One for all and all for one

We take a look at what was said in the market over the past week.

OneForAll300.jpg“It is plain to me that if this extraordinary scheme of mutuality is to retain its distinctive and unique character..... then it will be by something like the development and transformation of the International Group of P&I clubs into.... the sole risk carrier of the P&I risks of the world oceangoing fleet.”

A radical future for the P&I clubs laid out by Hugh Townson of Capital Ship Management but too much of a brave new world for some.

(Townson takes P&I club merger talk to ultimate conclusion)

“Why should some hedge fund with 20 newbuildings pay half the premium of an existing club member?”

A good even if rhetorical question from shipowner and experienced P&I club chairman and director, Lou Kollakis.

(Churn blasted for impact on existing club members)

“It is grossly unfair to charge release calls to someone who has helped build up the free reserve.”

Mutual for sure but fair? Kollakis again gets to the crux of one of the more controversial aspects of the way P&I clubs operate.

(Free reserves and release calls spark heated debate)

“We believe that the high rate increases we have seen from P&I insurers will test all P&I clubs’ membership loyalty over the next two to three years.”

The Standard & Poor’s rating agency sees testing times ahead for the P&I mutuals.

(S&P hails improved West of England performance)

“As one of the oldest P&I clubs in the world, we know what vessels owners need most from their insurance....we have years of experience across our vessel types and we understand the insurance needs of those who operate them.”

There are several mainstream P&I mutuals with a more than 150 year history, while others have been in business for a mere century or so. Stiga Marine has either done a remarkably good job in maintaining a low profile or is being economical with the vérité.

(Mysterious Stiga rocks P&I boat)

“We lost a lot of money on these two beautiful ships.”

For aesthetic values to outweigh lots of lucre for Pacific Bulk’s Tong Zhenjun the Golden Beijing and Golden Queen must be very special vessels.

(Hong Kong’s Pacific Bulk sees light at the end of the tunnel)

Mexico300.jpg“This will be a new hot spot, maybe not the next Brazil, but it will definitely attract investment and interest at the end of the day.”

Fiesta time for offshore Mexico according to Nor-Ocean partner, Marius D Fjeldstad.

(Mexico offshore stays busy as reforms enter stage two)

“If they continue to miss estimates, while the others build a track record that is favourable, you could see [investor] rotation out of GASS, which was once the only game in town.”

More than a warning shot across StelthGas bows from Evercore Partners analyst, Jonathan Chappell, as he appears to have ‘execution’ on his mind.

(StealthGas pressured to ‘re-establish track record’)

“Fredriksen will use the existing Frontline as a platform for new investments such as taking over 34 modern tankers from Frontline 2012.”

DNB Markets sees an improved outlook for Frontline.

(FRO’s wriggle-room)

“We will develop comprehensive plans to expand activities of the shipping line.”

Islamic Republic of Iran Shipping Lines’ managing director, Mohammad Hossein Dajmar, is ready to expand again as sanctions that cost it 30 newbuildings are wound down.

(IRISL lost 30 ships)

“I think the markets will be boring and just scrape along for the next two years.”

Not content with with the worst being over for the shipping industry DNB Asia banker, Vidar Andersen, wants excitement.

(Money on dry bulk sector and secondhand tonnage)

Ticket300.jpg“The thing that troubles me most is that vessels, irrespective of the policy, are in non-compliance with the vessel general permit. Non-enforcement or low-enforcement priority does not equal compliance.”

A softly softly approach to enforcing new ballast water regulations could backfire according to Jeanne Grasso of the Blank Rome law firm.

(Soft approach to ballast-water rules raises citizen lawsuit fear)