Marine losses have reached a 12-year low in 2022 according to insurer Allianz Global Corporate & Specialty.
In its annual Shipping and Safety report the Allianz said there were only 38 ship losses in 2022, including 10 cargo ships, compared to 59 a year earlier, a decrease of 36%.
Last year’s tally was also the lowest since Allianz began to monitor marine losses.
South China, Indochina, Indonesia and the Philippines accounted for one in four of the losses.
Although losses declined over the past year, the number of shipping casualties or incidents reported remained consistent in 2022 totaling 3,032, compared to 3,000 a year earlier.
Allianz is concerned about the number of fires with 200 reported last year, making it the third largest cause of maritime casualties.
The increased trade in lithium-ion battery transportation generated by decarbonisation poses a significant fire risk for the shipping industry, it said.
The number one cause of marine claims by value is fire and explosion.
“Hazardous and combustible goods are increasingly transported by containers, while the prevalence of lithium-ion batteries poses a growing risk for container shipping and car carriers — this market is expected to grow by over 30% annually over the next decade,” Allianz said.
The increasing number of ultra-large containerships are also leading to greater accumulation of risk and higher salvage costs, the insurer pointed out.
The emergence of what is described as the shadow fleet, operating in sanctioned oil trades, is another concern for Allianz. It estimates that the fleet could now account for one fifth of the oil transportation fleet.
It said there were eight groundings, collisions or near misses with ships carrying sanctioned products last year.
“A major incident could cause loss of life, as well as uninsured damage or pollution,” Allianz said.
Claims costs are also set to increase because of global inflation, which has reached 8.5%.
Justus Heinrich, global product leader marine hull at AGCS, said: “Inflation-led increases in repair and yard costs are beyond the control of shipowners and can significantly increase the cost of claims for insurers. Even companies with the best risk management on earth will see the impact of inflation on claims.”
