A TREND towards fewer shipping losses continued during 2024, the latest Safety and Shipping Review has revealed.
Prepared by insurers Allianz Commercial, the review noted that losses of 27 vessels during 2024 was a stark contrast with the 1990s when the figure was closer to 200.
The latest figure is in comparison with 35 in 2023 (of vessels with more than 100 gross tonnage), down by around 20%, with a 75% decline in total losses during the past decade (105 in 2015).
Allianz Commercial head of marine, Rich Soja, said challenges remained.
“The welcome trend for fewer large losses continues,” Mr Soja said.
“However, although shipowners are trying to operate vessels safely within an ever-changing and dynamic regulatory framework this is becoming more difficult due to the impacts of regional wars, supply chain disruption, hijackings, ship detentions, sanctions and changes to trade tariffs.”
This was together with having to plan for a decarbonised future.
“There is little doubt that the relevance of political risk and conflict as a potential cause of maritime loss is increasing with heightened geopolitical tensions,” Mr Soja said.
The review noted the shipping industry had made “significant improvements” in recent years regarding safety.
It reported that the South China Sea, Indochina, Indonesia and the Philippines was the “main loss hotspot” globally, reflecting the high levels of shipping traffic in the region.
Also noted for significant losses were the British Isles, the east Mediterranean and the Black Sea.
The review reported there had been 681 total losses reported across the shipping world during the past decade.
The following losses were reported during 2024:
Foundered (sunk) was the main cause of total loss, accounting for almost half.
Fire/explosion ranked second (7), remaining stable with fishing vessels the main casualties. More than 100 total vessel losses of vessels were attributed to fires during the past decade.
There were 250 fire incidents during 2024, up by a fifth year-on-year, the highest total for a decade. The average age of a vessel involved in a total loss during the past 10 years is 29. Extreme weather was reported as being a factor in at least seven losses during 2024.
The review noted shipowners were trying to operate vessels safely within an ever-changing and dynamic regulatory framework and do the right thing, but this is becoming more difficult.
“The relevance of political risk and conflict as a potential cause of maritime loss is increasing with heightened geopolitical tensions,” the review stated.
“Partial and attritional losses remain a major concern and although the industry has made progress on the risks associated with large vessels, this does not mean they are all under control.”