Allianz Global Corporate and Specialty’s insurance company recently released its annual Safety and Shipping Review with updated safety statistics from 2022. Despite a decrease in ship losses, concerns remain over the possibility of catastrophic incidents. Much of the fear is driven by the so-called shadow fleet of aging tankers plying the world’s waterways.
Safety Report Shows Total Ship Losses Continue to Decline
One of the biggest takeaways from Allianz’s annual report is the fact that only 38 ships were declared total losses in 2022. This represented an ongoing trend, with total losses decreasing every year since 2015 and overall since 2012. The losses have decreased by 47% annually and 80% since 2012 for cargo transport vessels.
The most common reason for a ship loss, according to the report, is sinking. Other incidents include fires and explosions, collisions, groundings, machinery failure, and hull damage. While these big incidents have declined, minor incidents increased slightly from 2021 to 2022.
The Risks of Older Ships
The reduction in the loss of vessels is good for the economy and also good news for safety. When a ship is involved in an incident leading to a total loss, crew injuries or even deaths are likely.
Unfortunately, experts still believe that crew members on cargo ships and tankers are still at serious risk of getting injured or killed in incidents. The concern comes from the number of older ships that remain in operation.
The number of older ships continuing to operate rather than being scrapped has increased in recent years. If a ship is well-maintained and safety standards met, these ships can be as safe as any other. However, if they have not been maintained or if standards are not taken seriously, older vessels pose greater risks.
Experts worry that the negative consequences of so many older ships on the water have yet to be seen. They believe it is only a matter of time before many of them begin to fail in catastrophic ways.
The Shadow Fleet
Another major safety concern is the growth of a dark fleet, or shadow fleet, in international shipping. With sanctions placed on Russia due to the war in Ukraine, these shadow vessels have proliferated.
They are older tankers with unclear ownership that are not insured by Western companies. They operate outside of the boundaries of sanctioned shipping, moving Russian petroleum products. Avoiding sanctions, these ships actively try to keep a low profile or hide by turning off location technology or spoofing GPS.
What this means for safety is that there are no guarantees the operators are following expected guidelines or regulations. Maritime experts believe the growth in the shadow fleet could increase risks to crew members and the rate of incidents, and even total ship losses. According to current estimates, 10% of the world’s crude oil tankers are shadow vessels.
Much of the safety news in shipping is positive. On the other hand, there are still many risks. The shadow fleet and the continued operation of older vessels could be disasters waiting to happen.