E – as in St Elmo’s fire
Number of ship accidents declining – causes have multiplied. Shipping losses are decreasing, even in ‘hot spots’ such as the South China Sea, Indochina and Indonesian waters. However, the changing nature of cargo poses new risks. Ever more e-vehicles transported represents a higher fire risk, for example.
The loss of large ships continued to decrease in 2022 compared to the past, according to the ‘Safety and Shipping Review 2023’ published recently by the insurance company Allianz Global Corporate & Specialty (AGCS). This is a historic low that is likely to please rather than depress the industry.
According to Justus Heinrich, the head of shipping insurance for Central and Eastern Europe at AGCS, 2022 marked a “twelve-year low” in the loss of ships due to accidents.
However, this development is no coincidence, as Heinrich elaborated. “It reflects the positive impact of safety programmes, more training, improved ship design and stricter regulations.”
38 ships with 100 grt or more were reported as lost worldwide in 2022, a figure that was down from 59 in 2021. The trend is as encouraging as it is steady – there were 109 total losses in 2013. This corresponds to a decline of 65% in ten years. 30 years ago, more than 200 units used to be lost every year.
Fire risks are growing, however, both at sea as well as on land. The trend towards more sustainability has also led to increasing number of electric vehicles and battery-powered units that are transported, as well as the number of highly flammable lithium-ion batteries.
Wrongly-declared dangerous goods
This market is forecast to grow by 30% annually over the next ten years. A quarter of all fires on board containerships are still caused by incorrectly declared dangerous goods today.
Heinrich advises taking precautionary and preventive measures and establishing emergency plans. “These can include training crews adequately, for example, and ensuring access to suitable fire-fighting equipment and improving early-warning systems.”
On top of this Heinrich has called for “special ships to transport such goods.” There are doubts remaining as to whether this call has a chance in today’s market environment.