transport Losses Down in 2014 however New Threats Loom: Allianz

transport losses declined to seventy five at some point of 2014, a 32 percentage drop from the previous year and well below the ten-yr loss average of 127, consistent with Allianz global company & uniqueness SE’s (AGCS) 0.33 annual protection and transport review 2015.

although delivery losses have declined by means of 50 percentage on the grounds that 2005, new threats loom for the maritime zone, along with cyber attacks and mega ships, said the document, which analyzes delivery losses of over 100 gross lots.

more than a 3rd of 2014’s total losses were in  maritime regions. South China, Indo China, Indonesia and the Philippines (17 ships) and Japan, Korea and North China (12 ships). shipment and fishing vessels accounted for over 50 percent of all losses, the evaluation said.

The most commonplace motive of general losses is foundering (sinking/submerging), accounting for sixty five percentage of losses in 2014 (49). With thirteen ships wrecked or stranded, grounding was the second maximum not unusual cause with fires/explosions (four) 0.33, but extensively down yr-on-12 months.

Hacker targets

Cyber dangers are representing a brand new hazard for a delivery region that is fairly interconnected and more and more reliant on automation the AGCS evaluation stated.

“Cyber danger can be in its infancy in the region nowadays, however ships and ports may want to come to be engaging objectives for hackers in destiny. organizations should simulate potential situations and discover suitable mitigation strategies,” said Captain Rahul Khanna, international head of Marine risk Consulting, AGCS.

“A cyber assault focused on technology on board, mainly digital navigation systems, ought to likely result in a total loss or maybe involve numerous vessels from one employer,” said Sven Gerhard, international product leader, Hull & Marine Liabilities, AGCS.

different potential scenarios include cyber criminals targeting a first-rate port, final terminals, or interfering with boxes or confidential statistics. Such attacks could also bring about considerable enterprise interruption costs, however liability or reputational losses.

larger Ships, large Losses

container deliver protection is likewise underneath the highlight with ever-increasing deliver sizes, as evidenced via the January 2015 inauguration of the world’s largest box deliver, the MSC Oscar, which is nineteen,224 twenty-foot equal devices (teu). The period of four football pitches, it could bring 19,000 bins, the review cited.

but ships as massive as 22,000 teu are predicted to be in service quickly. “large ships also can suggest larger losses. The enterprise ought to put together for a loss exceeding $1 billion in destiny presenting a box vessel or even a specialized floating offshore facility,” Gerhard stated. most publicity could now not always be limited to vessel and cargo fee but can also include environmental or enterprise interruption backlash. This raises concerns approximately whether threat control wishes reviewing after an eighty percentage plus field deliver ability boom in a decade.

threat concentration

AGCS sees some of dangers for such mega ships together with the fact that operation is restrained to a small number of deep water ports, that means an elevated awareness of hazard. there is additionally a global-extensive scarcity of certified seaman.

similarly, the evaluation pointed to the challenges of salvage and elimination. as the smash removal of the Costa Concordia passenger ship demonstrated, such expenses can without problems be a more than one of the hull fee.

“The transport industry need to suppose lengthy and difficult earlier than making the soar to the subsequent deliver size,” adds Khanna.

Passenger deliver safety

whilst the lengthy-time period downward fashion in delivery losses is encouraging, the evaluate stated, current casualties together with Sewol and Norman Atlantic have all over again raised considerable concerns over training and emergency preparedness on passenger ships 3 years after the Costa Concordia disaster. Seven passenger ships had been misplaced during 2014, accounting for nearly 10 percent of overall losses.

“in many instances production of the vessel isn't always the simplest vulnerable factor. those two incidents underline a worrying gap in team schooling with regards to emergency operations on ro-ro ferries or passenger ships,” says Gerhard.

the overall transport trend for smaller crews approach seafarers are being asked to do extra with less. minimal manning levels lessen the capacity to educate humans onboard, that may provide useful perception and need to no longer grow to be the normal day-to-day degree for secure operations.

Polar Code

The delivery industry has welcomed the recent arrival of the Polar Code which goals to lessen risks from expanded visitors within the Arctic and Antarctica. evaluation shows there have been fifty five reported shipping incidents in Arctic Circle waters in the course of 2014 inclusive of one overall loss, the assessment said, noting that there have been just 3 in 2005.

while the code addresses many safety issues, questions remain, specifically round crew training, vessel suitability and ability easy-up. The Polar Code will want constant revision, in line with AGCS. Any delivery troubles encountered and high-quality practices to appoint have to be mentioned at the quit of every season.

further chance challenges

different dangers diagnosed in AGCS’ 2015 protection & transport evaluate consist of:

•           Over-reliance on digital navigation: The collision of the shipment deliver Rickmers Dubai with an unmanned crane barge in 2014 is an example of the perils of overreliance on e-navigation. education standards round structures which includes digital Chart show and statistics system (ECDIS) are blended. “officials need robust schooling with the intention to keep away from misinterpretation of ECDIS and operating mistakes that would cause expensive failures. past that manual navigation aids and competencies are nonetheless important,” says Khanna.

•           upward push in geopolitical uncertainty: The current upward thrust in geo-political tension round the arena is concerning. The boom in human trafficking of refugees via sea creates search and rescue issues. extra than 207,000 migrants crossed the Mediterranean in 2014, driven through the civil conflict in Syria. The international Maritime organization estimates as a minimum 600 merchant ships had been diverted in 2014 to rescue humans, stretching assets and rescue infrastructure. Conflicts in the middle East additionally positioned growing strain on the deliver chain. Ships ought to no longer underestimate the security risks.

•           Piracy risks flow from Africa to Asia: there was accurate development tackling assaults in Somalia and the Gulf of Guinea, which delivered global assaults (2451) down for a fourth 12 months in a row. however, piracy flourishes somewhere else, the assessment stated, pointing to attacks in South East Asian waters, which are up from 2013, as are incidents in the Indian subcontinent, with Bangladesh a new hotspot.