Page 45: of Maritime Logistics Professional Magazine (May/Jun 2019)
US and International Navy Ports
HIPPING OSSES OWEST HIS N EENTURY AS EW ANGERS MERGE D L C S L T arge shipping losses are now at their lowest level this cen- sure we can point to any one particular fact that’s the driver on the tury having declined by over 50% year-on-year, according reduction in total losses. The total losses are down, but the cost to Allianz Global Corporate & Specialty SE’s (AGCS) 3AFE- of losses is still a big driver, given the size of the vessels and the
TY3HIPPING2EVIEW. The annual study analyzes reported size of the losses. We like to think that we’re starting to get a more shipping losses over 100 gross tons (GT). AGCS provides global mature safety management system in place. I can remember when marine and shipping insurance for all types of marine risk, from they were ?rst introduced, and there were growing pains when single vessels and shipments to the most complex ?eets and mul- we did those ?rst procedures growing up in those ?rst audits. I tinational logistics businesses. All told, the Marine Line of Busi- can see a real change. We’re really starting to change the basic ness contributed 11% to AGCS overall premium volume of EUR behaviors in the way we look at it.” 8.2bn in 2018.
Machinery Damage: the major causation
Total Losses Down The plummet in total losses is encouraging, but the number of
In 2018, 46 total losses of vessels were reported around the reported shipping incidents overall (2,698 in 2018) shows little shipping world, down from 98 losses 12 months earlier, driven by decline – less than 1% year-on-year. Machinery damage is the a signi?cant decline in activity in the global loss hotspot, South major cause, accounting for more than a third of the 26,000+ in-
East Asia, and weather-related losses (10) halving after quieter cidents over the past decade – twice as many as the next highest hurricane and typhoon seasons. cause, collision. Machinery damage is one of the most expensive
Captain Andrew Kinsey, Senior Risk Marine Consultant with causes of marine insurance claims, accounting for US $1bn+ in
Allianz Risk Consultant (ARC) told MLPro in June, “I’m not ?ve years.