Asia Pacific remains top shipping loss region

Asia Pacific waters remain top shipping loss region, led by South China, Indochina, Indonesia and Philippines. According to the latest research by Allianz.

The Allianz Global Corporate & Specialty SE’s Safety & Shipping Review 2019 annual study analyses reported shipping losses over 100 gross tons (GT).

In 2018, 21 total losses of vessels were reported in Asia Pacific, down from 46 losses in the 12 months earlier, driven by a significant decline in activity in the global loss hotspot, South East Asia, and weather-related losses after quieter hurricane and typhoon seasons.

While this plummet in total losses is encouraging, the number of reported shipping incidents overall in Asia actually increased by 22 per cent in the past four years, according to analysis of data from 4,000 insured vessels by AGCS[1].

However, this is more due to the sheer volume of ships that pass through the region, rather than below-par safety standards.

“We do typically see more incidents of groundings and collisions in Asia than other locations around the world, but this generally reflects the higher levels of trade and where ship owners are trading,” Tom Taberner, Regional Head of Energy & Marine Asia Pacific at AGCS said.

“In many cases port infrastructure in Asia is new and there are many new or expanding ports in China, Korea, Japan and Malaysia etc. Newer infrastructure means fewer issues, better port operations and more up-to-date charts, which will address challenges,” Tom continued.