SIMIC

In South China, Indochina, Indonesia and Philippines waters remains the top loss locations with 12 vessels in 2019 and 228 vessels over the past decade - one in four of all losses, according to the Allianz survey.

The Japan, Korea and North China region saw two vessels lost in 2019 and is the third largest loss location overall with 104 since 2010.

High levels of trade, busy shipping lanes, older fleets, typhoon exposure, and safety issues on some domestic ferry routes were contributing factors. Nonetheless, however, losses declined for the second successive year in 2019, mirroring a global trend.

in 2019, 41 total losses of vessels were reported around the world, down from 53 a year before. This represents an approximate 70 per cent fall over 10 years and is a result of sustained efforts in the areas of regulation, training and technological advancement, among others. More than 950 shipping losses have been reported since the start of 2010.

But the Covid-19 crisis could endanger the long-term safety improvements in the shipping industry for 2020 and beyond, as difficult operating conditions and a sharp economic downturn present a unique set of challenges, said the report.

"Coronavirus has struck at a difficult time for the maritime industry as it seeks to reduce its emissions, navigates issues such as climate change, political risks and piracy, and deals with ongoing problems such as fires on vessels," said Allianz hull insurance chief Baptiste Osuna.

The annual AGCS study analyses reported shipping losses over 100 gross tons (GT) and also identifies 10 challenges of the coronavirus crisis for the shipping industry which could impact safety and risk management.