BOW WAVE 314

Bow Wave Issue 314--Road to Shanghai Edition

news and views on trade, insurance and risk

Bow Wave homepage
Previous issue (313) / Current issue / Next issue (315)

Wavy Line	sam@wavyline.com
(c)2005 WavyLine.com	Issue No 314 28 Nov 05
Published free of charge to Readers
Editor: Sam Ignarski
Subscribe	Unsubscribe

In this issue:

1. Welcome
2. XL set for $830mn Winterthur Arbitration Loss
3. Latest UNCTAD Transport Newsletter is Out
4. EAASP Website
5. New Term of Art?
6. And Finally...

1. Welcome

Poem of the Week

(sent in by Paul Lightband of TME Europe)

POSSIBLY

Possibly is not a monosyllable;
Then answer me
At once if possible
Monosyllabically,
No will be good. Yes even better
Though longer by one letter.

Possibly is not a monosyllable,
And my heart flies shut
At the warning rumble
Of a suspended But...
O love, be brief and exact
In confession of a simple fact

Robert Graves

(taken from a Penguin book of poems selected by
himself)

New Readers this week include:-

Alan Scattergood
Iain Laird of Gard's London Office
Mark Cummings of P&O Ports

News of Readers

Cargo underwriter Charles Bragg has now left RSA after 14 years' service to join the O'Farrell Syndicate at Lloyds.

Christi Potzold--formerly a lawyer with the the Vancouver insurance law firm Guild Yule--has joined Jonathan Rostron Solicitors in Hong Kong as an Associate on 2 November 2005.

Christof F. Lueddeke, FNI has been setting up funds in South Africa In addition to the Trust Fund that he created in the Nautical Institute which each year pays for the best student in the Command Scheme, he also last month created a Trust Fund in South Africa with the branches of the "Society of Master Mariners" in Port Elizabeth and the Cape Town Branches)

Until the great Manitou takes him away the Command Scheme prize will come from his own pocket, the plan being to allow the fund to generate enough income to stand on its own feet. It now stands somewhat above £ 25'000.The last winner received the prize from the hands of HRH Princess Anne.

These days he also flies down to Cape Town every four weeks to sit as assessor on the Marine Court of Enquiry on the "Lindsay" and the "Ouro do Bzail" (loss of 14 crew in May 2005)

Contact Christof at:-

msconsult@bluewin.ch>

Holman Fenwick & Willan (HFW) and Hill Taylor Dickinson (HTD) have announced that they have agreed confidential terms for the transfer of HTD's Dubai office to HFW with effect from 1/2/2006. HTD's three Partners based in the Dubai office Edward Newitt, Rula Dajani and Richard Jowett will become Partners of HFW and all of HTD's staff in Dubai
will be extended the opportunity to transfer to HFW. HFW will also take over HTD's office lease and other local commitments. HTD are writing to their clients in relation to the future conduct of matters being handled by their Dubai office, current at the date of transfer.

Readers Write

From Neil Davidson, the Research Director at Drewry Shipping Consultants Ltd:-

It may be your Readers might be interested in the following update on the team at Drewry:

Since June we have been steadily strengthening our team both in terms of numbers and in terms of experience. In our recruiting effort we have been seeking expertise in container shipping, ports, ferry and RoRo, energy transportation and finance. We have been successful in adding capabilities in all these areas:

Philip Damas has joined us from American Shipper and brings with him an encyclopedic knowledge of the container shipping industry.

Patrick Burrows' career has been in container shipping with P&O Nedlloyd where he had experience in all areas of the business including the strategic management of key trade lanes

Geoff Williamson returns to Drewry after key strategic roles in ACL and UASC, covering container, RoRo and multi-purpose markets.

In the Ferry and RoRo sector we are delighted to welcome Bill Moses, former Managing Director of Hoverspeed and Sally Line, who has unrivalled knowledge of this sector both as an operator and as a consultant

Jeff McGee's career has covered both the oil (Chevron) and logistics (APL Logistics) industries. As well as his operational and market knowledge, he brings long experience in corporate strategy, finance, and mergers and acquisitions

Katy Aldrick who has recently joined us from Associated British Ports brings port expertise in a variety of sectors.

The above are all new permanent staff. In addition, we continue to expand our base of associates; a very valuable resource to Drewry, allowing us cope with fluctuations in demand and providing specialist expertise when needed. Key recent additions are Hans Peters who comes to Drewry after a distinguished career at the World Bank and Godric Baron whose shipping experience includes the posts of Operations Director, Contship, CEO of Ivaran, and Senior Vice President Operations at CP Ships.

Contact Neil at:-

davidson@drewry.co.uk

From The Mersey Maritime Team

A small reminder that this week sees the launch of MARITIME THURSDAY, our new after hours get-together for the maritime industry. There's no agenda and no need to let us know in advance who's coming - just turn up and enjoy the crack (or even the 'craig' if you're a purist).

If you haven't already got it in the diary yet, then the details to note are as follows:

The start is at 5:30pm at The Cornmarket, Fenwick Street, Liverpool. Every third Thursday of the month, ie 15 December, 19 January, 16 February, etc.)

This week finds your editor in KL enroute to Shanghai and publishing an on-the-road edition with no real difficulty thanks to the superior broadband connection at the Shangri-La.

A Bow Wave Reader who currently studies at the Royal London Veterinary College has tasked your editor with the job of securing a commercial sponsor for a rowing boat for the further strengthening of that institution's Amazonian oarswomen.

Please send in your ideas to:-

Sam@WavyLine.com

Enjoy.

2. XL set for $830mn Winterthur Arbitration Loss

This item appeared in an edition of the Insurance Insider's superior Special Resport, an electronic service which has managed to capture and communicate the breaking news of the insurance world:-

Bermudian (re)insurer XL Capital revealed late last night (23 November) that it is set to lose out in a dispute with Credit Suisse over its acquisition of certain Winterthur International insurance operations that could hit fourth quarter results to the tune of $830mn.

With the Thanksgiving public holiday today, markets are closed, but analysts expect XL shares to take a heavy hit on the news when trading restarts.

XL bought the entities from Winterthur Swiss Insurance Company (WSIC) in 2001, but has been in disagreement with the company's parent Credit Suisse over its obligations relating to adverse development on reserves at the business. The case went to arbitration, with the independent actuary in the hearing releasing his draft report to the parties. According to XL, a review of the draft report indicated that the WSIC figures for net reserves and net premium receivable were closest to that determined by the independent actuary.

As a result, XL is likely to receive a lump sum payment of just $575mn, including interest receivable - around half the $1.1bn recoverable previously reported by the Bermudian company in its accounts.

The figure tallies almost exactly with the $572-577mn payable Credit Suisse posted in February this year, having increased its provision by some $257mn.

Fitch has responded by affirming XL's AA- financial strength rating, as it expects capital to be raised to offset the Winterthur loss, along with the company's heavy losses from the hurricanes.

It added that it had already downgraded XL last month, following the release of its catastrophe loss estimates, including a $1.47bn net loss from Hurricane Katrina, explaining that "the potential for an unfavourable result in the independent actuarial review process was also considered when the rating action was taken".

But equity analyst William Wilt from Morgan Stanley described the potential decision as a "calamity", noting that the $830mn loss equates to around 13 percent of XL's common shareholders' equity, on top of a 17 percent book value loss from the third quarter storms.

"Shares are likely to fall sharply," he said, adding: "With the stock up 19 percent since late October, investors were not expecting this loss. Frankly, neither were we." He added that challenges facing XL could lead to the underwriting opportunities of a cyclical upturn passing the company by.

The final ruling is expected on 5 December, and if it confirms a decision in favour of Credit Suisse, reports suggest the Swiss-based financial services group will press ahead with an IPO of its Winterthur insurance operations.

http://www.theinsider.co.uk

3. Latest UNCTAD Transport Newsletter is Out

Our friend Jan Hoffmann in Geneva has passed on word of In the latest edition of the Transport Newsletter published by the Trade Logistics Branch of the organisation.

The edition contains news of the various meetings that took place at UNCTAD in September 2005, including the Expert Meeting on Trade Facilitation as an engine for Development, the biannual meeting of the Global Facilitation Partnership, the launch of the GFP web site upgrade, and a workshop for Asian LDCs and landlocked countries.

In an article about liner shipping there is an update on the Liner Shipping Connectivity Index 2005. The index suggests that a majority of countries (102 out of 162) is better connected to global liner shipping networks today than one year ago.

Also included is an update on the status of conventions adopted under the auspices of UNCTAD, and information on two recent conferences; the International Port Training Conference and the annual conference of the International Association of Maritime Economists. Finally, there is a list of recent and upcoming events on trade and transport facilitation.

For feedback, comments, and suggestions for the next UNCTAD Transport Newsletter (4th Quarter 2005), contact Jan at:-

jan.hoffmann@unctad.org

http://www.unctad.org/Templates/Page.asp?intItemID=2651&lang=1

4. EAASP Website

From David Crompton-Guard, the Secretary of EAASP:-

I write to inform your Readers that the web site of the European Association of Airport and Seaport Police, EAASP, has been updated to reflect recent changes in the organisation.

The EAASP continues to respond to the drivers for change within the expanding boundaries of Europe, seeking to become a more inclusive and integrated body and developing a political platform from whence it can exert increasing influence over the security and transport policy of the future.

Please take the opportunity to visit the site at:

http://www.eaasp.org

5. New Term of Art?

This item appeared in the World Wide Words ezine a weekly issued by the admirable lexicographer Michael Quinion

Turns of Phrase: Mociology

This word has gained some public attention following its use in the title of a conference in London on 7 November 2005 organised by the Royal Society of Arts: "Mobile technology and culture change: how mociology is changing the way we live".

The introduction to the conference described it in some detail. It seems that mociology is the study of the innovative ways people use their mobile phones or wireless systems in daily life. Examples given including buying concert tickets by phone or having medical information about your diabetic condition sent to you the same way.

It has been described as the sociology of the mobile lifestyle, which seems to be the genesis of the word ("mobile" + "sociology"), though the coinage is unprepossessing (the blending suggests that the "c" is pronounced as an "s"). It is said to have been invented by Ralph Simon of the Mobilium Group of Los Angeles and London, whose fertile mind has also created "mocio-economics", described as "the underlying economics that drives the fast emergence of mobile entertainment revenues and economics".

The same text described mociology as a "new and emerging science", which seems to be a PR overstatement of a particularly egregious sort. It is notable that the word has so far appeared in only one newspaper that I can trace, though bloggers have reported on it.

It will be interesting to see if it catches on.

To subscribe go to:-

http://www.worldwidewords.org/maillist/index.htm

6. And Finally...

Thanks to Frazer Hunt for:-

George Carlin's Views on Aging

Do you realize that the only time in our lives when we like to get old is when we're kids? If you're less than 10 years old, you're so excited about aging that you think in fractions. "How old are you?" "I'm four and a half!" You're never thirty-six and a half. You're four and a half, going on five! That's the key.

You get into your teens, now they can't hold you back. You jump to thenext number, or even a few ahead. "How old are you?" "I'm gonna be 16!" You could be 13, but hey, you're gonna be 16!

And then the greatest day of your life . . . you become 21. Even the words sound like a ceremony . . . YOU BECOME 21. YESSSS!!! But then you turn 30. Oooohh, what happened there? Makes you sound like bad milk! He TURNED; we had to throw him out. There's no fun now, you're Just a sour-dumpling. What's wrong? What's changed?

You BECOME 21, you TURN 30, then you're PUSHING 40. Whoa! Put on the brakes, it's all slipping away. Before you know it, you REACH 50 and your dreams are gone. But wait!!! You MAKE it to 60. You didn't think you would! So you BECOME 21, TURN 30, PUSH 40, REACH 50 and MAKE it to 60.

You've built up so much speed that you HIT 70! After that it's a day-by-day thing; you HIT Wednesday!

You get into your 80s and every day is a complete cycle; you HIT lunch; you TURN 4:30; you REACH bedtime. And it doesn't end there.

Into the 90s, you start going backwards; "I Was JUST 92."

Then a strange thing happens. If you make it over 100, you become a little kid again. "I'm 100 and a half!" May you all make it to a healthy 100 and a half!!

HOW TO STAY YOUNG

1. Throw out nonessential numbers. This includes age, weight and height. Let the doctors worry about them. That is why you pay "them "

2. Keep only cheerful friends. The grouches pull you down.

3. Keep learning. Learn more about the computer, crafts, gardening, whatever. Never let the brain idle. "An idle mind is the devil's workshop." And the devil's name is Alzheimer's.

4. Enjoy the simple things.

5. Laugh often, long and loud. Laugh until you gasp for breath.

6. The tears happen. Endure, grieve, and move on. The only person, who is with us our entire life, is ourselves. Be ALIVE while you are alive.

7. Surround yourself with what you love, whether it's family, pets,keepsakes, music, plants, hobbies, whatever. Your home is your refuge.

8. Cherish your health: If it is good, preserve it. If it is unstable,improve it. If it is beyond what you can improve, get help.

9 Don't take guilt trips. Take a trip to the mall, even to the next county; to a foreign country but NOT to where the guilt is.

10. Tell the people you love that you love them, at every opportunity. AND ALWAYS REMEMBER: Life is not measured by the number of breaths we take, but by the moments that take our breath away.

BOW WAVE is published each week to over 12 500 Readers in the transport,insurance,shipping and finance industries.

Thanks for reading BOW WAVE