Though global vessel losses reached a record low by the end of 2024, marine risk experts are raising concerns over the potential impacts from rising geopolitical tensions on the maritime sector, according to the Allianz Commercial "
Allianz's data analysis reveals that in the 1990s, global fleets saw over 200 vessel losses a year, but total losses were halved by a decade ago at nearly a 75% decline. There were a total of only 27 losses in 2024, an all-time low for global fleet losses, a significant decrease as 90% of international trade is transported across oceans.
"The welcome trend for fewer large losses continues. However, although shipowners are trying to operate vessels safely within an ever-changing and dynamic regulatory framework this is becoming more difficult due to the impacts of regional wars, supply chain disruption, hijackings, ship detentions, sanctions and changes to trade tariffs, all of which are happening at the same time as they are having to plan for a decarbonized future," said Rich Soja, global head of marine at Allianz Commercial, in the review. "There is little doubt that the relevance of political risk and conflict as a potential cause of maritime loss is increasing with heightened geopolitical tensions."
The shifting regulatory nature of vessel safety, the energy transition towards decarbonization, sanctions and tariffs remain challenges for shipowners, and rising political conflicts pose a significant risk to further maritime loss. According to the Allianz review, war risk claims have risen in recent years. The insurer has settled several total losses for vessels under war risks cover that were in Ukrainian ports and waters, for example, and one of the largest claims was a ship detention of a vessel linked to Israel, detained by Iranian authorities.
Geopolitical risks against shipping listed in the review include vessel attacks, detentions and sanctions, as well as deliberate damage to subsea cables and GPS interference. This also includes tariffs, which threaten the supply chain and international trade.
The following chart uses data from Lloyd's List Intelligence casualty statistics, analyzed by Allianz and published in the report. It reveals the total number of yearly global vessel losses between 2015 and 2024. Allianz experts say escalating geopolitical tensions may offset the almost 75% drop in total losses we've seen in 2024.
The data set includes the following 10 regions identified for analysis in the review: British Isles, North Sea, English Channel and Bay of Biscay; East Mediterranean and Black Sea; South China, Indochina and Philippines; Iceland and Northern Norway; Australasia; Bay of Bengal; South Atlantic and East Coast of South America; Arabian Gulf and approaches; East African Coast; Gulf of Mexico; and "other."
