Allianz Global Corporate & Specialty’s (AGCS) Safety and Shipping Review 2018

Shipping as the lifeblood of the global economy transporting approximately 90% of global trade. More than 50,000 merchant ships trading internationally, carrying every kind of cargo. Hence, the safety of vessels is crucial.

The maritime industry saw the number of total shipping losses remain stable during 2017, declining slightly to 94 – the second lowest total over the past decade. Despite huge improvements in maritime safety, fatal accidents at sea persist. Human error continues to be a major driver of incidents. 

In addition, container ship fires, hurricane season, as well as fast changing ice conditions are only a few risk contributors. However, these risks also represent future market opportunities, for instans the Paris Agreement for the shipping industry, cyber security, drones or autonomous shipping. 

Annual costs for the global economy:

Cost of losses caused by human error: $1.6 bn

Environmental risks: $23.5 bn

Major cyber attacks: $3 bn

By Martine Farstad