With nearly 90% of global trade transported by sea, maritime security is essential. Thirty years ago, the global shipping fleet was losing around 200 large ships a year. This figure fell to a record low of 26 in 2023, representing a decline of more than a third year on year and 70% over the past decade. However, the fact that maritime transport is increasingly subject to increasing volatility and uncertainties due to war conflicts and geopolitical events, the consequences of climate change, as well as the continued risks arising from the trend towards larger vessels, means that the sector will have to do its best to maintain this status quo in the future, according to the Safety & Shipping Review 2024 report from Allianz Commercial.
“The speed and scope of how the industry’s risk profile is changing is unprecedented. Conflicts like those in Gaza and Ukraine are reshaping global shipping, affecting crew and vessel safety, supply chains and infrastructure, and even the environment. Piracy is on the rise, with a worrying reappearance in the Horn of Africa. “The continued disruption caused by the drought in the Panama Canal shows how climate change is affecting shipping, all at a time when it faces its most significant challenge, decarbonization,” said Captain Rahul Khanna, Global Head. of Allianz Commercial Maritime Risk Consulting.
Southeast Asia emerges as the maritime region with the highest total losses. During 2023, 26 losses were reported globally compared to 41 the previous year. If we focus on the last decade, there were more than 700 total losses (729). The South China Sea region, along with Indochina, Indonesia and the Philippines, is the global point where the most losses have been recorded, both in the last year and in the last decade (184). It accounted for almost a third of the vessels lost last year (8). The Eastern Mediterranean and Black Sea are in second place (6), with activity increasing year on year. Likewise, cargo ships accounted for more than 60% of ships lost globally in 2023. Sinking was the main cause of all losses, accounting for 50%. Extreme weather was reported as a factor in at least 8 ship losses globally by 2023.
The number of maritime incidents reported globally decreased slightly last year (2,951 compared to 3,036), with the British Isles recording the highest number (695). Fires on board ships, a perennial concern, also decreased. However, there have been 55 total losses in the past five years, and more than 200 fire incidents reported during 2023 (205), the second highest figure in a decade after 2022. Fires remain a key safety issue in larger vessels due to the potential threat to life, the extent of the damage and the fact that the associated costs can be severe. Thus, this last factor contributes to the long-term increase in the cost of large marine insurance claims.
2024-05-23 07:29:51
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