2011 Renewal Analysis

The 2011 renewal is now complete and some interesting movements took place between the Clubs of the International Group. Here's our analysis:

• The 2011 renewal saw the Clubs asking for general increases of between nil and 10 percent. As usual that was not the full story. Most Clubs were seeking, as far as possible, to ensure their capital bases were not eroded any further, following a sustained period of heavy claims, investment losses and the significant effect of the "churn".
• "Churn" is a term used to describe new ships attaching at more competitive prices than older ships of a similar size and is largely in response to competition from other willing suppliers.
• Older ships being sold or scrapped were almost invariably charged higher "rates per ton". With the enormous growth of the world's fleet over the last 7 or 8 years the "churn effect" has had a dramatic effect on the Clubs' abilities to maintain and grow their premium and capital bases.
• Accordingly almost all Clubs, whilst officially seeking nil or modest general increases, were in fact seeking to address both overall negative Club results and individual Members' loss records, particularly those Members developing significant deficits.
• In most cases the benign publicised rises belied the true intentions that, in most cases, the Clubs needed to raise their premium levels.
• It is probably true to say that notwithstanding both the publicised moves and those that are not reported, the total gross tonnage movement at the 2011 renewal is likely to be a relatively insignificant 2.5 percent.
• Notwithstanding the list of fleet movements below, some of which have been recorded in the trade press as having transferred Clubs, we at Wilson Europe are pleased to advise that this year our considerable experience in negotiating with the Clubs resulted in all our ship owner clients renewing with their existing insurers. This for the most part avoids the many problems associated with moving P&I insurers such as Release Call issues imposed by the incumbent Club and establishing relationships with the new Club claims team.

We believe it is far better and usually more convenient to our ship owner clients to make the entry work with existing relationships rather than change Club/provider. We consider this aspect to be an important part of our function, being one of the world's pre-eminent P&I brokers.

MEMBER	FROM	TO	COMMENTS
ALASKA TANKERS	UK	BRITANNIA	Entire Fleet
ALLOCEANS	LONDON	NORTH OF ENGLAND
ALMI TANKERS	UK	GARD
APL	WOE	GARD
APPEJAY SHIPPING	WOE STEAMSHIP	NORTH OF ENGLAND
AVINOIL	UK	NAVIGATORS
CMA/CGM	UK	GARD STEAMSHIP	Entire Fleet
DELFI	WOE	NORTH OF ENGLAND
DELPHIS	WOE	NORTH OF ENGLAND
DOUBLE HULL TANKERS - OSG	UK	GARD NORTH OF ENGLAND
EUROOCEANICA	UK	STEAMSHIP	Entire Fleet
FRANGOULIS	WOE	SKULD
GENESIS SEATRADING	SWEDISH	NORTH OF ENGLAND
GREAT LAKES DREDGE	WOE	US DOMESTIC MARKET
HANJIN	BRITANNIA	NOE
	STANDARD	BRITANNIA	2 Ships
HYUNDAI MERCHANT MARINE	UK	STEAMSHIP	Charterers
	UK	NOE	Owned - 2 Ships
HYUNDAI	UK	STEAMSHIP NORTH OF ENGLAND	Charterers
	UK	BRITANNIA	Owned - Unspecified No. of Ships
K-SEA	WOE	NORTH OF ENGLAND
LIBERTY MARITIME	WOE	NORTH OF ENGLAND	Entire Fleet
NARU SHIPPING	JAPAN	NORTH OF ENGLAND
NATIONAL NAVIGATION OF EGYPT	STEAMSHIP	NORTH OF ENGLAND	Entire Fleet
NDIERA	UK	NORTH OF ENGLAND	Charterers
NFL (DVB)	WOE	GARD NORTH OF ENGLAND
NITC	VARIOUS	LEFT GROUP
NORWEGIAN CRUISE LINES	WOE	STEAMSHIP	11 Passenger Ships
OFFEN	BRITANNIA	STANDARD	Approx. 20 Ships
OMEGA	SKULD	NORTH OF ENGLAND
POLARIS	JAPAN	BRITANNIA
SAMIOS	WOE	NORTH OF ENGLAND
SOVCOMFLOT	WOE	NORTH OF ENGLAND	12 Ships
		SKULD	3 Ships
TBS	WOE	UK	10 ships
TEEKAY	UK	NORTH OF ENGLAND	LNG Fleet plus Charterers
TOP SHIPS	UK	NORTH OF ENGLAND