End of Year Review 2014- Defence

The Association remains the leading independent, mutual provider of Defence cover to the maritime industry.

We continue to support Members who become involved in costly litigation in difficult jurisdictions or those Members who wish to recover sums rightfully due to them.

Our independence and single focus affords us a superior vision. The support we provide to our Members extends beyond litigation costs and, given the Association’s experience and expertise, includes the timely provision of advice and insight on matters of general interest. Single focus. Superior expertise.

Here follows a statement from the chairman:

In 1888 a number of significant events occurred. The Convention of Constantinople was signed guaranteeing free maritime passage through the Suez Canal during war and peace, Vincent Van Gogh cut off part of his left ear in desperation because nobody would buy his paintings, and the English football league was first established.

Considerable change has occurred in the intervening period. The English football league is largely unrecognisable, passage through the Suez Canal has been severely tested at different times and Van Gogh paintings sell for huge sums of money.

However, 1888 also coincided with the establishment of your Association, as an independent provider of Freight Demurrage & Defence cover to the maritime industry. After 125 years one would and should expect that the Association will have changed. Indeed it has, but not to the extent of being unrecognisable. It remains committed to its core values, focusing on assisting Members when faced with litigation arising under charterparties, newbuilding contracts and other contractual disputes.

Claims have undoubtedly become more complex and expensive over the years. In 2013 the Association was involved in assisting many Members where the costs of litigation ran into hundreds of thousands and indeed many millions of pounds. When faced with such a potential exposure, the value and benefit of the cover become more than obvious to all market participants.

As a brief summary of the Association’s standing: entered owned tonnage reached an all time high at 127 million grt in addition to a sizeable book of chartered business. The entries came from all the major shipping communities in the world. These include Greece, China, Germany, France, Asia Pacific, and the United States. There are £52.2 million ($87.0 million) of assets under management and free reserves of £24.5 million ($40.7 million).

To read more, download the UKDC End of Year Review 2014, below: