Limiting the Unknown: The P&I Dilemma

by Bridget Hogan

P&I premiums for shipowners could well top the $2 billion figure for the 1996/97 year now under negotiation as the deadline of February 20 fast approaches.

Shipowners are facing increases similar to those of last year – in the region of 5% to 7%. Some may have to pay 7.5% more; others may find no increase at all.

The individual sums for vessels are to be paid in two or, at most, three installments, depending on the Club’s own policy. The first installment will typically be made up of about two-thirds of the advance call, with the remaining third due in August at the time of the second installment. In addition, at that time, any back calls owing to the club are payable. This makes August, according to one P&I Club executive, “a nasty month” for shipowners.

This is only an excerpt of Limiting the Unknown: The P&I Dilemma

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