American Club Circular No. 15/14 1 MAY 16, 2014 CIRCULAR NO. 15/14 TO MEMBERS OF THE ASSOCIATION Dear Member: THE INTERNATIONAL GROUP OF P&I CLUBS: 2013/14 ANNUAL REVIEW The International Group of P&I Clubs, of which the American Club is of course a member, has very recently published its 2013/14 annual review, a copy of which is attached for Members’ ready reference. The document is available on the International Group’s website at www.igpandi.org and is also being posted on the Club’s own website at www.american-club.com. It contains a review of several of the most important issues with which the International Group has been collectively engaged over the preceding twelve months. It is hoped that Members will find it to be of considerable interest speaking, as it does, to the very broad range of activity with which the Group concerns itself on behalf of the shipping community throughout the world. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB 2013/14 Chairman’s Statement 2 – 3 Executive Officer’s Statement 4 – 5 Pooling and Reinsurance 6 – 7 Removal of Wreck 8 – 9 China 10 – 11 Athens Convention 2002 Protocol 12 – 13 Sanctions on Insurers 14 – 15 The Maritime Labour Convention 2006 16 – 17 Solid Bulk Cargo Liquefaction 18 – 19 Chairman’s Statement 2 – 3 Executive Officer’s Statement 4 – 5 Pooling and Reinsurance 6 – 7 Removal of Wreck 8 – 9 China 10 – 11 Athens Convention 2002 Protocol 12 – 13 Sanctions on Insurers 14 – 15 The Maritime Labour Convention 2006 16 – 17 Solid Bulk Cargo Liquefaction 18 – 19 Key facts The world fleet has doubled to 1.14bn GT from 2001 to March 2014. The Athens Convention 2002 Protocol entered into force on 23 April 2014. Between 2001 and 2013, world seaborne trade was estimated to have grown by 60%. The Nairobi International Convention on the Removal of Wrecks 2007 will enter into force in April 2015. 2013 saw no successful vessel hijackings in the Horn of Africa/Gulf of Aden/ Arabian Sea. Total entered tonnage in the International Group Clubs now exceeds 1bn GT, or over 58,000 vessels. The world container fleet has grown from 158m GT in 2010 to 188m GT in 2013. Chairman’s Statement Shipowners and operators need to be able to mitigate and manage the risks inherent in ship owning and operating. It is the job of the global insurance industry to ensure the availability of adequate and sustainable insurance cover. The International Group of Protection & Indemnity Clubs plays a key role in this, ensuring the availability for shipowners and operators of the highest limits, and broadest range, of marine liability insurance cover that can be provided. The global economy is highly interdependent and could not function were it not for ships and the shipping industry. Whether it is the food on people’s tables, the technology that is a vital part of today’s businesses or the fuel that powers transport and factories, the items that are considered the basic necessities of modern life are brought to their respective consumer markets by sea. For trade to continue, shipowners and operators need insurance products, and marine insurers, including the P&I Clubs, need to be in a position to meet these needs. The International Group Clubs have been responding to the shipowners’ needs for marine liability insurance, in some cases, for over 150 years. The International Group system has ensured that shipowners have the highest limits, and broadest range, of marin