The Swedish Club No. 2 - 2014

AGM REPORT Page 4-23 Facing the challenges head on

Entering into The first wave of the MRM Campaign Builder’s – a resounding success! Risk Page 28-29 Page 26

Legal update: What it is all about Page 25 | Content |

3 LEADER 24 CLUB INFORMATION Presumed innocent until proven guilty! Marine Insurance Course

4-23 ANNUAL GENERAL MEETING 25 LEGAL UPDATE What it is all about

Managing Director’s Report 4-5 Keynote speaker: Martin Stopford 6-7 Keynote speaker: Magnus Lindkvist 8-9 STRATEGIC BUSINESS DEVELOPMENT & Panel discussion: 26 CLIENT RELATIONSHIP Putting the eco-ship into perspective 10-11 Entering into Builder’s Risk Panel discussion moderator: Khalid Hashim 11 AGM-profiles: Martin Stopford 12 Dagfinn Lunde 12-13 Carl-Johan Hagman 13 John Coustas 14 Hermann Klein 14 The Swedish Club Board of Directors 2014 15

27-29 SAFETY Why do heavy weather claims occur? 27 The first wave of the MRM Campaign – a resounding success! 28-29 Martin Hernqvist speaks at the 17th European New Board Member: Manning and Training Conference 29 Michael Bodouroglou, Allseas Marine 16-17 Early Arrivals Dinner 18-19 30-36 CLUB INFORMATION News from Team Piraeus 30 News from Team Gothenburg 30 News from Team Norway 31 News from Team Asia 31 Out and About 32-35 Staff News 35 Club calendar 35 Club quiz 35 Contact 36

AGM Dinner 20-21 Out & About: Mutual Cup 22 Out & About: Partners’ Programme 22 Out & About: The Swedish Club Grand Classic 23 Out & About: A day outside 23

| 2 | Triton 2 – 2014 August | Leader | PHOTO:

Presumed innocent Jonas Ahlsén until proven guilty!

Lars Rhodin Managing Director

Dear members and associates,

Presumed innocent until proven guilty is a fundamental “Women and children first” does not seem to apply principle in criminal law. It is not until the prosecutor has anymore. We saw that in the Costa Concordia case too – a submitted evidence “beyond reasonable doubt” that the captain who slipped into a lifeboat way ahead of other suspect can be found guilty of a crime at trial. Until then, people onboard. This deplorable behaviour is evidence of the wrongdoer is not guilty under criminal legislation. a bad, inexcusable culture; it does make a great disservice This principle however does not seem to apply in marine to the industry, creates a major outcry and gives us a very casualties. The media and society has little tolerance strong case of “guilty”. with shipping accidents. I can understand this reaction in The Swedish Club’s AGM 2014 in June carried a strong cases involving loss of life, but less in incidents resulting programme, in common with previous years, which again in environmental damage and property loss. Yet the generated a high level of interest. Dr Martin Stopford is a presumption in all these cases is “guilty”. world name and second to none in shipping research. His The tragic ferry sinking of the MV Sewol in South Korea in thought-provoking speech on Members’ Day “Past, Present April resulted in widespread social and political reaction in and Future of shipping” led us in to an interesting debate South Korea; from criticism of the actions of the captain and on the state and prospect of the industry with the high- most of the crew of the ferry, to criticism of the ferry operator powered group of panelists. and the regulators who oversaw its operations, to criticism Our second keynote speaker – Magnus Lindkvist – took of the South Korean government and media for its disaster us on a journey past tomorrow in a way only trend spotters response and attempts to downplay government culpability. and futurologists can do. These items are fully covered in the Subsequently, the captain and three crew members were Triton together with the other features and social activities of charged with murder, while the other 11 members of the the events, so please enjoy your read. crew were indicted for abandoning ship.

The Swedish Club Triton is published three times a year Production Coordinator © The Swedish Club and distributed free of charge. The Swedish Club Triton is an Susanne Blomstrand Articles or extracts may be quoted provided that The Swedish Club is editorially independent newsletter and opinions expressed PR-consultant credited as the source. by external contributors are not necessarily those of The Elaborate Communications Ltd Swedish Club. Articles herein are not intended to provide Layout legal advice and the Club does not accept responsibility Eliasson Information, Gothenburg for errors or omissions or their consequences. For further Print information regarding any issue raised herein, please contact Cover photo: Jonas Ahlsén PR Offset, Mölndal [email protected] our head office in Gothenburg. 14085000B www.swedishclub.com

Triton 2 – 2014 August | 3 | | AGM/ Managing Director's Report |

Returning a strong perfo rmance

“Last year was a good year for the Club and our goal is to grow a bit more than the mar- with results showing a positive return on ket. In P&I we have grown by 50% over the past investment and a very good contribution four years, against a growth in the world fleet of from the underwriting side,” said Lars 30%. P&I volume in terms of tonnage increased Rhodin, The Swedish Club’s managing by 8% in 2013, which was in line with expecta- director, during his address to the Club’s tions. The year saw the P&I fleet pass the 55 mil- 142nd Annual General Meeting (AGM) in lion gross tonnes mark. Gothenburg on 12 June. In H&M we have increased the number of units we insure from 1,500 to 2,000. Part of this “We had a strong operating performance, return- ing a surplus of USD 17 million, and we saw Managing Director’s Report further diversification within marine and energy with planned growth in all sectors.” is regular growth and part is the addition of more During the year, the Club strengthened its of- offshore service vessels which we have entered in fice in Norway, decided to offer its Maritime -Re through our regional offices.” source Management (MRM) programme free of He also pointed to the strong contribution charge to members and saw its free reserves rise that came from the underwriting side. He add- to a historically high level of USD 168 million. ed: “We saw a total net combined ratio of 93% The Club sees MRM training as a significant which was made up from a net combined ratio in contribution to the drive to reduce large naviga- marine of 67%; a net combined ratio in energy tion claims resulting from human error. of 84%; net combined ratio in P&I of 112% — The strengthening of its services to the Nor- which is acceptable under the circumstances — wegian market includes the offshore service ini- and a net combined ratio in FD&D of 81%.” tiative, described in the Club’s annual review as While claims frequency may have been up a being of particular significance. little, the size of the average claim fell in P&I. While the scrapping of elderly tonnage during There was a rise in cargo and injury claims last 2013 has had an adverse impact on the premium year, members were told. income of some clubs, the average age of The Hull and machinery average claim costs were Swedish Club’s P&I fleet is just 9.7 years old, so down in 2013 compared to the previous year’s the disposal of older ships had less effect on pric- figures, although the number of H&M claims ing. per vessel showed an upward trend.

The year in review 2013 – a good year for the Club He told members attending the AGM that the He reiterated that 2013 was a good year for the results were the combination of four factors: Club and it developed well in all areas. “Not that “First of all we had a benign claims year; then we many companies stand the test of time over so saw the effects of diversification over many prod- many years and so many economic cycles,” he ucts in different business areas and we also had a said, but some companies do. “History is sup- strong marine operating performance with a very portive because that gives us identity and experi- good combined ratio. The way we transfer risk ence.” today means the Club takes more risk, enabling He stressed the importance of the Club’s us to conserve the upside.” long-standing relationships in a business which The Swedish Club’s managing director also is based on trust. “Insurance is not a quick fix underlined the importance of the Club’s future but a matter of long term confidence. 2013 was growth strategy. He said: “Growth is important the year when the Club showed progress despite

| 4 | Triton 2 – 2014 August | AGM/ Managing Director's Report | PHOTO: Jonas Ahlsén

Returning a strong perfo rmance

the tough conditions prevailing for shipping we were fortunate to make a bottom line [surplus] of USD 17 million.” He reminded the audience of the spiralling cost of casualties like the Costa Concordia and the Rena. There has been considerable concern in the industry about the rising cost of wreck removal, which often was aggregated by excessive intervention from coastal states.

Changes in The Swedish Club Board The Swedish Club appointed two new directors at its AGM including Idil Baran of the CerBa Group and Michael Bodouroglou of Allseas Ma- rine, which manages Paragon Shipping and Box Ships’ fleets. Captain John P. Samartzis of JP Samartzis Maritime Enterprises S.A. and Suay Umut of Dünya Denizcilik ve Ticaret A.S. resigned at the AGM. Samartzis has been on the Club’s board for over 30 years and Umut for 12 years.

Looking ahead Rhodin described The Swedish Club as a “com- posite” insurer, and the Club is continuing to expand the services it offers, including in the offshore sector. One new area of diversification is into Builder’s Risk, initially to provide insurance to Norwegian yards building offshore supply ves- sels. This new area of diversification in writing yard risk is in line with The Swedish Club’s expand- ing offshore activity and while Rhodin told the AGM that remaining static was not an option, he was not necessarily in favour of an aggressive growth strategy. The Club’s Norwegian office began by focus- ing on floating storage and rigs and then pro- gressed to offshore supply vessels now to enter into Builder’s Risk.

Triton 2 – 2014 August | 5 | | AGM/ Keynote Speaker: Martin Stopford |

KEYNOTE SPEAKER Martin Stopford, Clarkson Research Services “Past, pres ent and future of shipping – Time to invest?” Radical change in fuel prices, regulation and climate The current decade is the one that is most difficult change issues, as well as an economic depression and a to assess banking system that has “walked away from us”, are just “Those who get it right will have a very successful decade regardless some of the challenges the shipping industry is facing at of what the market does”, he said. “I believe today’s tough financial the moment. For these reasons now is the time to think environment will drag on and a renewed focus on the cost effective seriously about what to do in the future, Dr Martin Stop- technical management of the industry is the core building block for ford told The Swedish Club members in his much awaited survival and success.” AGM presentation. Good time to invest now? “Every decade is different and we are an evolving business,” he said. Coming to the present day and whether now is a good time to be “The future is what you make of it”. Back in the 1960s, 80% of the investing, Dr Stopford said he did not think it was a time for specu- tanker fleet was on 10 or 15 year time charters. “Those were the lative buying to make a quick buck. “During the great boom when days when shipping was a really serious industrial shipping business we all made lots of money, shipbuilding capacity got out of control. led by the charterers. In the 1970s and ‘80s, when nearly the whole Since the capesize bulk carrier market collapsed in 2008 there were tanker fleet went onto spot; then in the 1990s it was hoped there deliveries in quite a few years of 100m tonnes would be another boom, but this didn’t happen and there of bulk carriers, while during the boom it was hardly enough money to pay for the ships. Then in was only 20m tonnes a year. In conse- the 2000s money was pouring in and shipping became a huge money machine.” As a result the last forty years has been a financial roller coaster. For five years in the 1980s there was no Facing the challenges head on money at all with rates of $4,000 per day. At the start quence a surplus has built up of the 1990s this had moved to $10,000-$12,000. By and he does not believe really 2000 VLCC earnings reached $80,000 per day. good returns “until this lot dis- The market collapsed again in 2002 but by appears”. If trade grows at 3.5% 2004, earnings for a VLCC had risen to per year and yards deliver 85m $220,000 while in June 2008 capesize dwt a year, the surplus of ships will rates had moved to $300,000. Prices still be there in 2020”. have now moved back down to $9,500 per day. Some form of disruption in the next year or two As far as the world economy is concerned Chinese growth is now running at the rate of 7.5% as against 15%. Stop- ford described the picture in Asia (excluding Japan and China) as worrying, domi- nated by India when the question is whether incom- ing Prime Minister Narendra Modi will change the econo-

| 6 | Triton 2 – 2014 August | AGM/ Keynote Speaker: Martin Stopford |

“Past, pres ent and future of shipping – Time to invest?”

my and there are a lot of issues in Indonesia and Thailand. those providing shipping services, but there will also be increased “The thing to watch out for is the next crisis – whether it is an competition, he said. energy crisis or a financial crisis. Odds are there will be some form Owners of cargos may need to get closer to the owners of the of disruption in the next year or two”. ships in order to achieve the kind of shipping operations that they The peak of the ship deliveries came after the credit crisis in 2011 want. There is a big issue going forward in terms of the industry’s with 160m tonnes. “We are now locked in going forward at 90m long term customer base. The customer and the carbon footprint tonnes per annum”. Stopford believes that if owners are not com- are both key. “In terms of operational efficiency for the last 50 years ing forward with new orders, the yards will do the traditional thing we have been on autopilot because we have had very cheap fuel and and cut prices and there will be some good, cheap newbuildings could afford to build whatever ships we liked. Now bunker oil pric- coming along. The key point will be to get the right price. es have gone up enormously and at the same time the issue of the carbon footprint regulations are pushing in the same direction. The Supply and demand analysis industry is under technical pressures that it hasn’t been used to.” As far as supply and demand analysis is concerned at the moment shipowners needed help from cargo owners rather than there being Money speaks in the end in shipping an adversarial marketplace. “If owners are afraid of charterers you For the last 50 years the ship was expensive and the fuel dirt cheap, get lousy rates even if there is a good supply and demand balance”. he said. Because the ship was much more expensive, the priority was This differed from the days when the cargo owners ran the business to design it to make it as fast as possible. Until 2006 it was more ex- pensive to go slow- er, given the cost of the ship. Now Facing the challenges head on charterers have a and a shipowner would negotiate a 15 year charter which made him greater incentive for the cargo owner’s “man”. getting a slower ship than they used to. He advised reviewing oper- The shipping industry is an old fashioned one and set in its ways, ating speeds constantly, having contracts that allowed for this and a according to Stopford. He feels that the time has come to do some- strategy that deals with market fluctuations. thing completely different. “In looking at a strategy the first thing is “Money speaks in the end in shipping and if you are up against it to consider what business you are in”, he said. “Is it running ships or financially then people will change. Economies of scale have been delivering cargo?” the mantra”, he says. “With today’s high fuel prices you don’t really save with the size of the ship.” Looking at the business strategically There is an information revolution going on and “we need to The issue of buying and selling ships to make a profit he described evolve ship systems to make use of it. We have new technology to as arbitrage or gambling and not adding value. There was nothing help out. Companies have to evolve”, he said. “If you spend money wrong with this – someone in the world economy has to carry this on IT there is no guarantee it will work”. risk - and for shipping companies “it can be a good sideline” but in As far as investing for the future is concerned, he advocated be- his opinion it should not be the central focus for the business. fore spending a lot of money on ships to “think about the fact that “We need to look at the business going forward strategically as a technology is a chore. Have you done everything required to get whole. We need to look at the demand and who our customers are. value for your ship and is it actually going to give you a proper guar- How often do you have a discussion about customers, getting close anteed return to take to your customer and say ‘this is real value to customers and visiting customers?” he asked. He advocated sup- added’?” porting customers and getting to know their needs. Another issue is what companies are doing to make ships operate Trade cargo, not ships more efficiently. Speed management is the biggest way to cut the Energy costs are high and rising and climate change concerns and carbon footprint. A lot of companies he regulation are increasing. According to Stopford “we are going to believes do not know how and whether have to change, it’s just a matter of when, who changes and who their carbon footprint has improved makes the best job of the change”. Cargo ownership is also chang- over time. ing and he believed maybe the industry should be looking beyond the spot market. Looking ahead Another issue was the adversarial relationship with cargo owners Shipping has a whole bunch of new and charterers has been spot driven, he said. “You need the cargo customers Stopford explained, particu- interests to help out with the big changes that are needed today.” larly in the Pacific and they are going to “Trade cargo, not ships should be our new mantra.” import a lot more cargo. Pacific cargo share has increased from 18% to 53% in 2013. Growth in non-OECD countries should provide increased potential for PHOTO: Jonas Ahlsén

Triton 2 – 2014 August | 7 | | AGM / Keynote speaker: Magnus Lindkvist | Jonas Ahlsén Jonas How to change PHOTO: the world one step at a time Magnus Lindkvist, Trend spotter and case with Encyclopaedia Britannica which, due to technological Futurologist, challenged and advances, suddenly had to contend with competitors who had not entertained the audience at The previously been in the field. “I see something similar with public Swedish Club’s Members’ speaking, there may be about 50 of us in Europe who can make a Day with a keynote speech living out of public speaking, but there are thousands now who on Pattern Recognition are willing to do it for free”. “Futurology – a journey past The difficulty of vertical change and vertical growth is that “you tomorrow”. have to let go,” he says. “One myth of progress,” he adds, “is that everything you do, has to be new.” He takes as an example the use Interviewed after the event, we of bicycles in Copenhagen. People are moving away from using asked Magnus Lind- cars in favour of them, because it is more practical and cheaper to kvist how he deals have a bicycle to get around on. For a short while people might with many different think that it was running against the grain of technological ad- industries and does vances, but sometimes this approach was needed. Concord, for he think that ship- example, was probably “the right idea with the wrong execution”. ping is a conservative According to him “we still haven’t been able to manipulate grav- proposition? ity, that is why we don’t have flying cars”. “An industry is the name we give to a collection of com- Two events changed him panies who are quite mature and who Magnus Lindkvist grew up in the Swedish ex-pat community in are doing similar things,” he says. “It is London, based round Kingston. He describes himself as a “happy- by its very definition conservative, meaning go-lucky” person up to the age of 17 when his father had all his sticking with the methodologies that it has, money embezzled in a Madoff style scam. “That was probably ulti- and making incremental change and not much mately to the good because it saved me from becoming a rich kid,” else.” he says. Shipping was once like Google, he main- The second shock was that he was victim of a burglary in the tains. It was virtually an industry in itself. house, in which he was tied up and threatened with being killed. “There is no collection of Googles, there is just These two events changed him from being a carefree individual to one, with an 85% world market share of re- a more reflective person. search.” Today, very few industries have that Started trend spotting as a hobby KEYNOTE SPEAKER Magnus Lindkvist He went to business school but this did not appeal and he got a luxury, although they might have had it once. “Now only a rare scholarship to study film in 1998. He tried working in advertis- few have the technology and the guts to pull it off”. ing, but gave this up to train as a journalist and write a novel. He “In an industry you tend to be quite process oriented, and you started doing trend spotting sessions as a hobby. consider how to make it efficient and cut costs”. Process-driven After three years of doing odd jobs he was able to start a com- people are also required, he explained. “It leads to homogeneity. pany in 2005 to focus full time on public speaking and studying A bit like in the Army, it is quite difficult to have, for example, a trends. It took him about three years to be able to develop this ninety year-old woman on the staff.” into a full-time career. Since 2008 he has been living off public The opposite of being process-driven is being product-driven speaking full-time and “it takes me around the world,” he says. and by that he means creating something brand new at least once a year, “because you know the iceberg is always melting”. “In a So how has he collected the view that he expounds in his product-driven company things are different, because you actually lectures? want someone outside the mould around to see new ideas and get “Anita Roddick of The Body Shop once said you have to be an op- things in. It’s almost the opposite to having that streamlined, ef- portunistic collector, and that is what I am.” “Attention is a two- ficient, cost-cutting, driving approach. It’s a little bit like whether way street, we have top-down attention which means ‘I am look- we change the recipe or we repeat it”. ing for x’ and then there is bottom-up attention which means ‘x’ finds you. I am much more bottom up.” Vertical change and vertical growth Everything gives him ideas, and he is open to opportunities Magnus Lindkvist quotes a comment that “the most difficult, – today, Magnus Stopford’s talk at the AGM was particularly painful race is the one that you don’t know you’re in”. This was the thought provoking. He says he saves all the speeches he has done.

| 8 | Triton 2 – 2014 August | AGM / Keynote speaker: Magnus Lindkvist | How to change the world one step at a time

The challenge for any innovator is a trade-off between ‘new’ and is where the newspaper industry was in 1999, he says. However, “we ‘reliable’ and most people he deals with want ‘reliable’, even if they are starting to see more patterns in what you can create and inno- say they want ‘new and funny’. “They want a Mercedes and not a vate, so why don’t we use that as the cue to move forward”. Ferrari, and that is a challenge.” What will the customer be like in the future? To predict how it is all going to end up “A ship is just the way you do things right now – whereas a plane “Not only is there a challenge to hit the right note in business, but sacrifices cost and scale for speed, a ship will sacrifice speed for cost, also in trying to predict how it is scale and reliability,” he says. all going to end up,“ he says. “In the “Not only is there a challenge to hit the “If we keep on asking the shipping industry there is a lot of in- same question of what a ship terest in the need for change in de- right note in business, but also in trying will be like in the future we sign to meet the demands of compet- to predict how it is all going to end up,“ will continue to arrive at simi- ing for business, yet at the same time lar answers. Perhaps we should there is a lot of reticence about taking the industry by storm with be asking instead, what will the customer be like in the future? If eco-ships, particularly when the world fleet is so young.” we don’t have the right question we will find the wrong answer. We Most industry segments believe they “sell drills when you want can all dream up technologically sci-fi models but the real challenge holes”. He cites as an example Scandinavian airline SAS who will is in predicting how business will be done in future.” advertise upgrades to their cabin space when what the industry “Many people admire Apple’s Steve Jobs because he took death wants is for planes to go faster. defying risks - “Is it better to have many small ideas than one big one?” he asked. This could apply to what the ships of the future Allow the individual to innovate should look like. Those who invented the container didn’t set out to Innovation is difficult to do on a company-wide level but so the fo- change the world, but it happened anyway,” concludes Magnus. cus must be on allowing the individual to innovate. The ball is still very much in the shipping industry’s court. The shipping industry

Triton 2 – 2014 August | 9 | | AGM / Panel discussion | Jonas Ahlsén Jonas PHOTO:

Debating key industry issues. From left: Khalid Hashim, John Coustas, Carl-Johan Hagman, Dagfinn Lunde, Hermann Klein and Martin Stopford. Putting the eco-ship into per spective Having some of the finest shipping minds together on totally different?” he one panel debating key industry issues is one of the questioned. “Like the 3D strong points of the conference section of The Swedish printer: maybe this is the Club’s Annual General Meeting and this year was no ex- real competitor for con- ception. Sean Moloney tainers if you can produce Managing Director your shoes and clothes via Elaborate Communications Shipowner heavyweights Dr Hermann Klein, CEO of E.R a 3D printer will you need Bedfordshire, UK Schiffahrt and Dr John Coustas, President and Chief Executive of transportation? You need Danaos Shipping Co., joined forces with Dagfinn Lunde, Chair- to ask what will be the real competitor moving forward. Long-term man of Executive Ship Management and Stena Shipping and Drill- investment in shipping may end up not only being transportation ing’s Chief Executive Carl-Johan Hagman, to discuss the whole but also the production of goods.” issue of eco-friendly tonnage and its role in shipping today and Dr Klein also talked to delegates about the eco-vessel revolution tomorrow. All debated under the superb direction of Precious Ship- and the need for vessel modification and crew training to take into ping’s Managing Director Khalid Hashim. account as well. “Modification of your vessels is absolutely necessary and you have to carry out modifications on existing vessels to make And as Dr Hermann Klein said as he got proceedings off to a sure your ship is at the best market level it can be. I.e. conversions good start: “Shipping now is all about arriving on time and arriv- from DP1 to DP2 in the offshore side; and when it comes to bulk- ing at the lowest cost, in the safest and most reliable way, but what ers and container ships we are looking at improved efficiency. But about the future? We have all heard about the driverless car but you can save money through important crew training because very what about driverless shipping? We talked about the driverless cars few crew today know how to operate a modified vessel efficiently,” possibly producing less accidents but can this be the same for ship- he said. ping – less accidents, lower costs and maybe safer to operate. Some food for thought?” Dr John Coustas added to the debate by suggesting that the Food for thought indeed, especially when you consider the ad- time may have come for the truth to come out from all the eco-ship vances being made in technology today such as the 3D printer. ‘jargon’. “The first real eco-ships were built after the oil crisis. I am “We have seen the market change dramatically over the last 20 to sure many of you will remember the age of the steam turbine. Then 25 years. Nobody could foresee this and the question is what we we had the second oil crisis back in the late 70s and 80s and by that will be dealing with in the future, the same vessels or something time oil went up to $40 a barrel, and because people thought oil

| 10 | Triton 2 – 2014 August | AGM / Panel discussion |

would go to $150+ there was tremendous research in the yards for the first long stroke engines.” “In the 80s people predicted we would have very expensive fuels and ships would have to be run at slower speeds. There is an example of US Lines, which isn’t around anymore, which made a bet at the time that oil would go to $100 a barrel and they built Khalid Hashim, Managing 4,200teu box ships designed to run at 17-18 knots. By the time the Director of Precious Shipping Co and moderator of the ships came on stream, the oil price had dropped dramatically and panel discussion held at the the ships were useless. The company went down because of that Club’s Members’ Day. investment.” He was quite forthright when he told the conference: “We see on one hand, eco designs based on a market projection. However, we are in an environment where we can’t know exactly how the oil price will develop so it is dangerous for us to make bets that are truly one way.” “All these eco designs (bulkers and tankers) started with a dearth in shipyard orders. I cannot understand how you can have a good design at 14 knots developed by a yard and all of a sudden without Timing is key to any major breakthrough in engine fuel oil consumption, or any kind of hydrodynamic miracles, you can go out and say the same ship will have 15% less consumption. The only way you can do that profit growth is if you start from a bad vessel design.” Bangkok–based Precious Shipping’s relationship with The Swedish Club dates back to 1993 when Dagfinn Lunde, put some solid figures to the facts when he told Managing Director Khalid Hashim discussed en- delegates: “There are 5,000 vessels on order now, and this year’s de- tering the company’s ships for hull and machinery liveries will require $120bn of financing. Compared to other indus- cover. tries, shipping has traditionally used a lot more commercial banks.” “Export credit agencies The relationship has gone from strength to strength. In 1996 are the future and they he joined the board of The Swedish Club and was appointed will provide the necessary chairman of the Club’s finance and audit committee a year financing because they are Putting the eco-ship into per spective later. In 2007 he became deputy chairman of the Club. financing the newbuild- He disagrees with the idea there is no money to be made ings. The financing will be there. The only gap in the market will be in shipping. The founding shareholders at Precious Shipping in the second-hand market – there are few commercial banks who started out with USD 3 million of equity in 1987 to buy ships. will help owners buy second-hand tonnage.” A couple of “dilutions” followed and then a public offering on He added: “One interesting thing is that I am sitting looking at the Thai stock market. Today the founding shareholders hold the industry and we have had sails, steam, now diesel and I don’t 61% which is worth in market capitalisation terms about USD even imagine you can change to LNG or other fuels. In my mind, 510 million – so it has grown 170 times in 27 years. there are extreme advantages in LNG such as the economy of the “Timing is the key,” he says. Shipping is a cyclical market fuel and society’s reaction. But don’t forget, if you have a new ship and he believes that it is predictable, although one may not delivering $6,000 saving and your investment is based on those always get the timing right. “You don’t have to have a very big savings, what percentage of that is taken by the charterer? Well be- fleet to make money,” he advises. Precious Shipping currently tween 50% to 70%, with the average being 67%.” has 40 ships with 29 more to be delivered, although tonnage will be sold to bring the overall fleet back to about 50 ships. Stena’s Carl-Johan Hagman added: “Despite the fact the world The company also values its crew. He points out that ships is changing, there is an unlimited amount of financing out there sail on three ‘M’s – meals, money and mail – so it is all about and no matter what you say, in US private equity there are suffi- ensuring the crew is properly fed, properly paid at ITF rates cient numbers of rich people out there to invest. But structurally and can communicate with their loved ones. “These three ‘M’s I don’t see how we will move from trading vessels to trading cargo are things that we are very good at,” he says. and doing it profitably. Stena has made 70% of its profits from asset Training is an important factor and Precious recently paid plays and 30% from daily operations and 99.9% of our staff work in USD 1 million for a simulator. “Training looks expensive un- daily operations. til you try an accident,” he warns. The company also uses The Tongue in his cheek, he said: “I do not believe in fundamentals Swedish Club Academy’s Maritime Resource Management in this market as we should not be here.” programme. The last word went to John Coustas who said: “The only way the Predicting a market upcycle in the final quarter, he reveals industry can make money is if the world pays more for our services. he believes all forecasts in shipping are generally wrong. “Fore- If the game is for us to sell a vessel from one another more expen- casting in shipping is very painful, it is like chewing glass,” he sively and one person wins and makes money, that is really where concludes. we should collectively work together.”

Triton 2 – 2014 August | 11 | | AGM / AGM-profiles | The right vision for the future Martin Stopford has long been consid- ture.” That vision is more important. “If you ered one of the few analysts prepared don’t order a ship then someone else will. You to stick his head above the parapet can’t be a shipowner without ships. Ships have when making predictions about the fu- to be ordered at some point and sometimes the ture of the shipping industry. Recently timing isn’t right.” Once you have the ships, the retired from Clarksons, he has been vision tells you how to use them to provide the branching out into other areas. quality service charterers demand, at the rock bottom freight rates competitors offer. Commenting on the ship management seg- That’s where the technical part is tricky for ment, he maintains that ship management smaller companies without much room for companies should be trying to differentiate technical overheads. The technical manage- themselves from the opposition. Even the larg- ment issue plays a big part in this vision and est, he says are trying to market their services outsourcing may be an option – but the right as being cheap, whereas registries like the Mar- partner is crucial. shall Islands have proved that with the right With his departure from Clarksons, is he now semi- formula you can prove attractive to a different retired? type of client. Today the shipping industry Dr Stopford says he puts two to three days a faces many new technical and regulatory chal- week aside for farming. Just after the credit cri- lenges. ”If a ship manager is sis he found a unique but rundown Georgian AGM-PROFILE Martin Stopford running 3,000 ships, he is in a farm in Staffordshire and grazes organic beef, much better position to provide in a joint venture with a local farmer. “The a qualified professional staff to deal with the is- farm brings you back to basics,” he says. “You sues. Even big companies struggle with this and are creating from the raw ingredients and when for the 10 ship company it’s a problem.” you have worked in the City, it’s a good bal- Has the shipping industry learned from its mistakes? ance.” He believes the right question to ask is not Dr Stopford will generally spend two days a whether shipping has learned from its mistakes week travelling to speaking engagements and but whether the industry has the right vision conferences and is also developing a blended e- going forward. For example the vision of ship learning business, building on the franchise of management today reflects its history, and he his book Maritime Economics, “so that when says “doesn’t quite take on board the potential I’m too old to get on a plane, I can still carry on that ship management could have for the fu- pontificating.” Making crew count Although Dagfinn Lunde is perhaps company expand. “ESM currently runs about best known for his banking role at DVB, 140 ships but could do much more. ESM is a from which he retired last year, he is very specialised company in the tanker indus- quick to point out that his previous role try with a special focus on education and train- was as Managing Director of Independ- ing of crew,” he explains. ent Tanker Owners Association INTER- So what does he consider to be the key focus regar- TANKO and before that at Klaveness, ding training at the moment? which puts him in good stead for his “Accidents,” he says. “Training for naviga- new role as Chairman of Executive Ship tion is a key issue for the company because the Management. industry increasingly suffers from rampant navigational blunders, from untrained or inad- He took over as Chairman of Singapore-based equately trained seafarers. The last big accident Executive Ship Management (ESM) with the in Singapore was one example, when the rules role of raising its client profile and to help the of the road were not respected. The situation is really serious.” AGM-PROFILE Dagfinn Lunde

| 12 | Triton 2 – 2014 August | AGM / AGM-profiles | Keeping ahead of changing markets Fighting protectionism is one of the regulations differ substantially between re- key challenges faced by the shipping gions - or risk not being enforced properly, industry, according to Stena shipping as may happen with the low sulphur SECA and drilling chief executive Carl-Johan regulations. That can lead to unfair compe- Hagman. tition which is not good.” So what are your views on eco-ships? “On the whole, the shipping industry lives “Eco-ships came into existence due to the on international trade and historically has high fuel prices we have seen over the past always benefitted from increased globalisa- few years and in addition are beneficial tion. The biggest threat to the industry is for the environment - so they are good for therefore if we see growing protectionism, all. I believe the term ‘eco’ will gradually with countries or regions isolating them- be phased out as it’s very unlikely that fuel selves.” prices will drop AGM-PROFILE “In addition legislative measures focus- substantially and Carl-Johan Hagman ing on, for example, vessels’ age and size hence no ‘non–eco’ ships will be built in rather than quality, can be damaging in future.” particular segments. I believe the tradition- As far as the debate on new in- al shipowners in this industry are dealing Market views vestment as against consolidating very professionally with the challenges we In terms of the way the market is going to with existing assets and improv- are facing.” perform going forward he believes that the ing energy efficiency measures Environmental regulation is putting shipping future will very much depend on segment, is concerned, Hagman says that firms under pressure, how is Stena dealing macroeconomic factors and order books. with quality maintenance a ship’s with the issues? “We are positive on the shipping market life can be long and “as such we “We welcome environmental regulations overall as shipping demand has always focus first hand on taking care of as they make the world’s greenest industry grown quicker than world GDP. However the ships that we already own be- even greener. It also forces the industry to trade barriers, fuel prices and the influx of fore we order new ones. We have find new solutions and new technology - private equity in certain segments are fac- improved energy efficiency sub- such as Stena’s projects with methanol as tors that can have damaging effects in spe- stantially over the years in many marine fuel. What is challenging is when cific sectors - which we can see today.” of our existing vessels and are continuously improving in that area. Newbuildings are great, but a vessel’s age is only one param- eter. When comparing the quality of ships, it is important to look at the full picture.” He says that the current tonnage over- know what to do and that’s the best way of supply situation affecting the market is not running a ship. Retention is key and ESM New technology is key to new. What shipping should be doing is be- has 98% retention.” driving the industry forward ing careful to buy at the right time, working So what steps are Stena taking in closely with customers and building an ef- So is the market growing for third party this respect? “We are tradition- ficient operation. This “carries you through if managers? ally one of the most technology you have low leverage on your balance sheet”. With the number of new ships coming in driven shipowners there is, with “ESM has a special philosophy,” he says the next two years, demand is huge. “You in-house developments such as the “with its focus on specialised vessels like hear about the lack of qualified people at wide body MAX-concept tanker tankers and training. Their pre-sea training many conferences. Look at LNG, you can’t design, the high speed HSS ferry, centre trains about 400 officer cadets each find good people today and there is a huge the ice class DrillMAX drillship year who go to join the ships managed by demand for offshore companies. That is the and our methanol ferry conver- ESM only.” “This creates loyalty with peo- biggest deficiency in the shipping industry – sion. So we embrace new technol- ple coming back to a ship,” he explains. “If qualified crew.” ogy to deliver safety and quality you get the same crew back on the ship, they to our customers. We always have to evolve - or we will sink.”

Triton 2 – 2014 August | 13 | | AGM / AGM-profiles | “Efficiency is King” Dr. John Coustas is President and up to a five per cent improvement in con- CEO of Danaos Corporation. He has sumption in the way they run the ship. over 25 years’ experience in the Another issue he highlights is greater con- shipping industry and assumed trol of operations. Maersk, he says went management of Danaos in 1987 back into the black purely as a result of from his father, Dimitris Coustas, cost controls, not because of higher rates or who founded Danaos Shipping in volumes. 1972. He is also Deputy Chairman He expects to see more consolidation and a member of the board of direc- among small owners who don’t have the tors of The Swedish Club. expertise or the power to invest in all that is necessary to make the improvements, The shipping industry is going through including information technology. an interesting period at the moment, with He believes that greater use must be much concern being expressed about over- made of cutting-edge technology in order supply of tonnage, and Danaos Corp Presi- to drive such improve- dent and CEO John Coustas predicts slow ments. “Word should AGM-PROFILE John Coustas growth round the world for the next two go out to the industry years, with few peaks. to concentrate on operational efficiency of “We are going to see a relatively flat mar- existing assets because even if owners order ny has a research department which purely ket. With slow steaming it will be possible the best eco-ship, if supply and demand is deals with the issue of operational efficien- to keep demand and supply not greatly out not there, the investment will not be justi- cy, and its trade partners benchmark the of check. I think most market players do fied,” he says. company on the basis that its ships are run not have growth plans but are looking to To ensure that crews are competent, more efficiently than those of competitors. consolidate and invest, not in new assets training is an important component and it “That’s where we get our competitive ad- but in improving the efficiency of the assets is also necessary for shipping companies to vantage. You cannot substitute technology they already have,” he believes. understand what operational efficiencies for inefficiency at the core of the business.” Even the ship’s crew, he says can make are all about, Dr Coustas says. His compa- “Shipping markets are continuing to suffer” Hermann Klein, CEO of E.R. Schiffahrt, a “Except for 12,000 to 18,000 TEU vessels sail- member of The Swedish Club, has outlined ing on Europe-Asia trades, it will become much some of the challenges the industry is fac- harder to predict which vessel sizes will dominate ing. on which trades. “Speed flexibility and fuel efficiency are and will According to Dr Klein: “The shipping markets continue to be of vital importance for all shipping in general are still suffering from overcapacity. At companies. This applies not only to container ves- the same time we see the number of idle ships de- sels but also to bulk carriers,” Dr Klein says. creasing. But despite signs of recovery for certain “Throughout the last years we have implemented container vessel sizes we will still see a tremendous numerous different measures and modifications so number of newbuilding deliveries in 2014 and today E.R. Schiffahrt offers state of the art vessels 2015. TEU-wise it will be the biggest newbuilding to the charter market and, as a ship manager, offers volume we have ever witnessed. extensive knowledge, services and support to its “As for container vessels, markets remain diffi- customers.” cult to predict in the medium term, partly because He adds that the offshore market is still char- acterized by solid asset values and believes it will AGM-PROFILE Hermann Klein remain attractive within the years to come. “That of the cascading effect. Larger vessels will continue is why we just signed an order for two modern plat- to replace smaller vessels and soon many of them form supply vessels,” he added. will even be able to pass the Panama Canal.

| 14 | Triton 2 – 2014 August | AGM / The Swedsih Club Board of Directors |

The Swedish Club Board of Directors as per 12 June 2014 PHOTO: Jonas Ahlsén

At The Swedish Club’s Annual General Meeting on 12 June two new board members were elected: Idil Baran, CerBa Group of Companies, Istanbul, Turkey Michael Bodouroglou, Allseas Marine S.A., Voula, Greece.

BACK ROW from left: FRONT ROW from left: Andonis Lemos Michael Bodouroglou Michael Vinnen Demetri Dragazis Sumate Tanthuwanit Chen Xiang Anders Leissner (Board Secretary) Lennart Simonsson (Chairman) Anders Källsson Khalid Hashim (Deputy Chairman) Rob Grool John Coustas (Deputy Chairman) Diamantis Manos Idil Baran Anders Boman Lars Rhodin (Managing Director) Kim Kyong Soo Gustaf Grönberg NOT IN PHOTO: Fred Cheng Li Zhen Elisabeth Rydén (elected by the employees) Peter Claesson Lars Höglund Weng Yi Jakob Osvald (elected by the employees)

Triton 2 – 2014 August | 15 | | AGM / New Board Member |

Looking forward to the challenges ahead seems to be the mantra of the newest director elected to The Swedish Club’s board. Michael Bodouroglou of Allseas Marine, who also manages the Paragon Shipping and Box Ships fleets, is an experienced shipowner and while the shipping markets toil slowly to emerge from the deepest financial crisis in living memory, he remains optimistic about the future ahead. As far as market conditions go, generally speaking people think the worst is behind them, says Bodouroglou. “I am very pleased to be able to contribute to the best of my ability to the efforts of the board.” A cautious optimist AT THE MOMENT he has seven vessels entered with The Never compromise on quality and safety Swedish Club and sees the trend as upward. “We look for- One concern he points to is on the cost side of the equa- ward to increasing the number of ships we have entered tion, because there is a floor beyond which an operator with the Club going forward,” he says. “It’s a very good cannot go without compromising quality and safety. “This Club which is managed very well and very diligently and should not be negotiable by any company,” because “if you has a hands-on approach with the members. What has think investing in quality and safety is expensive, try hav- struck me positively is the loyalty between the Club and ing an accident.” its members over the years. I haven’t seen that in any other “We should never compromise on quality and safety as- club.” pects, and because of that there is a floor on expenses below So does he find the Club very proactive in what it does? which we cannot really go. Crews have to be paid competi- “Absolutely, it has a very clear culture and very clear think- tive salaries and companies have to be insured with the ing regarding how things should be managed and what right people, while spare parts have to be bought from reli- it expects from its members. It tries to assist members as able sources.” much as possible.” He feels that the Club is of a size that allows it to both have the resources and be proactive but at Views on the market the same time be hands-on with its members. “It’s a combi- “Those shipowners who owe a lot of money to the banks nation that works in my view.” will continue to find the market difficult over the years So how does he see the market developing over the next year to come,” he says. The underlying market fundamentals or so? do not allow for a great deal of optimism but at the same “I’m quite optimistic as far as the demand side of the equa- time “I don’t expect that we will see rates as low as they are tion is concerned,” he says. “Although on a micro basis today. I think the market will be a bit better, but not sub- there will always be news which is of concern to the mar- stantially good enough to actually benefit those who are ket. I think that marine transportation is fundamental over-leveraged.” for the global economy and that maritime transportation At the moment he believes the investor community is will increase over the years with a healthy demand in all quite cautious. The current level of the market has sur- sectors.” Whilst the wet market is difficult to predict he is prised everybody as they were expecting it to be at a higher pretty confident on the dry side given the emerging econo- level. However, on the private side for as long as owners mies in Asia. On the container side the market will be driv- need to sell assets to be liquid, and for as long as markets en by consumers all round the world. remain at depressed levels “I think there will be private money around to invest in existing assets”. His major concern is the order book As far as the eco-ship debate is concerned he feels that He says he was far more optimistic a year ago with the lack perhaps they have been “over-sold a bit”. There are advan- of liquidity on the part of the banks and the tages with eco-vessels but he does not feel that the differ- availability of finance for shipowners ence is so meaningful to make a big difference going for- which kept the order book con- ward. Ships have to be considered in the context of when strained. The fact that private they are also in ballast and not only when they are loaded “We should never equity money has been poured or when they are in bad weather conditions, as there are compromise on quality into the market is a concern certain design features for eco-ships which are not very fa- as “it remains to be seen vourable to them when operating in certain weather condi- and safety aspects.” whether demand will be tions. able to outpace the big or- der book.”

NEW BOARD MEMBER Michael Bodouroglou

| 16 | Triton 2 – 2014 August | AGM / New Board Member| PHOTO: Jonas Ahlsén

NEW BOARD MEMBER Michael Bodouroglou

Triton 2 – 2014 August | 17 | | AGM / Early Arrivals Dinner |

THE EARLY ARRIVALS DINNER this year was held at Kajskjul 8, located next to the Dinner for Early Arrivals Maritime Museum in Gothenburg harbour. Lars Rhodin greeted all the guests as usual – - at Kajskjul 8, 11 June with a toast and a funny story. More photos can be found on www.swedishclub.com

Some of the guests enjoying the seafood buffet. | 18 | Triton 2 – 2014 August | AGM / Early Arrivals Dinner |

The Club’s own choir started warming up the guests by singing schnaps songs. Entertainment for the evening was the Swedish cover band “Bröderna Haaks”.

From left: Joe Balls (Omni Ltd, UK), Ûlkem Gürdeniz and Karin Dermitas Having a nice time. From left: Jürgen Hahn (Stichling Hahn Hilbrich GmbH, (Omni Ltd, Turkey) and Maria Berndtsson (The Swedish Club). Hamburg, Alexander Kay (Junge & Co Versicherungsmakler GmbH) and Thomas Kühl (Pandi Marine Insurance Vermittlungs GmbH, Bremen).

From left: Diamantis Manos (Costamare Shipping Co S.A., Greece) From left: Nick Embiricos (Seascope Insurance Services Ltd, UK), Vincent M. DeOrchis together with George Bamiotis (Conbulk Shipping S.A., Greece). (Montgomery, McCracken, Walker & Rhoads, USA), Paul Spencer (Miller Insurance Services, London) and Jan Risinger (Fairwater Marine AB, Sweden). Triton 2 – 2014 August | 19 | | AGM / Dinner |

Åsa and Mikael Laurin (Laurin Maritime AB, Sweden).

Filippos Lemos (N.S. Lemos & Co.) and Andonis Lemos (Enesel S.A.), the guests of honour.

From left: Helmut Ponath (NSB Niederelbe Schiffahrtsgesellschaft, Germany), Vivienne E. Pitroff (Holman Fenwick Willan), Syliva Wurzel and Rüdiger Hansel (Junge & Co Versicherungsmakler, Germany). AGM Dinner, 12 June LARS RHODIN welcomed all guests to the AGM dinner, held in the Banquet Hall at the Elite Park Avenue Hotel. Guests of honour were the brothers Andonis Lemos of Enesel S.A. and Filippos Lemos of N.S. Lemos & Co., who gave the after-dinner speech, which was very well received by all the guests. They told the guests that “The Swedish Club brings Swedish flair to the most international of businesses, you do what you say, you never over promise and you always deliver on your word.”

More photos can be found on www.swedishclub.com

From left: Sumathe Tanthuwanit and Surerat Tanthuwanit (Regional Container Lines, Bangkok) together with Vivian Ae Kyung Kim and Kyung Soo Kim (IMC Shipping, Singapore). | 20 | Triton 2 – 2014 August | AGM / Dinner |

Peter Cowling (Chairman Election Demetri Dragazis (LATSCO, London) with his wife Elizabeth. Committee, UK) and Karin Demirtas (Omni Ltd., Turkey). Peter Jacobsson and Sara Båth (Floatel International AB, Sweden).

The evening’s entertainment “Cookies & Beans” reinforced by Filippos Lemos. Triton 2 – 2014 August | 21 | | AGM / Out and About |

A friendly and relaxing moment after the game The Mutual Cup, 11 June TEAM SWEDEN finally won the annual football match 6-2, after losing two years in a row. A lot of spectators, both guests and TSC staff, gathered to watch the exciting game. It was nice to see most of the tournament sponsors there, either watch- ing or playing. This year we had two “Swedish Club hot-dog men” on the spot serving hot dogs and drinks, which was really appreci- ated, both by the players and spectators.

More photos can be found on www.swedishclub.com “The Swedish Club hot-dog men” Claes Åman and Peter Stenberg. The referee was tough but fair.

Partners’ Programme, 12 June Recycle, Repurpose, Relove THIS YEAR’S PARTNERS’ PROGRAMME was in the recycling spirit. The partici- pants started the day with a creative session at the Villa Belparc restaurant in “Slottskogen” city park. After lunch, the group continued to the Röhsska Museum for Design, Fashion and Decorative Arts to look at the Picasso on a plate exhibition and the Nordic jewellery exhibition. More photos can be found on www.swedishclub.com

| 22 | Triton 2 – 2014 August | AGM / Out and About |

From left: Kaare Langeland (Holman Fenwick Willan, UK), Ruizong Wang (The Swedish Club Hong Kong) and Martin Holm (Dansk Rederi A/S, Denmark). The Swedish Club Grand Classic, 13 June AN EAGER GROUP of golfers set out for Delsjö Golf Club, early on Friday 13 June. The sun was shining, the course was in very good condition and the group had a comfortable day’s play. Tord Nilsson from The Swedish Club, When all 18 golfers, divided into 6 teams, had finished the game, a lunch buffet and prize cer- congratulates this year’s winner, Walter emony awaited them. Wekenborg of Marlow Navigation, More photos can be found on www.swedishclub.com Cyprus.

A cup of coffee in the sunshine. From left: Li He (Sinotrans & CCs Group, PR of China) Jason Wu (The Swedish Club Hong Kong), Ruihong Guan and Youdi Han (Hong Kong Haibao Shipping, Hong Kong).

A day outside: nature, sculpture and....sheep, 13 June A TRIP was arranged on Friday 13 June to the island of Tjörn and which is one of Sweden’s most beautiful cultural landscapes. Here, its beautiful scenery. the sheep graze freely as they have done for centuries. The first stop was Sundsby Säteri, a manor house built in the 16th Lunch was served at Björholmen’s Marina before the bus took us century and now open to the public with cultural events, a park, back to Gothenburg. hiking routes and a café. The second stop was “Sculpture at Pilane” More photos can be found on www.swedishclub.com

Triton 2 – 2014 August | 23 | | Club Information / Marine Insurance Course |

Group of Marine Insurance Course 2014 gathered in the rain outside Restaurant Isbolaget on Donsö Island. Know-how and networking at the Marine Insurance Course ON 5-9 MAY, the fourteenth consecu- ance and learn more about The Swedish tive Marine Insurance Course was held at Club. the Club’s head office in Gothenburg. The This year’s group had a packed sched- course is an annual event designed to pro- ule with presentations covering the major vide an opportunity for people working for aspects of Marine Insurance, such as Pro- shipowners, ship managers, marine insur- tection & Indemnity, Hull & Machinery, Therese Lindqvist-Reis ance brokers and club correspondents, to Freight Demurrage & Defence, as well as Corporate Communications improve their knowledge of marine insur- reinsurance, loss prevention and Maritime Resource Management. The most appreci- sented members, brokers and reinsurance ated part of the course was the case studies companies from eleven different countries. and workshops that summed up the week. They all contributed to making the course To take part in a course is not only to not only about learning, but also about learn new things, but also to make new interesting discussions and networking. I learnt a lot contacts, especially if you are new to the The Swedish Club’s staff would like to th and already business. To get to know the participants thank all participants for making our 14 feel more and The Swedish Club’s staff, an event was Marine Insurance Course an enjoyable confident in held on Monday evening with a trip to a event and we are looking forward to next my day- lookout point, locally known as “the Lip- year, which will be the 15-year anniversary. to-day job stick” and then dinner at a restaurant near- activities. by. On Thursday the participants went on a trip out in the archipelago for dinner at the George Karapateas of Global Marine Isbolaget Restaurant on Donsö Island. The date for next year's course Insurance Brokerage Services Ltd. This year’s course participants repre- is 4-8 May 2015.

On the boat to Donsö, from left: Christin Ottman (Willis AS, Norway) Heidi On the boat to Donsö, from left: Sharon Beck (Stena Ltd., Ireland) Winkler (J Lauritzen A/S, Denmark) and Florence Gourlet (ETIC SAS, France). Christoffer Nilsson (Stena Line AB, Sweden) and Korina Skiniti (J.P. Samartzis Maritime Enterprises Company S.A., Greece).

| 24 | Triton 2 – 2014 August | Legal / Update | iStock PHOTO:

Anders Leissner Director Corporate Legal and FD&D What it is all about SOME MOMENTS stick out. I recently found myself sitting on Amorgos in Lake Maracaibo, Venezuela in 1997, the Norwegian the terrace of one of Gothenburg’s finest restaurants with a cheer- Club has made interim payment to claimants and is also exposed ful group of colleagues and lawyers, watching the sunset and the to further unpaid claims in excess of the CLC limit, which was flashing from the Vinga lighthouse far away at the port entrance. disregarded by the Venezuelan court. The Fund however refuses to It was a soft, early summer evening and Sweden was at its best. It indemnify Gard for any payments on the basis that there is no legal is the type of restaurant you go to when you have something to decision against the Fund. celebrate and that we had; the week earlier the Club had won an The Fund also alleges claims against it are time barred. The posi- arbitration worth a significant amount of money and which had tion taken by the Fund is arguably unlawful and/or against estab- involved a large group of people for a long time, myself included. lished practice and certainly puts clubs in very exposed positions The discussion was boisterous and we analysed the events with when dealing with third party claimants following pollution inci- the benefit of hindsight. Had it been possible to detect any signals dents. To add salt to the wound, the Fund has decided to dissolve from the Tribunal at the hearing? Could the opponent have chosen itself. another angle? The relief after a long period of tension could not be As a result, Gard issued, and was recently granted, a freezing in- mistaken. For my own part, the arbitration and its successful result junction against the Fund for claims subject to proceedings in the reminded me of two things. United Kingdom (case ref [2014] EWHC 1394 (Comm). The ac- tion against the Fund raises interesting questions about the mecha- Teamwork nism of the IOPC Funds and also whether they are immune from Firstly, the importance of teamwork. To get something right you legal proceedings. The battle will continue. need to cover all the bases and the likelihood you will do this is far greater with more people involved. We all think differently and the Compliance things you miss yourself others can see. To this end, competent ex- On the regulatory front, we receive an increasing amount of re- ternal lawyers are essential as they come from an unbiased position quests from our US business partners to confirm we are “FATCA and view things with a fresh pair of eyes. compliant”. FATCA stands for Foreign Accounts Tax Compliance Act and seeks to identify payment receivers worldwide. The Act is …and gut feeling imposed by the US tax authorities to combat tax evasion by US tax Secondly, a gut feeling is often right. When the Club initially was payers. If certain documentation is not completed (form IRS W- faced with the situation that eventually resulted in the arbitration, 8BEN-E to be more precise), the payer must withhold 30% of the our initial reaction was that the legal proposition for the claim payment. The arm of the law can be long indeed. “must be wrong”. That was before we had undertaken the thorough legal analysis of all possible aspects and avenues. The analyses and, ultimately, the award, proved our gut feeling had been right.

IOPC Fund legal battle One legal case that is currently of major interest for the P&I com- munity is Gard’s battle against the 1971 International Oil Pol- lution Compensation Fund. Following the grounding of Nissos

Triton 2 – 2014 August | 25 | | Strategic Business Development & Client Relationship / Update | PHOTO: iStock

Lars A. Malm Director Strategic Business Development & Client Relationship Entering into Builder’s Risk IN OUR STRIVE to become more diversified and more accessible pleasing as this development is, we are carefully monitoring relevant to prospective clients, the Club has taken another important step indicators in order to adapt to any changes in the claims environ- by entering into Builder’s Risk. This step is to be seen as a natural ment going forward. progression in the Club’s ambition to expand our global reach. More specifically, this applies to the Energy and Offshore markets Loss prevention – sharing experience where we have, firmly positioned ourselves, slowly and surely over The Club has recently published two new publications that have the past three years. Our most important base in developing these attracted a lot of useful attention: “Ice - Advice for trading in the Polar new business areas is our office in Norway, which we know offers Regions” and “Heavy Weather”. Both of them are very useful to our the Club great future potential for further sustainable growth. membership and business partners, especially the “Heavy Weather” Trading ships and commodities is becoming an ever greater as it offers very hands-on guidance for preventing a recurrence of challenge to our business partners. In light of constantly changing claims. Over the year we will of course publish our annual publi- trading conditions, one of our key priorities is to have insurance cation “Claims at a glance” and will also issue updates to “Main solutions at hand that match the contemporary and future needs of Engine Damage Study”, “P&I Claims Analysis” and “Navigational the industry. It should be pointed out that it is equally important Claims”. for us to further develop and enhance our already very good ability Adding value and making a difference has always been part of to handle claims and otherwise service the business solutions we the Club’s business philosophy and sharing our experience on the provide. Areas of particular focus for the Club during 2014 are ad- claims side with a view of making the shipping industry safer and ditional cover for trade disruptions and extended cover for charter- helping our membership to save costs, is an integrated part of our ers and commodity traders. We have seen a greater need for opera- value-adding culture. tors to protect themselves against various risks that may interrupt their trade and negatively affect cash flow. To that end, products designed to manage such exposure ranks high on our agenda to de- velop.

Claims environment Very similarly to 2013 the first half of 2014 has continued to be fairly uneventful on the claims side of our business. With Marine & Energy we are seeing the benefits of slow steaming, a lower steel price, increased yard capacity and, in most shipping segments, low freight rates. All of these and certain other features of the shipping markets, contribute to a more benign claims trend. For P&I we are no different than our competitors and in this sense the liability business is more a matter of balancing underwriting performance over time. It is also, to a much greater extent than that which ap- plies to Marine & Energy, a matter of the effects of larger claims. As

| 26 | Triton 2 – 2014 August | Safety / Heavy weather |

Why do heavy weather claims occur?

Heavy weather not only causes typical P&I claims such as damage to cargo or loss of cargo overboard. It also caus- es H&M claims, which can include structural damage to the vessel or damage to machinery and equipment etc.

A large proportion of cases where containers are lost at sea occur in Joakim Enström heavy weather. Loss Prevention Officer The questions are:  Why did the vessel sail through the heavy weather? often available many days before the weather arrives. The key is how the information is used and what preventive measures are taken.  Could the vessel have navigated around the heavy weather? With the correct preparation and procedures the vessel can mini-  Did the vessel use weather routing or not? mize the effects of sailing through heavy weather. The included  Did the crew slow down or alter course to avoid the impact of cases in our publication highlight that the best prevention against large waves or high winds? heavy weather casualties is to plan the route properly and to reduce  Was the cargo correctly secured? speed and alter course as required.

Casualties have been recorded when vessels are in port and a tsu- nami of hurricane hits. If the vessel receives information about a tsunami, hurricane or other severe weather heading for the port, it For more details about recurring issues, concerns and preventive is likely that the vessel is safer at sea than in port. measures, please see our recent publication “Heavy Weather” Today there are usually warnings about the development of a available on our website. hurricane or other serious weather phenomena. This information is

Triton 2 – 2014 August | 27 | | Safety / Free MRM licence |

Over 40 members of The Swedish Club are now MRM licensees. Statistics show that successful implementation of MRM has an extraordinary impact on accident frequency. This is the main reason behind the Club’s MRM campaign launched in October 2013. All members insured for lead Hull or P&I are welcome to join. The first wave of the MRM Campaign – a resounding succes s! The first half of the Academy. Some 15 members, mostly shipowners, sent 44 repre- 2014 has been a sentatives to attend one of the four events and become familiarized very busy time for with the MRM concept. The Swedish Club Academy. It wasn’t Lorraine M. Hager What’s next? only the time for Project Coordinator The Swedish Club Academy is constantly striving to provide strong renewals of the The Swedish Club Academy AB support for our members especially in implementing the MRM existing MRM licensees, but also time for welcoming programme at their companies. We are aiming to deliver a new many new members who are taking advantage of The learning platform and updated course material by the end of this Swedish Club’s MRM campaign. year. A new approach to running courses is also being looked at. After the enrolment process and having completed the facilitator 23 members enrolled training course, a bigger challenge awaits; our certified facilitators After The Swedish Club launched its MRM campaign in October are now equipped with the knowledge, skills and motivation to de- 2013, offering insurance members free licences for two years, the liver the MRM programme at their organisations. number of licensees coming from the Club’s membership has more than doubled. To the existing 18 licensees we have added a further Making MRM transparent throughout the organisation 23 members bringing the total to 41 Club members now taking Successful MRM implementation doesn’t just end with the facilita- part in the Club’s biggest safety investment. tors delivering the information to the seafarers and shore-side staff. That is just the start of the process. It is highly recommended that 44 new certified MRM facilitators from the Club members an introduction to MRM is given to management so that managers There was a good turnout at the four MRM facilitator training have a better understanding of what MRM is all about. The main events in the first half of 2014 – a significant accomplishment for components for successful MRM implementation are a strong com-

| 28 | Triton 2 – 2014 August | Safety / MRM |

We would like to welcome the most recent addition of The Swedish Club members to the MRM network Allseas Marine S.A., Greece Blossom Maritime Corporation, Greece Cara Shipping Pte. Limited, Singapore Danaos Shipping Co. Ltd., Greece Dianik Bross Shipping Corporation S.A., Greece Dioryx Maritime Corporation, Greece Enesel S.A., Greece Fairdeal Group Management, Greece Furetank Rederi, Sweden GC Tankers, Singapore Global Marine Ship Management Co., Ltd., China Goodwood Ship Management, Singapore ID Wallem Ship Management Ltd., Hong Kong Iseaco Holdings Pte Ltd, Singapore Kallianis Bros Shipping SA, Greece Laurin Maritime AB, Sweden MSI Ship Management Pte. Ltd., Singapore MST Mineralien Schiffahrt Spedition und Transport GmbH, Germany Northern Marine Management Ltd., U.K. Martin Hernqvist Orion Bulkers GmbH & Co. KG, Germany th Reederei NORD GmbH, Germany speaks at the 17 The first wave of the MRM Campaign Stena Line Scandinavia AB, Sweden STOC Tankers AB, Sweden European Manning and – a resounding succes s! Other new MRM licensees Training Conference Ekol Denizcilik, Turkey PROMINENT personalities from the shipping industry convened Maestro Shipmanagement Ltd., Cyprus to tackle issues related to manning and training during the recent MMS Maritime (India) Pvt. Ltd., India Manning and Training Conference held on 13-14 May 2014, at the OSM Crew Management Ltd, Cyprus Radisson Blu Falconer Hotel & Conference Centre in Copenhagen. This year’s theme focused on building innovative strategies to the crews of today’s global fleet. Delivering his presentation to the group of delegates, Martin mitment to implementing the MRM programme from manage- Hernqvist of The Swedish Club Academy, talked about the topic ment at the shore organisation, open communication between “Developing effective safety cultures on board – moving outside the the people onboard and shore-side staff, and an open interaction box to achieve results”. He emphasized the importance of putting between the ship and shore-side staff. A top to bottom approach into practice the attitudes, knowledge and skills of seafarers in the has proved to be an effective strategy in making sure that the workplace, rather than focusing on acquiring certificates. MRM concept is not just being taught and learned, but also prac- He explained: “It is only through a genuine change in attitude ticed and implemented at the organisation. An MRM Best Prac- that behaviour can be changed and a demonstrable improvement tice guide to support members is being developed. made to a company’s performance. If attitudes are poor, it doesn’t matter what technical skills and knowledge a company has in Next batch place.” While providing support to our new licensees, we are also prepar- “It’s about having the right safety culture – both at sea and ashore ing for the next wave of members coming in the next batch. We – and this is why implementation of training lessons must ultimate- urge all Swedish Club members to take advantage of The Swedish ly be driven by the shipowners themselves. A company culture can Club’s MRM campaign. Don’t miss this opportunity to come on only be changed from within the organisation.” board the safety train. Sign up now!

Triton 2 – 2014 August | 29 | | Club Information / News from Team Piraeus / News from Team Gothenburg |

NEWS from Team Piraeus Hans Filipsson Area Manager Half-Year report from Piraeus IT REALLY HAS BEEN a This first half-year has also been very successful for The Swedish very interesting and prosper- Club. Due to organic growth among our members and also a num- ous first half-year in Greece. ber of new members, our office in Piraeus reached a new milestone The presidency of the EU in Owners P&I. At our Open House on 5 June we took the oppor- brought a lot of high profile tunity to celebrate 10,000,000 GT. That is an “All time high” for executives to meetings and us here in Piraeus. It is the result of hard work, a strong long-term conferences here in Athens. commitment to the Greek market and successful shipowners. As We will still have to work stated previously, Greek shipping is a global force and it is very in- hard to get back on track but teresting to be part of this very active shipping market. it seems like we are getting As you can imagine it has been a very hectic period and the sum- there. When it comes to ship- mer has allowed us to have a couple of weeks off to recharge our ping the freight market has batteries, because there are no signs that the activities in this ship- not yet recovered, but some ping market will slow down. improvements have been seen. Scandinavians always talk about the weather, so let me just add a few words about that. The weather has been colder than normal for the season and we had a number of rain showers during Posidonia. Heavy rain is normally not expected in June but after the Posidonia week the sun came back to Greece. Before handing over the EU presidency to Italy, Posidonia 2014 took place in Athens during the first week of June. A massive event! The exhibition was huge. Apart from the exhibition and all the interesting seminars, there were many companies hosting re- ceptions, parties, dinners and sports events. I think it is fair to say that Posidonia 2014 was a 24/7 event for about 12 days in total.

NEWS from Team Gothenburg Jacob Vierø Acting Area Manager Consolidation diversification WE HAVE SEEN encour- In April a members’ lunch was held in Istanbul, which proved a aging growth in hull and great success. During the lunch Lars Rhodin, Managing Director machinery accounts over the of The Swedish Club, briefed members on the Club’s progress and past year, coming as it has the current market situation. Following his presentation, mem- from client recommenda- bers enjoyed an introduction to Freight, Demurrage and Defence tions, and the flow of new (FD&D) insurance under the title “It is your money”. This was members making the Club followed by the Club’s Loss Prevention department providing an the claims lead for their ves- in-depth look at the latest loss prevention initiative - The Swedish sels has been impressive. Club’s Operations Review (SCORE) programme. Members are attracted by This successful format was rolled out to almost 100 guests at a the holistic approach we of- members’ dinner in Hamburg held mid-May, and the following fer, which provides added day to over 50 guests at a members’ dinner in Bremen. value and a great claims lead We are looking forward to a similar event that is due to be held at the right premium. in Copenhagen in early autumn, giving our members another de- We are also delighted to tailed insight and a chance to share their views, and through that have successfully launched our new Kidnap and Ransom insurance influencing the interface with their Club. which has been taken up by some of our most prominent members. Keeping close to our members is very important to us and net- working events are key to understanding how we can serve our members better.

| 30 | Triton 2 – 2014 August | Club Information / News from Team Norway / News from Team Asia |

NEWS from Team Norway Tore Forsmo Area Manager Soft market reaching the bottom? THE NORWEGIAN marine insurance market remains soft, segment with a series of eco- which is also the position globally. Young underwriters who joined friendly handysize newbuild- the industry in the past ten to fifteen years have never experienced ings. a hard market. There may however be signals that the bottom of Kristian Jebsens Rederi is the cycle is near. Attempts to cancel and rewrite policies with pre- back in shipping again after a miums locked in on a 24-48 month basis always indicate imminent recent, troubled past and has cycle changes. ordered two handysize bulk- In the energy segment, a number of mobile offshore units are ers, with its partner Aboitiz, being delivered, many of which without firm contracts, leading to from Tsuneishi in Cebu, the overcapacity and a general reduction in rig rates expected to last Philippines. The vessels are for the next two to three years. This has strong bearings on the scheduled to be delivered in insurance market which remains soft on good accounts and where June and September next year. only poor claims records merit increases, at best. The market is still In the offshore service seg- struggling with overcapacity even though the number of new en- ment, John Fredriksen’s Deep trants seems to be stabilizing. Sea Supply has recently con- John Fredriksen, who turned 70 on 11 May, might consider firmed its plans to add 10 new PSV newbuildings to its books by reconsolidating his bulk carrier operations in Knightsbridge and the end of Q3 2014, taking its global fleet of OSVs to 40 units. At Golden Ocean into one single company. Knightsbridge has re- the same time, spot rates for PSVs in the North Sea are expected to cently taken over 25 capesize newbuildings from Frontline 2012 increase, as vessels are leaving the area and periodical contracts are and Golden Ocean currently has a fleet of 26 bulkers from supra- coming into play. max to capesize. In addition it handles commercial management of Staffing at the Norway office is in the process of being finalized Knightsbridge’s bulkers. for now with a Team Assistant in place. With this latest addition, Earlier this year Klaveness Marine and JP Morgan took over Team Norway is ready to take the next step as a self-sufficient op- the ownership of Norwegian Car Carriers and recently delisted eration of The Swedish Club. NOCC from the Oslo Stock Exchange. Klaveness Marine recently cancelled its “Project Phoenix” and plans to enter the dry bulk

NEWS from Team Asia Ruizong Wang Area Manager Continued growth in Asia THE CLUB’S BUSINESS continues to grow at a good pace in ceive RMB1,500 per GT for Asia. Over the past few months since the P&I renewals on 20 the scrapped vessel. February, our Owners’ P & I tonnage has increased by over 5%. This subsidy applies from We added a few new members for owners’ P&I entry, together the beginning of 2013 to the with good organic growth from our existing members. We have end of 2015. As expected we also added a number of marine accounts since 1 January. On some will see some of our insured fleets we do claim lead, on others we have taken small following vessels on the Chinese mar- lines. We have entered a few new Charterers’ P&I insurance mem- ket disappear this year or bers as well since 20 February. next, therefore there will be We managed to achieve high growth rate on owners’ P&I ton- a slowdown in our P&I ton- nage despite the fact that some of our members in China have nage growth. This is however started to dispose their old tonnage. The Chinese government a positive development in the announced a new policy to encourage disposing old tonnage and long run for the Club as Chi- building new ships in 2013. This policy obviously has the good in- na’s shipping fleets expand tention of upgrading China’s national merchant fleets and boost with better and newer quality the freight market, as well as supporting Chinese shipyards. In ac- tonnage. cordance with the policy if a Chinese flagged vessel that is 23 years old or older is scrapped in a government designated scrapyard and a new one built at the same or greater tonnage, the owners will re-

Triton 2 – 2014 August | 31 | | Club Information / Out and About |

Breakfast Seminar in Oslo, 18 March 2014 THE SWEDISH CLUB Norway’s traditional spring breakfast semi- nar was held at ‘The Thief’ hotel on Tjuvholmen in Oslo in March this year. Early risers gathered for a light breakfast and mingle, followed by an update by Lars Rhodin on the Club’s state of affairs. Area Manager Tore Forsmo told the audience about the latest developments in the Norwegian outfit’s marine and OSV (Offshore Service Vessels) business. The morning event ended with the sunlight pushing through the clouds and the Oslo of- fice’s Marketing Manager Erik Lund’s update about Oslo’s energy portfolio.

Member Lunch in Piraeus, 9 April 2014 ANOTHER very successful Member’s Lunch was held in Piraeus on 9 April 2014, at the Piraeus Marine Club. In a very friendly, familiar environ- ment, Team Piraeus Area and General Manager, Hans Filipsson, warmly welcomed our members to the annual lunch. Lars Rhodin then updated everyone briefly about the “Current State of Affairs”. The floor was then taken over by Anders Leissner and Joakim Enström, who provided infor- mation and advice to our guests with their presentations on “FD&D – it’s your money” and “Loss Prevention”.

| 32 | Triton 2 – 2014 August | Club Information / Out and About |

Member Lunch in Istanbul, 10 April 2014 THE CLUB’S traditional lunch in Istanbul was held this year at From left: Cisem the Grand Hyatt Hotel. The lunch was well attended with represen- Karaaslan Gudelci from Omni Ltd and Fredrik tatives from members and other business associates from the Turk- Bergqvist, The Swedish ish shipping world. Guests were updated on the Club’s current state Club. of affairs, why FD&D insurance is an important cover for shipown- ers in the current market, and last but not least, how the Club can assist members with various loss prevention products.

From left: Enver Bilgi and Gürol Zorer from Zenith Gemi Isletmeciligi and From left: Selim Bilgisin (Vitsan Mümessillik ve Musavirlik A.S.) and Cem Lars Rhodin, The Swedish Club. Varisli (Marsh Marine Practice).

From left: Alexandros Lemonidis (Element Shipmanagement S.A.) and From left: Costas P. Drivas (Overseas Marine Enterprises Inc.), George Mauro Renaldi (V.Ships Greece Ltd.). Agathokleous (British Bulkers Inc.) and Andrew Gordon (Seascope Insurance Services Ltd.). Open House in Piraeus, 5 June 2014 DURING THE POSIDONIA week, our office in Piraeus hosted an “Open House”. The event was very well attended. We also celebrated that the Team Piraeus has reached another milestone. The volume of “Owners P&I” now exceeds 10,000,000 GT which is an “All Time High” for us in Greece. This was celebrated in a warm and friendly atmosphere, chatting and mingling over a delicious buffet and drinks.

From left: Andrianos Agathokleous (CEO of British Bulkers Inc) and Stamatis Angelikoussis (Chartering-Dianik Bross Shipping Corporation S.A.).

Triton 2 – 2014 August | 33 | | Club Information / Out and About |

Hamburg, 21 May  Bremen, 22 May 

From left: Birgitta Hed (The Swedish Club) and Markus Hempel From left: Erwin Flathmann and Gerd Ley (Schlüssel Reederei KG). (Norddeutsche Reederei H. Schuldt GmbH & Co. KG).

From left: Olaf Fölsch (Aon Risk Solutions) and Alexander Thoms (Kingfisher From left: Charly Bergmann (JWA Marine GmbH), Dirk Janssen (Groninger, Insurance Broker GmbH). Welke & Janssen) and Tilmann Kauffeld (The Swedish Club).

From left: Linda Reumann (Norddeutsche Reederei H. Schuldt GmbH & Co. From left: Folker Verwoldt (JWA Marine GMBH) and Bernd Hein (F.A. Vinnen KG), Françoise Fouchier-Matte (The Swedish Club) and Olga Darin (Marine & Co). Assekuranz GmbH). Club Evenings in Germany: Meeting face to face. A “must” and a “need” at The Swedish Club SOME 150 members, brokers and business ish Club’s employees covering all parts of presentation started off the formal part of associates ignored the exceptionally warm our business and member services met up the evenings, highlighting to our members spring and joined up at The Swedish Club at the two events to discuss current and how the Club is performing. Additional Hamburg and Bremen Club evening events. general matters face-to-face and with other presentations about FD&D insurance and These events have become as much of a tra- people joining in this added extra dynamics Loss Prevention added wider information dition as the Swedish midsummer and this to the topical discussions. to our guests and members. year’s events were no exception. The Swed- Our Managing Director’s State of Affairs

| 34 | Triton 2 – 2014 August | Club Information / Out and About / Staff News / Club Calendar / Club Quiz |

The GöteborgsVarvet Half Marathon, 17 May 2014 THE SWEDISH CLUB Team participated this year with a team of runners comprising 47 members, business partners and employees of the Club. CLUB The winner of The Swedish Club Team was Christoffer QUIZ Ahlqvist who scored 01:28:41.

 What Christoffer Ahlqvist (Transbulk 1904 AB, was the name of Captain Hook’s pirate ship? More photos can be found on Gothenburg) with his medal after a well-run 1 The Santa Maria www.swedishclub.com race. X The Hooked 2 The Jolly Roger

Staff News  What kind of knot is taught by: “The rabbit comes out TEAM GOTHENBURG of the hole, around the tree and back into the hole”? Oscar Holmqvist Credit Control Officer, team Gothenburg. 1 Figure eight knot Oscar Holmqvist has been appointed Credit X Bowline Control Officer at Team Gothenburg as of 1 2 Sheet bend September 2014.  What is ”Inchmaree Clause”? 1 Extension of hull cover to include loss or TEAM PIRAEUS damage to hull and machinery caused by negligence Tina Tzortzis X Cover for damage to “fixed and floating Underwriter objects” Tina Tzortzis has been appointed Underwriter in 2 Cover for removal expenses Team Piraeus as of 1 April 2014. Answer to [email protected] The first right answer will be awarded a Club give-away.

Winner of Club Quiz 1-2014 Club Calendar 2014 2 October Board Meeting Istanbul 4 December Board Meeting London 2015 26 March Board Meeting Hong Kong 4-8 May Marine Insurance Course Gothenburg Winner of Club Quiz in Triton No 1-2014 is Peter Van den 10-12 June AGM Events Gothenburg Wouwer, Marsh S.A. Antwerp who has been awarded a Club give-away. 10 June Board Meeting Gothenburg The right answers to Qlub Quiz No 1-2014 are: 11 June Annual General Meeting Gothenburg X A nautic mile For further upcoming events, please refer to X Josef Ressel www.swedishclub.com/Club Calendar X Poseidon & Amphitrite

Triton 2 – 2014 August | 35 | The Swedish Club is a mutual marine insurance company, owned and controlled by its members. The Club writes Protection & Indemnity, Freight, Demurrage & Defence, Charterers' Liability, Hull & Machinery, War risks, Loss of Hire insurance and any additional insurance required by shipowners. The Club also writes Hull & Machinery, War risks and Loss of Hire for Mobile offshore units and FPSO's.

Contact Head Office Gothenburg Visiting address: Gullbergs Strandgata 6, 411 04 Gothenburg Postal address: P.O. Box 171, SE-401 22 Gothenburg, Sweden Tel: +46 31 638 400 , Fax: +46 31 156 711 E-mail: [email protected] EMERGENCY NUMBER: +46 31 151 328

Greece 5th Floor, 87 Akti Miaouli, GR-185 38 Piraeus, Greece Tel: +30 211 120 8400, Fax: +30 210 452 5957 E-mail: [email protected] EMERGENCY NUMBER: +30 6944 530 856 Hong Kong Suite 6306, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong Tel: +852 2598 6238, Fax: +852 2845 9203 E-mail: [email protected] EMERGENCY NUMBER: +852 2598 6464 Japan 2-14, 3 Chome, Oshima Kawasaki-Ku, Kawasaki Kanagawa 210-0834, Japan Tel: +81 44 222 0082 (24-hour tel), Fax: +81 44 222 0145 E-mail: mail.tokyo@swedishclub.com EMERGENCY NUMBER: +81 44 222 0082 Norway Tjuvholmen Allé 17, N-0252, Oslo, Norway Tel: +47 9828 1822, Mobile: +47 9058 6725 E-mail: [email protected] EMERGENCY NUMBER: +46 31 151 328

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| 36 | Triton 2 – 2014 August