Large ship losses reach low­est point in a decade

Financial Mirror (Cyprus) - - FRONT PAGE -

Mar­time dis­as­ters in­volv­ing pas­sen­ger ships have cer­tainly made head­lines across the world in re­cent years.

No­table ex­am­ples in­clude the Costa Con­cor­dia dis­as­ter, Se­wol ferry sink­ing and Nor­man At­lantic ferry fire, all of which brought pas­sen­ger safety into fo­cus.

In­ter­est­ingly, how­ever, de­spite th­ese high pro­file mishaps, the num­ber of ships lost at sea is de­clin­ing. Back in 2007, 170 large ves­sels were lost and this fell to just 75 in 2014, ac­cord­ing to Al­lianz Global Cor­po­rate and Spe­cialty.

About 22% of all losses be­tween 2009 and 2013 can be at­trib­uted to ma­chine dam­age/break­down with fire ac­count­ing for 16 per­cent. Hull dam­age and col­li­sion made up 9% of all losses each while 8% were due to storms.

Even though the de­clin­ing num­ber of sink­ings/losses may seem like good news for in­sur­ance com­pa­nies, the in­creas­ing size of con­tainer ships may ac­tu­ally lead to big­ger losses.

The Mediter­ranean Ship­ping Co’s MSC Os­car be­came the largest con­tainer ves­sel in the world this year. Al­most as long as four foot­ball fields and with a 19,224 teu ca­pac­ity, a se­ri­ous mishap in­volv­ing a ves­sel like this could cost up­wards of $1 bln. (Source: Statista)

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