We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Allianz: Number of large ships lost in 2018 was lowest in a century
Forward Thinking

Allianz: Number of large ships lost in 2018 was lowest in a century

June 5, 2019
Supply Chain Quarterly Staff
No Comments

The number of large ships lost in the past year is at its lowest level this century, following a year-on-year decline of over 50 percent, but the number of small- damage incidents remains high, according to an industry study released today.

Analysis of reported shipping losses over 100 gross tons showed that 2018 included 46 total losses of vessels around the shipping world, down from 98 losses 12 months earlier, according to "Safety & Shipping Review 2019," an annual report produced by German insurance company Allianz Global Corporate & Specialty SE (AGCS).

The drop was driven by a significant decline in activity in the global loss hotspot, South East Asia, and by a halving of weather-related losses (10) after quieter hurricane and typhoon seasons, AGCS said.

**NEW** @Allianz #shippingsafety19 report out now. Shipping losses at new low but incidents remain high. Find out more https://t.co/BH6QsGhwAQ #insurance #shipping pic.twitter.com/O4ueshXIsT

— AGCS (@AGCS_Insurance) June 4, 2019

While this plummet in total losses is encouraging, the number of reported shipping incidents overall (2,698 in 2018) declined by less than 1 percent year-on-year, the insurer said. Machinery damage was the major cause, accounting for more than a third of the 26,000+ incidents over the past decade - twice as many as the next highest cause, collision.

"Today's record low total loss activity is certainly influenced by fortunate circumstances in 2018, but it also underlines the culmination of the long-term improvement of safety in the global shipping industry," AGCS' Baptiste Ossena, global product leader for Hull & Marine Liabilities, said in a release.

"Improved ship design, technology, tighter regulation, and more robust safety management systems on vessels have also helped to prevent breakdowns and accidents from turning into major losses. However, the lack of an overall fall in shipping incidents, heightened political risks to vessel security, complying with 2020 emissions rules and the growing number of fires on board bring challenges," Ossena said.

The hotspots for the globe's worst accident locations remained the same as previous years, including the South China, Indochina, Indonesia, and Philippines maritime region (12 incidents) followed by the East Mediterranean and Black Sea (6) and the British Isles (4) regions. That pattern is not likely to change soon, AGCS found. Despite signs of improvement, Asia will remain a hotspot for marine claims due to its high level of trade, busy shipping routes, and older fleets, the report said.

Cargo ships (15) accounted for a third of vessels lost around the world in the past year, with sinking as the most common cause of ship losses, accounting for more than half (551) of the 1,036 lost over the past decade. Just 30 of those losses occurred in 2018.

Another cause of loss was fires, which have generated large losses on board with the number of reported incidents (174) trending upwards. This has continued through 2019 with a number of recent problems on container ships and three significant events on car carriers. The top cause is believed to be mis-declared cargo, including incorrect labeling or packaging of dangerous goods, AGCS said.

In other findings, the AGCS report listed an array of growing risks:

  • emissions compliance could bring challenges as regulations limiting sulphur oxide emissions beginning in 2020 are likely to have wide-ranging implications for cost, compliance, and crew,
  • political risk has heightened around the globe through conflicts, territorial disputes, cyber-attacks, sanctions, piracy, and even sabotage, as evidenced by recent attacks on oil tankers in the Middle East,
  • the growing number of incidents on larger vessels is concerning, since container-carrying capacity has almost doubled over a decade and a worst case loss scenario could now cost as much as $4 billion,
  • over-reliance on technology could be an issue, since accidents continue to happen due to avoidable mistakes such as crew who are distracted by being on their phones,
  • autonomous shipping continues to show progress, but that technology cannot be not a panacea if the root cause of incidents and losses is not addressed.
Global Strategy
  • Related Articles

    Large companies cut back on the number of suppliers

    Maersk to take delivery of carbon-neutral container ships in 2024

    Transporeon Receives a Notable Mention in Gartner 2018 Magic Quadrant for TMS

Recent Articles by Supply Chain Quarterly Staff

BrightDrop delivers 150 electric parcel vans to FedEx network

Survey: 90% of procurement leaders will tweak operating models to cope with economic outlook

J.B. Hunt trials self-driving trucks in Texas pilot

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • How to resolve your inventory dilemma

  • Container prices continue to drop

  • Regionalized supply chains: the key to resilience

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Case Study: Peak Teams helps boost headcount quickly on a short-term project

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing