Ship losses

Ship Losses: A Persistent Risk in International Trade

Despite significant improvements in maritime safety over the past decade, ship losses remain a major issue in global trade. In 2022, 38 large vessels were lost worldwide, a decrease from 59 in the previous year. This represents a 65% decline in annual losses over the last decade. However, challenges still exist, with regions such as the South China Sea and the British Isles reporting the highest number of total losses and maritime incidents, respectively.

The South China Sea, Indochina, Indonesia, and the Philippines are particularly prone to ship losses, accounting for one in five incidents globally. Contributing factors include high levels of trade, port congestion, aging fleets, and extreme weather conditions. The Allianz Global Corporate & Specialty SE (AGCS) Safety & Shipping Review 2023 highlights these ongoing risks, noting that while overall ship losses have declined, other dangers such as the Ukraine conflict, decarbonization challenges, economic uncertainty, and rising maritime claims are increasing the complexity of global shipping operations.

In the last decade, more than 800 total ship losses have occurred globally, underscoring the need for companies involved in international trade to be prepared for such risks.