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Allianz insurers report 16pc fewer total losses in 2016 than 2015
MARINE underwriters Allianz Global Corporate & Specialty report 16 per cent fewer total losses to 85 vessels worldwide in 2016, reports American Shipper.
The company said the industry set safety records last year, with the lowest number of losses in the past 10 years.
The number of shipping incident casualties also declined four per cent year on year to 2,611 reported, said the Allianz study, which analyses reported shipping losses over 100 gross tons.
Sinking was the most common cause of global shipping losses, accounting for more than half of all losses, with bad weather often a factor.
Cargo vessels accounted for more than a third of all vessels lost - 30 - while ferry losses increased slightly to eight, driven by activity in the Mediterranean and Southeast Asia.
Large shipping losses have declined 50 per cent over the past decade, according to Allianz, with the decline being largely attributed to the development of a more robust safety environment by shipowners.
"Standards remain an issue in some parts of Asia with bad weather, poor maintenance, weak enforcement of regulations and overcrowding contributing to loss activity," the report said.
Over a third of shipping casualties during 2016 were caused by machinery damage. This was also responsible for driving a 16 per cent uptick in incidents in the East Mediterranean & Black Sea region (563), enough to see it replace the British Isles as the top incident location over the past decade.
Piracy incidents around the globe and shipping incidents in Arctic Circle waters declined on a year-on-year basis. Yet risks remain, such as the rise in crew kidnappings in parts of Asia and West Africa and the impact of an expected increase in Polar transits, the report said.
More than a quarter of shipping losses last year - 23 - occurred in the South China, Indochina, Indonesia and Philippines region, which has been the top hotspot for the last decade, the report states.
Crew negligence and inadequate vessel maintenance are two potential areas of increasing risk, according to Allianz marine claims chief Duncan Southcott, "particularly if shipowners opt to recruit crew with less experience and training, or choose to stretch maintenance work to the longest possible intervals in order to save money."
The company said the industry set safety records last year, with the lowest number of losses in the past 10 years.
The number of shipping incident casualties also declined four per cent year on year to 2,611 reported, said the Allianz study, which analyses reported shipping losses over 100 gross tons.
Sinking was the most common cause of global shipping losses, accounting for more than half of all losses, with bad weather often a factor.
Cargo vessels accounted for more than a third of all vessels lost - 30 - while ferry losses increased slightly to eight, driven by activity in the Mediterranean and Southeast Asia.
Large shipping losses have declined 50 per cent over the past decade, according to Allianz, with the decline being largely attributed to the development of a more robust safety environment by shipowners.
"Standards remain an issue in some parts of Asia with bad weather, poor maintenance, weak enforcement of regulations and overcrowding contributing to loss activity," the report said.
Over a third of shipping casualties during 2016 were caused by machinery damage. This was also responsible for driving a 16 per cent uptick in incidents in the East Mediterranean & Black Sea region (563), enough to see it replace the British Isles as the top incident location over the past decade.
Piracy incidents around the globe and shipping incidents in Arctic Circle waters declined on a year-on-year basis. Yet risks remain, such as the rise in crew kidnappings in parts of Asia and West Africa and the impact of an expected increase in Polar transits, the report said.
More than a quarter of shipping losses last year - 23 - occurred in the South China, Indochina, Indonesia and Philippines region, which has been the top hotspot for the last decade, the report states.
Crew negligence and inadequate vessel maintenance are two potential areas of increasing risk, according to Allianz marine claims chief Duncan Southcott, "particularly if shipowners opt to recruit crew with less experience and training, or choose to stretch maintenance work to the longest possible intervals in order to save money."
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