Earnings and employees down as 'very tight' market hits maritime law firms

SHIPPING: specialist firms under pressure on fees and salaries to solicitors

Maritime law firms lost 200 employees and saw their overseas earnings drop by 20 million last year, research has revealed.

International Financial Services London - which promotes the export of UK financial and related business services - found the drop in maritime firms' earnings from 170 million to 150 million reflected the general industry trend.

The total contribution by maritime services to the UK economy fell to 909 million from 930 million between 1999 and 2000.

Law firms have seen their workforce numbers fall from 2,300 last year to 2,100 this year, the research also showed.

This mirrored an overall drop in employment in the sector, from 14,200 to 13,810.

However, law firms were still the largest employers after the Baltic Exchange and shipbrokers.Richard Sayer, chairman of the Admiralty Solicitors Group and partner in shipping firm Ince & Co, said he was surprised by the findings.'The impression I have of the maritime law sector over the past 12 months is that it has been a good year in terms of cases and the money earned as a result,' he said.

'London is still the best place in the world for foreign ship owners to do legal business.'Mr Sayer put the drop in legal employment down to the protection and indemnity market knocking fees down, and US law firms driving up salaries levels.

This had resulted in new recruits staying away from shipping law firms in favour of higher-paying magic circle firms, he explained.Duncan McKenzie, the International Financial Services London's director of economics, said the figures were a reflection of the fact that the marine industry had been 'very tight' for some time, but he refused to speculate on whether the trend would continue.He added: 'Despite the drop in activity, maritime services continue to make a substantial contribution to the UK economy, underpinned by the broad range of services largely based in central London.'Paula Rohan