Search

The 46th Maritime Knowledge Shipping Session: Adapting to a World in Transition

Back to List
A panel discussion, consisting of Mr. Nick White as the moderator and panellists Mr. Paul Hackett and Mr. Rama Chandran, on the ways in which marine insurance is being impacted by global trends.

Being a key pillar of global trade and commerce, the maritime industry relies on the cooperation of partners across adjacent sectors. The Singapore Maritime Foundation (SMF) and General Insurance Association of Singapore (GIA) jointly organise Maritime Knowledge Shipping Sessions (MKSS) for marine insurance practitioners to keep updated on the latest industry trends affecting their line of business. Titled “Adapting to a world in transition”, the 46th Maritime Knowledge Shipping Session was held on 18 October at Big Picture, Capital Tower.

Mr. Nick White delivers his welcome remarks for MKSS 46.

The session commenced with an opening address by Mr. Nick White, the Principal Consultant and Member of the GIA Marine Insurance Committee. Subsequently, Mr. Paul Hackett, Head of Marine, Energy and Engineering, Asia Pacific & MENA, from Canopius Asia Pte Ltd, presented an update on marine global facts and figures, drawing on figures presented at the Annual International Union of Marine Insurance (IUMI) Conference held in Chicago in September 2022. Mr. Rama Chandran, Head of Marine Asia, QBE Insurance (Singapore) Pte Ltd., spoke afterwards on the global ocean hull outlook.

The Growing Asian Shipping Industry

Apparent in the figures was the immense growth of shipping in the Asia-Pacific (APAC) region. Half of total global marine insurance premiums, worth US$33 billion, are in cargo. The APAC region held 29.3% of the shares of global cargo premiums, second to only Europe with 47.2%. This news presents Asia as significant in the shipping industry.

Asia’s cargo premiums have been growing consistently throughout recent years, even as the growth of other regions’ dipped. China as a market has also been growing considerably since 2016, accelerating in 2021.

Global-Level Developments Affecting Marine Insurance Today

Statistics shared were analysed in relation to various global-level developments affecting marine insurance:

Geopolitical situations are significant in determining cargo premiums. Events such as the Russia-Ukraine War and US-China Trade War cause supply-chain bottle necks. Resultant inflation drives up repair costs, leading to higher vessel values, causing higher potential losses. Many currencies are down against the US Dollar. Since the US Dollar has long been the de facto currency for trade, purchasing power globally has taken a plunge. This adversely impacts premium adjustments and the value of deductibles, impacting cargo significantly.

Mr. Rama Chandran shares how global developments have affected hull coverage and what this implies for marine insurers.

Following a decline in worldwide caution surrounding COVID-19, the demand for commodities rose, further increasing their value. This increases cargo premiums. An upswing in the insurable volume of trade against a backdrop of still relatively reduced activity due to pandemic limitations caused claim trends to take a positive turn.

Moreover, vessels on the sea are aging. Amidst economic headwinds and uncertainties in future technology, hesitation on growing the world fleet remains. Vessels’ value and age are simultaneously increasing, which triggers mixed sentiments from insurers.

Furthermore, there has been a growing number of natural catastrophic events in recent years. This could increase the potential for greater losses, but also provides the opportunity for more profit from higher premiums paid.

The Green Transition and the Future for Marine Insurance

The Green Transition puts a major pressure on the shipping industry today. Shipping is by far the most carbon-efficient way to transport goods, as it carries 90% of the world’s trade while only contributing to 2.4% of global greenhouse gas (GHG) emissions. Moving forward, it will likely be heavily relied on for most global goods transportation needs. The worldwide push towards greater environmental sustainability will surely extend into the shipping industry as well.

Mr. Paul Hackett distills key takeaways and insights from the Global Facts and Figures for Marine presented during IUMI 2022.

The International Maritime Organisation has set an ambitious goal: 50% reduction of annual GHG emissions by 2050. This has caused policies surrounding decarbonisation to be ramped up. Starting next year, as part of IMO’s 2023 GHG reduction measures, vessels will be assessed to ensure they meet energy efficiency design standards. Additionally, the inclusion of shipping in the European Union Emissions Trading System would generate significant additional voyage costs for non-eco-built vessels. As pressures build globally to find solutions to moderate climate change, the Green Transition will cause fundamental changes to shipping and trade.

As we progress into the future, the International Monetary Fund expects a downturn in the world economy due to the various events like China’s lockdowns causing a slowdown, higher-than-expected inflation worldwide, spillovers from the war in Ukraine, and tightening labour markets, amongst others. If their predictions hold true, world trade and volumes will be affected which will undoubtedly impact premium levels.

Other Articles
BlogSMF Article

In Conversation with Maritime Lawyers: Maureen Poh

BlogSMF Article

Event Recap: 2021 MSC Connexions Forum

BlogSMF Article

Fuelling the Transition Towards Clean Energy

BlogSMF Article

Sea Asia 2021: Staying Ahead in the Race for New Talent

BlogSMF Article

In Conversation with Maritime Lawyers: Jonathan Choo

BlogSMF Article

Sea Asia 2021: Fireside Chat with Minister Iswaran

BlogSMF Article

In Conversation with Maritime Lawyers: Charlene Sim

BlogSMF Article

In Conversation with Maritime Lawyers: Jade Chia

BlogSMF Article

Decarbonisation Pathways for the Global Maritime Industry1

BlogSMF Article

Start-Ups and the Maritime Industry’s Digital Revolution

logo-white

Subscribe to Our Newsletter   

ABOUT US

CONNECT BUSINESSES

SPUR INNOVATION

DEVELOP TALENT

EVENTS

MEDIA CENTRE

SMF BLOG

CONTACT US

Linkedin Youtube

Inaugural MSC Maritime Digital Challenge Grand Finals Prize Presentation

Over 129 tertiary students across 35 teams took part in the inaugural MSC Maritime Digital Challenge that seeks to plug Singapore students with a passion for technology into the maritime industry.
Students from the Singapore Management University and Nanyang Polytechnic were announced as winners of the challenges posed by Eastport Maritime, Kanda and Torvald Klaveness at the Prize Presentation held on 13 November 2021.

MSC Maritime Digital Challenge 2021

Three challenge statements, 35 teams, 129 students and 12 finalist teams from 4 universities & 3 polytechnics. Catch behind-the-scene highlights of the MSC Maritime Digital Challenge 2021.

Singapore Maritime Foundation | MSC Maritime Digital Challenge 2021

Catch highlights of the MSC Maritime Digital Challenge 2021. We thank Senior Minister of State, Ministry of Transport Mr. Chee Hong Tat for being our Guest-of-Honour at the event.

SMF New Year Conversations 2022: Year-in-Perspective Video

The past two years of learning to live with Covid-19 has been challenging, but Maritime Singapore has remained resilient. What are the fundamental tenets that attract companies to anchor their business in Singapore and grow their operations here? And what more can be done to leverage on Singapore’s strengths to enhance its attractiveness as a global business hub for maritime companies? How will the Singapore Maritime Foundation organize its work around Connectivity, Innovation and Talent to strengthen the maritime ecosystem? Find out in this Year-in-Perspective video.

SMF New Year Conversations 2022: Opportunities Amid Disruptions

The 2022 SMF New Year Conversations that took place on 13 January 2022 was graced by Guest-of-Honour Mr S Iswaran, Minister for Transport & Minister-in-charge of Trade Relations. Over 250 industry leaders across the breadth of maritime attended physically and virtually.
Singapore was announced to have secured the overall top spot as an international maritime centre for the fifth consecutive time in the DNV-Menon Leading Maritime Cities 2022 report.
Thank you to our industry partners for your strong support.

Mr. Lars Kastrup

CHIEF EXECUTIVE OFFICER, PACIFIC INTERNATIONAL LINES

Mr. Lars Kastrup is the Chief Executive Officer of Pacific International Lines (Pte) Ltd (PIL).

Prior to joining PIL, Mr. Kastrup was CEO of NOL/APL, and subsequently assumed the role of Executive Vice President, Strategy and M&A at CMA CGM Group. A veteran in the global shipping industry with over 30 years of experience, Mr Kastrup’s other roles include Executive Vice President of Assets at CMA CGM Group heading up CMA Terminals, CMA Ships, Container Logistics as well as regional carriers such as MacAndrews, OPDR and Mercosul; as well as Vice President at AP Moller-Maersk.
Mr. Kastrup complemented his tertiary education with leadership and management training at Penn State University and The Wharton School at the University of Pennsylvania.

Ms. Angeline Teo

MANAGING DIRECTOR & HEAD, GLOBAL TRANSPORTATION & OFFSHORE, OCBC BANK

Ms. Angeline Teo is the Managing Director and Head of Global Transportation and Offshore, Global Corporate Banking at OCBC Bank which focuses on the maritime, aviation, land & port ecosystems.
Ms. Teo has spent over three decades in maritime finance. Prior to OCBC, Ms. Teo was working at ING Bank, ABN Amro and DnB in Singapore focusing on maritime and offshore.
Ms. Teo graduated from the National University of Singapore with a degree in Business Administration.

Mr. John Martin

CHIEF EXECUTIVE OFFICER, GARD SINGAPORE

Mr. John Martin began his career in London in 1989 with Richards Hogg Lindley Average Adjusters, and qualified as a Fellow of the UK Association of Average Adjusters in 2000.
At RHL he worked in their offices in Australia, Taiwan and Hong Kong. In 2003 he joined Gard Hong Kong, as a claims handler. Mr. Martin also worked in Gard Japan, and in 2014 he moved to Singapore to set up the Gard Singapore office.
Besides running Gard Singapore, Mr. Martin also heads the P&I and H&M claims units and is the Senior Claims Representative for Gard in Asia.

Mr. Cyril Ducau

CHIEF EXECUTIVE OFFICER, EASTERN PACIFIC SHIPPING

Mr. Cyril Ducau is the Chief Executive Officer of Eastern Pacific Shipping Pte Ltd, a leading shipping company headquartered in Singapore for the past 30 years.

He is also currently the Chairman of Kenon Holdings Ltd and a member of the board of directors of Gard P&I (Bermuda) Ltd. and of the Global Centre for Maritime Decarbonisation Limited, which was established by the Maritime and Port Authority of Singapore. He was previously Head of Business Development of Quantum Pacific Advisory Limited in London from 2008 to 2012 and acted as Director and Chairman of Pacific Drilling SA between 2011 and 2018.
Prior to joining Quantum Pacific Advisory Limited, Mr. Ducau was Vice President in the Investment Banking Division of Morgan Stanley & Co. International Ltd. in London between 2000 and 2008.
Mr. Ducau graduated from ESCP Europe Business School (Paris, Oxford, Berlin) and holds a Master of Science in business administration and a Diplom Kaufmann.