- Singapore Maritime Week 2018 round-up
The Baltic Exchange chose the occasion of Singapore Maritime Week 2018 (SMW18) to announce a raft of exciting news which has subsequently been widely covered in the press.
Baltic Exchange and Freightos to launch global container freight index
For the first time ever the global container shipping industry will have an independent, audited benchmark thanks to an innovative tie-up between the Baltic Exchange and Freightos, the digital container freight platform.
Baltic Exchange Panellist Brokers enter into charterparty management discussions
The Baltic Exchange has entered into discussions with a group of Dry Panellist Brokers with the aim of jointly developing a charterparty and recap tool for the dry bulk market. The goal is for the Baltic Exchange and Panellists to work together and produce an industry standardised recap manager and charterparty editor.
Baltic Exchange launches Escrow Service for vessel sales
The Baltic Exchange will be launching an Escrow Service for its members to hold deposits for ship sale transactions. The move will allow Baltic Exchange members to take advantage of the Exchange’s trusted position in the marketplace when undertaking the sale or purchase of a vessel.
Baltic Exchange sets out modernised Code for freight market
The Baltic Exchange will be introducing a modernised code of conduct for shipowners, charterers and shipbrokers using the physical shipping and freight derivatives markets.
Baltic events at SMW18
In addition to these announcements, the Baltic Exchange hosted a members’ reception at the British High Commission, in addition to the Baltic Freight and Commodities Forum.
Pictures of these events can now be found on the Baltic Flickr page.
- FINAL DAY to buy Chairman’s Cocktail Party tickets
Baltic Exchange members are invited to join us for an evening of champagne, canapes and networking at the Baltic Chairman’s Cocktail Party, 9 May (1830 to 2030) at London’s Christchurch, Spitalfields.
The evening is always the highlight of the Baltic Exchange calendar and sees members from London and around the world renew old friendships and make new contacts.
Subsidised tickets are priced £35 + VAT.
All Baltic Exchange members and their guests are welcome.
Book your ticket today to avoid later disappointment.
LAST FEW TICKETS STILL REMAINING.
You’ll be in good company
Members from the following companies have already confirmed their attendance:
A.M. Nomikos, Alansons Shipping, Argus Media, Arrow, Ashley Shipping, BACA, Bancosta UK, Birketts,Braemar ACM Shipbroking, BRS, Chios Navigation, Clarksons Platou, E.A. Gibson, ED&F Man Shipping, Eniram, Foresight, Frank-Symons, Furness Withy (Chartering), GARD, GFI, Harrods Aviation, Hartland Shipping, Holman Fenwick Willan, Howard Houlder, Howe Robinson, ITIC, Maersk, Maritime Strategies International, Mavega Group, Mitsui OSK Line, MMAA, Pacific Basin, Quantum Shipping Services, RB British Marine, RB Shipping, Rigel Shipping, Shyvers Savoy Shipping, SSY, Stone Chambers, The China Navigation Company, Thomas Cooper, Thomas Miller, Thomson Reuters, Thurlstone Shipping and more………
- Singapore Maritime Week photos
Photos from last week’s member’s reception at the British High Commission, Singapore and the Baltic Freight and Commodities Forum during Singapore Maritime Week, are now on the Baltic’s Flickr account.
To view, click here.
- Baltic Exchange and ICS Lunchtime Lectures
The Baltic Exchange and Institute of Chartered Shipbrokers series of bi-monthly lectures returns to Shanghai, Singapore, Athens and London on 30 May.
Money Walks / Money Talks – A masterclass in the hedging and financial instruments used by shipping principals will be the theme in Singapore, London and Athens with guest speakers as followed:
Singapore: Raghu Raghunath,
Former Head of Noble Chartering Ltd
London: John Banaskiewicz, MD,
Freight Investor Services
Athens: Katerina Stathopoulou,
Executive Director, Investments & Finance
In Shanghai, the focus will be Shipping Supply-Demand Dynamics. The seminar, with guest speaker still to be confirmed, will examine the economic factors that have caused the major changes in shipping rates over the past 12 months and look into what is anticipated to cause the most impact on freight markets throughout the remainder of 2018.
The lectures are free to Baltic and Institute Members, with non-member prices as followed:
£100 London / SG$100 Singapore /
¥500 Shanghai / €100 Athens
Light lunch included
Attendees must register by email to email@example.com using the appropriate reference code below:
BXICS05L (London)/ BXICS05SG (Singapore)/ BXICS05SH (Shanghai)/
To view the flyer, click here.
- Book Now For Baltic Risk Forum At Posidonia
Bookings are now being taken for the Baltic Exchange’s Risk Forum at Posidonia.
Focusing on the issue of risk in the freight and shipping markets, the challenges and opportunities that these can present and what is available to help members manage their exposure, the programme will include:
- An A, B, C (and D & E) of how the Baltic helps members manage risk – Mark Jackson, CEO, Baltic Exchange
- A Perfect Match? Physical Indexation and the FFA Market – Duncan Dunn, Director, SSY Futures
- BDRY ETF: Democratizing Investing in Shipping – John Kartsonas, Managing Partner, Breakwave Advisors
- What are the Commercial Implications of the 2020 Sulphur Cap? – Mark Jackson, CEO,
Baltic Exchange, Brian Nixon, Managing Director, Lavinia Bulk Ltd. and Angelica Kemene, Head of Market Analysis &
Intelligence, Optima Shipbrokers
The event takes place at the Yacht Club of Greece, 4 June (Forum 1100-1330, followed by lunch).
For full details and to register, click here
- Anyone for tennis?
On 27 June the Baltic Exchange will be holding the annual Fehr Cup at Surbiton Racket & Fitness Club.
The event is open to 20 pairs of competitors, with all levels of ability welcome to attend. A buffet lunch in the clubhouse overlooking the grass courts will be provided, as well as strawberries and cream and afternoon tea.
Entry, including lunch and refreshments, is £70 per pair.
For more details, please email:
Catharine Bacon – firstname.lastname@example.org
Perry Perera – email@example.com
- FINAL CALL: Greek Wine Tasting in London
A final call for those interested in attending the Greek wine tasting, hosted by the Baltic Exchange in London on 23 May.
“Gone are the days of average Retsina and heavy, oxidised wines” asserts David Hughes, host for the evening, who argues that a “new generation of young, visionary wine growers have breathed life back into old wineries with plantings of noble French varieties as well as resurrecting and perfecting stunning examples of the country’s great indigenous wines.”
The evening will feature six wines and some accompanying Greek meze.
Tickets are priced £10 for members, £15 for non-members.
- Security for costs: protecting claimants
On occasion, parties engaged in court proceedings will consider procedural tactics with the ultimate intention of exerting such pressure on their adversaries that their weakened position, or even inability to pursue the proceedings, will work to their advantage. Such a situation arose in (1) Deleclass Shipping Co. Ltd (2) MWI Shipping Services Ltd v Ingosstrakh Insurance Co. Ltd (2018) where the defendant’s application for security for costs became very problematic for the claimants. Clyde & Co (Fanos Theophani [partner] and Natalie Johnston [associate]) acted for the successful claimants.
The claimants’/shipowners’ vessel was declared a constructive total loss after it was involved in a collision and sank. The vessel had been insured by the defendant insurance company, Ingosstrakh Insurance Co. Ltd.
Following the collision, a third party appeared and claimed they were entitled to the insurance proceeds, alleging they were the beneficiaries of two assignments. The shipowners denied this and claimed the third party’s case was false and fraudulent.
In view of the competing claims, the insurance company decided it would only pay the proceeds following a court order. In the event, the third party claim was struck out by the Court. The insurance company, nevertheless, took the view that the claimants were not entitled to the insurance proceeds for the reasons given by the third party who’d had their claim thrown out.
It was obvious that the application for security for costs was intended to stifle the shipowners’ genuine claim
Both parties applied for security for costs under CPR r.25.12. It was accepted that the claimants might not be able to pay the defendant’s costs if ordered to do so. If the application for security for costs was allowed by the Court, claimants argued, it was likely to stifle their ability to continue with the proceedings.
The insurers’ decision to adopt the third party’s claim, notwithstanding it being struck out, was highly unusual and contrary to their previously pleaded case; it was obvious that the application for security for costs was intended to stifle the shipowners’ genuine claim. Where an order for security for costs might result in the oppression of a claimant, meaning that the claimant would be forced to abandon a claim which had a reasonable prospect of success, the Court could refuse to make the order despite the possibility that, if unsuccessful, the claimant would be unable to pay the defendant’s costs. The Court would need to be satisfied that it was probable that this was the case, and it fell on the claimant to show that there was no prospect of raising funds from any outside source.
For this purpose, the Court had to take various factors into consideration:
Suggestions that funds could be sourced from the controlling shareholder of the claimant company, which had a distinct legal personality, were generally not satisfactory. This was not equivalent to money being raised by the claimant itself;
Where the claimants’ financial position resulted from the defendant’s failure to abide by the parties’ agreement, security for costs should not be ordered. In those circumstances, the claimant would not be required to have a strong claim on the merits;
The Court would not usually consider the merits of a claim unless there was a high degree of probability of success or failure and, even so, an assessment of the merits was strongly discouraged (Commercial Court Guide paragraph 4); but
An impecunious party would not be allowed to use its inability to pay to put unfair pressure on a more prosperous party.
The Court had to consider both injustice to the claimants and the fact that the defendant may not be able to recover its costs.
Taking a decision
In this instance, the Court found that the claimants had an arguable prima facie case, although it was unable to determine whether the case in itself was very strong. Various elements illustrated the precarious financial position of the claimants: they were not trading, had limited assets, were unlikely to raise funds from the shareholders, and faced difficulty in financing the proceedings. Also, the first claimant did not have a bank account and the second claimant had gone out of business. They were unable to provide security. The Court stated that, although there was a dispute as to quantum, the defendant’s failure to pay under the insurance policy had been a contributing factor to the claimants’ financial predicament. In addition, the defendants’ adoption of the third party’s claim was seen as an apparent tactic to circumvent a payment altogether.
The Court concluded that an order for security was likely to stifle the claim and refused the defendant’s application for security for costs:
The claimants were in a poor financial position, as described above.
The claimants were not unfairly using impecuniosity to put pressure on the defendant.
The Court also turned down the claimants’ application.
This case illustrates the discretion available to the Court when considering applications for security for costs and the many factors they will take into account to make sure that no injustice is done to a party which is in a financial tight spot, whilst still bearing in mind the other party’s position.
Fanos Theophani and Natalie Johnston are Partner and Associate respectively at Clyde & Co, a global law firm focusing on the marine, energy, trade, infrastructure, aviation and insurance sectors. To contact Mr Theophani, call +44 (0) 207 876 4961 or email firstname.lastname@example.org.
- Drinks Reception at Singapore Iron Ore Week 2018
Elevated 40 floors high above the city on the rooftop of CapitaGreen, Artemis offers a spectacular view of Singapore’s urban skyline to the sea beyond.
The event includes light refreshments and is free to attend.
To view the invitation in full, click here.
- Ship Finance Executive – places available
There are still places available on the Baltic Exchange’s Ship Finance Executive training course (London 14-15 May).
Led by Professor Nikos Nomikos and Dr Nikos Papapostolou of Cass Business School, course participants will learn how an IPO is made, what to look for when choosing an underwriter, how to identify an underpriced IPO before it is made public using only publicly available information, how to issue a high yield bond and how to calculate the probability of a high yield bond default. The course also provides practical analysis of company valuations using different methodologies.
See www.balticexchange.com/other-services/training-2/ship-finance-executive for full details, including booking.
- Member update
The following individuals have applied for Membership of an existing member company:
Company Individual The Arrow Group of Companies Mr J Meins Simpson Spence Young Ltd Mr J D A Bond Engelhart CTP (Switzerland) SA Mr H van der Eecken Mr A P A van Driel Mr V Agueev Mr M R Slattery Western Bulk Chartering AS Mr D Yang Clarksons Platou Mr S Mostafa
The following individual has applied for Retired Membership.
Mr C S Horner
Any comments should be passed to Karen Karanicholas by 9 May 2018.
- Baltic Exchange Non Publishing Dates – May
Due to a Singapore public holiday, the Baltic Exchange will not be publishing its BEP-Asia, BES-Asia and BITR-Asia on Tuesday, 1 May 2018.
BEP-Asia, BES-Asia and BITR-Asia will be published again on Wednesday, 2 May 2018.
Due to UK public holidays, the Baltic Exchange will not be publishing its Dry, Tanker (including LPG), Sale & Purchase or Demolition Assessments on both 7 May and 28 May 2018.
There will also be no publication of FFA volumes, Dry Option Volume Estimates or Baltic Forward Assessment curves (dry & wet) on these two Mondays.
All indices including Sale & Purchase Assessments, Demolition Assessments, FFA volumes and estimates and BFA curves will be published on Tuesday, 8 May and 29 May 2018 respectively.
Any questions or comments should be directed to email@example.com