& Shipping Review 2018: Globally 94 large ships lost in 2017, down 38% over
10 years. Bad weather involved in 1 in 4 losses. Asia top global loss region accounting
for 38% of shipping losses in 2017.
- Japan, Korea and North China ranks joint fourth top
loss location globally, and third highest over a decade. In South China and South East Asian waters,
losses increased 25% (30 ships) annually with foundering/sinking accounting for 80% of claims. Weather,
traffic, political risk and safety on Asian routes are major loss factors.
human error is still key driver of incidents. Big data analysis of crew
behavior and near-misses could help prevention.
TOKYO/SEOUL - Media OutReach - July 23,
2018 - Large shipping losses have declined by 38% globally over the past
decade, according to Allianz
Global Corporate & Specialty's (AGCS) Safety & Shipping Review 2018,
with this downward trend continuing in 2017. However, disparities remain as
losses in Asia rose year-on-year with incidents in South China, Indochina,
Indonesia and Philippine maritime regions rising 25% making it the top area
worldwide for major shipping incidents in the past decade, leading it to be
dubbed the "new Bermuda Triangle".
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 and
storms in Asia and 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).
"Globally, 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 and safety regulation over time," says Baptiste Ossena, Global
Product Leader Hull & Marine Liabilities, AGCS.
Dangerous Seas and territorial disputes
around major Asian shipping routes are leading to disruption and a potential heightened
risk of collision. Already a key route for east-west trade from China, South
Korea and Japan and accounting for one-third of global shipping trade, the
South China Sea is also the cause of territorial disputes between several
These disputes have
resulted in increasing military presence in the South China Sea, with the US
and China conducting naval exercises. Last year saw two major collisions
between US naval ships and commercial vessels. The US-guided missile destroyer
USS Fitzgerald collided with a container ship off Japan while the USS John S.
McCain struck an oil tanker off Singapore.
claims and disputes may have larger implications long term and threaten the freedom
of the seas in South East Asia, with implications for trade with Asia. A
growing concentration of trade and political tensions increases volatility in
the region creating safety issues," said Andrew Kinsley, Senior Marine Risk
Across Asia and
Africa the threat of piracy remains high with regional waters accounting for 74%
of all incidents worldwide despite record-lows globally. In 2017, incidents in Southeast
Asia increased 11% (68) while Indonesia continues to be leading hotspot with 43.
Attacks in the Philippines more than doubled from 10 in 2016 to 22 in 2017.
Emerging risks lead to losses
There are multiple
new risk exposures for the shipping sector: Ever-larger container ships --
longer than the length of four football fields -- pose fire containment and
salvage issues, while climate change is impacting ice hazards, freeing up new
trade routes in some areas but increasing the risk of collisions with ice in
others. China is planning an "Arctic Silk Road" from new shipping lanes opened
up by global warming and will conduct commercial voyages in Arctic waters to
build its first polar expedition cruise ship by 2019.
scrutiny is also growing as the industry seeks to cut emissions, bringing new
technical risks and the threat of machinery damage incidents. Other challenges
are balancing the benefits and risks of increasing automation on board. The
recent NotPetya malware on harbor logistics causing cargo delays and congestion
at nearly 80 ports underlines the emerging risks that the sector faces, in
addition to traditional ones.
Human error a big issue. Data can help
Despite decades of
safety improvements, the shipping industry has no room for complacency. Fatal
accidents such as the "Sanchi" tanker sinking off Shanghai waters in January and
the two collisions involving US navy ships in Asia persist with human behavior often
a factor. Estimates indicate that 75% to 96% of accidents involve human error.
It is also behind 75% of 15,000 marine liability insurance claims analyzed by
AGCS -- costing $1.6bn.
continues to be a major driver of incidents," says Captain Rahul Khanna, Global
Head of Marine Risk Consulting, AGCS. "Inadequate shore-side support and
commercial pressures have an important role to play in maritime safety and risk
exposure. Tight schedules can have a detrimental impact on safety culture and
By analyzing data
24/7 we can gain insights from crew behavior and near-misses that can identify trends.
The shipping industry has learned from losses in the past but predictive
analysis could be the difference between a safe voyage and a disaster."
PDF of AGCS Safety & Shipping Review 2018
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