The global shipping industry has seen a record low in the number of large ships lost in 2022, according to the Allianz Global Corporate & Specialty SE (AGCS) Safety & Shipping Review 2023. However, new safety challenges have emerged, such as an increase in fires, the growth of a shadow tanker fleet, and economic uncertainty. Although the industry has made significant improvements in safety over the past decade, challenges such as fire risks, geopolitical conflicts, decarbonization efforts, and economic uncertainties pose obstacles.
Fires remain a major problem, with machine damage or failure accounting for almost half of all incidents reported worldwide. The report highlights concerns about the growth of a shadow tanker fleet driven by oil-related sanctions, where the fleet under flags of convenience and with lower maintenance standards threatens to result in serious incidents that can result in loss of life, uninsured damage, and environmental pollution. Decarbonization is the biggest challenge facing the shipping industry, which accounts for about 3% of global greenhouse gas emissions annually. The transition to alternative fuels and technologies requires significant investment and collaboration between companies and insurers.
Tags: allianz,Shipping losses