September 22 - The International Union of Maritime Insurers (IUMI) said that global cargo premiums fell by 9 percent between 2014 and 2015 to USD15.8 billion.
IUMI cargo committee chairman Nick Derrick said a combination of a strong US dollar and falling cargo values were the main reasons for the decline.
"The statistics show that marine cargo insurers are not making any money," he stated "World trade values and exports are down and the slow economic growth has created difficult market conditions. An increase in underwriting capacity is also causing concerns."
The UK continued to dominate the marine cargo market with a 13.3 percent market share (8.8 percent at Lloyds and 4.5 percent at the International Underwriting Association). China and Japan retained 9 percent and 8.7 percent market volume respectively.
On misappropriation, he said: "There have been some serious misappropriation incidents in London and the US over the past 12 months which have resulted in substantial potential losses. This level of loss is not sustainable in the long term and misappropriation must be addressed."
Derrick also highlighted major concerns regarding Hanjin Shipping entering receivership and that other lines could follow suit. "This is particularly a concern in Asia as a number of these operators are carrying substantial debt which could cause them a major problem. We are advising our clients to consult their freight forwarders to get the most up-to-date picture".