Local hull market eclipses London

THE MARINE market in South Africa has recently levelled off as regards hull risks and is softening as regards cargo risks, according to Grant Fugard: director of the marine division at Alexander Forbes Risk Services. “On the hull side, we are seeing terms generally being offered on an ‘as expiring basis’ or with slight reductions,” says Fugard. “There, however, continues to be a strong focus from insurers on machinery breakdown where cover is being restricted and increasingly severe deductibles applied. “On the whole, however, the South African hull market remains more competitive than the Lloyd’s/London markets. “With cargo there has been a significant softening in the market,” says Fugard. Competition is significant, with most cargo underwriters hungry for business. “New entrants into the market are looking to establish themselves and, in doing so, have contributed to driving rates downwards.” Recent losses, however, such as that involving the container vessel MSC Katie (collision with MV Nordsun) and a major train derailment near Pietermaritzburg, could have the effect of halting or slowing the downward spiralling of rates.