The Club enjoyed a very satisfactory 2007 Renewal. In terms of tonnage over the year as a whole, an additional 3 .76 million tons entered and 1.78 million tons left the Club (including 440,000 tons that was not offered renewal terms); a net increase of 1.98 million tons year on y ear. We were pleased to welcome seventeen new Members to the Club, who between them entered 2.91million tons, while twenty two Members increased t he proportion of their fleets entered with the Club. The Board had set a general increase of 9%. In the event an increase of 8.6% (including change of terms) was a chieved. Given the market environment the Managers believe that this is a very encouraging response from the membership as a whole. After the Board announced the general increase some Members expressed surprise that it was at the higher end of the level of increases set by International Group Clubs. However, it was already clear that 2006-07 was a high claims year mainly in the excess US$ 1 million layer and more particularly for the claims in the International Group Pool. Although Steamship Mutual had one claim which is forecast to fall on the Pool, albeit not substantially, the claims brought by other clubs were such that 2006-07 was set to be a record breaking year. An extremely good investment performance has ensured that the Club will make an operating profit for the year notwithstanding these claims, which will result in a pure underwriting loss for the first time in four years. Nevertheless, it is important that the Club returns to a pure underwriting surplus as soon as possible, preferably in the current year. To that end the 9% general increase is a vital contributor to the Club’s continuing strong financial position. The Managers’ responsibility, as always, is to ensure that new tonnage joining the Club pays a reasonable rate. It is not in the long term interests of any owner if the Club jeopardises its financial base by accepting entries at unrealistic rates - even if all Members naturally seek to achieve the lowest possible rates for their vessels. As the recent renewal has demonstrated, however, the Club’s Members also recognise that premium levels should fairly r eflect claims experience, keeping pace when claims rise. The Managers will endeavour to ensure that this policy is adhered to, throughout the year and at the next renewal. Gary Rynsard 21st May 2007. Introduction “An extr emely good investment performance has ensured that the Club will make an operating profit for the year....” Sea V entur e newsletter Issue 83Sea Venture newsletter Issue 8 Introduction....................................3 “Clash of the Titans” - House of Lords v European Court of Justice 4 Steamship Mutual News ................4 Indian Law: Arrest for Security for Foreign Arbitration Award ..............5 Carrier Beware Transfer of Risk Not Title ................5 Towage or Salvage?........................6 From Misdeclaration to Limitation - a Carrier's Problem ......8 Risks in Launching and Recovery of Lifeboats ....................................9 Without Prejudice or Not? - Lia Oil S.A. v ERG Petroli S.P.A. ..10 Clausing Bills of Lading by Incorporation of Survey Reports ..10 Michigan - Ballast Water Control Permits ............................11 A Blow for Certainty in Commercial Affairs? ....................12 Seafarers - Changes to the Race Relations Act ................................14 Performance Warranties The Whole Picture ........................15 Ph