Shipping losses decline in 2016

The maritime industry saw the number of total shipping losses decline by 16 percent year-on-year in 2016 to 85 cases, according to the Safety and Shipping Review 2017 by Allianz.

Over the past decade, shipping losses have declined by 50 percent, according to the data.

In 2016, more than a quarter of losses (23) occurred in the South China, Indochina, Indonesia and Philippines maritime region, which has been the top loss hotspot for a decade.

Cargo vessels (30) account for more than a third of 2016’s losses. Passenger ferry losses are up year-on-year (8), driven by activity in South East Asia and the Mediterranean.

The collapse of Hanjin Shipping, a South Korean container line, exposed the perilous state of some parts of the shipping industry, as trade growth has slowed at a time of record capacity, the report says.

Bankruptcies are on the rise and economic strains have led to cost-cutting. Crew negligence and inadequate vessel maintenance are two increasing areas of risk. An increase in maintenance-related claims has already been observed. According to Allianz, negligence/poor maintenance is one of the top causes of liability loss in the shipping sector, so rigorous inspection and maintenance regimes are crucial.

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