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Press release 2018


Press Release

Annual Members' Meeting of the German Shipowners' Defence Association held on 25th October 2018 at the Hotel Empire Riverside Hamburg

The Association's annual report as presented by the Chairman of the Board Dr. Kurt Klemme (Reederei Nord GmbH) provides a solid reflection of the 2017 business year. A surplus of EUR 17,146.98 (2016: EUR 54,749.44) was achieved and added to the free reserves.

In the reporting period (2017) claims totalling EUR 18.4 million (previous year: EUR 15 million) were either recovered or resisted on behalf of Members.

About 43% of the cases reported to the Association in 2017 were finalised which is a notable increase compared to the previous year (33%).

The continuing tense situation in the German maritime sector is resulting in a high number of insolvencies and sales as well as high levels of scrapping activities. In line with this development the number of vessels insured has reduced further in the current business year (2018). According to the report given by the Managing Director Michael Wester 1,280 ships are currently entered with the Association (October 2017: 1,335 ships) which represents a decline of 4%. To a slightly larger extent the total tonnage insured has reduced, i.e. by 10% to about 26 million GT (2017: about 29 Million GT). For the current business year a reduced premium income is therefore anticipated.

The number of new disputes is expected to fall in the business year 2018 due to the reduced tonnage. This can be seen by a comparison of the current figure from October 2018 (241 disputes) with the one from the previous year (269 disputes in October 2017). In contrast, an increase can be observed in the general inquiries which mainly concern the negotiation and evaluation of charter party clauses. While 221 inquiries were handled in 2017 until October, the number has risen to 253 in October 2018. Against this background a slight reduction of costs is anticipated for 2018.

For the current business year a balanced result is expected.

As before, the majority of cases relate to disputes under time charter parties. Furthermore, and this is a development which had been observed in the previous year, there have been more members having to deal with problems arising from bunkers of inferior quality (main engine damage, off-hire). Finally, a substantial number of inquiries from Members concerning the MARPOL 2020 regulations as well as sanctions, in particular those imposed against Iran, had to be attended to.

In the Meeting of Members it was decided to leave the premiums for 2019 unchanged. Consequently, the premiums – which range from EUR 440.00 to EUR 1,800.00 per year depending on the vessel's size – have now been steady for 14 years. The same goes for the deductible of 10%, minimum EUR 450.00 / maximum EUR 4,000.00. Moreover, it has again been decided to assist those Members whose vessels were laid up in the current business year for at least six months without interruption so that no freight / hire was earned and no payment was received under loss of hire insurance. These members will receive, upon application, a reimbursement of 50% of the annual premium paid for the vessel concerned.

By an amendment of the statutes the insurance cover offered by the Association was extended. Disputes following from a collision are no longer excluded.

Re-elected to the board of directors was Jochen Döhle of Peter Döhle Schiffahrts-KG.

Dr. Michael Silies of Ahrenkiel Steamship GmbH & Co. KG was newly elected to the board of directors.

After 26 years Dietrich Tamke of Transeste Schiffahrt GmbH from Jork retired from the board of directors. The Meeting of Members thanked Mr. Tamke for his long-standing commitment.

The Members’ Meeting was followed by the traditional Annual Dinner of the Association which was attended by about 150 national and international members and guests. In his "After Dinner Speech" titled “Se adaptere necesse est“ Mr. Karl Gernandt, Executive Chairman of Kühne Holding AG, described the challenges companies are faced with in a constantly dynamic business environment with increasing political instability to ensure that a business model can be offered which in the future will remain attractive to their customers.

Schutzverein
Deutscher Rheder V.a.G

You will find us in the Hafencity district of Hamburg, near Magellan-Terrassen and Sandtorhafen with its historical vessels.

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Am Kaiserkai 6

20457 Hamburg

Contact

Phone: +49 (0)40 300 666-0

Fax: +49 (0)40 300 666-99

info@shipdefence.de