Despite ongoing geopolitical tension, economic strife and extreme weather events, shipping losses have hit an all-time low according to Allianz Commercial
With up to 90% of international trade transported across the world's oceans, maritime safety is critical to supply chain resilience.
But despite ongoing geopolitical tension, economic strife and extreme weather events, shipping losses have, astonishingly, hit an all-time low according to Allianz Commercial’s Safety and Shipping Review for 2024.
The global shipping fleet lost just 26 large vessels last year, compared to around 200 vessels 30 years ago. This represents a decline of more than a third year-on-year and a 70% fall over the past decade.
However, the aforementioned risks mean the industry has its work cut out to maintain this impressive record.
“The speed and extent of the way the industry’s risk profile is changing is unprecedented in modern times. Conflicts, such as in Gaza and Ukraine, are reshaping global shipping, impacting crew and vessel safety, supply chains and infrastructure and even the environment. Piracy is on the rise, with a worrying re-emergence off the Horn of Africa."
"The ongoing disruption caused by drought in the Panama Canal shows how the changing climate is affecting shipping, all at a time when it is having to undertake its most significant challenge: decarbonisation.” - Captain Rahul Khanna, Global Head of Marine Risk Consulting, Allianz Commercial.
The South China, Indochina, Indonesia and the Philippines maritime region stood out as a global loss hotspot, accounting for almost a third of the vessels lost in 2023 and 184 in the past 10 years. The East Mediterranean and Black Sea ranks second with activity up year-on-year.
Cargo ships accounted for more than 60% of vessels lost around the world in 2023, while foundered (sunk) was the main cause of losses, accounting for 50%. Extreme weather was reported as a factor in at least eight vessel losses, although the actual total is likely to be higher.
General shipping incidents reported globally declined slightly last year to 2,951, with the British Isles experiencing the highest number (695) of any region.
Source: Supplychaindigital
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