We take a look at what was said in the market in the past week.
Dontcha love distress...especially when the money men find it. Hamish Norton of Jefferies on what investors are looking for as they return to work from the summer vacation.
(Bonanza unlikely for ‘distressed’ investors)
“I believe that in six months to a year, shipyards will not be welcoming orders. That is because I do not believe a yard can survive at these prices for two years or more.”
A buy now sale ends soon message from New Century Shipbuilding and New Times Shipbuilding chief executive Liu Haijin.
(China yard boss says time limited for cheap deals)
“Handysizes work in both expanding and shrinking economies.”
Seems that George Souravlas is one of those shipowners who like to see tonnage gainfully employed.
(Load Line quietly ups bulker fleet)
“Our advice to all in the shipping industry and to those reading this report is to put away the bicycle and start commuting in a five litre V8.”
Can it be that Braemar Seascope puts the health of the tanker industry ahead of saving the planet?
“It takes at least 70 big ships to run this product, so that would require some consolidation in the industry before we see anyone follow us in this trade.”
Maersk chief Eivind Kolding on the ‘Daily Maersk’ service which “amounts to a giant ocean conveyor belt for the world’s busiest trade” from Asia to Europe.
(Maersk sets the pace on Asia-Europe) and (Maersk’s game-changer)
“I know Trond Harald very well and we have agreed a basis on which to co-operate.”
Lasse Kristoffersen on his new role as the first chief executive of the Torvald Klaveness group. Good to know he sees the benefit of co-operating with the owner.
(Klaveness hires first boss from outside family)
“Shipowners are used to the idea that improved records are an argument to negotiate better terms. And when you add in the fact that the market is sticky for them, it is easy to see why they want underwriters to contribute to reducing their costs. My personal reaction is, did we get more money when you earned a lot? The answer is ‘no’.”
International Union of Marine Insurance (IUMI) president, Ole Wikborg, makes clear he is no pushover for owners or brokers with a hard luck story.
(Sharing the pain proves divisive)
Wikborg again...this time explaining how to turn a profit on loss of hire.
(Interest grows in loss of hire as hull proves tricky)
“Whenever you talk to an individual hull underwriter he always outperforms the market. The Lloyd’s figures are the sum of the market’s entire hull underwriting but you won’t find an underwriter in Lloyd’s who’ll say his figures aren’t better.”
Lloyd’s underwriter, Peter McIntosh, on the conundrum that somehow everyone is doing better than average.
(Hull and machinery a loss leader)
“When your premium base is low, your deductibles haven’t moved probably for 15 years. It isn’t so much a spike of large losses but attritional claims that kills a hull book.”
McIntosh again on why underwriters must be losing money.
(Mist mars horizon on claims front)
“Regardless of what is said at the conference, we anticipate that the marine market will continue to remain soft while underwriting capacity exceeds buyer demand. At this point, we do not anticipate this changing for at least the next 12 months and on balance believe it is more likely that capacity will expand still further rather than contract during that period.”
A cautionary reminder from top broker Marsh to underwriters gathering for the IUMI conference in Paris
“Many more losses have been covered by war policies than K&R policies. This suggests that there are still many shipowners either refusing to pay additional insurance costs or not appreciating the advantages associated with K&R policies.”
The big Aon broking group warns that cost minded shipowners are missing out by not buying kidnap and ransom cover.
“It is remarkable that in the 21st Century a global company like JFC can behave as if it is above the law. The High Court in London has found against JFC and ordered it to pay damages to Star Reefers. JFC’s response is to disobey this order. Star Reefers remains committed to seeking the damages the High Court has imposed.”
Star Reefers chief Simon Stevens lays into Russia’s Joint Fruit Co over a collapsed charter deal.
"If they are going to run a cruise like this, there needs to be better facilities and maybe some entertainment, too, for the people on board."
Chinese hotel manager, Wang Zhijun, has a message for dear leader Kim Jong-il about the maiden voyage of a North Korean cruise venture that ended with a bang – a collision with the dock.
