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Saturday, September 22, 2018

Substandard Shipping – Who is Responsible?

The Insurance Institute of London attracted a large audience for the Institute’s Centenary Marine Panel Debate: "Substandard Shipping – Who is Responsible?" on 19 October 2006.


Panellists included Richard Leslie (Permanent Secretary, IACS) and INTERTANKO MD Peter Swift, assisted by Petter Mellet (Bankserve) and Peter McIntosh (Wellington), with Simon Stonehouse (BRIT Syndicates) in the chair. A copy of Swift’s intervention can be seen here.


While there was general agreement that the industry’s overall performance, as demonstrated by many measures, was steadily improving, there was also wide acceptance that substandard elements still existed in several, if not all, of the maritime sectors. Additionally it was well recognised that the expectations placed by society and politicians on shipping’s performance were ever greater.


Various ideas were discussed as to ways to identify and put further pressure on the "substandard". These included the importance of the Poseidon Challenge approach to commit to cooperation with other parties in the chain (or ring) of responsibility and to commit to continuous improvement.


The importance of sharing relevant information and the current impediments to it also featured in the remedies offered to the questions: "What more can we and should we be doing?". General discussion highlighted that reinsurers should be more involved in the Responsibility Chain as should some of the secondary banks who tended to make finance available without too many questions.


The meeting was also reminded that at the end of the day any ship that was bought and insured, was flagged and was classed, and was in the market, was only tradable as long as it could be chartered. 

Contact: Peter Swift