REPORT Page 4-23 Facing the challenges head on Triton no 2 2014...The tragic ferry sinking of the MV Sewol in South Korea in ... change issues, as well as an economic depression and

No. 2 - 2014 The Swedish Club

Page 28-29

The first wave of the MRM Campaign

– a resounding success!

AGMREPORT Page 4-23

Entering into Builder’s Risk

Page 26

Legal update: What it is all about Page 25

Facing the challenges head on

| 2 | Triton 2 – 2014 August

3 LEADER

Presumed innocent until proven guilty!

4-23 ANNUAL GENERAL MEETING

Managing Director’s Report 4-5 Keynote speaker: Martin Stopford 6-7 Keynote speaker: Magnus Lindkvist 8-9 Panel discussion: Putting the eco-ship into perspective 10-11 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

New Board Member: Michael Bodouroglou, Allseas Marine 16-17 Early Arrivals Dinner 18-19

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

24 CLUB INFORMATION

Marine Insurance Course

25 LEGAL UPDATE

What it is all about

26 STRATEGIC BUSINESS DEVELOPMENT & CLIENT RELATIONSHIP


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 Manning and Training Conference 29

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

| Content |

Triton 2 – 2014 August | 3 |

Cover photo: Jonas Ahlsén

Dear members and associates,

Presumed innocent until proven guilty is a fundamental principle in criminal law. It is not until the prosecutor has submitted evidence “beyond reasonable doubt” that the suspect can be found guilty of a crime at trial. Until then, the wrongdoer is not guilty under criminal legislation. This principle however does not seem to apply in marine casualties. The media and society has little tolerance with shipping accidents. I can understand this reaction in cases involving loss of life, but less in incidents resulting in environmental damage and property loss. Yet the presumption in all these cases is “guilty”.

The tragic ferry sinking of the MV Sewol in South Korea in April resulted in widespread social and political reaction in South Korea; from criticism of the actions of the captain and most of the crew of the ferry, to criticism of the ferry operator and the regulators who oversaw its operations, to criticism of the South Korean government and media for its disaster response and attempts to downplay government culpability. Subsequently, the captain and three crew members were charged with murder, while the other 11 members of the crew were indicted for abandoning ship.

“Women and children first” does not seem to apply anymore. We saw that in the Costa Concordia case too – a captain who slipped into a lifeboat way ahead of other people onboard. This deplorable behaviour is evidence of a bad, inexcusable culture; it does make a great disservice to the industry, creates a major outcry and gives us a very strong case of “guilty”.

The Swedish Club’s AGM 2014 in June carried a strong programme, in common with previous years, which again generated a high level of interest. Dr Martin Stopford is a world name and second to none in shipping research. His thought-provoking speech on Members’ Day “Past, Present and Future of shipping” led us in to an interesting debate on the state and prospect of the industry with the high-powered group of panelists.

Our second keynote speaker – Magnus Lindkvist – took us on a journey past tomorrow in a way only trend spotters and futurologists can do. These items are fully covered in the Triton together with the other features and social activities of the events, so please enjoy your read.

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The Swedish Club Triton is published three times a year and distributed free of charge. The Swedish Club Triton is an editorially independent newsletter and opinions expressed by external contributors are not necessarily those of The Swedish Club. Articles herein are not intended to provide legal advice and the Club does not accept responsibility for errors or omissions or their consequences. For further information regarding any issue raised herein, please contact our head office in Gothenburg.

Lars RhodinManaging Director

Production CoordinatorSusanne Blomstrand

PR-consultantElaborate Communications Ltd

LayoutEliasson Information, Gothenburg

PrintPR Offset, Mölndal14085000B

[email protected]

© The Swedish ClubArticles or extracts may be quoted provided that The Swedish Club is credited as the source.

| Leader |

Presumed innocentuntil proven guilty!


| AGM/ Managing Director's Report |

“Last year was a good year for the Club with results showing a positive return on investment and a very good contribution from the underwriting side,” said Lars Rhodin, The Swedish Club’s managing director, during his address to the Club’s 142nd Annual General Meeting (AGM) in Gothenburg on 12 June.

“We had a strong operating performance, return-ing a surplus of USD 17 million, and we saw further diversification within marine and energy with planned growth in all sectors.”

During the year, the Club strengthened its of-fice in Norway, decided to offer its Maritime Re-source Management (MRM) programme free of charge to members and saw its free reserves rise to a historically high level of USD 168 million.

The Club sees MRM training as a significant contribution to the drive to reduce large naviga-tion claims resulting from human error.

The strengthening of its services to the Nor-wegian market includes the offshore service ini-tiative, described in the Club’s annual review as being of particular significance.

While the scrapping of elderly tonnage during 2013 has had an adverse impact on the premium income of some clubs, the average age of The Swedish Club’s P&I fleet is just 9.7 years old, so the disposal of older ships had less effect on pric-ing.

The year in reviewHe told members attending the AGM that the results were the combination of four factors: “First of all we had a benign claims year; then we saw the effects of diversification over many prod-ucts in different business areas and we also had a strong marine operating performance with a very good combined ratio. The way we transfer risk today means the Club takes more risk, enabling us to conserve the upside.”

The Swedish Club’s managing director also underlined the importance of the Club’s future growth strategy. He said: “Growth is important

and our goal is to grow a bit more than the mar-ket. In P&I we have grown by 50% over the past four years, against a growth in the world fleet of 30%. P&I volume in terms of tonnage increased by 8% in 2013, which was in line with expecta-tions. The year saw the P&I fleet pass the 55 mil-lion gross tonnes mark.

In H&M we have increased the number of units we insure from 1,500 to 2,000. Part of this

is regular growth and part is the addition of more offshore service vessels which we have entered in through our regional offices.”

He also pointed to the strong contribution that came from the underwriting side. He add-ed: “We saw a total net combined ratio of 93% which was made up from a net combined ratio in marine of 67%; a net combined ratio in energy of 84%; net combined ratio in P&I of 112% — which is acceptable under the circumstances — and a net combined ratio in FD&D of 81%.”

While claims frequency may have been up a little, the size of the average claim fell in P&I. There was a rise in cargo and injury claims last year, members were told.

Hull and machinery average claim costs were down in 2013 compared to the previous year’s figures, although the number of H&M claims per vessel showed an upward trend.

2013 – a good year for the ClubHe reiterated that 2013 was a good year for the Club and it developed well in all areas. “Not that many companies stand the test of time over so many years and so many economic cycles,” he said, but some companies do. “History is sup-portive because that gives us identity and experi-ence.”

He stressed the importance of the Club’s long-standing relationships in a business which is based on trust. “Insurance is not a quick fix but a matter of long term confidence. 2013 was the year when the Club showed progress despite

Returning a strong perfo rmance

Managing Director’s Report


| AGM/ Managing Director's Report |

Returning a strong perfo rmancethe 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.

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| AGM/ Keynote Speaker: Martin Stopford |

Radical change in fuel prices, regulation and climate change issues, as well as an economic depression and a banking system that has “walked away from us”, are just some of the challenges the shipping industry is facing at the moment. For these reasons now is the time to think seriously about what to do in the future, Dr Martin Stop-ford told The Swedish Club members in his much awaited AGM presentation.

“Every decade is different and we are an evolving business,” he said. “The future is what you make of it”. Back in the 1960s, 80% of the tanker fleet was on 10 or 15 year time charters. “Those were the days when shipping was a really serious industrial shipping business led by the charterers. In the 1970s and ‘80s, when nearly the whole tanker fleet went onto spot; then in the 1990s it was hoped there would be another boom, but this didn’t happen and there was hardly enough money to pay for the ships. Then in 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 money at all with rates of $4,000 per day. At the start of the 1990s this had moved to $10,000-$12,000. By 2000 VLCC earnings reached $80,000 per day.

The market collapsed again in 2002 but by 2004, earnings for a VLCC had risen to

$220,000 while in June 2008 capesize rates had moved to $300,000. Prices have now moved back down to $9,500 per day.

The current decade is the one that is most difficultto assess “Those who get it right will have a very successful decade regardless of what the market does”, he said. “I believe today’s tough financial environment will drag on and a renewed focus on the cost effective technical management of the industry is the core building block for survival and success.”

Good time to invest now?Coming to the present day and whether now is a good time to be investing, Dr Stopford said he did not think it was a time for specu-lative buying to make a quick buck. “During the great boom when we all made lots of money, shipbuilding capacity got out of control. Since the capesize bulk carrier market collapsed in 2008 there were

deliveries in quite a few years of 100m tonnes of bulk carriers, while during the boom it

was only 20m tonnes a year. In conse-

quence a surplus has built up and he does not believe really

good returns “until this lot dis-appears”. If trade grows at 3.5%

per year and yards deliver 85m dwt a year, the surplus of ships will

still be there in 2020”.

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-

“Past, pres ent and future of shipping – Time to invest?”KEYNOTE SPEAKER Martin Stopford, Clarkson Research Services



| AGM/ Keynote Speaker: Martin Stopford |

my and there are a lot of issues in Indonesia and Thailand. “The thing to watch out for is the next crisis – whether it is an

energy crisis or a financial crisis. Odds are there will be some form of disruption in the next year or two”.

The peak of the ship deliveries came after the credit crisis in 2011 with 160m tonnes. “We are now locked in going forward at 90m tonnes per annum”. Stopford believes that if owners are not com-ing forward with new orders, the yards will do the traditional thing and cut prices and there will be some good, cheap newbuildings coming along. The key point will be to get the right price.

Supply and demand analysisAs far as supply and demand analysis is concerned at the moment shipowners needed help from cargo owners rather than there being an adversarial marketplace. “If owners are afraid of charterers you get lousy rates even if there is a good supply and demand balance”. This differed from the days when the cargo owners ran the business

and a shipowner would negotiate a 15 year charter which made him the cargo owner’s “man”.

The shipping industry is an old fashioned one and set in its ways, according to Stopford. He feels that the time has come to do some-thing completely different. “In looking at a strategy the first thing is to consider what business you are in”, he said. “Is it running ships or delivering cargo?”

Looking at the business strategicallyThe issue of buying and selling ships to make a profit he described as arbitrage or gambling and not adding value. There was nothing wrong with this – someone in the world economy has to carry this risk - and for shipping companies “it can be a good sideline” but in his opinion it should not be the central focus for the business.

“We need to look at the business going forward strategically as a whole. We need to look at the demand and who our customers are. How often do you have a discussion about customers, getting close to customers and visiting customers?” he asked. He advocated sup-porting customers and getting to know their needs.

Another issue is what companies are doing to make ships operate more efficiently. Speed management is the biggest way to cut the

carbon footprint. A lot of companies he believes do not know how and whether their carbon footprint has improved over time.

Looking aheadShipping has a whole bunch of new customers Stopford explained, particu-larly in the Pacific and they are going to 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

those providing shipping services, but there will also be increased competition, he said.

Owners of cargos may need to get closer to the owners of the ships in order to achieve the kind of shipping operations that they want. There is a big issue going forward in terms of the industry’s long term customer base. The customer and the carbon footprint are both key. “In terms of operational efficiency for the last 50 years we have been on autopilot because we have had very cheap fuel and could afford to build whatever ships we liked. Now bunker oil pric-es have gone up enormously and at the same time the issue of the carbon footprint regulations are pushing in the same direction. The industry is under technical pressures that it hasn’t been used to.”

Money speaks in the end in shippingFor the last 50 years the ship was expensive and the fuel dirt cheap, he said. Because the ship was much more expensive, the priority was 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 charterers have a greater incentive for

getting a slower ship than they used to. He advised reviewing oper-ating speeds constantly, having contracts that allowed for this and a strategy that deals with market fluctuations.

“Money speaks in the end in shipping and if you are up against it financially then people will change. Economies of scale have been the mantra”, he says. “With today’s high fuel prices you don’t really save with the size of the ship.”

There is an information revolution going on and “we need to evolve ship systems to make use of it. We have new technology to help out. Companies have to evolve”, he said. “If you spend money on IT there is no guarantee it will work”.

As far as investing for the future is concerned, he advocated be-fore spending a lot of money on ships to “think about the fact that technology is a chore. Have you done everything required to get value for your ship and is it actually going to give you a proper guar-anteed return to take to your customer and say ‘this is real value added’?”

Trade cargo, not shipsEnergy costs are high and rising and climate change concerns and regulation are increasing. According to Stopford “we are going to have to change, it’s just a matter of when, who changes and who makes the best job of the change”. Cargo ownership is also chang-ing and he believed maybe the industry should be looking beyond the spot market.

Another issue was the adversarial relationship with cargo owners and charterers has been spot driven, he said. “You need the cargo interests to help out with the big changes that are needed today.” “Trade cargo, not ships should be our new mantra.”

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


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| AGM / Keynote speaker: Magnus Lindkvist |

Magnus Lindkvist, Trend spotter andFuturologist, challenged and

entertained the audience at The Swedish Club’s Members’ Day with a keynote speech on Pattern Recognition “Futurology – a journey past tomorrow”.

Interviewed after the event, we asked Magnus Lind-kvist how he deals with many different industries and does he think that ship-

ping is a conservative proposition?

“An industry is the name we give to a collection of com-

panies who are quite mature and who are doing similar things,” he says. “It is

by its very definition conservative, meaning sticking with the methodologies that it has,

and making incremental change and not much else.”

Shipping was once like Google, he main-tains. It was virtually an industry in itself. “There is no collection of Googles, there is just one, with an 85% world market share of re-search.” Today, very few industries have that

luxury, although they might have had it once. “Now only a rare few have the technology and the guts to pull it off”.

“In an industry you tend to be quite process oriented, and you consider how to make it efficient and cut costs”. Process-driven people are also required, he explained. “It leads to homogeneity. A bit like in the Army, it is quite difficult to have, for example, a ninety year-old woman on the staff.”

The opposite of being process-driven is being product-driven and by that he means creating something brand new at least once a year, “because you know the iceberg is always melting”. “In a product-driven company things are different, because you actually want someone outside the mould around to see new ideas and get things in. It’s almost the opposite to having that streamlined, ef-ficient, cost-cutting, driving approach. It’s a little bit like whether we change the recipe or we repeat it”.

Vertical change and vertical growthMagnus Lindkvist quotes a comment that “the most difficult, painful race is the one that you don’t know you’re in”. This was the

case with Encyclopaedia Britannica which, due to technological advances, suddenly had to contend with competitors who had not previously been in the field. “I see something similar with public speaking, there may be about 50 of us in Europe who can make a living out of public speaking, but there are thousands now who are willing to do it for free”.

The difficulty of vertical change and vertical growth is that “you 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 of bicycles in Copenhagen. People are moving away from using cars in favour of them, because it is more practical and cheaper to have a bicycle to get around on. For a short while people might think that it was running against the grain of technological ad-vances, but sometimes this approach was needed. Concord, for example, was probably “the right idea with the wrong execution”. According to him “we still haven’t been able to manipulate grav-ity, that is why we don’t have flying cars”.

Two events changed himMagnus Lindkvist grew up in the Swedish ex-pat community in London, based round Kingston. He describes himself as a “happy-go-lucky” person up to the age of 17 when his father had all his money embezzled in a Madoff style scam. “That was probably ulti-mately to the good because it saved me from becoming a rich kid,” he says.

The second shock was that he was victim of a burglary in the house, in which he was tied up and threatened with being killed. These two events changed him from being a carefree individual to a more reflective person.

Started trend spotting as a hobbyHe went to business school but this did not appeal and he got a scholarship to study film in 1998. He tried working in advertis-ing, but gave this up to train as a journalist and write a novel. He started doing trend spotting sessions as a hobby.

After three years of doing odd jobs he was able to start a com-pany in 2005 to focus full time on public speaking and studying trends. It took him about three years to be able to develop this into a full-time career. Since 2008 he has been living off public speaking full-time and “it takes me around the world,” he says.

So how has he collected the view that he expounds in his lectures? “Anita Roddick of The Body Shop once said you have to be an op-portunistic collector, and that is what I am.” “Attention is a two-way street, we have top-down attention which means ‘I am look-ing for x’ and then there is bottom-up attention which means ‘x’ finds you. I am much more bottom up.”

Everything gives him ideas, and he is open to opportunities – today, Magnus Stopford’s talk at the AGM was particularly thought provoking. He says he saves all the speeches he has done.

KEYNOTE SPEAKER Magnus Lindkvist

How to changethe world one step at a time

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| AGM / Keynote speaker: Magnus Lindkvist |

The challenge for any innovator is a trade-off between ‘new’ and ‘reliable’ and most people he deals with want ‘reliable’, even if they say they want ‘new and funny’. “They want a Mercedes and not a Ferrari, and that is a challenge.”

To predict how it is all going to end up“Not only is there a challenge to hit the right note in business, but also in trying to predict how it is all going to end up,“ he says. “In the shipping industry there is a lot of in-terest in the need for change in de-sign to meet the demands of compet-ing for business, yet at the same time there is a lot of reticence about taking the industry by storm with eco-ships, particularly when the world fleet is so young.”

Most industry segments believe they “sell drills when you want holes”. He cites as an example Scandinavian airline SAS who will advertise upgrades to their cabin space when what the industry wants is for planes to go faster.

Allow the individual to innovateInnovation is difficult to do on a company-wide level but so the fo-cus must be on allowing the individual to innovate. The ball is still very much in the shipping industry’s court. The shipping industry

is where the newspaper industry was in 1999, he says. However, “we are starting to see more patterns in what you can create and inno-vate, so why don’t we use that as the cue to move forward”.

What will the customer be like in the future? “A ship is just the way you do things right now – whereas a plane

sacrifices cost and scale for speed, a ship will sacrifice speed for cost, scale and reliability,” he says. “If we keep on asking the same question of what a ship will be like in the future we will continue to arrive at simi-lar answers. Perhaps we should

be asking instead, what will the customer be like in the future? If we don’t have the right question we will find the wrong answer. We can all dream up technologically sci-fi models but the real challenge is in predicting how business will be done in future.”

“Many people admire Apple’s Steve Jobs because he took death 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 should look like. Those who invented the container didn’t set out to change the world, but it happened anyway,” concludes Magnus.

How to changethe world one step at a time

“Not only is there a challenge to hit the right note in business, but also in trying to predict how it is all going to end up,“

| 1 0 | Triton 2 – 2014 August

Sean MoloneyManaging DirectorElaborate CommunicationsBedfordshire, UK

| AGM / Panel discussion |

Having some of the finest shipping minds together on one panel debating key industry issues is one of the strong points of the conference section of The Swedish Club’s Annual General Meeting and this year was no ex-ception.

Shipowner heavyweights Dr Hermann Klein, CEO of E.R Schiffahrt and Dr John Coustas, President and Chief Executive of Danaos Shipping Co., joined forces with Dagfinn Lunde, Chair-man of Executive Ship Management and Stena Shipping and Drill-ing’s Chief Executive Carl-Johan Hagman, to discuss the whole issue of eco-friendly tonnage and its role in shipping today and tomorrow. All debated under the superb direction of Precious Ship-ping’s Managing Director Khalid Hashim.

And as Dr Hermann Klein said as he got proceedings off to a good start: “Shipping now is all about arriving on time and arriv-ing at the lowest cost, in the safest and most reliable way, but what about the future? We have all heard about the driverless car but what about driverless shipping? We talked about the driverless cars possibly producing less accidents but can this be the same for ship-ping – less accidents, lower costs and maybe safer to operate. Some food for thought?”

Food for thought indeed, especially when you consider the ad-vances being made in technology today such as the 3D printer. “We have seen the market change dramatically over the last 20 to 25 years. Nobody could foresee this and the question is what we will be dealing with in the future, the same vessels or something

totally different?” he questioned. “Like the 3D printer: maybe this is the real competitor for con-tainers if you can produce your shoes and clothes via a 3D printer will you need transportation? You need to ask what will be the real competitor moving forward. Long-term investment in shipping may end up not only being transportation but also the production of goods.”

Dr Klein also talked to delegates about the eco-vessel revolution and the need for vessel modification and crew training to take into account as well. “Modification of your vessels is absolutely necessary and you have to carry out modifications on existing vessels to make sure your ship is at the best market level it can be. I.e. conversions from DP1 to DP2 in the offshore side; and when it comes to bulk-ers and container ships we are looking at improved efficiency. But you can save money through important crew training because very few crew today know how to operate a modified vessel efficiently,” he said.

Dr John Coustas added to the debate by suggesting that the time may have come for the truth to come out from all the eco-ship ‘jargon’. “The first real eco-ships were built after the oil crisis. I am sure many of you will remember the age of the steam turbine. Then we had the second oil crisis back in the late 70s and 80s and by that time oil went up to $40 a barrel, and because people thought oil

Putting the eco-ship into per spective

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Debating key industry issues. From left: Khalid Hashim, John Coustas, Carl-Johan Hagman, Dagfinn Lunde, Hermann Klein and Martin Stopford.

Triton 2 – 2014 August | 1 1 |

| AGM / Panel discussion |

Timing is key to profit growth

Khalid Hashim, Managing Director of Precious Shipping Co and moderator of the panel discussion held at the Club’s Members’ Day.

Bangkok–based Precious Shipping’s relationship with The Swedish Club dates back to 1993 when Managing Director Khalid Hashim discussed en-tering the company’s ships for hull and machinery cover.

The relationship has gone from strength to strength. In 1996 he joined the board of The Swedish Club and was appointed chairman of the Club’s finance and audit committee a year later. In 2007 he became deputy chairman of the Club.

He disagrees with the idea there is no money to be made in shipping. The founding shareholders at Precious Shipping started out with USD 3 million of equity in 1987 to buy ships. A couple of “dilutions” followed and then a public offering on the Thai stock market. Today the founding shareholders hold 61% which is worth in market capitalisation terms about USD 510 million – so it has grown 170 times in 27 years.

“Timing is the key,” he says. Shipping is a cyclical market and he believes that it is predictable, although one may not always get the timing right. “You don’t have to have a very big fleet to make money,” he advises. Precious Shipping currently has 40 ships with 29 more to be delivered, although tonnage will be sold to bring the overall fleet back to about 50 ships.

The company also values its crew. He points out that ships sail on three ‘M’s – meals, money and mail – so it is all about ensuring the crew is properly fed, properly paid at ITF rates and can communicate with their loved ones. “These three ‘M’s are things that we are very good at,” he says.

Training is an important factor and Precious recently paid USD 1 million for a simulator. “Training looks expensive un-til you try an accident,” he warns. The company also uses The Swedish Club Academy’s Maritime Resource Management programme.

Predicting a market upcycle in the final quarter, he reveals he believes all forecasts in shipping are generally wrong. “Fore-casting in shipping is very painful, it is like chewing glass,” he concludes.

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 4,200teu box ships designed to run at 17-18 knots. By the time the ships came on stream, the oil price had dropped dramatically and the ships were useless. The company went down because of that 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 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 is if you start from a bad vessel design.”

Dagfinn Lunde, put some solid figures to the facts when he told delegates: “There are 5,000 vessels on order now, and this year’s de-liveries will require $120bn of financing. Compared to other indus-tries, shipping has traditionally used a lot more commercial banks.”

“Export credit agencies are the future and they will provide the necessary financing because they are financing the newbuild-

ings. The financing will be there. The only gap in the market will be in the second-hand market – there are few commercial banks who will help owners buy second-hand tonnage.”

He added: “One interesting thing is that I am sitting looking at the industry and we have had sails, steam, now diesel and I don’t even imagine you can change to LNG or other fuels. In my mind, there are extreme advantages in LNG such as the economy of the fuel and society’s reaction. But don’t forget, if you have a new ship delivering $6,000 saving and your investment is based on those savings, what percentage of that is taken by the charterer? Well be-tween 50% to 70%, with the average being 67%.”

Stena’s Carl-Johan Hagman added: “Despite the fact the world is changing, there is an unlimited amount of financing out there and no matter what you say, in US private equity there are suffi-cient numbers of rich people out there to invest. But structurally I don’t see how we will move from trading vessels to trading cargo and doing it profitably. Stena has made 70% of its profits from asset plays and 30% from daily operations and 99.9% of our staff work in daily operations.

Tongue in his cheek, he said: “I do not believe in fundamentals in this market as we should not be here.”

The last word went to John Coustas who said: “The only way the industry can make money is if the world pays more for our services. If the game is for us to sell a vessel from one another more expen-sively and one person wins and makes money, that is really where we should collectively work together.”

Putting the eco-ship into per spective


| AGM / AGM-profiles |

Martin Stopford has long been consid-ered one of the few analysts prepared to stick his head above the parapet when making predictions about the fu-ture of the shipping industry. Recently retired from Clarksons, he has been branching out into other areas.

Commenting on the ship management seg-ment, he maintains that ship management companies should be trying to differentiate themselves from the opposition. Even the larg-est, he says are trying to market their services as being cheap, whereas registries like the Mar-shall Islands have proved that with the right formula you can prove attractive to a different type of client. Today the shipping industry faces many new technical and regulatory chal-

lenges. ”If a ship manager is running 3,000 ships, he is in a much better position to provide

a qualified professional staff to deal with the is-sues. Even big companies struggle with this and for the 10 ship company it’s a problem.”Has the shipping industry learned from its mistakes? He believes the right question to ask is not whether shipping has learned from its mistakes but whether the industry has the right vision going forward. For example the vision of ship management today reflects its history, and he says “doesn’t quite take on board the potential that ship management could have for the fu-

ture.” That vision is more important. “If you don’t order a ship then someone else will. You can’t be a shipowner without ships. Ships have to be ordered at some point and sometimes the timing isn’t right.” Once you have the ships, the vision tells you how to use them to provide the quality service charterers demand, at the rock bottom freight rates competitors offer.

That’s where the technical part is tricky for smaller companies without much room for technical overheads. The technical manage-ment issue plays a big part in this vision and outsourcing may be an option – but the right partner is crucial.With his departure from Clarksons, is he now semi-retired? Dr Stopford says he puts two to three days a week aside for farming. Just after the credit cri-sis he found a unique but rundown Georgian farm in Staffordshire and grazes organic beef, in a joint venture with a local farmer. “The farm brings you back to basics,” he says. “You are creating from the raw ingredients and when you have worked in the City, it’s a good bal-ance.”

Dr Stopford will generally spend two days a week travelling to speaking engagements and conferences and is also developing a blended e-learning business, building on the franchise of his book Maritime Economics, “so that when I’m too old to get on a plane, I can still carry on pontificating.”

The right vision for the future

AGM-PROFILE Martin Stopford

Although Dagfinn Lunde is perhaps best known for his banking role at DVB, from which he retired last year, he is quick to point out that his previous role was as Managing Director of Independ-ent Tanker Owners Association INTER-TANKO and before that at Klaveness, which puts him in good stead for his new role as Chairman of Executive Ship Management.

He took over as Chairman of Singapore-based Executive Ship Management (ESM) with the role of raising its client profile and to help the

company expand. “ESM currently runs about 140 ships but could do much more. ESM is a very specialised company in the tanker indus-try with a special focus on education and train-ing of crew,” he explains. So what does he consider to be the key focus regar-ding training at the moment?“Accidents,” he says. “Training for naviga-tion is a key issue for the company because the industry increasingly suffers from rampant navigational blunders, from untrained or inad-equately trained seafarers. The last big accident in Singapore was one example, when the rules of the road were not respected. The situation is really serious.”

Making crew count

AGM-PROFILE Dagfinn Lunde



Fighting protectionism is one of the key challenges faced by the shipping industry, according to Stena shipping and drilling chief executive Carl-Johan Hagman.

“On the whole, the shipping industry lives on international trade and historically has always benefitted from increased globalisa-tion. The biggest threat to the industry is therefore if we see growing protectionism, with countries or regions isolating them-selves.”

“In addition legislative measures focus-ing on, for example, vessels’ age and size rather than quality, can be damaging in particular segments. I believe the tradition-al shipowners in this industry are dealing very professionally with the challenges we are facing.”Environmental regulation is putting shipping firms under pressure, how is Stena dealing with the issues?“We welcome environmental regulations as they make the world’s greenest industry even greener. It also forces the industry to find new solutions and new technology - such as Stena’s projects with methanol as marine fuel. What is challenging is when

regulations differ substantially between re-gions - or risk not being enforced properly, as may happen with the low sulphur SECA regulations. That can lead to unfair compe-tition which is not good.” So what are your views on eco-ships?“Eco-ships came into existence due to the high fuel prices we have seen over the past few years and in addition are beneficial for the environment - so they are good for all. I believe the term ‘eco’ will gradually be phased out as it’s very unlikely that fuel prices will drop substantially and hence no ‘non–eco’ ships will be built in future.”

Market viewsIn terms of the way the market is going to perform going forward he believes that the future will very much depend on segment, macroeconomic factors and order books. “We are positive on the shipping market overall as shipping demand has always grown quicker than world GDP. However trade barriers, fuel prices and the influx of private equity in certain segments are fac-tors that can have damaging effects in spe-cific sectors - which we can see today.”

AGM-PROFILE Carl-Johan Hagman

Keeping aheadof changing markets

As far as the debate on new in-vestment as against consolidating with existing assets and improv-ing energy efficiency measures is concerned, Hagman says that with quality maintenance a ship’s life can be long and “as such we focus first hand on taking care of the ships that we already own be-fore we order new ones. We have improved energy efficiency sub-stantially over the years in many 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.”

New technology is key to driving the industry forwardSo what steps are Stena taking in this respect? “We are tradition-ally one of the most technology driven shipowners there is, with in-house developments such as the wide body MAX-concept tanker design, the high speed HSS ferry, the ice class DrillMAX drillship and our methanol ferry conver-sion. So we embrace new technol-ogy to deliver safety and quality to our customers. We always have to evolve - or we will sink.”

He says that the current tonnage over-supply situation affecting the market is not new. What shipping should be doing is be-ing careful to buy at the right time, working closely with customers and building an ef-ficient operation. This “carries you through if you have low leverage on your balance sheet”.

“ESM has a special philosophy,” he says “with its focus on specialised vessels like tankers and training. Their pre-sea training centre trains about 400 officer cadets each year who go to join the ships managed by ESM only.” “This creates loyalty with peo-ple coming back to a ship,” he explains. “If you get the same crew back on the ship, they

know what to do and that’s the best way of running a ship. Retention is key and ESM has 98% retention.”

So is the market growing for third party managers?

With the number of new ships coming in the next two years, demand is huge. “You hear about the lack of qualified people at many conferences. Look at LNG, you can’t find good people today and there is a huge demand for offshore companies. That is the biggest deficiency in the shipping industry – qualified crew.”


Hermann Klein, CEO of E.R. Schiffahrt, a member of The Swedish Club, has outlined some of the challenges the industry is fac-ing.

According to Dr Klein: “The shipping markets in general are still suffering from overcapacity. At the same time we see the number of idle ships de-creasing. But despite signs of recovery for certain container vessel sizes we will still see a tremendous number of newbuilding deliveries in 2014 and 2015. TEU-wise it will be the biggest newbuilding volume we have ever witnessed.

“As for container vessels, markets remain diffi-cult to predict in the medium term, partly because

of the cascading effect. Larger vessels will continue to replace smaller vessels and soon many of them will even be able to pass the Panama Canal.

“Except for 12,000 to 18,000 TEU vessels sail-ing on Europe-Asia trades, it will become much harder to predict which vessel sizes will dominate on which trades.

“Speed flexibility and fuel efficiency are and will continue to be of vital importance for all shipping companies. This applies not only to container ves-sels but also to bulk carriers,” Dr Klein says.

“Throughout the last years we have implemented numerous different measures and modifications so today E.R. Schiffahrt offers state of the art vessels to the charter market and, as a ship manager, offers extensive knowledge, services and support to its customers.”

He adds that the offshore market is still char-acterized by solid asset values and believes it will remain attractive within the years to come. “That is why we just signed an order for two modern plat-form supply vessels,” he added.

“Shipping markets are continuing to suffer”

Dr. John Coustas is President and CEO of Danaos Corporation. He has over 25 years’ experience in the shipping industry and assumed management of Danaos in 1987 from his father, Dimitris Coustas, who founded Danaos Shipping in 1972. He is also Deputy Chairman and a member of the board of direc-tors of The Swedish Club.

The shipping industry is going through an interesting period at the moment, with much concern being expressed about over-supply of tonnage, and Danaos Corp Presi-dent and CEO John Coustas predicts slow growth round the world for the next two years, with few peaks.

“We are going to see a relatively flat mar-ket. With slow steaming it will be possible to keep demand and supply not greatly out of check. I think most market players do not have growth plans but are looking to consolidate and invest, not in new assets but in improving the efficiency of the assets they already have,” he believes.

Even the ship’s crew, he says can make

“Efficiency is King”

AGM-PROFILE John Coustas

up to a five per cent improvement in con-sumption in the way they run the ship. Another issue he highlights is greater con-trol of operations. Maersk, he says went back into the black purely as a result of cost controls, not because of higher rates or volumes.

He expects to see more consolidation among small owners who don’t have the expertise or the power to invest in all that is necessary to make the improvements, including information technology.

He believes that greater use must be made of cutting-edge technology in order to drive such improve-ments. “Word should go out to the industry to concentrate on operational efficiency of existing assets because even if owners order the best eco-ship, if supply and demand is not there, the investment will not be justi-fied,” he says.

To ensure that crews are competent, training is an important component and it is also necessary for shipping companies to understand what operational efficiencies are all about, Dr Coustas says. His compa-

ny has a research department which purely deals with the issue of operational efficien-cy, and its trade partners benchmark the company on the basis that its ships are run more efficiently than those of competitors. “That’s where we get our competitive ad-vantage. You cannot substitute technology for inefficiency at the core of the business.”


AGM-PROFILE Hermann Klein


BACK ROW from left:

Andonis LemosMichael VinnenSumate TanthuwanitAnders Leissner (Board Secretary)Anders KällssonRob GroolDiamantis ManosAnders BomanKim Kyong SooGustaf GrönbergFred ChengElisabeth Rydén (elected by the employees)Lars HöglundJakob Osvald (elected by the employees)

The Swedish Club Board of Directors as per 12 June 2014

| AGM / The Swedsih Club Board of Directors |PH

OTO

: Jon

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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.

FRONT ROW from left:

Michael BodouroglouDemetri DragazisChen XiangLennart Simonsson (Chairman)Khalid Hashim (Deputy Chairman)John Coustas (Deputy Chairman)Idil BaranLars Rhodin (Managing Director)

NOT IN PHOTO:Li ZhenPeter ClaessonWeng Yi


| AGM / New Board Member |

A cautious optimist

NEW BOARD MEMBER Michael Bodouroglou

AT THE MOMENT he has seven vessels entered with The Swedish Club and sees the trend as upward. “We look for-ward to increasing the number of ships we have entered with the Club going forward,” he says. “It’s a very good Club which is managed very well and very diligently and has a hands-on approach with the members. What has struck me positively is the loyalty between the Club and its members over the years. I haven’t seen that in any other club.”So does he find the Club very proactive in what it does? “Absolutely, it has a very clear culture and very clear think-ing regarding how things should be managed and what it expects from its members. It tries to assist members as 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 the same time be hands-on with its members. “It’s a combi-nation that works in my view.”So how does he see the market developing over the next year or so? “I’m quite optimistic as far as the demand side of the equa-tion is concerned,” he says. “Although on a micro basis there will always be news which is of concern to the mar-ket. I think that marine transportation is fundamental for the global economy and that maritime transportation will increase over the years with a healthy demand in all sectors.” Whilst the wet market is difficult to predict he is pretty confident on the dry side given the emerging econo-mies in Asia. On the container side the market will be driv-en by consumers all round the world.

His major concern is the order bookHe says he was far more optimistic a year ago with the lack

of liquidity on the part of the banks and the availability of finance for shipowners

which kept the order book con-strained. The fact that private

equity money has been poured into the market is a concern

as “it remains to be seen whether demand will be able to outpace the big or-der book.”

Never compromise on quality and safetyOne concern he points to is on the cost side of the equa-tion, because there is a floor beyond which an operator cannot go without compromising quality and safety. “This should not be negotiable by any company,” because “if you think investing in quality and safety is expensive, try hav-ing an accident.”

“We should never compromise on quality and safety as-pects, and because of that there is a floor on expenses below which we cannot really go. Crews have to be paid competi-tive salaries and companies have to be insured with the right people, while spare parts have to be bought from reli-able sources.”

Views on the market“Those shipowners who owe a lot of money to the banks will continue to find the market difficult over the years to come,” he says. The underlying market fundamentals do not allow for a great deal of optimism but at the same time “I don’t expect that we will see rates as low as they are today. I think the market will be a bit better, but not sub-stantially good enough to actually benefit those who are over-leveraged.”

At the moment he believes the investor community is quite cautious. The current level of the market has sur-prised everybody as they were expecting it to be at a higher level. However, on the private side for as long as owners need to sell assets to be liquid, and for as long as markets remain at depressed levels “I think there will be private money around to invest in existing assets”.

As far as the eco-ship debate is concerned he feels that perhaps they have been “over-sold a bit”. There are advan-tages with eco-vessels but he does not feel that the differ-ence is so meaningful to make a big difference going for-ward. Ships have to be considered in the context of when they are also in ballast and not only when they are loaded or when they are in bad weather conditions, as there are certain design features for eco-ships which are not very fa-vourable to them when operating in certain weather condi-tions.

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.”

“We should never compromise on qualityand safety aspects.”


| AGM / New Board Member|

NEW BOARD MEMBER Michael Bodouroglou

PHO

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Dinner for Early Arrivals - at Kajskjul 8, 11 June More photos can be found on www.swedishclub.com

THE EARLY ARRIVALS DINNER this year was held at Kajskjul 8, located next to the Maritime Museum in Gothenburg harbour. Lars Rhodin greeted all the guests as usual – with a toast and a funny story.

| AGM / Early Arrivals Dinner |

Some of the guests enjoying the seafood buffet.


| 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: Diamantis Manos (Costamare Shipping Co S.A., Greece)

together with George Bamiotis (Conbulk Shipping S.A., Greece).From left: Nick Embiricos (Seascope Insurance Services Ltd, UK), Vincent M. DeOrchis

(Montgomery, McCracken, Walker & Rhoads, USA), Paul Spencer (Miller Insurance Services,

London) and Jan Risinger (Fairwater Marine AB, Sweden).

Having a nice time. From left: Jürgen Hahn (Stichling Hahn Hilbrich GmbH, Hamburg, Alexander Kay (Junge & Co Versicherungsmakler GmbH) and Thomas Kühl (Pandi Marine Insurance Vermittlungs GmbH, Bremen).

From left: Joe Balls (Omni Ltd, UK), Ûlkem Gürdeniz and Karin Dermitas (Omni Ltd, Turkey) and Maria Berndtsson (The Swedish Club).


AGM Dinner, 12 JuneLARS 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

| AGM / Dinner |

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

From left: Sumathe Tanthuwanit and Surerat Tanthuwanit (Regional Container Lines, Bangkok) together with Vivian Ae Kyung Kim and Kyung Soo Kim (IMC Shipping, Singapore).

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

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 |

Demetri Dragazis (LATSCO, London) with his wife Elizabeth.

The evening’s entertainment “Cookies & Beans” reinforced by Filippos Lemos.

Peter Cowling (Chairman Election Committee, UK) and Karin Demirtas (Omni Ltd., Turkey).

Peter Jacobsson and Sara Båth (Floatel International AB, Sweden).


The Mutual Cup, 11 JuneTEAM 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.


A friendly and relaxing moment after the game

The referee was tough but fair.

Partners’ Programme, 12 JuneRecycle, Repurpose, ReloveTHIS 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.


“The Swedish Club hot-dog men” Claes Åman and Peter Stenberg.

| AGM / Out and About |


The Swedish Club Grand Classic, 13 JuneAN 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. When all 18 golfers, divided into 6 teams, had finished the game, a lunch buffet and prize cer-emony awaited them.


Tord Nilsson from The Swedish Club, congratulates this year’s winner, Walter Wekenborg of Marlow Navigation, Cyprus.

From left: Kaare Langeland (Holman Fenwick Willan, UK), Ruizong Wang (The Swedish Club Hong Kong) and Martin Holm (Dansk Rederi A/S, Denmark).

A day outside: nature, sculpture and....sheep, 13 June

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 TRIP was arranged on Friday 13 June to the island of Tjörn and its beautiful scenery.

The first stop was Sundsby Säteri, a manor house built in the 16th

century and now open to the public with cultural events, a park, hiking routes and a café. The second stop was “Sculpture at Pilane”

which is one of Sweden’s most beautiful cultural landscapes. Here, the sheep graze freely as they have done for centuries.

Lunch was served at Björholmen’s Marina before the bus took us back to Gothenburg.


| AGM / Out and About |


ON 5-9 MAY, the fourteenth consecu-tive Marine Insurance Course was held at the Club’s head office in Gothenburg. The course is an annual event designed to pro-vide an opportunity for people working for shipowners, ship managers, marine insur-ance brokers and club correspondents, to improve their knowledge of marine insur-

Know-how and networkingat the Marine Insurance Course

ance and learn more about The Swedish Club.

This year’s group had a packed sched-ule with presentations covering the major aspects of Marine Insurance, such as Pro-tection & Indemnity, Hull & Machinery, Freight Demurrage & Defence, as well as reinsurance, loss prevention and Maritime Resource Management. The most appreci-ated part of the course was the case studies and workshops that summed up the week.

To take part in a course is not only to learn new things, but also to make new contacts, especially if you are new to the business. To get to know the participants and The Swedish Club’s staff, an event was held on Monday evening with a trip to a lookout point, locally known as “the Lip-stick” and then dinner at a restaurant near-by. On Thursday the participants went on a trip out in the archipelago for dinner at the Isbolaget Restaurant on Donsö Island.

This year’s course participants repre-

sented members, brokers and reinsurance companies from eleven different countries. They all contributed to making the course not only about learning, but also about interesting discussions and networking.

The Swedish Club’s staff would like to thank all participants for making our 14th Marine Insurance Course an enjoyable event and we are looking forward to next year, which will be the 15-year anniversary.

I learnt a lot and already feel more confident in my day-to-day job activities.

George Karapateas of Global Marine Insurance Brokerage Services Ltd.

Therese Lindqvist-ReisCorporate Communications

| Club Information / Marine Insurance Course |

Group of Marine Insurance Course 2014 gathered in the rain outside Restaurant Isbolaget on Donsö Island.

The date for next year's courseis 4-8 May 2015.

On the boat to Donsö, from left: Christin Ottman (Willis AS, Norway) Heidi Winkler (J Lauritzen A/S, Denmark) and Florence Gourlet (ETIC SAS, France).

On the boat to Donsö, from left: Sharon Beck (Stena Ltd., Ireland) Christoffer Nilsson (Stena Line AB, Sweden) and Korina Skiniti (J.P. Samartzis Maritime Enterprises Company S.A., Greece).


| Legal / Update |

SOME MOMENTS stick out. I recently found myself sitting on the terrace of one of Gothenburg’s finest restaurants with a cheer-ful group of colleagues and lawyers, watching the sunset and the flashing from the Vinga lighthouse far away at the port entrance. It was a soft, early summer evening and Sweden was at its best. It is the type of restaurant you go to when you have something to celebrate and that we had; the week earlier the Club had won an arbitration worth a significant amount of money and which had involved a large group of people for a long time, myself included.

The discussion was boisterous and we analysed the events with the benefit of hindsight. Had it been possible to detect any signals from the Tribunal at the hearing? Could the opponent have chosen another angle? The relief after a long period of tension could not be mistaken. For my own part, the arbitration and its successful result reminded me of two things.

TeamworkFirstly, the importance of teamwork. To get something right you 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 things you miss yourself others can see. To this end, competent ex-ternal lawyers are essential as they come from an unbiased position and view things with a fresh pair of eyes.

…and gut feelingSecondly, a gut feeling is often right. When the Club initially was faced with the situation that eventually resulted in the arbitration, our initial reaction was that the legal proposition for the claim “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

Amorgos in Lake Maracaibo, Venezuela in 1997, the Norwegian Club has made interim payment to claimants and is also exposed to further unpaid claims in excess of the CLC limit, which was disregarded by the Venezuelan court. The Fund however refuses to indemnify Gard for any payments on the basis that there is no legal decision against the Fund.

The Fund also alleges claims against it are time barred. The posi-tion taken by the Fund is arguably unlawful and/or against estab-lished practice and certainly puts clubs in very exposed positions when dealing with third party claimants following pollution inci-dents. To add salt to the wound, the Fund has decided to dissolve itself.

As a result, Gard issued, and was recently granted, a freezing in-junction against the Fund for claims subject to proceedings in the United Kingdom (case ref [2014] EWHC 1394 (Comm). The ac-tion against the Fund raises interesting questions about the mecha-nism of the IOPC Funds and also whether they are immune from legal proceedings. The battle will continue.

Compliance On the regulatory front, we receive an increasing amount of re-quests from our US business partners to confirm we are “FATCA compliant”. FATCA stands for Foreign Accounts Tax Compliance Act and seeks to identify payment receivers worldwide. The Act is imposed by the US tax authorities to combat tax evasion by US tax payers. If certain documentation is not completed (form IRS W-8BEN-E to be more precise), the payer must withhold 30% of the payment. The arm of the law can be long indeed.

What it is all about

Anders LeissnerDirector Corporate Legal and FD&D

PHO

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PHO

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| Strategic Business Development & Client Relationship / Update |

IN OUR STRIVE to become more diversified and more accessible to prospective clients, the Club has taken another important step by entering into Builder’s Risk. This step is to be seen as a natural progression in the Club’s ambition to expand our global reach. More specifically, this applies to the Energy and Offshore markets where we have, firmly positioned ourselves, slowly and surely over the past three years. Our most important base in developing these new business areas is our office in Norway, which we know offers the Club great future potential for further sustainable growth.

Trading ships and commodities is becoming an ever greater challenge to our business partners. In light of constantly changing trading conditions, one of our key priorities is to have insurance solutions at hand that match the contemporary and future needs of the industry. It should be pointed out that it is equally important for us to further develop and enhance our already very good ability to handle claims and otherwise service the business solutions we provide. Areas of particular focus for the Club during 2014 are ad-ditional cover for trade disruptions and extended cover for charter-ers and commodity traders. We have seen a greater need for opera-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 environmentVery 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

pleasing as this development is, we are carefully monitoring relevant indicators in order to adapt to any changes in the claims environ-ment going forward.

Loss prevention – sharing experienceThe Club has recently published two new publications that have attracted a lot of useful attention: “Ice - Advice for trading in the Polar Regions” and “Heavy Weather”. Both of them are very useful to our membership and business partners, especially the “Heavy Weather” as it offers very hands-on guidance for preventing a recurrence of claims. Over the year we will of course publish our annual publi-cation “Claims at a glance” and will also issue updates to “Main Engine Damage Study”, “P&I Claims Analysis” and “Navigational Claims”.

Adding value and making a difference has always been part of the Club’s business philosophy and sharing our experience on the claims side with a view of making the shipping industry safer and helping our membership to save costs, is an integrated part of our value-adding culture.


Lars A. MalmDirector Strategic Business Development & Client Relationship


| Safety / Heavy weather |

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 heavy weather.

The questions are: Why did the vessel sail through the heavy weather? Could the vessel have navigated around the heavy weather? Did the vessel use weather routing or not? Did the crew slow down or alter course to avoid the impact of

large waves or high winds? Was the cargo correctly secured?

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 is likely that the vessel is safer at sea than in port.

Today there are usually warnings about the development of a hurricane or other serious weather phenomena. This information is

often available many days before the weather arrives. The key is how the information is used and what preventive measures are taken.

With the correct preparation and procedures the vessel can mini-mize the effects of sailing through heavy weather. The included cases in our publication highlight that the best prevention against heavy weather casualties is to plan the route properly and to reduce speed and alter course as required.

Why do heavy weather claims occur?

Joakim EnströmLoss Prevention Officer

For more details about recurring issues, concerns and preventive measures, please see our recent publication “Heavy Weather”available on our website.


| Safety / Free MRM licence |


– a resounding succes s!The first half of 2014 has been a very busy time for The Swedish Club Academy. It wasn’t only the time for renewals of the existing MRM licensees, but also time for welcoming many new members who are taking advantage of The Swedish Club’s MRM campaign.

23 members enrolledAfter The Swedish Club launched its MRM campaign in October 2013, offering insurance members free licences for two years, the number of licensees coming from the Club’s membership has more than doubled. To the existing 18 licensees we have added a further 23 members bringing the total to 41 Club members now taking part in the Club’s biggest safety investment.

44 new certified MRM facilitators from the Club membersThere was a good turnout at the four MRM facilitator training events in the first half of 2014 – a significant accomplishment for

the Academy. Some 15 members, mostly shipowners, sent 44 repre-sentatives to attend one of the four events and become familiarized with the MRM concept.

What’s next?The Swedish Club Academy is constantly striving to provide strong support for our members especially in implementing the MRM programme at their companies. We are aiming to deliver a new learning platform and updated course material by the end of this year. A new approach to running courses is also being looked at. After the enrolment process and having completed the facilitator training course, a bigger challenge awaits; our certified facilitators are now equipped with the knowledge, skills and motivation to de-liver the MRM programme at their organisations.

Making MRM transparent throughout the organisationSuccessful MRM implementation doesn’t just end with the facilita-tors delivering the information to the seafarers and shore-side staff. That is just the start of the process. It is highly recommended that an introduction to MRM is given to management so that managers have a better understanding of what MRM is all about. The main components for successful MRM implementation are a strong com-

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.

Lorraine M. HagerProject CoordinatorThe Swedish Club Academy AB


We would like to welcome the most recent addition of The Swedish Club members to the MRM networkAllseas Marine S.A., GreeceBlossom Maritime Corporation, GreeceCara Shipping Pte. Limited, SingaporeDanaos Shipping Co. Ltd., GreeceDianik Bross Shipping Corporation S.A., GreeceDioryx Maritime Corporation, GreeceEnesel S.A., GreeceFairdeal Group Management, GreeceFuretank Rederi, Sweden GC Tankers, SingaporeGlobal Marine Ship Management Co., Ltd., ChinaGoodwood Ship Management, SingaporeID Wallem Ship Management Ltd., Hong KongIseaco Holdings Pte Ltd, SingaporeKallianis Bros Shipping SA, GreeceLaurin Maritime AB, SwedenMSI Ship Management Pte. Ltd., SingaporeMST Mineralien Schiffahrt Spedition und Transport GmbH, GermanyNorthern Marine Management Ltd., U.K.Orion Bulkers GmbH & Co. KG, GermanyReederei NORD GmbH, GermanyStena Line Scandinavia AB, SwedenSTOC Tankers AB, Sweden

Other new MRM licenseesEkol Denizcilik, TurkeyMaestro Shipmanagement Ltd., CyprusMMS Maritime (India) Pvt. Ltd., IndiaOSM Crew Management Ltd, Cyprus

| Safety / MRM |

PROMINENT personalities from the shipping industry convened to tackle issues related to manning and training during the recent Manning and Training Conference held on 13-14 May 2014, at the 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 Hernqvist of The Swedish Club Academy, talked about the topic “Developing effective safety cultures on board – moving outside the box to achieve results”. He emphasized the importance of putting into practice the attitudes, knowledge and skills of seafarers in the workplace, rather than focusing on acquiring certificates.

He explained: “It is only through a genuine change in attitude that behaviour can be changed and a demonstrable improvement made to a company’s performance. If attitudes are poor, it doesn’t matter what technical skills and knowledge a company has in place.”

“It’s about having the right safety culture – both at sea and ashore – and this is why implementation of training lessons must ultimate-ly be driven by the shipowners themselves. A company culture can only be changed from within the organisation.”

Martin Hernqvist speaks at the 17th European Manning and Training Conference

mitment to implementing the MRM programme from manage-ment at the shore organisation, open communication between the people onboard and shore-side staff, and an open interaction between the ship and shore-side staff. A top to bottom approach has proved to be an effective strategy in making sure that the MRM concept is not just being taught and learned, but also prac-ticed and implemented at the organisation. An MRM Best Prac-tice guide to support members is being developed.

Next batchWhile providing support to our new licensees, we are also prepar-ing for the next wave of members coming in the next batch. We urge all Swedish Club members to take advantage of The Swedish Club’s MRM campaign. Don’t miss this opportunity to come on board the safety train. Sign up now!


– a resounding succes s!


| Club Information / News from Team Piraeus / News from Team Gothenburg |

IT REALLY HAS BEEN a very interesting and prosper-ous first half-year in Greece. The presidency of the EU brought a lot of high profile executives to meetings and conferences here in Athens. We will still have to work hard to get back on track but it seems like we are getting there. When it comes to ship-ping the freight market has not yet recovered, but some 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.

This first half-year has also been very successful for The Swedish Club. Due to organic growth among our members and also a num-ber of new members, our office in Piraeus reached a new milestone in Owners P&I. At our Open House on 5 June we took the oppor-tunity to celebrate 10,000,000 GT. That is an “All time high” for us here in Piraeus. It is the result of hard work, a strong long-term commitment to the Greek market and successful shipowners. As stated previously, Greek shipping is a global force and it is very in-teresting to be part of this very active shipping market.

As you can imagine it has been a very hectic period and the sum-mer has allowed us to have a couple of weeks off to recharge our batteries, because there are no signs that the activities in this ship-ping market will slow down.

NEWS from Team Piraeus Hans FilipssonArea Manager

Half-Year report from Piraeus

WE HAVE SEEN encour-aging growth in hull and machinery accounts over the past year, coming as it has from client recommenda-tions, and the flow of new members making the Club the claims lead for their ves-sels has been impressive.

Members are attracted by the holistic approach we of-fer, which provides added value and a great claims lead at the right premium.

We are also delighted to have successfully launched our new Kidnap and Ransom insurance 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.

In April a members’ lunch was held in Istanbul, which proved a great success. During the lunch Lars Rhodin, Managing Director of The Swedish Club, briefed members on the Club’s progress and the current market situation. Following his presentation, mem-bers enjoyed an introduction to Freight, Demurrage and Defence (FD&D) insurance under the title “It is your money”. This was followed by the Club’s Loss Prevention department providing an in-depth look at the latest loss prevention initiative - The Swedish Club’s Operations Review (SCORE) programme.

This successful format was rolled out to almost 100 guests at a members’ dinner in Hamburg held mid-May, and the following day to over 50 guests at a members’ dinner in Bremen.

We are looking forward to a similar event that is due to be held in Copenhagen in early autumn, giving our members another de-tailed insight and a chance to share their views, and through that influencing the interface with their Club.

NEWS from Team Gothenburg Jacob VierøActing Area Manager

Consolidation diversification


Soft market reaching the bottom?THE NORWEGIAN marine insurance market remains soft, which is also the position globally. Young underwriters who joined the industry in the past ten to fifteen years have never experienced a hard market. There may however be signals that the bottom of the cycle is near. Attempts to cancel and rewrite policies with pre-miums locked in on a 24-48 month basis always indicate imminent cycle changes.

In the energy segment, a number of mobile offshore units are being delivered, many of which without firm contracts, leading to overcapacity and a general reduction in rig rates expected to last for the next two to three years. This has strong bearings on the insurance market which remains soft on good accounts and where only poor claims records merit increases, at best. The market is still struggling with overcapacity even though the number of new en-trants seems to be stabilizing.

John Fredriksen, who turned 70 on 11 May, might consider reconsolidating his bulk carrier operations in Knightsbridge and Golden Ocean into one single company. Knightsbridge has re-cently taken over 25 capesize newbuildings from Frontline 2012 and Golden Ocean currently has a fleet of 26 bulkers from supra-max to capesize. In addition it handles commercial management of Knightsbridge’s bulkers.

Earlier this year Klaveness Marine and JP Morgan took over the ownership of Norwegian Car Carriers and recently delisted NOCC from the Oslo Stock Exchange. Klaveness Marine recently cancelled its “Project Phoenix” and plans to enter the dry bulk

segment with a series of eco-friendly handysize newbuild-ings.

Kristian Jebsens Rederi is back in shipping again after a recent, troubled past and has ordered two handysize bulk-ers, with its partner Aboitiz, from Tsuneishi in Cebu, the Philippines. The vessels are scheduled to be delivered in June and September next year.

In the offshore service seg-ment, John Fredriksen’s Deep Sea Supply has recently con-firmed its plans to add 10 new PSV newbuildings to its books by the end of Q3 2014, taking its global fleet of OSVs to 40 units. At the same time, spot rates for PSVs in the North Sea are expected to increase, as vessels are leaving the area and periodical contracts are coming into play.

Staffing at the Norway office is in the process of being finalized for now with a Team Assistant in place. With this latest addition, Team Norway is ready to take the next step as a self-sufficient op-eration of The Swedish Club.

NEWS from Team Norway Tore ForsmoArea Manager

THE CLUB’S BUSINESS continues to grow at a good pace in Asia. Over the past few months since the P&I renewals on 20 February, our Owners’ P & I tonnage has increased by over 5%. We added a few new members for owners’ P&I entry, together with good organic growth from our existing members. We have also added a number of marine accounts since 1 January. On some fleets we do claim lead, on others we have taken small following lines. We have entered a few new Charterers’ P&I insurance mem-bers as well since 20 February.

We managed to achieve high growth rate on owners’ P&I ton-nage despite the fact that some of our members in China have started to dispose their old tonnage. The Chinese government announced a new policy to encourage disposing old tonnage and building new ships in 2013. This policy obviously has the good in-tention of upgrading China’s national merchant fleets and boost the freight market, as well as supporting Chinese shipyards. In ac-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-

ceive RMB1,500 per GT for the scrapped vessel.

This subsidy applies from the beginning of 2013 to the end of 2015. As expected we will see some of our insured vessels on the Chinese mar-ket disappear this year or next, therefore there will be a slowdown in our P&I ton-nage growth. This is however a positive development in the long run for the Club as Chi-na’s shipping fleets expand with better and newer quality tonnage.

Continued growth in Asia

NEWS from Team Asia Ruizong WangArea Manager

| Club Information / News from Team Norway / News from Team Asia |


| Club Information / Out and About |

Breakfast Seminar in Oslo,18 March 2014THE 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 Lunchin Piraeus,9 April 2014ANOTHER 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”.



Open House in Piraeus, 5 June 2014DURING 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: Alexandros Lemonidis (Element Shipmanagement S.A.) and Mauro Renaldi (V.Ships Greece Ltd.).

From left: Costas P. Drivas (Overseas Marine Enterprises Inc.), George Agathokleous (British Bulkers Inc.) and Andrew Gordon (Seascope Insurance Services Ltd.).

Member Lunch in Istanbul,10 April 2014THE CLUB’S traditional lunch in Istanbul was held this year at the Grand Hyatt Hotel. The lunch was well attended with represen-tatives from members and other business associates from the Turk-ish shipping world. Guests were updated on the Club’s current state 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: Andrianos Agathokleous (CEO of British Bulkers Inc) and Stamatis Angelikoussis (Chartering-Dianik Bross Shipping Corporation S.A.).

From left: Selim Bilgisin (Vitsan Mümessillik ve Musavirlik A.S.) and Cem Varisli (Marsh Marine Practice).

From left: Enver Bilgi and Gürol Zorer from Zenith Gemi Isletmeciligi and Lars Rhodin, The Swedish Club.

From left: Cisem Karaaslan Gudelci from Omni Ltd and Fredrik Bergqvist, The Swedish Club.



Bremen, 22 May Hamburg, 21 May

Club Evenings in Germany: Meeting face to face. A “must”and a “need” at The Swedish ClubSOME 150 members, brokers and business associates ignored the exceptionally warm spring and joined up at The Swedish Club Hamburg and Bremen Club evening events. These events have become as much of a tra-dition as the Swedish midsummer and this year’s events were no exception. The Swed-

ish Club’s employees covering all parts of our business and member services met up at the two events to discuss current and general matters face-to-face and with other people joining in this added extra dynamics to the topical discussions.

Our Managing Director’s State of Affairs

presentation started off the formal part of the evenings, highlighting to our members how the Club is performing. Additional presentations about FD&D insurance and Loss Prevention added wider information to our guests and members.

From left: Charly Bergmann (JWA Marine GmbH), Dirk Janssen (Groninger, Welke & Janssen) and Tilmann Kauffeld (The Swedish Club).

From left: Folker Verwoldt (JWA Marine GMBH) and Bernd Hein (F.A. Vinnen & Co).

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

From left: Linda Reumann (Norddeutsche Reederei H. Schuldt GmbH & Co. KG), Françoise Fouchier-Matte (The Swedish Club) and Olga Darin (Marine Assekuranz GmbH).

From left: Olaf Fölsch (Aon Risk Solutions) and Alexander Thoms (Kingfisher Insurance Broker GmbH).


TEAM GOTHENBURG

Oscar HolmqvistCredit Control Officer, team Gothenburg.Oscar Holmqvist has been appointed Credit Control Officer at Team Gothenburg as of 1 September 2014.

TEAM PIRAEUS

Tina TzortzisUnderwriterTina Tzortzis has been appointed Underwriter in Team Piraeus as of 1 April 2014.

Staff News

What was the name of Captain Hook’s pirate ship?

1 The Santa Maria X The Hooked 2 The Jolly Roger

What kind of knot is taught by: “The rabbit comes out

of the hole, around the tree and back into the hole”?

1 Figure eight knot X Bowline 2 Sheet bend

What is ”Inchmaree Clause”?

1 Extension of hull cover to include loss or damage to hull and machinery caused by negligence X Cover for damage to “fixed and floating objects” 2 Cover for removal expenses

Answer to [email protected]

The first right answer will be awarded a Club give-away.

Winner of Club Quiz 1-2014

Winner of Club Quiz in Triton No 1-2014 is Peter Van den Wouwer, Marsh S.A. Antwerp who has been awarded a Club give-away.

The right answers to Qlub Quiz No 1-2014 are:

X A nautic mileX Josef ResselX Poseidon & Amphitrite

CLU BQU I Z

| Club Information / Out and About / Staff News / Club Calendar / Club Quiz |

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

10-12 June AGM Events Gothenburg

10 June Board Meeting Gothenburg

11 June Annual General Meeting Gothenburg

For further upcoming events, please refer to www.swedishclub.com/Club Calendar

Club Calendar

Christoffer Ahlqvist (Transbulk 1904 AB, Gothenburg) with his medal after a well-run race.

THE SWEDISH CLUB Team participated this year with a team of runners comprising 47 members, business partners and employees of the Club.

The winner of The Swedish Club Team was Christoffer Ahlqvist who scored 01:28:41.

More photos can be found onwww.swedishclub.com

The GöteborgsVarvetHalf Marathon, 17 May 2014


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.

ContactHead Office GothenburgVisiting 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



Hong KongSuite 6306, Central Plaza, 18 Harbour Road,Wanchai, Hong Kong

Tel: +852 2598 6238, Fax: +852 2845 9203


EMERGENCY NUMBER: +852 2598 6464

Japan2-14, 3 Chome, Oshima Kawasaki-Ku,Kawasaki Kanagawa 210-0834, Japan

Tel: +81 44 222 0082 (24-hour tel), Fax: +81 44 222 0145



NorwayTjuvholmen Allé 17, N-0252, Oslo, Norway

Tel: +47 9828 1822, Mobile: +47 9058 6725



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REPORT Page 4-23 Facing the challenges head on Triton no 2 2014...The tragic ferry sinking of the MV Sewol in South Korea in ... change issues, as well as an economic depression and