shipping losses

In its third annual report on the shipping losses, Allianz Global Corporate & Specialty (GATS) underline that 2014 is the safest year of the past decade.

75 large vessels were lost in the world in 2014, a reduction of one third year to year. 49 sinking, 13 ran aground and 4 were victims of a fire or explosion.

The level of shipping losses is well below the 10 year average (127 ships lost per year). They decreased by 50% since 2005. According to Allianz, over a third of the total losses in 2014 occurred in two maritime regions: southern China, Indochina, Indonesia and the Philippines (17 vessels) and Japan, Korea and North China (12 vessels) .

Traditional cargo ships and fishing vessels accounted for 50% of all shipping losses.

According to the report, 2,773 Navigation serious incidents were reported worldwide in 2014. With an increase of 5% compared to last year, the region of the Eastern Mediterranean and the Black Sea is the most dangerous area (490 incidents). Then come the British Islands, the North Sea, the English Channel and the Bay of Biscay, with 465 incidents (an increase of 29%).

Most of the shipping losses occurred in December in the northern hemisphere and in August in the Southern Hemisphere. The ratio of the total loss is about 1 (southern hemisphere) to 7 (northern hemisphere).

“Although the downward trend in losses of ships are encouraging, recent losses of ships such as the Sinking of the MV Sewol and Norman Atlantic have once again raised serious questions regarding Emergency process training of crews on passenger ships, three years after the disaster of the Costa Concordia” worries Allianz.

In 2014, 7 passenger ships were lost, nearly 10% of total losses. “These two incidents have highlighted the worrying gap in the training of crews for emergencies on ro-ro ferry or passenger vessels,” says Gilles Mareuse, Marine Director for the Mediterranean region at AGCS.

Another concern of the insurer: containership security and their growing size. “The larger vessels can cause larger shipping losses. The sector must prepare for shipping losses in excess of $ 1 billion in future in the case of container ships or even specialized floating offshore installations, ” says Gilles Mareuse.

Allianz wonder if risk management should not be reviewed as a result of increased capacity of containerships of over 80% in 10 years.

“The shipping industry must take the time to think before deciding to move to a larger size,” says Jean-Pierre Ryckaert, Marine technical adviser in France AGCS.

The insurer also targets a new threat to ports and ships: the lack of protection against IT risks. “An attack targeting the onboard technology, including electronic navigation systems, could certainly lead to a total loss, or to involve several vessels owned by the same company,” said Gilles Mareuse.