• Allianz Safety and Shipping Review 2024: 26 large ships lost worldwide in 2023, down by one third year-on-year, the industry's lowest ever total
• South China, Indochina, Indonesia and the Philippines is the main loss hotspot globally, accounting for almost of third of all losses at sea in 2023
• War and geopolitical conflicts shake up the shipping industry, with a number of major consequences
• Climate risks on the rise while decarbonization of fleets remains a major challenge

SINGAPORE - Media OutReach Newswire - 23 May 2024 - Given as much as 90% of international trade is transported across oceans, maritime safety is critical. Thirty years ago, the global shipping fleet lost around 200 large vessels a year. This total fell to a record low of 26 in 2023, a decline of more than one third year-on-year and by 70% over the past decade. However, the fact that shipping is increasingly subject to growing volatility and uncertainties from war and geopolitical events, the consequences of climate change, as well as ongoing risks resulting from the trend for larger vessels means the sector will have its work cut out to maintain this status quo in future, according to marine insurer Allianz Commercial's Safety and Shipping Review 2024. "The speed and extent of the way the industry's risk profile is changing is unprecedented in modern times. Conflicts such as in Gaza and Ukraine are reshaping global shipping, impacting crew and vessel safety, supply chains and infrastructure, and even the environment. Piracy is on the rise, with a worrying re-emergence off the Horn of Africa. The ongoing disruption caused by drought in the Panama Canal shows how the changing climate is affecting shipping, all at a time when it is having to undertake its most significant challenge, decarbonization," says Captain Rahul Khanna, Global Head of Marine Risk Consulting, Allianz Commercial. Southeast Asia emerges as maritime region with highest total losses During 2023, 26 total losses were reported globally compared with 41 a year earlier. There have been more than 700 total losses reported over the past decade (729). The South China, Indochina, Indonesia and the Philippines maritime region is the global loss hotspot, both over the past year and decade (184). It accounted for almost a third of vessels lost last year (8). The East Mediterranean and Black Sea ranks second (6) with activity up year-on-year. Cargo ships accounted for over 60% of vessels lost globally in 2023. Foundered (sunk) was the main cause of all total losses, accounting for 50%. Extreme weather was reported as being a factor in at least 8 vessel losses around the world in 2023, with the final total likely higher. The number of shipping incidents reported globally declined slightly last year (2,951 compared to 3,036), with the British Isles seeing the highest number (695). Fires onboard vessels – a perennial concern – also declined. However, there have still been 55 total losses in the past five years, and over 200 fire incidents reported during 2023 alone (205) – the second highest total for a decade after 2022. Fires remain a key safety issue on larger vessels given the potential threat to life, scale of the damage, and the fact associated costs can be severe, a factor contributing to the long-term increase in the cost of large marine insurance claims. Consequences of geopolitical conflicts Recent incidents, such as in the wake of the conflict in Gaza, have demonstrated the increasing vulnerability of global shipping to proxy wars, disputes and geopolitical events, with more than 100 ships targeted in the Red Sea alone by Houthi militants in response to the conflict. Disruption to shipping in and around the region has persisted and is likely to remain for the foreseeable future. "Unstable regimes, regional disputes, and rivalries make for a dynamic situation around some of the world's busiest shipping routes. The Red Sea crisis shows just how important critical waterways like the Suez Canal are to the world economy, and how vulnerable they can be to disruption. This is a worrying development that could have repercussions and consequences for other parts of the world where shipping routes are exposed to geopolitical events, as we have seen with the ship seizure in the Strait of Hormuz," says Captain Nitin Chopra, Senior Marine Risk Consultant, Allianz Commercial Asia. The re-emergence of Somali pirates, following their first successful hijacking since 2017, is an additional cause for concern. "Both the war in Ukraine and the Red Sea attacks have also revealed the increasing threat to commercial shipping posed by new technology such as drones, which are relatively cheap and easy to make, and difficult to defend against without a large naval presence," says Khanna. "Looking to the future, more technologically driven attacks against shipping and ports are also a distinct possibility. Reports of vessels experiencing GPS interference are increasing,...