Put on Your Negotiator’s Cap – It’s P&I Renewal Time Again

by Bridget Hogan, London

Things are now slightly quieter on the P&I front in comparison to the scene four years ago when rates seemed to be spiraling ever upwards. Quieter it maybe, but as the dreaded February 20 deadline for renewals approaches, complacency is certainly not the name of the game. It is clear that, although rate increases have softened, there is much bubbling under the surface.

On the one hand, Clubs have strengthened their balance sheets, particularly over the last two years. On the other, they face a period of uncertainty over the number and size of claims and the regulatory world they will have to inhabit. Overall, general increases are ranging from zero for members of at least two Clubs – Gard and Britannia – to 7.5% at the top end – notably West of England – with a 5% median for the rest.

However, according to Joe Hughes at leading broker Jardines Insurances Services, it seems that, once again, shipowners have been successful in individual negotiations and that, overall, Clubs are struggling to get any increase across the board. Owners, particularly of tankers trading to and from the United States have felt the cool winds more.

This is only an excerpt of Put on Your Negotiator’s Cap – It’s P&I Renewal Time Again

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.