IN THIS ISSUE
1. Arbitration Clause
2. Maritime Cyprus
3. 2018 IUMI Winter Meeting
4. Year in Review
5. Autonomous Ships
6. People and Places
FOB Network News
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1. Arbitration Clause
Jason Minkin of the Chicago firm of BatesCarey writes:-
Below is a link to our note in Kluwer Arbitration Blog discussing Galilea, LLC v. AGCS Marine Insurance Co., 2018 WL 414108 (9th Cir. Jan. 16, 2018), a recent Ninth Circuit Court of Appeals opinion that enforced an arbitration clause in a maritime insurance policy. The court determined the policy was subject to the broad reach of the Federal Arbitration Act, and not “reverse preempted” by the McCarran-Ferguson Act.
2. Maritime Cyprus
Lucy Clarke the new CEO of the Marine Division of JLT Specialty has sent in a copy of the Link, the firm’s newsletter, which contains an account of the meeting in Cyprus last October where some 800 people gathered to ponder the issues of over regulation, market trends and the end of the shipping recession.
3. 2018 IUMI Winter Meeting
At the invitation of the IUMI Committee we did go to Lloyd’s of London to receive a background briefing from the Hamburg based body charged with giving a unified voice to the global marine insurance market through representation and lobbying activities. The organisation has both feet in the cargo and hull insurance markets and, although many liability lines by way of fixed premium placements and reinsurance run to the very same member companies, there is a tendency to defer to the P&I Clubs in matters to do with third party liabilities.
The briefing led by Dieter Berg was, like the marine industry itself, moderately positive, an upturn in the world economy as a whole is seen as good for the marine insurance business. Large weather events and fire losses were taking $75-100 billion out of the insurance market generally in 2017 and extreme weather events have become a “new normal”. How this loss of capital will affect the marine and property markets of 2018 will be demonstrated as the year wears on. It was fair to say, the signs were, the soft market has come to an end. A very IUMI way of glossing events.
We noted the organisation is making an effort to reach out more to Asia and Africa with the next full IUMI meeting to take place in South Africa and with the setting up of a branch office in Singapore. The new facts and figures man, Donald Harrell of Aspen Insurance, explained the organisation worked a twice a year cycle for figures in spring and the year end compiled by the ever helpful Norwegians Messrs Cefor. This year the world fleet has grown to 1.3 billion gross tonnes. Incident numbers this year were slightly up on last year which had documented the lowest ever level.
There were calls for more innovation in the products and services in the marine insurance world, given the leaps being contemplated in the way ships and goods are being moved around the world. Bon chance we wish.
So of course the 4th internet revolution was mentioned and the tendency of the industry to produce ad hoc products to fill the insane gaps. Perhaps a wider risk imagination was required in the contemplation of things like cyber attacks on shipping. The losses suffered by Maersk were placed at $400-500 million.
At the end some journalists asked about the scale of loss estimated for the Sanchi. A very measured response described how the figures are compiled in this industry, how the loss curve rises over time, up and up, eventually to turn horizontally to bobble up (bad, consternation) or down (good, release) as the payments go out. It was too early to say, really.
4. Year in Review
The maritime lawyers at the New York and Washington DC firm of Seward & Kissel have produced a review of 2017, a neat and clear way of promoting the firm’s maritime and finance practice without too much braggadocio. Quite a good idea.
5. Autonomous Ships
Small ship P&I specialists the Shipowners Club are producing a series of interesting articles contemplating the rise of the autonomous ship:-
The latest instalment is by Keir Gravil, a naval architect at Frazer-Nash Consultancy in Bristol, UK who discusses some of the key issues that could face automated ships of the future from a design perspective:-.
It is often the job of ship designers, especially those in the naval defence industry, to think ahead and anticipate future technological changes. One could argue that a particular quirk of defence, with its long lead times for new platforms, is that ideas more at home in science fiction are actively considered for future ships. Commercial drivers are usually shorter term: a commercial ship owner can’t wait decades for delivery of a new vessel. The naval industry appears to have taken a lead when it comes to automation aboard ships, with tight budgets, crewing concerns and ever more complex weapons and propulsion systems meaning automation is an attractive solution to the problems faced. Indeed, HMS Queen Elizabeth, the Royal Navy’s new aircraft carrier’s weapons handling system can be operated by a team of 50, or as low as 12; said to be a reduction of over 65% compared to more traditional systems1.
Crewing challenges are by no means unique to naval ships: commercial ship operators face similar problems, with a predicted shortfall of around 150,000 officers in the maritime industry by 2025. Increased automation is an obvious and attractive solution to the challenges faced by ship owners, operators and the wider industry. But how far is this likely to go and what hurdles will be faced by those tasked with delivering this automation?
Read the article here in full here:-
6. People and Place
Oil and Gas Meeting Day: 22 & 23rd March 2018
Ida Steir has sent us details of this year’s meeting in the Canary Islands called “Embracing the future: West Africa Opportunities”
The meeting day will bring together West Africa and Mediterranean Authorities, from places where the major explorations are taking place, with the Norwegian O&G Market, International & National Authorities and Spanish Companies who are creating jobs, synergies and activities. The key aspects for the future in the exploration and O&G industries are to be discussed The event is an unique opportunity to share ideas, experiences and networking in a pleasant and warm atmosphere.
Blank Rome has formed a Joint Task Force on Sexual Harassment and has just published a client alert detailing “how to effectively prevent and respond to sexual harassment allegations in this era of #MeToo”.
RightShip, the maritime risk management and environmental assessment organisation, has appointed its new CEO. Martin Crawford-Brunt will replace outgoing CEO Warwick Norman who announced his decision to step down from the position in 2017.
Crawford-Brunt takes up his new post on 12 March 2018 and joins RightShip from DNV GL. He will initially be based at RightShip’s London office.
The International Chamber of Shipping (ICS)has announced the appointment of Guy Platten to the role of Secretary General, taking over from Peter Hinchliffe sometime in mid-2018.
From the Avo Archive
The website of this newsletter contains all the editorial material since the inception of the Maritime Advocate as a print based quarterly in 1997 under the founding aegis of John Guy, Chris Hewer and Manfred Arnold. Readers can go to the site and search the database on the home page in its entirety. If you are looking for an old case, an old controversy or you would just like to see how many times you and your firm have featured in our annals feel free to access the archive. It is like this e-zine, free to Readers and we always appreciate the support of advertisers and sponsors.
We searched against the words Ship Inspectors only to turn up this thought which appears in Issue 85 of 9th December 2002.
The inspector calls
WHILE Europe’s politicians and the public at large appear to be deluding themselves that a man with a clipboard can tell if a tanker is going to break up in the next storm, most people in shipping know better. In pactice, a ship inspector’s life is not an easy one, and it is less easy still to form any real apprecation of a ship from a short visit in port.
The latest edition of the UK Club Loss Prevention News has a wonderful article on the difficulties facing UK Club ship inspectors. The conclusion is that, if the inspectors find that the toilets flush, the washrooms are clean, and plants and flowers are growing on board, it is probably a happy ship. Not very scientific, but almost certainly a better indication of a ship’s condition than anything a half-trained, semi-retired port state inspector can find out, and definitely much more than a no-nothing Navy captain could ascertain from the bridge of a frigate in mid-ocean.
The UK Club knows its inspection techniques work, as the feature on inspections appears under the heading, “Ship standards getting better.” They are, not just for the UK Club, and we should not forget it.
Night Classes for Men – Sign Up Now
Classes for Men at our Local Learning Center for Adults Note: Due to the complexity and difficulty level of their contents, each course will accept a maximum of 8 participants each.
TOPIC 1 –
How to Fill Up the Ice Cube Trays. Step by step, with slide presentations.
TOPIC 2 –
The Toilet Paper Roll: Do They Grow on the Holders? Round table discussion.
TOPIC 3 –
Is it Possible to Urinate Using the Technique of Lifting the Seat Up and Avoiding the Floors/Walls and Nearby Bathtub? Group practice.
TOPIC 4 –
Fundamental Differences Between the Laundry Hamper and the Floor. Pictures and explanatory graphics.
TOPIC 5 –
The After-Dinner Dishes and Silverware: Can They Levitate and Fly into the Kitchen Sink? Examples on video.
TOPIC 6 –
Loss of Identity: Losing the Remote to Your Significant Other. Helpline support and support groups.
TOPIC 7 –
Learning How to Find Things, Starting With Looking in the Right Place Instead of Turning the House Upside Down While Screaming. Open forum.
TOPIC 8 –
Health Watch: Bringing Her Flowers is NOT Harmful to Your Health. Graphics and audio tape.
TOPIC 9 –
Real Men Ask for Directions When Lost. Real life testimonials.
TOPIC 10 –
Is It Genetically Impossible to Sit Quietly as She Parallel Parks? Driving simulation.
TOPIC 11 –
Learning to Live: Base Differences Between Mother and Wife. On-line class and role playing.
TOPIC 12 –
How to be the Ideal Shopping Companion. Relaxation exercises,meditation, and breathing techniques.
TOPIC 13 –
How to Fight Cerebral Atrophy: Remembering Birthdays, Anniversaries, Other Important Dates, and Calling When You’re Going to Be Late. Cerebral shock therapy sessions and full lobotomies offered. *
* Upon completion of the course, diplomas will be issued * * * * to the few survivors.
[Merci Paul Dixon]
1. The journey of a thousand miles begins with a broken fan belt and a flat tyre.
2. The darkest hour is just before dawn. So if you’re going to steal your neighbour’s milk, that’s the time to do it.
3. Sex is like air. It’s not important unless you aren’t getting any.
4. Don’t be irreplaceable. If you can’t be replaced, you can’t be promoted.
5. No one is listening until you pass wind.
6. Always remember you’re unique. Just like everyone else.
7. Never test the depth of the water with both feet.
8. If you think nobody cares whether you’re alive or dead, try missing a couple of mortgage payments.
9. Before you criticise someone, you should walk a mile in their shoes. That way, when you criticise them, you’re a mile away and you have their shoes.
10. If at first you don’t succeed, skydiving is not for you.
11. Give a man a fish and he will eat for a day. Teach him how to fish, and he will sit in a boat and drink beer all day.
12. If you lend someone £20 and never see that person again, it was probably worth it.
13. If you tell the truth, you don’t have to remember anything.
14. Some days you are the bug; some days you are the windscreen.
15. Don’t worry; it only seems kinky the first time.
16. Good judgement comes from bad experience, and a lot of that comes from bad judgement.
17. The quickest way to double your money is to fold it in half and put it back in your pocket.
18. A closed mouth gathers no foot.
19. Duct tape is like the Force. It has a light side and a dark side, and it holds the universe together.
20. There are two theories to arguing with women. Neither one works.
21. Generally speaking, you aren’t learning much when your lips are moving.
22. Experience is something you don’t get until just after you need it.
23. Never miss a good chance to shut up.
24. We are born naked, wet, and hungry, and get slapped on our arse and then things get worse .
One evening, two girlfriends and Myrtle went to a nightclub, only to find the place packed with young people.
At 40, they felt old, but before they could make a dignified exit, a tall, handsome man approached them.
“Perhaps we were being a little hasty in leaving,” Myrtle thought.
Then with a big smile, the man extended his hand to one of her friends and said, “Hello. Remember me? You taught me in third grade.