Press release
Annual Members' Meeting of the
German Shipowners' Defence Association
held at the Hotel Empire Riverside, Hamburg on 17 October 2024
The Association's annual report, as presented by the Chairman of the Board Dr. Kurt Klemme (Reederei Nord GmbH) at the Members' Meeting, shows a financial surplus of EUR 240,044.86 for the 2023 business year (2022: EUR 372,443.28 loss). The positive development is primarily due to a significant improvement of the investment result. This in turn is mainly attributable to the reversal of impairment losses on bonds which had to be made in previous years. The underwriting result was also positive, albeit to a lesser extent than in the previous year.
By resolution of the Members’ Meeting the surplus from the previous year was added to the reserves. The reserves now stand at approx. EUR 6.02 million.
In the reporting period (2023) claims totalling EUR 17 million (2022: EUR 13 million) were either recovered or resisted on behalf of Members.
According to the report of the Managing Director Michael Wester 876 ships (October 2023: 850 ships) with a total tonnage of 16.8 million GT (2023: approx. 16 million GT) are presently entered with the Association. Hence, in the current business year 2024 both the number of vessels as well as the tonnage has risen further. Against this background a further increase of the premium income is expected for the current business year.
The number of disputes in 2024 is expected to reach a similar level compared to 2023. This can be deduced from the number of cases reported so far in 2024, which currently stands at 201 and therefore corresponds almost exactly to the previous year's figure of 202.
Because of inflation-related cost increases, expenses for claims are expected to rise slightly compared to 2023. Expenditures for insurance operations are also expected to rise due to digitalization measures and additional regulatory requirements. On the other hand, higher interest rates and an expected further reversal of impairment losses on bonds will have a positive impact on the result for the current financial year. Overall, a moderate loss is forecast for the 2024 financial year.
In view of the rising number of members and the continuing positive trend of the rates in most shipping segments, a further increase in the number of ships entered with Schutzverein is expected in 2025.
Most of the cases in which members of the Association are involved in 2024 again relate to time charter parties. In recent months, the focus has been on disputes arising from the current situation in the Red Sea and the Gulf of Aden. However, as the majority of charterers have now decided to avoid the crisis region and to take the longer route via the Cape of Good Hope, the number of cases in this context has fallen noticeably in recent weeks.
As before, members of the Schutzverein also have to deal with new regulations that are intended to drive forward the decarbonization of shipping. Challenges arise in particular in reaching agreements under charter contracts by which the responsibilities under charter parties are determined in an appropriate manner. This is so especially in regard to the latest EU requirements under the FuelEU Regulation which must be complied with as from January 1, 2025.
At the Members’ Meeting, a modest increase of the premiums was agreed. Accordingly, Schutzverein's membership premiums for 2025 range between EUR 600.00 and EUR 2,450.00 per year and ship.
Re-elected to the Board of Directors were Nicolaus Bunnemann, Atlantic Lloyd GmbH & Co. KG and Dr. Martin Harren, Harren Shipping Group GmbH & Co. KG.
Lukas Oltmann, Schiffahrtsgesellschaft Oltmann mbH & Co. KG and Jan Bartels, Conmar Shipping GmbH & Co. KG were newly elected to the Board of Directors.
Peter Oltmann who has been a member of the Board since 2009 will be leaving the Board at the end of the year at his own request. Schutzverein thanks Mr. Oltmann very much for his long-standing commitment for the association.
The Members’ Meeting was followed by the traditional Annual Dinner of the Association. At the Dinner Dr. Felix Schilk, sociologist at the University of Tübingen, addressed the challenges arising from the manipulation of information systems in his speech entitled What can I still believe today? How to navigate the currents of conspiracy theories, disinformation and narrative warfare.
