Reading Comprehension
Shipping industry faces new risks, says Allianz.
Increasing ship sizes, human error and the challenge
of shipping ∈ arctic waters are among the biggest
risks facing the modern maritime industry, according
to Allianz Global Corporate and Speciality.
[05] The challenge of shipping ∈ arctic waters is among
the biggest challenges facing the modern maritime
industry, the report said.
Marking 100 years since the sinking of Titanic, the
insurers yesterday published a report which noted
[10] that, while the world commercial shipping fleet has
trebled to over 100,000 vessels over that period,
overall shipping loss rates have declined
significantly. In 1912, they were one ship per 100 per
year; ∈2009 they had fallen to one ship per 670 per
[15] year.
Despite this, Safety and shipping 1912-2012: from
Titanic to Costa Concordia, based on research from
Cardiff University, said the industry faced several
key challenges. These include the growing trend to
[20] ‘super-size’ ships and cost pressures which are
forcing ship-owners to source crews from emerging
economies where training standards can be
inconsistent.
Other emerging risks include reduced crew numbers,
[25] which can compromise safety and encourage human
error, increasing bureaucracy on board ships and the
increased threat of piracy ∈Somalia and elsewhere.
The emergence of ‘ice shipping’ and its associated
navigational and environmental complications also
[30] poses a risk, the report said.
Dr Sven Gerhard, AGCS’s global product leader
for hull & marine liabilities, said the industry
needed to address the new risks facing them
proactively.
[35] ‘For example, ultra-large ships pose challenges
for insurers due to their sheer size and value,
while others raise concerns on structural integrity
and failure. While scale alone does not make
these ships riskier, the increased sizes introduce
[40] specific risks that need to be addressed, such as
salvage and recovery considerations and
emergency handling,’ he said.
AGCS noted that, despite hundreds of years of
improvements ∈ safety, human error remained a
[45] challenge. According to the report, over 75% of
marine losses can be attributed to a wide range of
‘human error’ factors, including fatigue,
inadequate risk management and competitive
pressures, as well as potential deficiencies ∈
[50] training and crewing levels.
Dr Gerhard said: ‘As technological
improvements reduce risk, so does the weakest
link ∈ the system – the human factor – become
more important. This is where the industry
[55] should focus most closely, so that best practice
risk management and a culture of safety becomes
second nature across the world fleet.’
Allianz did, however, note that major accidents
have often been the catalysts for key changes ∈
[60] maritime industry safety. In light of this, Dr
Gerhard said the Costa Concordia disaster earlier
this year was likely to be ‘no different’,
regardless of the outcome of investigations into
the incident itself.
(The Actuary Newsdesk: Nick Mann 27/Mar 2012)
According to Allianz Global Corporate and Speciality, the maritime industry has been facing emerging risks, the odd one out is:
