In 2023, the global count of large ships lost
dropped significantly to 26, down over a third from the previous year’s total
of 41. Over the past decade, annual
shipping losses have plummeted by 70%. Particularly notable is the South
China, Indochina, Indonesia, and the Philippines maritime region, accounting
for nearly a third of the vessels lost in 2023.
However, the review warns that risks persist despite this decline. Geopolitical conflicts pose a significant threat,
with over 100 ships targeted in the Red Sea by Houthi militants alone.
Disruptions to shipping in and around the region are ongoing, accompanied by a
resurgence of Somali piracy.
As a consequence of these attacks, observed also in
Middle Eastern waters, vessels reroute, leading to extended detours and higher
costs. This may compromise environmental gains as ships accelerate to cover
longer distances. Moreover, rerouting impacts both the risk landscape and the
environment. Storms and rough seas pose greater challenges for smaller vessels accustomed
to coastal waters, while infrastructure support for incidents involving large
vessels may be insufficient.
Extreme weather contributed to at least 8 vessel losses worldwide in
2023, with the final figure likely higher.
Captain Rahul Khanna, Global Head of Marine Risk
Consulting at Allianz Commercial, remarks, “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.”