32% Year on Year Decrease in Ship Loss

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Total ships lost has become 75 in 2014, that is down from 110 total losses in 2013 and is well below the 10-year average of 127 ships per year.

A review by  Allianz Global Corporate & Specialty (AGCS), focuses on key developments in maritime safety and analyzes shipping losses (of over 100 gross tons).

Highlights of Safety And Shipping Review 2015:

Total large ships lost in 2014

75

% ↑ or ↓           

32%↓
Major loss locations waters 

South China and Southeast Asian

Major incident locations  

Mediterranean and the British Isles
Major vessel type lost 

50% were Cargo and fishing vessels

Identified factors    

1. Ship size growth raises
 

2. Risk management concerns

 

3.  Overreliance on e-navigation

 

4. Cyber protection a major concern.

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  • 90% of World trade is estimated to be transported by sea.
  • 75 total losses reported worldwide in 2014 is the lowest in 10 years.
  • 2,773 casualties (incidents) were reported during 2014.
  • East Mediterranean & Black Sea region leads with 490 casualties.
  • Over 110 losses in Northern hemisphere during December.
  • The hardest month in Southern hemisphere was August with 22 Casualties.
  • One vessel in the Great Lakes region of North America has been involved in 19 incidents in the past 8 years
  • Raise in concerns over passenger ship safety (Sewol and Norman Atlantic).
  •  80% capacity increase, entry of ships that can carry 19,000+ containers.
  • The increase in shipping casualties in Arctic Circle waters from 3 a decade ago to 55 in 2014 paved way for the Polar Code.
  • The outbreak of the Ebola virus had safety threats.
  • Piracy down by 7% in 2014. Declining for the fourth successive year
  • The carrying capacity of container ships has increased 1,200 percent since 1968.

Causes Identified:

  • Weak Points in vessel construction.
  • Inadequate levels of crew experience, training and emergency preparedness.
  •  Minimum manning levels are reducing the ability to train people onboard, providing invaluable insight.
  • Overreliance on electronic navigation.

Action required:

  • The industry should prepare for a $1bn+ loss in future featuring a container vessel or even a specialized floating offshore facility.
  •  Electronic Chart Display and Information System must be filtered back into the training environment.
  • Reduce dependence on e-navigation.
  •  Improve interconnectivity of the maritime sector and enhance cyber security awareness.
  • Companies must simulate potential scenarios and identify appropriate cyber attack mitigation strategies.
  • Identification of advanced methods to tackle piracy.
  • Special efforts to control Human trafficking and Search and Rescue issues, particularly in the Mediterranean must be enhanced.
  • War/upheaval risk to be taken care of to reduce pressure on the shipping supply chain.
  • Crew cost-cutting concerns.
  • Container ship structural safety issues
  • Slow steaming and engine challenges
  • Liquefaction losses
  • Piracy trends and developments.

Source: Allianz

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