SIMIC

THE shipping industry has experienced the lowest number of large ships lost in a single year, according to marine underwriters Allianz Global Corporate & Specialty SE's Safety & Shipping Review 2023, reports Rotterdam's Offshore Energy.

In 2022, there were a total of 38 vessel losses worldwide, marking a significant reduction of over a third compared to the previous year.



The South China Sea region had the highest total losses, while the British Isles encountered the most shipping incidents.



One notable concern is the occurrence of fire incidents, which saw the loss of eight vessels and over 200 reported incidents. This represents the highest number of fire-related incidents in a decade.



The transportation of electric vehicles and battery-powered goods introduces additional fire risks, mainly due to the flammability of lithium-ion batteries.



The consequences of fire incidents are further exacerbated by larger vessels and mis-declared hazardous cargo.



Another safety issue arises from the emergence of the shadow tanker fleet, a result of oil-related sanctions.



This fleet, estimated to include 600 older ships operating under lower maintenance standards, poses risks to safety and the environment.



"Shipping losses have sunk to the lowest number we have seen in the 12-year history of our annual study reflecting the positive impact safety programmes, trainings, changes in ship design and regulation have had over time," said AGCS global head Rahul Khanna.



"While these results are gratifying, several clouds appear on the horizon. More than a year after Russia's invasion of Ukraine, the growth of the shadow oil tanker fleet is the latest consequence to challenge shipowners, their crew, and insurers," said Captain Khanna.



"Fire safety and the problem of misdeclaration of hazardous cargo must be fixed if the industry is to benefit from the efficiency of ever-larger vessels.



"Inflation is pushing up the cost of hull, machinery, and cargo claims. Meanwhile, although the industry's decarbonization efforts are progressing, this remains by far the sector's biggest challenge. Economic pressures could put vital investments risk in companies' strategies, as well as in other safety initiatives, in jeopardy," he said.