What do clubs want from their correspondents?

NOTWITHSTANDING the sophisticated means of communication available in today's shipping industry to enable the master to keep in touch with the owner - and the owner with the club - almost instantaneously when a problem arises, it is the local correspondent to whom the master invariably looks for support and assistance.

"The clubs have historically looked to appoint local commercial people as correspondents and .. I do not believe that such expertise and the role required is one which fits easily within the structure and philosophy of the law firm culture."

The correspondent is to all intents and purposes an extension of the club, and the master and owner expect the same commitment from the correspondent in support of the ship's cause. The correspondent is in the front line and the club expects that the correspondent will have an extensive working knowledge of the port, the major players involved in running it, both administratively and commercially, and also experience of the major shippers and receivers.

The correspondent is also expected to know the various surveyors and technical experts available to deal with a variety of claims. For all of these reasons the clubs have historically looked to appoint local commercial people as correspondents and, indeed, many club correspondents have served the needs of the clubs, either individually or collectively for many years. The master of a ship in an unfamiliar port relies extensively on the correspondent, whose timely intervention may often prevent a minor problem developing into a major crisis or will result in a dispute between ship and shore being resolved with the minimum of fuss and expense.

The knowledge and expertise required by a correspondent demands a dedicated business and individuals well versed in the relationship between the club and the member and the liability risks encountered on the waterfronts of the world. I do not believe that such expertise and the role required is one which fits easily within the structure and philosophy of the law firm culture, or is indeed the type of role which law firms would wish to promote. It may be an old-fashioned view, but I believe that clubs require from lawyers a different type of service and expertise.

When the lawyers are called in it means the correspondent has been unsuccessful in resolving matters commercially, or the nature of the dispute has prevented this. What the club and the member now need is an expert to protect the member's legal position but also to provide fast and impartial advice on a continuing basis in order to minimise the potential exposure. There is another aspect that must be addressed - cost. As one who has responsibility for the supervision of legal firms and fees within his own club, I am aware of the competitive nature of the services and fees charged by maritime lawyers. However, the fact is that, on a general basis, the costs charged by a commercial correspondent will be less than those charged by a commercial law firm.

If one considers the frequency with which correspondents are called upon to assist clubs and their members on a daily basis worldwide, the impact on P&I costs of the instruction of lawyers can be quickly appreciated. Of course, it may be argued that firms will structure their costs differently in respect of correspondent services, but I question whether this is realistic, taking into account the personnel, structure and cost basis in which they operate.

In certain parts of the world - particularly the United States and Australia - law firms have historically provided P&I correspondent services in the past. Even in these areas, however, there is a steady increase in the numbers of dedicated commercial correspondents, accompanied by a slow withdrawal of lawyers from such services. The place and role of the law firm is gradually being separated from that of the commercial correspondent, and I think that is the way it should be.