• 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 December 9

17:01 Jan De Nul starts beach protection project in Benin
16:06 MOL to participate in construction, ownership, operation of FSRU for Jawa 1 Gas-Fired IPP Project in Indonesia
14:40 Coast Guard continues search for survivors of capsized migrant vessel off Dominican Republic
13:38 CMA CGM announces FAK rates for Asia-Middle East Gulf trade
11:39 MHI Vestas clinches largest MW turbine order for Scotland's Moray Firth

2018 December 8

17:15 Huntington Ingalls Industries names Herman Shelanski as new VP, Business Development at it's shipbuilding division
16:07 Gladding-Hearn built pilot boat delivered to Southwest Alaska Pilots Association
13:12 EGCSA blasts MPA's ban on open-loop scrubbers in Singapore
10:28 Torqeedo displays 2019’s new electric boating products at Salon Nautique International de Paris.

2018 December 7

18:01 Naming ceremony for Arctic condensate tanker Boris Sokolov held at Guangzhou Shipyard International
17:38 Tellurian and Vitol sign MOU for 15-year LNG sale on JKM
17:14 Port of Tallinn rewards emission-reducing ships with a discount of up to 8% on tonnage fees
16:50 Vladimir Putin presents Captain Zybko with Distinguished Maritime Service Order
16:26 BSAP updates move forward at HELCOM key meeting
16:02 Orange Business Services keeps Arctic Shipping Company fleet connected along the Northern Sea Route
15:37 EU NAVFOR promotes maritime security dialogue in Somalia
14:59 Protection structures to be built at the port of Sochi
14:25 Northern Fleet's frigate Admiral Gorshkov takes part in training in the Barents Sea
14:08 ABS signs MOU with KOMERI to create a new facility dedicated to improving the safety of LNG as fuel
13:08 Crowley adds 400 new refrigerated containers to its fleet
12:26 Freight turnover of Neva-Metal (Saint-Petersburg) in 11M’18 climbed by 3% Y-o-Y to about 2.9 million tonnes
11:57 Montreal, Canada to host 14th Arctic Shipping Summit on 13-14 March 2019
11:24 Vladivostok Sea Fishing Port handled 284,000 tonnes of fish in 11M’18, up 25.8% Y-o-Y
11:08 SEA Europe and ECSA pleased with EU’s actions on trade-distortive South Korean measures in shipping and shipbuilding
10:45 Extraordinary General Shareholders Meeting of LUKOIL approves interim dividends
10:21 Brent Crude futures price down 0.62% to $59.69, Light Sweet Crude – down 0.41% to $51.28
10:06 Barcelona City Council supports reducing pollution in the Mediterranean with a low emissions zone
09:42 Bunker prices are slightly down at the Port of Saint-Petersburg, Russia (graph)
09:19 Baltic Dry Index is up to 1,339 points
09:03 Fincantieri launches new ship “Carnival Panorama” for Carnival Cruise Line
08:07 NYK concludes long-term charter agreement for two LNG carriers with Total
07:24 ‘Breakbulk carrousel’ gives breakbulk and heavy cargo companies space for further growth in Rotterdam’s Waalhaven

2018 December 6

18:05 ONE Thailand receives 2018 Best Container Liner Award from Thai National Shippers’ Council
17:54 IAPH LNG bunkering audit tool already used to license operations at Port of Rotterdam
17:35 IMO highlights key elements of the Initial IMO Strategy on reduction of GHG emissions from ships
17:17 2019 port tariff increases at North Sea Port stay below inflation level
17:05 Chinese group Lingang signs 5 MOU’s for the realisation of the Lingang Overseas Modern Industrial Park in Zeebrugge
16:40 RF Navy's Northern Fleet to protection Russia’s national interests in the Arctic
16:15 Nexans strengthens its focus on Inspection, Maintenance and Repair (IMR) services with a dedicated team of IMR experts
16:01 MABUX: Big chance for bunker prices to turn into firm upward evolution again
15:38 Samskip's investments secure supply chain against Brexit
15:26 Russian Railways: Loading of export cargo bound for domestic ports up 4.9% to 279.8 million tonnes in 11M’18
15:01 Höegh LNG announces delivery of FSRU number nine, "Höegh Gannet"
14:47 Shipboard equipment localization center encourages shipbuilders to scale up their activities in info-field
14:12 MV S’hail al Wajbah is the newest addition to the Baumarine Pool
13:49 Throughput of port Taganrog in 11M'18 up 3% to 2.78 million tonnes
13:33 FESCO transported 24,000 tonnes to Chukotka under northern delivery of cargoes-2018
13:12 Jan De Nul signs 25 year concession agreement to dredge Guayaquil Port Access Channel
12:50 Modernization of FESCO terminal in Novosibirsk to halve the time of container handling
12:28 Bunker prices continue going down at the Far East ports of Russia (graph)
12:09 CMA CGM announces FAK rates from Asia to Red Sea
11:54 BashVolgotanker carried 1.8 million tonnes of oil products in navigation season of 2018, flat Y-o-Y
11:22 Ukraine accedes to load lines convention
11:00 Bunker sales at port Vladivostok in 11M’2018 grew by 64% to 1.034 million tonnes
10:37 Work on Freeport of Riga Development Programme for 2019-2028 nears completion
10:15 Brent Crude futures price down 0.83% to $61.05, Light Sweet Crude – down 1.04% to $52.34
09:56 CMA CGM and Freightos sign landmark agreement advancing digitization in the shipping industry
09:43 Vostochny Port exported 22.3 million tonnes of coal in 11M’2018, up 5.8% Y-o-Y
09:18 Baltic Dry Index is up to 1,296 points

2018 December 5

19:13 Damen’s first Fishing Seminar success as new leasing fund welcomed by South African fishing community