Ship agency rates are still under pressure despite record freight rates, a shipping conference was told recently.

Niall Denholm, managing director of shipping and forwarding agents Denholm Barwil, warned that the squeeze on rates would worsen if freight rates were to fall, shipping weekly Fairplay quoted him as saying at the recent centenary conference of the Baltic International Maritime Council (Bimco) in Copenhagen last month.

Bimco is the world's largest private shipping organisation.

The theme of the Bimco centenary conference was Global Outlook, and this was reflected in a speech by the Danish Foreign Minister, Per Stig Møller, who described the shipping industry as "the single most important vehicle for globalisation".

Denholm Barwil managing director said the consolidation of the agencies into global services was driven by the tanker market in the early 1990s.

This led to the growth of three major players GAC, Inchcape and Denholm Barwil followed by regional and local agents in worldwide agreements.

Denholm said he expected further consolidation in the next five years as the sector struggled to remain profitable, with new partnerships and co-operation agreements being formed.

Johanna Parnis, UK director of Maltese agency WJ Parnis England, defended the role of local agents.

She told the conference local agents could work for the benefit of their regular clients unlike global or regional agents who represent a large number of owners and operators.

Founded in 1905 by a small group of northern European shipowners, Bimco has grown into an organisation with about 2,500 members in 123 countries.

Dubai Drydocks is expected to complete this month a new 2,000-tonne capacity floating crane, the FC2000, as part of the Safina project, a Dh165 million shipbuilding facility, a press release said.

The crane has been designed and built according to the rules of Norway-based international consulting firm Det Norske Veritas, it said.

It will have a 30 metres outreach and 70 metres elevation. Total load will be distributed between four hooks.

The unique design of the projecting arm will be useful during heavy lift operations, it said.

Container volume

PSA, the Singapore-based terminal operator, has reported that worldwide, the company handled 11.47 million TEU container boxes between January 1 and April 30 this year.

This represents an increase of 11.1 per cent compared to the 10.32 million TEU handled during the same period last year.

The throughput at PSA's Singapore terminals accounted for 7.12 million TEU of the total amount of container boxes handled, which was up 11.9 per cent compared to the 6.36 million TEU that passed through the company's Singapore facilities the previous year over the same period.

Meanwhile, PSA's overseas port operations saw a total of 4.35 million TEU pass through its terminals during this period, up 9.8 per cent over the 3.96 million TEU handled during January-April 2004.

Credit rating agency Standard & Poor's (S&P) announced last week that it had revised its outlook on the United Kingdom Mutual Steamship Assurance Association (Bermuda) Ltd (the UK Club) to negative from stable.

At the same time, S&P affirmed the club's "A" long-term counterparty credit and insurer financial strength ratings.

According to S&P, the ratings reflect the club's very strong financial flexibility (defined as the ability to source capital relative to requirements), strong but weakened capitalisation, and strong competitive position.

These positive factors are partially offset by only satisfactory operating performance, the high industry risk associated with protection and indemnity business, and an aggressive investment policy, it said.

The writer is a Dubai-based marine consultant.