According to Allianz Global Corporate & Specialty SE’s (AGCS) fifth annual Safety & Shipping Review 2017, the total losses related to shipping industry fell to 16%, from 101 to 85 in 2016.
Here 10 other key aspects of the report that you should know:
-Last year was the safest, with the lowest number of losses in the past ten years.
-The number of shipping incidents also declined slightly year-on-year, by 4% with 2,611 reported.
-More than a quarter of shipping losses in 2016 (23) occurred in the South China, Indochina, Indonesia and Philippines region.
–Cargo vessels (30) accounted for more than a third of all vessels lost.
-The most common cause of global shipping losses remains foundering (sinking), accounting for over half of all losses in 2016, with bad weather often a factor
-Over a third of shipping casualties during 2016 were caused by machinery damage.
-Losses are up year-on-year in the following maritime regions: Japan, Korea and North China; East African Coast; South Atlantic and East Coast South America; and the Canadian Arctic and Alaska.
-The number of losses resulting from fire/explosion (8) is up slightly year-on-year.
-Large shipping losses have also declined by 50% over the past decade, driven by improved regulation and the development of a more robust safety culture.
-The loss of a large container vessel or passenger ship in environmentally-sensitive waters could cost billions of dollars, potentially even resulting in a $4bn loss, if two large vessels are involved.