Allianz publishes their annual Safety and Shipping Review 2023
Shipping losses hit a record low in 2022, but a jump in fires, shadow tanker fleet and economic uncertainty pose new safety challenges.
Shipping transports around 90% of world trade onboard different vessels so maritime safety is critical. Improvements have been significant over the past decade, culminating in the sector reporting a record low number of large ships lost over the past year. However, a combination of factors impacting fire risk, ongoing and new threats posed by the ripple effects of the Ukraine conflict, decarbonization challenges, economic uncertainty, as well as the rising cost of marine claims, means the sector still has plenty of obstacles to navigate over the next 12 months and beyond, according to insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2023.
Review highlights:
- 38 large ships were lost worldwide last year – down by more than a third and the lowest total in the report’s history. South China Sea region sees the most total losses. The British Isles sees most shipping incidents.
- Fire is the second top cause of loss over the past year with 8 vessels lost and more than 200 incidents reported – the highest for a decade. The transport of electric vehicles and battery-powered goods brings new fire risks. Larger vessels and misdeclaration of cargo amplify consequences.
- Oil-related sanctions: growth of shadow tanker fleet posing safety and environmental concerns.
- More expensive claims due to inflation. Cost pressures could impact shipping sector’s decarbonization and safety initiatives.