Allianz’s latest Safety and Shipping Review makes a stark warning about the dangers posed to the global merchant fleet by the worsening geopolitical climate.
“While still posing major challenges and concerns, traditional causes of maritime losses, such as fires and collisions, have decreased over time. However, geopolitical tensions now pose a substantial threat that could offset these gains.,” the Allianz report noted, adding: “The industry faces a complex environment marked by attacks on shipping, vessel detentions, sanctions and damages to infrastructure such as critical sub-sea cables, while reports of vessels experiencing GPS interference and jamming are increasing. Insurers have seen a clear increase in large claims related to conflicts, notably from the war in Ukraine and Middle East tensions.”
In better news, the large annual report reveals a significant milestone in maritime safety: the global fleet experienced a record low of 27 total losses in 2024, a 20% decrease from the previous year and a 75% decline from 2015 levels.
The report highlights that the South China, Indochina, Indonesia, and the Philippines remain the most perilous, accounting for nearly a third of the vessels lost in 2024. Other high-risk areas include the British Isles and the East Mediterranean and Black Sea, each reporting four total losses. Over the past decade, these regions collectively contributed to 681 of the 729 total losses recorded globally.
Fishing vessels were the most affected, representing 40% of total losses. Foundering (sinking) was the leading cause of these losses, accounting for 50%, with fires/explosions ranking second at 26%. Notably, over 100 total losses in the past decade have been attributed to fire-related incidents.
While total losses have decreased, the number of reported shipping incidents increased by approximately 10% in 2024, totalling 3,310 compared to 2,963 in 2023. The British Isles recorded the highest number of incidents (799), followed by the East Mediterranean and Black Sea (694). Over the past decade, the British Isles accounted for 20% of all reported incidents globally
Machinery damage or failure was the predominant cause of incidents, responsible for over half of the reported cases (1,860). Fire and explosion incidents also saw a significant rise, with 250 reported in 2024—a 20% increase year-on-year and the highest total in a decade. This uptick is partly attributed to the transportation of lithium-ion batteries, commonly found in electric vehicles and other battery-powered cargo, which pose unique fire hazards.
The review underscores the growing impact of geopolitical tensions on maritime safety. The conflict in Gaza, for instance, led to over 100 ships being targeted by Houthi militants in the Red Sea. Such incidents highlight the vulnerability of global shipping to proxy wars and regional disputes. Additionally, piracy is resurging off the Horn of Africa, further exacerbating security concerns.
The report also discussed the rise of the shadow tanker fleet – vessels which often lack proper maintenance, insurance, and regulatory oversight, leading to increased risks of fires, engine failures, and collisions.Allianz estimates that the shadow fleet comprises between 600 to 1,400 vessels, many of which are at the end of their operational lives.
Advancements in technology have introduced new challenges to maritime safety, Allianz noted. The use of drones and unmanned aerial vehicles (UAVs) has become more prevalent, posing threats to ships through potential attacks or surveillance. These technologies are relatively inexpensive and accessible, raising concerns about their misuse by non-state actors or proxy groups.
Cybersecurity remains a critical issue, with increasing reports of GPS interference and AIS spoofing. These cyber threats can disrupt navigation systems and compromise vessel safety, necessitating robust cybersecurity measures and regular monitoring of technological vulnerabilities.
Fire safety continues to be a significant concern for Allianz. The transport of lithium-ion batteries, particularly in electric vehicles, has led to a rise in onboard fires. These fires are challenging to extinguish and can reignite, posing severe risks to crew and vessel integrity. Many ships lack the necessary firefighting capabilities to address such incidents effectively. Experts advocate for enhanced crew training, improved early detection systems, and the development of purpose-built vessels designed to transport battery-powered cargo safely.
