Allianz: Shipping Losses Decline but Risks Remain

marinelink.com
Thursday, March 13, 2014
Tim Donney, Global Head of Marine Risk Consulting.

Shipping losses decline, but emerging risks pose serious challenges to marine industry, according to Allianz study.

  • 94 large ships lost worldwide in 2013, down 20% from last year.
  • Total ship losses in continental U.S. hits all time low.
  • Piracy focus shifts away from Somalia to new hotspots.
  • “Mega ships”, Arctic shipping and alternative fuels create new industry risks.


Shipping losses continued their downward trend with 94 losses reported worldwide in 2013, coming in below 100 for only the second time in 12 years, according to Allianz Global Corporate & Specialty SE’s  (AGCS) second annual Safety and Shipping Review 2014, which analyzes reported shipping losses of over 100 gross tons.

 

Losses declined by 20 percent from 2012 when there were 117 reported losses. The 2013 accident year also represents a significant improvement on the previous 10-year loss average with total worldwide shipping losses declining 45 percent since 2003.

 

“More than 90 percent of global trade is carried by sea, according to OECD statistics. The safety of international shipping vessels and routes is critical to the health of the global economy,” said Tim Donney, Global Head of Marine Risk Consulting. “While the long-term downward trend in shipping losses is encouraging, there is more work to be done to improve the overall safety of these vessels as well as their cargo, crew and passengers, especially in Asian waters. As an insurer we are always concerned about recognized issues such as training and safety management.  Human error is not something we can ignore and lack of skilled workforce is still an issue, but we also need to be alert for new risks as the industry continues to develop.”

 

More than two years after the Costa Concordia disaster, improving passenger ship safety continues to be a priority for the marine industry, with 2014 likely to see the 100th loss of a passenger vessel since 2002.

North American waters report safe year

The U.S. eastern seaboard region did not register a total loss during 2013, but has incurred 45 losses since 2002.  The North American west coast region reported only one total loss during 2013, the same as during 2012. There have been 861 shipping casualties/incidents in the North American west coast region since 2002 – the ninth highest overall globally.

Asia saw highest number of marine losses
According to the report, more than a third of 2013’s total losses were concentrated in two maritime regions. As in 2012, the South China, Indo China, Indonesia and the Philippines region saw the highest number of losses (18 ships), closely followed by the seas around Japan, Korea and North China (17 ships).

Around the world, more than a third of the vessels lost were cargo ships with fishery and bulk carriers the only other type of vessels to record double-digit losses. The total loss of two bulk carriers in Asian waters in 2013, Harita Bauxite and Trans Summer, highlighted the importance of proper cargo handling and stowage of bulk cargoes. AGCS experts believe high moisture content leading to destabilization of the cargo to be the primary cause of the accidents.

Oil pollution and prevention a priority in U.S. waters

With the 25th anniversary of the Exxon Valdez oil spill, one of the largest oil catastrophes in U.S. history, approaching, oil pollution prevention is a significant concern in the U.S. In 2013, a regulation was passed requiring owners of vessels -- both foreign and domestic -- over 400 gross tons to submit an oil spill response plan to the U.S. Coast Guard.

Piracy attacks still a concern
In 2013, piracy attacks declined 11 percent to 264 reported incidents worldwide, according to International Maritime Bureau statistics; 106 of these occurred in Indonesia, which has seen a 700 percent increase in attacks since 2009.


An emerging piracy hotspot with more organized crime is the Gulf of Guinea/West Africa with 48 incidents in 2013, accounting for 18 percent of all attacks worldwide. Piracy attacks in Somalia have declined dramatically with only seven incidents in 2013 compared with 160 attacks in 2011.

Emerging Risks
An increasingly difficult operating climate for ship operators has forced a number of innovations, including larger ship sizes to capitalize on economies of scale, the use of alternative fuels and changes in ship designs. At the same time, more economical trading routes are fast appearing in Arctic regions during the summer months, but these present their own set of challenges.

Emerging risks identified in the 2014 report include
:

  • Vessel size: Last year marked the arrival of the largest container vessel on record, over 400 meters long and boasting capacity in excess of 18,000 teu. This trend is set to continue. AGCS estimates capacity grows by around 30 per cent every four to five years, meaning the arrival of 24,000 teu carriers can be anticipated around 2018. These ‘mega ships’ pose unprecedented risks and challenges in terms of operating safety and salvage efforts.
  • Rise of LNG-fueled vessels: Use of liquefied natural gas to power ships is expected to dramatically increase by 2020. There are safety concerns, however, as the industry will see the rise of ports that have never previously handled LNG providing bunkering stations on dock.
  • Arctic trading routes: According to the IMO, there has been a tenfold increase in the number of vessels using the Northern Sea route during recent years, with 46 ships recorded in 2012, compared with 34 in 2011 and only four in 2010. Shipping casualties in Arctic Circle waters have increased to an average of 45 per year during 2009-2013 from only seven during 2002-2007. Damage to machinery caused a third of these incidents, higher than average elsewhere, reflecting the harsher operating environment.


To view the full Safety and Shipping Review 2014 visit http://www.agcs.allianz.com/assets/PDFs/Reports/Shipping-Review-2014.pdf

 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Joe Pyne Joins DHT Holdings’ Board of Directors

Crude oil shipper DHT Holdings, Inc. announced today that it has appointed Joseph H. Pyne to its board of directors, expanding the board from three to four independent directors.

TEN Charters Tanker at 20% Premium

Tsakos Energy Navigation Limited announces two-year charter renewal at a 20 percent premium to prior contract reflecting strong tanker market fundamental, oil price

Huntington Ingalls Cites Interest in Building US Icebreakers

Huntington Ingalls Industries Inc, which builds aircraft carriers and U.S. Navy warships, on Tuesday said it was keen to bid to build new icebreakers for the U.

Bulk Carrier Trends

Bulk Carrier Ship Delivered to Pioneer Marine

Pioneer Marine, a shipowner and drybulk handysize transportation service provider, announced  it has accepted delivery of a 38,464 DWT Green Dolphin eco-design handysize vessel, the M.

G E Shipping Takes Delivery of Bulker

The Great Eastern Shipping Company Ltd. (G E Shipping) took delivery of a new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt). The vessel was ordered

Goldenport Bleeds in Red

Goldenport Holdings Inc reported a net loss of USD14.7 million in the first six months of 2015, significantly wider than the USD1.4 million net loss a year earlier

Maritime Security

Nigeria Ramps up Push to Eradicate Oil Theft

Nigerian authorities hope to put an end to rampant oil theft in eight months by increasing drone and naval monitoring of territorial waters and working with local communities,

IMO’s Sekimizu Condemns People Smugglers

Prompted by recent incidents in which hundreds of migrants attempting to cross the Mediterranean to Europe have lost their lives, including dozens found dead in

Migrant Crisis Promts Call to IMRF for Help

Mediterranean Rescue Services are in urgent need of support because they are struggling to keep up with the replacement of equipment being used to rescue the increasing

News

Latest ShipConstructor Update Targets Offshore

With the release of ShipConstructor 2016 R1.1, SSI said it provides additional enhancement for the offshore rig construction market, particularly with regards to weld management.

Runaway Crane Barge Sinks on the Mississippi

The U.S. Coast Guard is working with a team of responders to recover a runaway crane barge that sunk near Convent on the Mississippi River.   The crane barge

Joe Pyne Joins DHT Holdings’ Board of Directors

Crude oil shipper DHT Holdings, Inc. announced today that it has appointed Joseph H. Pyne to its board of directors, expanding the board from three to four independent directors.

Maritime Safety

Nigeria Ramps up Push to Eradicate Oil Theft

Nigerian authorities hope to put an end to rampant oil theft in eight months by increasing drone and naval monitoring of territorial waters and working with local communities,

IMO’s Sekimizu Condemns People Smugglers

Prompted by recent incidents in which hundreds of migrants attempting to cross the Mediterranean to Europe have lost their lives, including dozens found dead in

Total Lubmarine Resumes Full Service in Tianjin

Marine lubricants and greases provider Total Lubmarine informs it has resumed all services based out of the Port of Tianjin following the deadly explosions that rocked the port August 12.

History

Liam Means Business for Shipping Cluster

Enterprising student Liam Finch has been putting his summer days to good use by working on an important survey for the Isle of Man Shipping Association (IOMSA).

Historic WW I Shipwreck Survey Underway

Partnering U.S. agencies have commenced surveying the historic shipwreck of an American lightship shelled and sunk by a German U-boat during World War I nearly 100 years ago.

Titanic's Last Luncheon Menu Heading to Auction

More than a century after first-class passengers aboard the ill-fated Titanic ate grilled mutton chops and custard pudding in an elaborate dining room, the ship's

Insurance

MN 100: Continental Underwriters, Ltd.

The Company: Continental Underwriters, Ltd. is a national, multiline firm for all types of marine coverage. The firm offers both admitted and non-admitted products in all 50 states,

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

MN 100: Gencorp Insurance Group

The Company: Gencorp Insurance Group provides the Insurance and Surety needs of Marine Contractors, Vessel Operators and Shipyards throughout the country and Caribbean.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.9411 sec (1 req/sec)