The global shipping industry continued its long-term positive safety trend over the past year, with record-low overall vessel losses - but the number of shipping casualty incidents rose, according to data released by a leading international marine insurer on Tuesday.
Allianz Global Corporate & Specialty’s (AGCS) Safety & Shipping Review 2022, which highlighted the annual trends and developments in shipping losses and safety for the year, revealed that ship losses had dropped to between 50 and 75 per annum. The international shipping industry remains responsible for the transportation of around 90% of world trade, according to the latest report.
“The shipping sector has demonstrated tremendous resilience through stormy seas in recent years, as evidenced by the boom we see in several parts of the industry today,” Captain Rahul Khanna, global head of marine risk consulting at AGCS said. “Total losses are at record lows – around 50 to 75 a year over the last four years compared with 200 plus annually in the 1990s. However, the tragic situation in Ukraine has caused widespread disruption in the Black Sea and elsewhere, exacerbating ongoing supply-chain and port congestion, and crew crisis issues caused by the Covid-19 pandemic,” Khanna said.
Globally, cargo ships (27) account for half of vessels lost in the past year and 40% over the past decade. Foundered (sunk/submerged) was the main cause of total losses over the past year, accounting for 60% (32).
“At the same time some of the industry’s responses to the shipping boom, such as changing the use or extending the working life of vessels, also raises warning flags. Meanwhile, the increasing number of problems posed by large vessels, such as fires, groundings, and complex salvage operations, continues to challenge shipowners and their crews,” he said.
The annual AGCS study analyses reported shipping losses and casualties (incidents) over 100 gross tons. During 2021, 54 total losses of vessels were reported globally, compared with 65 a year earlier. This represents a 57% decline over 10 years (127 in 2012), while during the early 1990s the global fleet was losing more than 200 vessels a year. There are an estimated 130 000 ships in the global fleet, compared with some 80 000 30 years ago.
Allianz said the progress in reduced losses reflected the increased focus on safety measures through training and safety programmes, improved ship design, technology and regulation.
According to the report, there have been almost 900 total losses over the past decade (892). South China, Indochina, Indonesia, and the Philippines maritime region is the main global loss hotspot, accounting for one-in-five losses in 2021 (12) and one-in-four-losses over the past decade (225), driven by factors including high levels of trade, congested ports, older fleets, and extreme weather. The Arabian Gulf (46) and West African Coast (38) are fifth and sixth respectively over the same period.
“While total losses declined over the past year, the number of reported shipping casualties or incidents rose. The British Isles saw the highest number (668 out of 3 000),” the report found.
Machinery damage accounted for more than one-in-three incidents globally (1 311), followed by collision (222) and fires (178), with the number of fires increasing by almost 10%. Globally, most incidents over the past decade have been caused by machinery damage or failure (9 968), followed by collision (3 134), contact (2 029), piracy (1 995) and fire/explosion (1 747).
