“New Bermuda Triangle” For Shipping Losses

July 21, 2018 | 0 Comments

Nearly one third of shipping losses in 2017 occurred in the South China, Indochina, Indonesia and Philippines maritime region, leading some commentators to apparently label it the ‘new Bermuda Triangle.’

This is according to the Allianz Global Corporate & Specialty’s [AGCS] Safety & Shipping Review 2018, which said that large shipping losses have declined 38% over the past decade, with this downward trend continuing in 2017.

“There were 94 total losses reported around the shipping world in 2017, down 4% year-on-year [98] – the second lowest in 10 years after 2014. Bad weather, such as typhoons in Asia and hurricanes in the U.S., contributed to the loss of more than 20 vessels, according to the annual review, which analyzes reported shipping losses over 100 gross tons [GT],” the company said.

Safety & Shipping Review 2018

“Nearly one third of shipping losses in 2017 [30] occurred in the South China, Indochina, Indonesia and Philippines maritime region, up 25% annually, driven by activity in Vietnamese waters.

“This area has been the major global loss hotspot for the past decade, leading some media commentators to label it the ‘new Bermuda Triangle.’

“The major loss factors are actually weather – in November 2017, Typhoon Damrey caused six losses, busy seas and lower safety standards on some domestic routes.

“Outside of Asia, the East Mediterranean and Black Sea region is the second major loss hotspot [17] followed by the British Isles [8].There was a 29% annual increase in reported shipping incidents in Arctic Circle waters [71], according to AGCS analysis.

“Cargo vessels [53] accounted for more than half of all vessels lost globally in 2017. Fishing and passenger vessel losses are down year-on-year. Bulk carriers accounted for five of the 10 largest reported total losses by GT.

“The most common cause of global losses remains foundering [sinking], with 61 sinkings in 2017. Wrecked/stranded ranks second [13], followed by machinery damage/failure [8].

“Analysis shows Friday is the most dangerous day at sea – 175 of 1,129 total losses reported have occurred on this day over the past decade.

“Friday the 13th really can be unlucky – three ships were lost on this day in 2012 including the Costa Concordia, the largest-ever marine insurance loss.”

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