on investments of $5.8 million producing a small after-tax deficit for the year of $2.2 million compared with a surplus of $1.3 million twelve months earlier. Accordingly, members’ equity had reduced from $58.6 million to $56.4 million as of December 31, 2015.

The Club’s statutory surplus at year-end 2015 was, however, substantially greater than that recorded twelve months earlier, rising by 15% from $64.8 million in 2014 to $74.3 million for 2015. Some of this was attributable to the issue of a surplus note of $19.5 million toward the end of 2015, part of which had been committed to the Club’s investment in the hull market in the form of American Hellenic Hull Insurance Company, Ltd.

As to the development of policy years, 2013 was being closed as originally budgeted. The deficit for the year of $6 million would be subvented by the Club’s contingency fund which stood at $72.5 million as of March 31, 2016. In addition, the release call margin for 2015, as foreshadowed in the Club’s Circular of November 2015, was being reduced from 20% to 15%, in light of the continuingly benign claims development on that year.

The American Hellenic Hull initiative, which had commenced in the early part of 2015, continued to gain momentum. Many benefits had already accrued to the American Club, and more would follow. The transaction would enable the Club to become involved in the hull sector in a cost-effective manner which exploited existing corporate structures and market platforms. This combination of capabilities was creating a new force of growing energy within the marine insurance industry worldwide.

Eagle Ocean Marine (EOM), the American Club’s fixed premium facility, which focuses on the operators of smaller vessels in local and regional trades, was also performing well, and had made a strong contribution to overall results. EOM had continued to expand its market footprint during 2015, particularly in Asia. Its combined ratio remained less than 70%, testimony to its prudent approach to risk selection.

On the service front, in addition to the energetic promotion of loss prevention and other risk management tools, the Club was opening an office in Houston. This was scheduled for early July 2016. The office would enhance the Club’s claims handling and related services throughout the Gulf of Mexico, contiguous regions of the United States, and in Central and South America.

In recognition of its superior standards of member service, the American Club had in May 2016 won the Lloyd’s List 2016 North American Maritime Services Award. This spoke to the high regard in which the Club was held by the maritime community and represented a fitting tribute to all its members on the eve of the Club’s centennial year.

In assessing the Club’s performance, its Chairman, Arnold Witte, President of Donjon Marine Co., Inc., said: “For most of the shipping industry, 2015 was not a good year. Nevertheless, the American Club made progress in many areas. This has been sustained into 2016.”

He continued: “Next year the American Club celebrates its centennial. It is to be hoped that economic conditions generally, and those affecting the shipping industry in particular, will have improved by that time. But whatever the future holds, your Board remains committed to an exceptional level of solidarity with its members, and dedicated to maintain those unsurpassed levels of service upon which its reputation has been built during its first hundred years.”

Joe Hughes, Chairman and CEO of the American Club’s managers, Shipowners Claims Bureau, Inc., added: “Global trade faltered in 2015, exacerbating the economic hardships which have weighed upon the shipping industry in recent years. While this gave rise to an unpromising environment in which to advance the business of the American Club, it nonetheless made good progress during the year. A particular highlight was the development of the American Hellenic Hull initiative which holds great promise for the future.”

Mr. Hughes continued: “It was especially gratifying to win the Lloyd’s List 2016 North American Maritime Services Award, the Club having, in the opinion of the judges, “gone above and beyond best practice to offer the shipping industry something exceptional.” The award celebrates the great progress the Club has made in recent years. On the eve of its centennial, the American Club looks forward with both confidence and excitement to a second century of service to the global maritime community.”

Summary of Annual Results – 2015 Financial Year

  • Total income down 14% to $87.6 million
  • Incurred losses down 25% to $49.3 million
  • Net income up  200% to $3.6 million
  • Overall investment earnings positive with a 28 basis point return
  • Members’ equity at $56.4 million
  • Statutory surplus up 15% to $74.3 million

Other Highlights:

  • 2015 policy year claims exceptionally favorable: 44% better than 2014 at same point
  • Loss ratio of business renewed for 2016 improves to 52% from 57% two years ago
  • 2013 policy year being closed as originally budgeted
  • Release call margin for 2015 policy year reduced from 20% to 15%
  • Eagle Ocean Marine grows market footprint with solid profitability
  • American Hellenic Hull initiative gains momentum with great promise for the future
  • Houston office opening in early July, 2016
  • Club wins prestigious Lloyd’s List 2016 North American Maritime Services Award

Annual Report 2015 available www.american-club.com/page/annual-report

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 2015 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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