Bermuda-based COFR (Certificate of Financial Responsibility) guarantor Shoreline Mutual said this week it was still getting new shipowners to sign as members of the mutual, even with new local competition.

The latest deadline for new COFRs was December 28. The Bermuda companies provide required COFR guaranties to the US Coast Guard on behalf of shipowners using US waters. They have virtually cornered the market as commercial providers of such guaranties.

The requirements were made under the US Oil Pollution Act, designed to ensure that shipowners whose vessels may accidentally spill oil in US waters have the appropriate resources to pay clean-up costs.

The Shipowners Insurance and Guaranty Company Ltd. (SIGCo), the new commercial provider of COFR guaranties, has taken over from previous Shoreline competitor, First Line, which has stopped writing business and is being phased out over the next year.

Shoreline said this week that its membership had grown steadily since December 1994, and by the end of 1996 had 1,100 members, and had issued 1,928 guaranties, representing 56 million gross tonnes of shipping.

The company said by circular: "Shoreline Management would like to reiterate the reasons why ship owners are choosing to remain members of Shoreline in 1997 and why new members continue to join, notwithstanding the emergence of new COFR facilities.'' The circular said: Shoreline has been in existence since December 28, 1994 and is thus the only long term commercial provider of COFR guaranties.

There is absolutely no additional exposure by way of supplementary call.

Shoreline members share the benefit of a mutual without being presented with a supplementary call.

The board of directors has always been made up of shipowners from all over the world to promote the interests of the shipping community.

Shoreline will pay full legal costs without limitation, unlike other commercial COFR guaranty providers.

In the day to day running of Shoreline any profit is retained for the benefit of its ship owning members.

Shoreline is not affiliated to any broker or P&I Club.

Shoreline has no advice of claims to date. Since its inception, "No Claims Bonus'' funds have accumulated in the mutual to the continued benefit of members.