• 2018 July 18 14:57

    AGCS issued Safety & Shipping Review 2018

    Large shipping losses have declined by more than a third (38%) over the past decade, according to Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2018, with this downward trend continuing in 2017. Yet recent events such as the collision of the oil tanker “Sanchi” and the impact of the NotPetya malware on harbor logistics underline that the shipping sector is being tested by a number of traditional and emerging risk challenges.

    There were 94 total losses reported around the shipping world in 2017, down 4% year-on-year (98) – the second lowest in 10 years after 2014. Bad weather, such as typhoons in Asia and hurricanes in the US, contributed to the loss of more than 20 vessels, according to the annual review, which analyzes reported shipping losses over 100 gross tons (GT).

    “The decline in frequency and severity of total losses over the past year continues the positive trend of the past decade. Insurance claims have been relatively benign, reflecting improved ship design and the positive effects of risk management policy and safety regulation over time,” says Baptiste Ossena, Global Product Leader Hull & Marine Liabilities, AGCS. “However, as the use of new technologies on board vessels grows, we expect to see changes in the maritime loss environment in future. The number of more technical claims will grow – such as cyber incidents or technological defects – in addition to traditional losses, such as collisions or groundings.”

    There are multiple new risk exposures for the shipping sector: Ever-larger container ships – longer than the Empire State Building is high – pose fire containment and salvage issues. The changing climate brings new route risks, with fast-changing conditions in Arctic and North Atlantic waters posing new hazards. Environmental scrutiny is growing as the industry seeks to cut emissions, bringing new technical risks and the threat of machinery damage incidents at the same time. Shippers continue to grapple with balancing the benefits and risks of increasing automation on board. The NotPetya cyber-attack caused cargo delays and congestion at nearly 80 ports, underlining the threat of cyber risks for the sector.

    Almost a third of shipping losses in 2017 (30) occurred in the South China, Indochina, Indonesia and Philippines maritime region, up 25% annually, driven by activity in Vietnamese waters. This area has been the major global loss hotspot for the past decade, leading some media commentators to label it the “new Bermuda Triangle”. The major loss factors are actually weather – in November 2017, Typhoon Damrey caused six losses –, busy seas and lower safety standards on some domestic routes. Outside of Asia, the East Mediterranean and Black Sea region is the second major loss hotspot (17) followed by the British Isles (8). There was also a 29% annual increase in reported shipping incidents in Arctic Circle waters (71), according to AGCS analysis.

    Cargo vessels (53) accounted for over half of all vessels lost globally in 2017. Fishing and passenger vessel losses are down year-on-year. Bulk carriers accounted for five of the 10 largest reported total losses by GT. The most common cause of global losses remains foundering (sinking), with 61 sinkings in 2017. Wrecked/stranded ranks second (13), followed by machinery damage/failure (8).

    Analysis shows Friday is the most dangerous day at sea – 175 losses of 1,129 total losses reported have occurred on this day over the past decade. Friday 13th really can be unlucky – three ships were lost on this day in 2012 including Costa Concordia, the largest-ever marine insurance loss.  The unluckiest ship of the past year is a passenger ferry operating in the East Mediterranean and Black Sea region – it was involved in seven accidents in 12 months.

    Despite decades of safety improvements, the shipping industry has no room for complacency. Fatal accidents such as the “Sanchi” oil tanker collision in January 2018 and the loss of the “El Faro” in Hurricane Joaquin in late 2015 persist and human behavior is often a factor. It is estimated that 75% to 96% of shipping accidents involve human error. It is also behind 75% of 15,000 marine liability insurance industry claims analyzed by AGCS – costing $1.6bn.

    “Human error continues to be a major driver of incidents,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting, AGCS. “Inadequate shore-side support and commercial pressures have an important role to play in maritime safety and risk exposure. Tight schedules can have a detrimental impact on safety culture and decision-making.”

    Better use of data and analytics could help. The shipping industry produces a lot of data but could utilize it better, producing real-time findings and alerts, Khanna believes. “By analyzing data 24/7 we can gain new insights from crew behavior and near-misses that can identify  trends. The shipping industry has learned from losses in the past but predictive analysis could be the difference between a safe voyage and a disaster.”

    Cyber incidents like the global NotPetya malware event have been a wake-up call for the shipping sector. Many operators previously thought themselves isolated from this threat. “As technology on board increases, so do the potential risks,” says Khanna. At the same time, new European Union laws such as the Network and Information Security Directive (NIS), which requires large ports and maritime transport services to report any cyber incidents and brings financial penalties, will exacerbate the fall-out from any future failure – malicious or accidental. “The current lack of incident reporting masks the true picture when it comes to cyber risk in the marine industry,” says Khanna. “The NIS directive will bring more transparency around the scale of the problem.”

    Other risk topics identified in the review include the following: container ship fire struggles continue; climate change brings new route risks; emissions rules bring problems; autonomous shipping and drones.


2018 October 15

18:23 MOL joins hands with partners to launch FOCUS project
17:59 Moscow to host a conference on construction of LNG-powered and LNG bunker ships on October 24
17:46 Algoma announces cancellation of Croatian newbuilds contracts
17:05 Klaveness Combination Carriers AS registered on NOTC
16:56 Tall ships arrive at Port of Ipswich as part of 'Race of the Classics'
16:37 Coast Guard ends search after plane crash victims bodies are located
16:20 Krasnoye Sormovo shipyard delivers 8,140 DWT Pola Fiva, fifth dry cargo carrier of Project RSD59
16:04 DNV GL leads consortium to update Carbon Trust Floating LiDAR Roadmap
15:34 East Mediterranean projects take steps towards adoption of alternative fuels
15:04 NYK approves Japan Climate Action Summit declaration
14:51 Wärtsilä LNG solutions featured on environmentally advanced cruise ship
14:35 Coast Guard sets port condition X-ray in Georgia, South Carolina
14:17 Andrey Shunin appointed as General Director of Caspian Energy Management
13:28 Cooperation for sustainable shipping in the Mediterranean
12:41 ACL christens its newest G4 vessel, the Atlantic Sun
12:13 Kongsberg Digital and KPMG launch new complete cybersecurity partnership for the maritime industry
11:55 Nevsky Shipyard took part in Offshore Marintec Russia
11:19 ABS leads industry discussion on digitization, safety and compliance
11:12 New shipping route links Gdansk and Scandinavia
10:51 Port of Gdansk considered as transport hub for Slovakia
10:29 Brent Crude futures price up 1.21% to $81.4, Light Sweet Crude – up 1.04% to $72.08
10:10 Tuco Marine Group to build a multipurpose first responder boat for Hovedstadens Beredskab I/S
09:53 Baltic Dry Index is up to 1,579 points
09:34 Gazprom and Shell discuss next steps in Baltic LNG project
09:15 Throughput of port Helsinki (Finland) in 9M'18 up 8.4% Y-o-Y to 11.38 million tonnes (table)
08:07 PIL terminates all calls to Iran due to US sanctions
07:06 ChainPORT hackathon held for the first time simultaneously in the ports of Antwerp and Los Angeles
06:16 Vinalines posts profit of US$900,000 in the first nine months of 2018

2018 October 14

09:19 CMA CGM announces FAK rates from Asia to North Africa
09:17 CMA CGM announces FAK rates from Asia to the Mediterranean
09:16 Port of Corpus Christi moves record tonnage in first nine months of 2018
09:12 Port of New Orleans receives Excellence Award for Master Plan

2018 October 13

09:06 OOCL fleet moves forward to meet IMO 2020 regulation
09:04 CMA CGM announces FAK rates from Asia to North Europe
08:56 Algoma announces cancellation of Croatian new build contracts
08:54 Panama Canal sets record annual cargo tonnage in fiscal year 2018

2018 October 12

18:07 Port of Antwerp on track for sixth record year
17:36 Strengthening of Kaliningrad seaway canal's embankment included in Russia’s territorial development strategy through 2025
17:08 Stena Bulk in partnership with Bay Crest Management for expansion in Asia
16:04 Groundbreaking ceremony marks start of work at DP World Berbera in Somaliland
15:52 LNG Croatia invited bids for import LNG terminal infrastructure
15:35 Azerbaijan Caspian Shipping Company continues expanding its operations in international waters
15:03 Maersk Line announces an increase in FAK rates from Far East to North Europe
14:47 Minister Berner: Finland strives to reduce emissions from shipping
14:03 CMA CGM to introduce new quarterly BAF for long term contracts from 1st of January 2019
13:44 LUKOIL commissions fifth well at Filanovsky field second stage
13:21 Ocean Network Express enters bilateral feeder network cooperation with Hapag - Lloyd
13:10 MOL consolidation service succeeds with trial of remote container tracking management device
12:28 Germany furthers support to WMU with Simulator Lab refurbishment
12:05 Yangzijiang Shipbuilding Group in China and Mitsui & Co., Ltd. to establish a shipbuilding joint venture
11:47 BPO pays a visit to the Port of Ust-Luga
11:26 Rosterminalugol exported 16 million tonnes of coal YTD
11:05 Grimaldi further boosts its freight services to Sardinia
10:54 Bunker prices continue going up at the Port of Saint-Petersburg, Russia (graph)
10:50 Port of Gothenburg starts construction of new terminal
10:30 Brent Crude futures price up 1.2% to $81.22, Light Sweet Crude – up 1.18% to $71.81
10:11 De Boer holds naming ceremony for Damen RSD WID Tug 2915 Hybrid Fregate and ASD Tug 2310 SD Papillon
10:09 Baltic Dry Index is down to 1,515 points
09:58 Damen signs for another three years as founding partner of the Nederlands Dans Theater
09:51 Fuel oil prices show no significant changes in the Far East ports of Russia (graph)