Shipping losses in 2014 lowest for ten years, says AGCS

24 March 2015 (Last Updated March 24th, 2015 18:30)

A total of 75 shipping loss incidents have been reported worldwide for last year, the lowest number in the last ten years, Allianz Global Corporate & Specialty (AGCS) has revealed.

A total of 75 shipping loss incidents have been reported worldwide for last year, the lowest number in the last ten years, Allianz Global Corporate & Specialty (AGCS) has revealed.

According to AGCS’ third annual Safety and Shipping Review 2015, losses reported last year declined by 32% when compared with 2013 and were below the ten-year average of 127.

Last year, more than a third of the total occurrances were in two maritime regions; 17 losses were reported in South China, Indo China, Indonesia and the Philippines, and 12 in Japan, Korea and North China.

A total of 2,773 shipping casualties took place worldwide last year, with 490 incidents being reported in the East Mediterranean and Black Sea region.

"Cyber risk may be in its infancy in the sector today, but ships and ports could become enticing targets for hackers in future."

AGCS’ review revealed that the most common cause of shipping losses is foundering, which accounts for 65% of all loss incidents in 2014. Other major reasons include wrecking or stranding, grounding, and fires or explosions.

Meanwhile, the new review stated that cyber risks present a new threat for the shipping sector, as it is highly interconnected and increasingly reliant on automation.

AGCS Marine Risk Consulting global head Captain Rahul Khanna said: "Cyber risk may be in its infancy in the sector today, but ships and ports could become enticing targets for hackers in future.

"Companies must simulate potential scenarios and identify appropriate mitigation strategies."

Increasing ship sizes, crewing levels, arctic shipping, the increase in human trafficking by sea and further geopolitical are creating new industry risks, the review stated.