Large shipping losses down 38% globally over past decade
Large shipping losses have declined by 38 per cent globally over the past decade, with the downward trend continuing last year, according to Allianz Global Corporate and Specialty's Safety and Shipping Review 2018.
A total of 94 losses were reported last year from around the world, down 4 per cent year-on-year. Last year's losses were the second lowest in 10 years after 2014, the report noted.
Bad weather contributed to the loss of more than 20 vessels, according to the annual review, which analyses reported shipping losses over 100 gross tons.
On the other hand, incidents in the South China, Indochina, Indonesia and Philippine maritime region rose by 25 per cent in the past year, and it remains the number one area worldwide for major shipping incidents for the past decade.
The major loss factors include weather - typhoons caused more than six losses.
Nature aside, man-made tensions around major shipping routes in Asia are also to blame.
The South China Sea accounts for one-third of global shipping trade. It is also the centre of territorial disputes between several countries.
This has resulted in an increasing military presence in the South China Sea, with the US and China conducting naval exercises.
Last year saw two major collisions between US naval ships and commercial vessels.
While piracy has hit record lows, across Asia and Africa it remains a threat, accounting for three-quarters of all incidents.
South-east Asia had 76 piracy incidents last year, up 11 per cent from 2016. Indonesia continues to be the global hotspot with 43 attacks.
The number of attacks in the Philippines more than doubled to 22 from 10 in 2016, according to the International Maritime Bureau.- THE STRAITS TIMES
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