According to marine insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2022, 54 large ships lost worldwide last year. The annual AGCS study analyzes reported shipping losses and casualties (incidents) over 100 gross tons. During 2021, 54 total losses of vessels were reported globally, compared with 65 a year earlier. This represents a 57% decline over 10 years (127 in 2012), while during the early 1990s the global fleet was losing 200+ vessels a year.
South China, Indochina, Indonesia, and the Philippines top loss location. British Isles sees most shipping incidents. "Total losses are at record lows. However, the tragic situation in Ukraine has caused widespread disruption in the Black Sea and elsewhere, exacerbating ongoing supply chain, port congestion, and crew crisis issues caused by the Covid-19 pandemic"— says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS.
While total losses declined over the past year, the number of reported shipping casualties or incidents rose. The British Isles saw the highest number (668 out of 3,000). Machinery damage accounted for over one-in-three incidents globally (1,311), followed by collision (222) and fires (178), with the number of fires increasing by almost 10%.
Fires, container ship and car carrier incidents leading to oversized losses and ‘general average’ process becoming more frequent, the report states. Moreover, decarbonization of shipping industry creating new risks, experts say.
"A growing number of vessels are already switching to liquefied natural gas (LNG), while other alternative fuels are under development, including ammonia, hydrogen and methanol, as well as electric-powered ships. The transition to alternative fuels will likely bring heightened risk of machinery breakdown claims, among other risks, as new technology beds down and as crews adapt to new procedures", — the report concludes.