- Safety & Shipping Review 2018: 94 large ships lost worldwide in 2017, down by more than a third over 10 years. Bad weather involved in 1 in 4 losses. Losses up in accident hotspot - South China and South East Asian waters (30 ships). Typhoons, traffic and safety on domestic routes major factors. Shipping incidents in Arctic waters increase.
- Human error still a major driver of incidents. Big data analysis of crew behavior and near-misses could help prevent disasters.
- “Mega ship” fires, emissions rules, climate change and autonomous shipping pose new risk challenges. Insurers expect to see more losses from cyber incidents and technological defects.
Large shipping losses have declined by more than a third (38%) over the past decade, according to Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2018, with this downward trend continuing in 2017. Yet recent events such as the collision of the oil tanker “Sanchi” and the impact of the NotPetya malware on harbor logistics underline that the shipping sector is being tested by a number of traditional and emerging risk challenges.
There were 94 total losses reported around the shipping world in 2017, down 4% year-on-year (98) – the second lowest in 10 years after 2014. Bad weather, such as typhoons in Asia and hurricanes in the US, contributed to the loss of more than 20 vessels, according to the annual review, which analyzes reported shipping losses over 100 gross tons (GT).
“The decline in frequency and severity of total losses over the past year continues the positive trend of the past decade. Insurance claims have been relatively benign, reflecting improved ship design and the positive effects of risk management policy and safety regulation over time,” says Baptiste Ossena, Global Product Leader Hull & Marine Liabilities, AGCS. “However, as the use of new technologies on board vessels grows, we expect to see changes in the maritime loss environment in future. The number of more technical claims will grow – such as cyber incidents or technological defects – in addition to traditional losses, such as collisions or groundings.”
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