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96-586: Daily Cargo News (DCN) is a monthly Australian shipping , trade , transport and logistics focused magazine, published by Daily Cargo News Pty Ltd. First published in 1891 as Daily Commercial News , Daily Cargo News is Australia's longest running national newspaper. Howard Ignatius Moffat, born in Redfern, New South Wales in 1861, traveled to the United States at an early age to study American business methods. He returned to Sydney in 1887 intent on establishing

192-542: A management buyout of LLP and the company was successfully listed on the London Stock Exchange . Now cashed up, LLP made a play to acquire LLAW 's dominating competitor, the DCN . It was a long process and complicated by the decision of LLP to merge with a London-based international conference company, IBC Conferences. This merger was completed at the end of 1998 and resulted in the creation of Informa plc . Under

288-549: A "mini-Name"). The report also drew attention to the danger of conflicts of interest . The liability of the individual Names was unlimited, and thus all their personal wealth and assets were at risk. During the 1970s, a number of issues arose which were to have significant influence on the course of the Society. The first was the tax structure in the UK: for a time, capital gains were taxed at up to 40 per cent (nil on gilts ); earned income

384-407: A dedicated building on Lime Street which is Grade I listed . Traditionally business is transacted at each syndicate's "box" in the underwriting room within the building, with the policy document being known as a "slip", but in recent years it has become increasingly common for business to be conducted remotely and electronically. The market's motto is Fidentia , Latin for "confidence", and it

480-772: A highly capable marine underwriter, to assume approximately 80 per cent of the market's asbestos exposure on his well-supported syndicates 317/661 in 1982. In 1985, under Lloyd's three-year accounting rule, auditors kept Outhwaite's 1982 year open, citing concerns over asbestos and pollution liability losses. These eventually ran into the hundreds of millions of dollars. After many years of litigation, Outhwaite retired to Guernsey and died on 20 November 2021. Another asbestosis-hit operation, Pulbrook syndicates 90/334, had taken out reinsurance in 1981 on its general liability business with Merrett syndicate 418; however, in 1990 Stephen Merrett (who by now controlled Pulbrook) won an arbitration ruling to void that arrangement due to non-disclosure of

576-565: A huge hole in Lloyd's loss-payment reserves, which was initially not recognised and then not acknowledged. Second, by the end of the decade, almost all of the market agreements, such as the Joint Hull Agreement, which were effectively cartels mandating minimum terms, had been abandoned under pressure of competition. Third, new specialised policies had arisen which had the effect of concentrating risk: these included "run-off" policies, under which

672-497: A meeting place for people of all types of maritime occupations, who would make bets on which ships would make it back to port. Soon, the captains of ships that were suggested to fail to return were betting against the return of other ships. It was the start of Lloyd's insurance. During this time, the coffee house was also frequented by mariners involved in the slave trade . Historian Eric Williams noted that "Lloyd's, like other insurance companies, insured slaves and slave ships , and

768-921: A move to a new building in North Sydney . A site on the corner of Hill Plaza and Elizabeth Street was purchased from P&O for £60,000. An old building on the site was demolished and Shipnews House was erected. Marine artist John Charles Allcot created the iconic sailing ship for the building, whose port and starboard lights illuminated at night, a landmark for passers-by on the nearby Pacific Highway . By 1966 Shipping Newspapers Ltd had expanded to include subsidiaries in Melbourne , Adelaide , Perth and Brisbane , each with its own printing plant. The group also included The Manufacturer Publishing Company, The Commonwealth Jeweller and Watchmaker, Marchant & Co General Printers and Broadway Typesetters. Asset rich, but underperforming in share value, Shipping Newspapers Ltd became

864-521: A new building at 1 Lime Street (where it remains today), the British government commissioned Sir Patrick Neill to report on the standard of investor protection available at Lloyd's. His report was produced in 1987 and made a large number of recommendations, but was never implemented in full. It has long been normal for one Lloyd's syndicate to reinsure another, but when Piper Alpha , a North Sea oil rig, exploded on 6 July 1988 causing an initial $ 1.4bn loss,

960-527: A prime target for corporate raiders. Sir Ronald Brierley purchased the company in 1969, dividing and selling its assets. Subsequently, DCN was sold to businessman Maxwell Newton with funding from Marrickville Holdings. In 1981 Peter Isaacson bought the newspaper from the liquidators of Maxwell Newton. Peter Isaacson Publications was acquired by Independent News & Media's Australian media arm, Australian Provincial Newspapers (APN) in 1993, where DCN remained until purchased by Informa in 1999. In total,

1056-758: A private Australian publishing company, Westonprint, of Kiama on the south coast of NSW . Westonprint already provided print and distribution services for several international weekly versions of well known newspapers, including The Guardian and Scottish Daily Record . At the time, the Australian maritime media market was dominated by the Daily Commercial News (DCN), a five-day weekly national newspaper. Following extensive local market research by LLP through Lloyd's List's Managing Director, Ian Ormes, Advertisement Director, John Quilter and Peter Attwater (Managing Editor of Westonprint) David Gilbertson authorized

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1152-787: A rented home in Moverly Road in the Sydney metropolitan coastal suburb of Maroubra . There, articles were written and advertisements sold. The newspaper was in profit from the outset. The stories were transmitted back to Lloyd's List in London where the compilation of the newspaper took place by Lloyd's List production staff. The completed editorial pages of the newspaper were then transmitted back to Westonprint in Australia where advertisements were manually inserted and production completed before printing and distribution took place. Smith and Pickstock carried

1248-441: A result, a great many Names whose syndicates wrote long-tail liability at Lloyd's faced significant financial loss or ruin by the late 1980s to mid-1990s. It was alleged that in the early 1980s some Lloyd's officials began a recruitment programme to enroll new Names to help capitalise Lloyd's prior to the expected onslaught of APH claims. This allegation became known as "recruit to dilute": in other words, recruit more Names to dilute

1344-729: A result, maritime coverage slowly moved entirely towards commercial matters. The editorial focus remained largely unchanged for the next 40 years, with the addition of a digital offering in 1994 and the publication of news and vessel information online. The decline of Australian flagged commercial vessels in the 1990s and early 2000s meant that by 2005 editorial focus began to shift away from serving shipping lines themselves and instead reporting information about shipping lines to third party businesses such as logistics operators, freight forwarders, customs brokers, insurance companies, analysts and import/export departments. On 28 May 2009, after 118 years in print, vessel sailing schedules were removed from

1440-539: A shipping newspaper, founding Shipping Newspapers Ltd under the name The Daily Shipping Paper in November 1890 with business partner Jeremiah Roberts. On 13 April 1891, the first edition of Daily Commercial News (DCN) was published. On 30 April 1892 the newspaper changed its title to Daily Commercial News and Shipping List . Moffat remained the driving force behind the newspaper until ill health and failing eyesight forced his retirement in 1935. His retirement coincided with

1536-469: A third mutual link which includes the "Central Fund" and which is under the control of the Council of Lloyd's. In 2023 there were 78 syndicates managed by 51 "managing agencies" that collectively wrote £52.1bn of gross premiums on risks placed by 381 registered brokers. Around half of Lloyd's premiums emanate from North America and around one quarter from Europe. Direct insurance represents roughly two-thirds of

1632-460: Is also credited for introducing the now widely used "excess of loss" reinsurance protection for insurers following the San Francisco quake. Heath had become an underwriting member of Lloyd's in 1880, upon reaching the minimum age of 21, on J. S. Burrows' syndicate. Within a year he was underwriting for himself on a three-man syndicate; in 1883 he also opened a brokerage business. In 1885, he wrote

1728-419: Is asbestosis/ mesothelioma claims under employers' liability or workers' compensation policies. An employee at an industrial plant may have been exposed to asbestos in the 1960s, fallen ill 20 years later and claimed compensation from his former employer in the 1990s. The employer would report a claim to the insurance company that wrote the policy in the 1960s. However, because the insurer did not fully understand

1824-618: Is closely associated with the Latin phrase uberrima fides , or "utmost good faith", representing the relationship between underwriters and brokers. Having survived multiple scandals and significant challenges through the second half of the 20th century, most notably the asbestosis losses which engulfed the market, Lloyd's today promotes its strong financial "chain of security" available to promptly pay all valid claims. As of 31 December 2022 this chain consists of £72.1 billion of syndicate-level assets, £34.1bn of members' "funds at Lloyd's" and £6.1bn in

1920-551: Is compared to standard shipping, the price of which typically includes only the expenses incurred by the shipping company in transferring the object from one place to another. Customs fees, import taxes and other tariffs may contribute substantially to this base price before the item ever arrives. Lloyd%27s of London Lloyd's of London , generally known simply as Lloyd's , is an insurance and reinsurance market located in London , England. Unlike most of its competitors in

2016-429: Is credited for first identifying this issue and creating the first "large syndicate", initially of 12 capacity providers. By the 1880s Marten's syndicate had outgrown many of the major insurance companies outside Lloyd's. On 18 April 1906, a major earthquake and resulting fires destroyed over 80 per cent of the city of San Francisco . This event was to have a profound influence on building practices, risk modelling and

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2112-419: Is currently edited by Ian Ackerman. It remains a totally subscribed publication with a daily e-mail newswire service to several thousand readers. In July 2018, Daily Cargo News moved to a monthly magazine format. When the paper was founded in 1891, Howard Moffat described the editorial policy as "containing latest particulars on all matters connected with shipping – imports, exports &c" . Early editions of

2208-431: Is shipped under a single contract but performed using at least two different modes of transport (e.g. ground and air). Cargo may not be containerized. Multimodal transport featuring containerized cargo (or intermodal container ) that is easily transferred between ship, rail, plane and truck. For example, a shipper works together with both ground and air transportation to ship an item overseas. Intermodal freight transport

2304-402: Is transported by air in specialized cargo aircraft and in the luggage compartments of passenger aircraft. Air freight is typically the fastest mode for long-distance freight transport, but it is also the most expensive. Cargo is exchanged between different modes of transportation via transport hubs , also known as transport interchanges or Nodes (e.g. train stations, airports, etc.). Cargo

2400-400: Is typically more affordable than air, but more expensive than sea, especially in developing countries , where inland infrastructure may not be efficient. In air and sea shipments, ground transport is required to take the cargo from its place of origin to the airport or seaport and then to its destination because it is not always possible to establish a production facility near ports due to

2496-513: Is used to plan the route and carry out the shipping service from the manufacturer to the door of the recipient. The Incoterms (or International Commercial Terms) published by the International Chamber of Commerce (ICC) are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of the most commonly used terms in international trade. Common terms include: The term "best way" generally implies that

2592-566: The Exxon Valdez oil spill in 1989, also went into the spiral. Some of the leading LMX reinsurers at the time that suffered serious spiral losses included the numerous syndicates managed by the Gooda Walker agency, Devonshire syndicate 216, Rose Thomson Young 255, R. J. Bromley 475, and Patrick Fagan's already challenged Feltrim syndicates 540 and 542. Gooda Walker syndicate 298 became the first fatal casualty, with 13,500 policies being exposed to

2688-602: The Australian Newspapers Digitisation Program project of the National Library of Australia . Shipping In 2015, 108 trillion tonne-kilometers were transported worldwide (anticipated to grow by 3.4% per year until 2050 (128 Trillion in 2020)): 70% by sea, 18% by road, 9% by rail, 2% by inland waterways and less than 0.25% by air. Land or "ground" shipping can be made by train or by truck (British English: lorry ). Ground transport

2784-575: The DCN and LLAW continued to publish on their normal schedules until the newspapers were merged. On Monday 12 April 1999, the first edition of the now Lloyd's List DCN was published by an editorial, advertising, subscriptions and production team made up a staff from both the DCN and LLAW . LLAW editor Kevin Chinnery edited the combined publication for a further seven years until the end of 2006 when he joined Business Review Weekly as its weekly editor. Former LLDCN deputy editor Sandy Galbraith edited

2880-438: The Daily Commercial News ran for 108 years under its original banner. During this time it occupied a unique position amongst a select group as one of only three national Australian daily newspapers alongside The Australian and Australian Financial Review - yet with a much more tightly defined market and readership than its colleagues. Early in 1993, Lloyd's List , one of the world's oldest daily newspapers investigated

2976-520: The Equitas arrangement in the late 1990s and transferred to National Indemnity Company in two stages in 2007 and 2009. Residual funds in Lioncover were later distributed to surviving PCW Names or donated to the Lloyd's Charities Trust. Lioncover was voluntarily dissolved in 2014. Lloyd's also faced action from Names on C. J. Warrilow's syndicate 553, which had chronically exceeded its underwriting capacity in

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3072-464: The Gulf of Mexico coastlines, costing the market over £50 million. The catastrophe halted the capital that hitherto had been pouring into Lloyd's, and twice as many members left between 1965 and 1968 as had left over the prior eight years. It was soon realised that the membership of the Society, which had been largely made up of market participants, was too small in relation to the market's capitalisation and

3168-466: The 1912 "Loss Book" is on display in the Lloyd's building. The society moved into its first owned, dedicated building in 1928. It was located at 12 Leadenhall Street and had been designed by Sir Edwin Cooper . In 1965 Lloyd's wrote the first satellite insurance policy, covering Intelsat I in pre-launch. Later that year, when Lloyd's had around 6,000 members on 300 syndicates, Hurricane Betsy struck

3264-400: The 1970s, the number of passive investors dwarfed the number of underwriters working in the market. The third issue related to a serious of losses as a result of scandal. During the decade a number of scandals had come to light, including the collapse of F. H. "Tim" Sasse's non-marine syndicate 762, which had issued large fire insurance claims that had highlighted both the lack of regulation and

3360-567: The Informa banner, the acquisition of the DCN was completed in March 1999 for A$ 10m. Announcing the purchase, Gilbertson stated "Daily Commercial News is a powerful and long established title in the Australian market. In combination with our weekly publication, Lloyd's List Australian Weekly , the acquisition of DCN will enable Informa to offer an unrivalled information service to the Australian import and export community" . For several weeks following,

3456-502: The Lloyd's Act of 1982 which further redefined the structure of the business and was designed to give external Names, introduced in response to the Cromer report, a say in the running of the business through a new governing Council. The main purpose of the 1982 Act was to separate the ownership of the managing agents of the underwriting syndicates from the ownership of the brokering houses (which acted as intermediaries, not as underwriters), with

3552-427: The Lloyd's marine market, was expelled under suspicions but later acquitted of criminal charges. His name remained tarnished and he did not return to the market, retiring to run his Oxfordshire farm until his death in 2017 aged 87. A greater debacle arose when Peter Cameron-Webb and Peter Dixon, of PCW Underwriting Agencies, allegedly defrauded their business of some $ 60m through rigged reinsurance transactions and fled to

3648-505: The Piper Alpha disaster alone and its 1989 account producing a 650 per cent loss on capacity; Feltrim followed with a 550 per cent loss on capacity. Roy Bromley, underwriter of syndicate 475, later committed suicide after being dismissed by his Board and reportedly becoming distressed at his operation's mounting losses. Not all excess of loss writers succumbed to the LMX spiral; in fact the spiral

3744-420: The United States, never to return. The emergence of fraud at PCW was the first in a series of events that led to the resignation of Lloyd's chairman Sir Peter Green in 1983. Lloyd's was later forced to make a settlement with the roughly 3,000 Names on the various PCW syndicates involved and to reinsure their liabilities into a new syndicate, number 9001, in turn reinsured by a unique vehicle named Lioncover, which

3840-633: The acquisition of Lloyd's List Australia . The paper continued to run under the Lloyd's List Australia masthead for a further four months, as staff and assets were relocated from Informa's Sydney office to the Paragon Media office in Crows Nest . In October 2017 the masthead was changed to Daily Cargo News , whose acronym, DCN, is a homage to the original name and heritage of the newspaper. Today, Daily Cargo News operates from its Crows Nest headquarters and it

3936-501: The beginning of the year in which the business was written) before "closing" the year for accounting purposes and declaring a result. To calculate the profit or loss, reserves were set aside for future claims payments, for claims that had already been notified but not yet paid, as well as estimated amounts for claims that had been incurred but not reported (IBNR). This estimation is difficult and can be inaccurate; in particular, long-tail liability policies tend to produce claims long after

Daily Cargo News - Misplaced Pages Continue

4032-604: The death of Edward Lloyd in 1713, when the participating members of the insurance arrangement formed a committee and underwriter John Julius Angerstein acquired two rooms at the Royal Exchange in Cornhill for "The Society of Lloyd's". In July 1803, the Lloyd's Patriotic Fund was established by a group of Lloyd's underwriters. The Royal Exchange was destroyed by fire in 1838, forcing Lloyd's into temporary offices at South Sea House , Threadneedle Street . The Royal Exchange

4128-415: The decision to enter the Australian market with a weekly newspaper. The newspaper was called Lloyd's List Australian Weekly (LLAW). It was first published on Monday, 30 August 1993. A senior journalist on Lloyd's List , Leigh Smith, was chosen to head the project as editor. He was joined by Advertising Manager, Adrian Pickstock, who had recently joined LLP in London. Initially, they set up an office in

4224-680: The early 1980s and failed to adequately reinsure the huge quantity of risks it was taking on. The solution was to create a new company in 1990 into which these liabilities could be reinsured in order to relieve the Warrilow Names. This entity was named Centrewrite Ltd and in 1993 it assumed Warrilow's 1985 and prior years' liabilities, separately also offering "estate protection plans" (EPPs) for resigned Names. Tens of thousands of Lloyd's Names bought these reinsurance policies. Centrewrite still exists today but has not written any EPPs since 2011 and conducts little other business; its most recent transaction

4320-490: The editorial staff of Daily Cargo News . Hosts of the awards ceremony have included former Australian cricket player Mike Whitney and television personality Sam Kekovich . Daily Cargo News participates in a number of staff and industry driven charity initiatives, most notably the annual Shipping Industry Golf Challenge. To date this event has raised over A$ 633,000 for the oncology unit at Westmead Children's Hospital . The paper has been partially digitised as part of

4416-454: The editorial team from early 1994. As deputy editor the following year he proposed LLAW establish a website including shipping schedules and news. The free website proved an immediate success - contrasting with the expensively designed electronic commerce offering from rival DCN , which required subscribers to pay. Leigh Smith continued as editor of LLAW until 1995 when he returned to London to join corporate public relations with BP . He

4512-409: The entire editorial and advertising project for several months and when it became clear that LLAW was making headway, they were joined by their wives – but not just for comfort. Smith's wife, Clare Longley, was an accomplished journalist and joined the editorial team while Pickstock's wife Ellen, briefly joined the sales team. David Worwood, formerly features editor with DCN , further strengthened

4608-526: The environment. Daily Cargo News ' s current publishing stable includes the monthly magazine, a website, four different daily e-mail newswires, and an annual directory: The Australian Shipping & Maritime Industry Awards have been held every November since 1995. As of 2011 there are 16 award categories which recognise achievements in liner trading , freight forwarding , maritime safety, project cargo , seafarers welfare, maritime services, supply chain and young achievement. Nominations are open to

4704-515: The explosion on Piper Alpha. Unexpectedly large legal awards in US courts for punitive damages led to substantial claims on asbestos , pollution and health hazard (APH) policies, some dating as far back as the 1940s. Many of these policies were open-peril policies, meaning that they covered any claim not specifically excluded. Other policies (called standard, or broad) only cover stated perils, such as fire. The classic example of "long-tail" insurance risks

4800-510: The extent of asbestos exposure, leaving the Pulbrook Names without cover for their losses of £100,000 each on average. Even earlier, in 1974, the underwriter of R. W. Sturge syndicate 210, Ralph Rokeby-Johnson, who specialised in American industrial risks, bought "stop-loss" reinsurance from Fireman's Fund and Kemper Insurance in the US on Sturge's pre-1969 exposures that were accumulating into

4896-479: The financial crisis resulting from The Great Depression . Like so many other businesses at the time, DCN found itself in a difficult position. The National Bank of Australia stepped in and appointed a receiver, Charles Witt. The rescue was so successful that shareholders persuaded him to remain on as chairman, which he did until his retirement in 1962. During World War II , Australian authorities sought suspension of publication of all shipping movements for fear that

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4992-615: The first fire reinsurance contract, reinsuring the Hand in Hand Insurance Company and marking the start of Heath's push to diversify the market into "non-marine" business. He also wrote Lloyd's first burglary insurance policy, its first "all risks" jewellery policy and invented "jewellers' block" cover. Later, during World War I he offered air-raid insurance, protecting against the risk of German strategic bombing . The subsequent Lloyd's Act 1911 ( 1 & 2 Geo. 5 . c. lxii) set out

5088-460: The first to appear under the new masthead. The paper ran as Lloyd's List Australia and published by Informa Australia for a further 6 years, until a change in regional strategy saw Informa divest their entire Australian publishing business. All of their titles, including Lloyd's List Australia , were placed on the market in January 2017. In June 2017, specialist trade publisher Paragon Media completed

5184-543: The fraudulent losses. The Names (few in number for such large losses) took legal action and ultimately paid only £6.25m of c. £15m of Den-Har claims under the 1976 year, leaving the Corporation of Lloyd's to pay the remainder. The Corporation also paid the near £7m loss for 1977. Lloyd's banned Sasse from the market for life in 1985; he died on 28 February 1987. Sasse had also been one of 57 underwriters on other syndicates that wrote loss-making "computer leasing" policies in

5280-540: The general public thus any person may nominate another company, corporation, organisation or individual for any award. Winners of 14 of the awards are selected by a combination of votes from a judging panel consisting of industry peers and popular vote by the readers of Daily Cargo News . The final two award winners, Newsmaker of the Year and the annual induction to the Australian Maritime Hall of Fame, are determined by

5376-406: The gilt or other bond cum dividend and buying it back ex-dividend , thus forfeiting the interest income in exchange for a tax-free capital gain. Syndicate funds were also moved offshore (which later created problems through fraud and self-dealing). Because Lloyd's was a tax shelter as well as an insurance market, the second issue affecting it was an increase in its external membership: by the end of

5472-409: The industry, it is not an insurance company; rather, Lloyd's is a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament . It operates as a partially-mutualised marketplace within which multiple financial backers, grouped in syndicates , come together to pool and spread risk . These underwriters , or "members", are a collection of both corporations and private individuals,

5568-503: The information could fall into enemy hands. With the strong support of the Australian shipping industry a compromise was reached – only after a ship had sailed, returned and sailed again would its original sailing be published. This policy was revoked at the conclusion of the war. For over 50 years DCN 's were at 16 Bond Street, Sydney , which had extra floors added over the decades to accommodate peak staffing levels of over 1,000 employees. In 1962 new Chairman Raymond Morris initiated

5664-460: The insurance industry. Lloyd's losses from the earthquake and fires were substantial, even though the writing of insurance business overseas was viewed with some wariness at the time. While some insurance companies were denying claims for fire damage under their earthquake policies or vice versa , one of Lloyd's leading underwriters, Cuthbert Heath , famously instructed his San Francisco agent to "pay all of our policy-holders in full, irrespective of

5760-615: The lack of legal powers of the Committee of Lloyd's (as it was then) to manage the Society. The collapse of the Sasse syndicate came after it wrote a "binding authority" in 1975 that delegated underwriting authority to Florida-based expatriate Dennis Harrison to write property and fire risks through his Den-Har Underwriters agency, even though Den-Har was not an approved Lloyd's coverholder (a fact noticed neither by Sasse nor Lloyd's Non-Marine Association). Den-Har had suspected Mafia links and many of

5856-474: The late 1970s. These claims ultimately ran above $ 450m, wiping out more than half the entire market's profit in a single year. Problems also developed out of the Oakley Vaughan agency run by brothers Edward and Charles St George, which had written far more business than its capacity allowed in order to invest premium to take advantage of high interest rates. By writing swathes of business regardless of whether

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5952-412: The latter being traditionally known as "Names". The business underwritten at Lloyd's is predominantly general insurance and reinsurance, although a small amount of term life insurance is written. The market has its roots in marine insurance and was founded by Edward Lloyd at his coffee-house on Tower Street in c. 1689. It is thus one of the oldest insurance companies in the world. Today, it has

6048-467: The liability of previous underwriting years would be transferred to the current year, and "time and distance" policies, whereby reserves would be used to buy a guarantee of future income. In 1980, Sir Henry Fisher was commissioned by the Council of Lloyd's to produce the foundation for a new Lloyd's Act. The recommendations of his report addressed the "democratic deficit" and the lack of regulatory muscle. Fisher, working with Richard Southwell QC, drafted

6144-427: The liability that they personally and their syndicates had subscribed to. Also, numerous underwriters of long-tail non-marine business, concerned at their exposures to the impending asbestosis crisis, had sought to reinsure their liabilities with other carriers. Approximately 20 syndicates, including Lloyd's deputy chairman Murray Lawrence's, paid millions of pounds in premiums to Richard H. M. Outhwaite, then considered

6240-549: The limited coastlines of countries. Much freight transport is done by cargo ships . An individual nation's fleet and the people that crew it are referred to as its merchant navy or merchant marine. According to a 2018 report from the United Nations Conference on Trade and Development (UNCTAD) , merchant shipping (or seaborne trade) carries 80-90% of international trade and 60-70% by value. On rivers and canals , barges are often used to carry bulk cargo . Cargo

6336-412: The losses. When the huge extent of asbestosis losses came to light in the early 1990s, for the first time in Lloyd's history large numbers of members either were unable to pay the claims or refused, many alleging that they were the victims of fraud, misrepresentation, and/or negligence. The opaque system of accounting at Lloyd's made it difficult, if not impossible, for many Names to understand the extent of

6432-468: The members of syndicate '1' in 1985 reinsured the future claim liabilities for members of syndicate '1' in 1984. The membership might be the same, or it might have changed. In this manner, liability for past losses could be transferred year after year until it reached the current syndicate. A member joining a syndicate with a long history of such transactions could – and often did – pick up liability for losses on policies written decades previously. As long as

6528-568: The nature of the future risk back in the 1960s, it and its reinsurers would not have properly priced or reserved for it. In the case of Lloyd's, this resulted in the bankruptcy of thousands of individual investors who indemnified general liability policies written from the 1940s to the mid-1970s for companies with exposure to asbestosis claims. A group of Names mounted a legal case as the Names Against Lloyd's of London, where they attempted to prove fraud among those brokers who had involved them in

6624-468: The newspaper contained general shipping and trade news, commercial shipping schedules, passenger shipping itineraries, insurance news, shipping casualties and ship manifests. By 1920, editorial coverage had begun to diversify beyond the maritime trade sector with the launch of the weekly "Airways News" section. In 1933 both road and rail transport were also included, expanding the coverage to the full gamut of trade and intermodal door-to-door transport. As

6720-522: The newspaper in favour of being hosted online. The following year, airfreight and road transport were removed from the editorial policy and rail coverage was moved from the newspaper to a new stand-alone publication named Rail Express . Today, Daily Cargo News primarily covers news and trends in container, liner and bulk shipping, ports , logistics , freighting and customs broking, supply chain & logistics, dry bulk trades, project cargo , government policy, law, regulation and shipping's impact on

6816-467: The objective of removing conflicts of interest. Immediately after the passing of the 1982 Act, evidence came to light and internal disciplinary proceedings were commenced against a number of underwriters who had allegedly siphoned money from their syndicates to their own accounts. These individuals included a deputy chairman of Lloyd's and some of its leading underwriters. Successful marine underwriter Ian Posgate , who at one point had written 20 per cent of

6912-412: The policies are written. The reserve for future claims liabilities was set aside in an unusual way. The syndicate bought a RITC policy to pay any future claims; the premium was equal to the amount of the reserve. This transaction allowed the year to be closed, and the syndicate's profit or loss declared. The reinsurer was always another Lloyd's syndicate(s), often the succeeding year of the same syndicate:

7008-414: The possibility of extending its international publishing service. The proposal was to launch a weekly version of its newspaper in Australia combining Lloyd's List 's traditional international coverage with an extensive coverage of national shipping events in Australia. Under the guidance of Publisher and Chief Executive Lloyd's of London Press (LLP), David Gilbertson, a joint venture was formed with

7104-472: The practice had become so widespread that the underwriters in Lime Street initially had no idea how extensive their exposure was: the loss was passed around in what became known as the London market excess of loss (LMX) "spiral" and claim values escalated out of control. The rig's operator, Occidental Petroleum , bought a direct insurance policy from Lloyd's underwriters, who then passed part of their shares of

7200-549: The premiums were adequate, the St Georges left their Names with serious losses. Lloyd's had commissioned investigations into Oakley Vaughan, but investigators were denied access to the books and relied only on reassurances that the agency was profitable. Arising simultaneously with these developments were wider issues: first, in the US, an ever-widening interpretation by the courts of insurance coverage in relation to workers' compensation for asbestosis -related claims, which created

7296-659: The premiums written, mostly covering property and casualty ( liability ), while the remaining one-third was reinsurance. The market began in Lloyd's Coffee House , owned by Edward Lloyd, on Tower Street in the City of London . The first reference to it can be traced to the London Gazette in 1688. The establishment was a popular place for sailors, merchants, and ship-owners, and Lloyd catered to them with reliable shipping news. The coffee house soon became recognised as an ideal place for obtaining marine insurance. The shop evolved into

7392-459: The publication for six years, leaving for a role at Sydney Business Chamber in October 2016. On 24 November 2011, at the 16th annual Australian Shipping & Maritime Industry Awards, publisher Peter Attwater announced that Lloyd's List DCN was to be re-branded as Lloyd's List Australia to give the publication a "clear national focus". The change was immediate, with issue 901 (24 November 2011)

7488-466: The publication until September 2007, when he moved into shipping consultancy, and was replaced by LLDCN Sydney correspondent Sam Collyer who edited the paper until July 2010 when he left to pursue a public relations career with Caltex . Jim Wilson, then the Asia-Pacific editor of shipping publication Fairplay , was recruited from Singapore and moved to Australia to become editor of LLDCN . Jim edited

7584-464: The reserves had been accurately estimated, and the appropriate RITC premium paid every year, then all would have been well, but in many cases this had not been possible: no-one could have predicted the surge in APH losses. Therefore, the amounts of money transferred from earlier years by successive RITC premiums to cover these losses were grossly insufficient, and the current members had to pay the shortfall. As

7680-441: The risk on to other syndicates via reinsurance. Those reinsurers then in turn reinsured part of the risk out to other reinsurance underwriters within Lloyd's (known as "retrocessionaires"), and so on. Consequently, many syndicates, especially those writing a large amount of excess of loss reinsurance, became exposed to the same claim multiple times through multiple layers in the spiral. Other catastrophes, including Hurricane Hugo and

7776-446: The risks that it was taking on. Lloyd's response was to commission a secret internal inquiry in 1968, headed by Lord Cromer , a former Governor of the Bank of England . This report advocated the widening of membership to non-market participants, including non-British subjects and then women, and the reduction of the onerous capitalisation requirements (thus creating a minor investor known as

7872-470: The risks written were rigged: typically dilapidated buildings in slums such as New York 's south Bronx , which soon burned down after being insured for large sums. Once the three-year Lloyd's accounting period passed, the 110 Names on syndicate 762 were told they faced substantial losses, from mostly fraudulent claims. Sasse's reinsurer, the Instituto de Resseguros do Brasil (IRB), refused to pay its share of

7968-477: The same piece of equipment and avoiding multiple transactions, trans-loading, and cross-docking without interim storage. International DTD is a service provided by many international shipping companies and may feature intermodal freight transport using containerized cargo . The quoted price of this service includes all shipping, handling, import and customs duties, making it a hassle-free option for customers to import goods from one jurisdiction to another. This

8064-468: The shift towards containerisation and purpose-built container ships gained momentum in the 1950s, publication of shipping manifests became less frequent. By 1964 manifests had been completely replaced by container unpack notifications letting owners know when their containers had cleared customs. Around the same time, the popularisation of airline travel reduced the amount of cruise vessels serving passenger routes between Australia and Europe/North America. As

8160-441: The shipper will choose the carrier that offers the lowest rate (to the shipper) for the shipment. In some cases, however, other factors, such as better insurance or faster transit time, will cause the shipper to choose an option other than the lowest bidder. Door-to-door ( DTD or D2D ) shipping refers to the domestic or international shipment of cargo from the point of origin (POI) to the destination while generally remaining on

8256-509: The society's objectives, which include the promotion of its members' interests and the collection and dissemination of information. A year later in April 1912 Lloyd's suffered perhaps its most famous loss: the sinking of the Titanic . It was insured for £1 million, which represented 20 per cent of the entire market's capacity, making it the largest marine risk ever insured. The record of its sinking in

8352-430: The terms of their policies". The prompt and full payment of all claims helped to cement Lloyd's reputation for reliable claim payments and as an important trading partner for US brokers and policyholders. It was estimated that around 90 per cent of the damage to the city was caused by the resultant fires and as such, since 1906 "fire following earthquake" has generally been a specified insured peril under most policies. Heath

8448-406: The underwriting syndicates. It may not be immediately clear how current members of current Lloyd's syndicates, which accept business one year at a time, could be liable to pay historical claims. This came about as a result of the Lloyd's accounting practice known as reinsurance to close (RITC). A member "joined" a syndicate for one calendar year only, known as the "annual venture". At the end of

8544-408: The year, the syndicate as an ongoing trading entity was effectively disbanded. However, usually the syndicate re-formed for the next calendar year with the same identifying number and more or less the same membership. Since claims can take time to be reported and then paid, the profit or loss for each syndicate took time to realise. The practice at Lloyd's was to wait three years (that is, 36 months from

8640-517: Was in 2013 when it assumed the 2001 liabilities of the life syndicate 1171. It also reinsured the 1997–1999 years of Crowe syndicate 1204 and the 1999–2001 years of Cotesworth syndicate 535. In 2012 the Crowe and Cotesworth liabilities (then valued at just over £17m) were novated to Riverstone (a Fairfax company) meaning minimal liabilities remain in Centrewrite today. In 1986, the year Lloyd's moved into

8736-490: Was rebuilt by 1844, but many of Lloyd's early records were lost in the blaze. In 1871, the first Lloyd's Act was passed in Parliament which gave the business a sound legal footing. Around that time, it was unusual for a Lloyd's syndicate to have more than five or six backers; this lack of underwriting capacity meant Lloyd's was losing many of the larger risks to rival insurance companies. A marine underwriter named Frederick Marten

8832-427: Was relatively confined to a minority of such syndicates. Among the prominent reinsurers that remained profitable throughout the spiral were C. F. Palmer syndicate 314, M. H. Cockell 269/570 and D. P. Mann 435, while G. S. Christensen 958 reported only a slight loss in 1989 but healthy profits in 1990 and 1991. The early to mid-1990s saw the continuation of Lloyd's most traumatic period in its history that had begun with

8928-574: Was replaced by Kevin Chinnery, then the editor of Lloyd's List Maritime Asia . Adrian Pickstock left LLAW in June 1997. In 1995, the Maroubra house was abandoned for a new office at Suite 1005, Level 10, Bondi Junction Plaza (Tower 1) in Bondi Junction which was to serve as the home of LLAW until 1999. 1998 was a pivotal year for LLAW , and as it transpired, for the DCN . David Gilbertson successfully led

9024-597: Was set up as a Lloyd's subsidiary insurance company. Lioncover assumed the liabilities of PCW as well as the associated WMD and Richard Beckett underwriting agencies in 1987. In 1988 it also assumed the 1967–1969 liabilities of syndicates 2 and 49. Dixon and Cameron-Webb remained at large in the US; Cameron-Webb reportedly died in 2004 in a nursing home in California and Dixon became a real estate agent in Florida; he died in 2017. Lioncover's PCW liabilities were reinsured as part of

9120-447: Was taxed in the top bracket at 83 per cent, and investment income in the top bracket at 98 per cent. Lloyd's income counted as earned income, even for Names who did not work at Lloyd's, and this heavily influenced the direction of underwriting: in short, it was desirable for syndicates to make a (small) underwriting loss but a (larger) investment gain. The investment gain was typically achieved by " bond washing" or "gilt stripping": selling

9216-466: Was vitally interested in legal decisions as to what constituted 'natural death' and 'perils of the sea'". Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807. Just after Christmas 1691, the small club of marine insurance underwriters relocated to No. 16 Lombard Street ; a blue plaque on the site commemorates this. This arrangement carried on until 1773, long after

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