Shipping needs a more positive image

Bill Thomson, chief executive of Scottish tanker owner Forth Tankers plc and chairman of the 50 million GT North of England P&I club, challenged the world’s merchant shipping industry last week to start projecting a more positive image if it wants more sympathy from society.

Speaking at a major industry reception organised by the A- rated club in Hamburg last week, Thomson said: ‘The industry must find ways of demonstrating a more positive industry profile and conveying the magnitude of shipping’s contribution to the world economy.’ He said shipowners needed to speak with ‘one voice’ if they were to stop the seemingly unrelenting campaign by governments and public authorities to penalise and criminalise the shipping industry.

‘The failure of many jurisdictions to defend fair play in the courts and the unjust detention of seafarers does nothing to advance the cause of safety and environmental protection, and indeed can have exactly the opposite effect,’ said Thomson. ‘There must also be some recognition that we do not live in an accident-free world and that shipping is no different to other fields of human activity.’

North of England underwriting director Paul Jennings confirmed the increasingly hostile environment was leading to increased claims liabilities across the board, and the number and value of claims was being further inflated by a booming freight market.

‘With increasing claims and the prospect of very low investment returns this year, all clubs face a challenge at the forthcoming renewal,’ said Jennings. ‘It will be vital to balance claims and expenses against premiums without undue reliance on investment income.’ He pointed out some brokers and industry commentators are already predicting further increases at the forthcoming renewal of up to 10%.

Thomson confirmed that the club was continuing to flourish. ‘Despite external pressures, we will not be deflected from our chosen path of developing as a financially solid club with a commitment to service-driven values. The club is run for, and speaks on behalf of, its members – a truly mutual club,’ he said.