Pirates and conflicts endanger marine transportation, according to Allianz.
Recently, there was a significant decrease in the number of ships that sank globally. In 2023, only 26 larger vessels experienced this unfortunate fate, which was considerably less than in the previous year. In fact, comparing it to the last ten years, the drop was over 70%. This information was shared by Allianz, a leading industrial insurer, in their latest report about shipping risks.
While this change is undoubtedly positive, we mustn't forget about other threats to shipping. For instance, piracy has made a slight comeback. In 2023, Allianz observed 120 piracy attacks worldwide, five more than in 2022. Interestingly, the top two regions prone to this danger are the Gulf of Guinea on the coast of West Africa and the Strait of Singapore in Southeast Asia. However, the report expressed concerns over a potential increase in piracy in the Horn of Africa. In December 2023, the first pirate attack in this area happened since 2017. Since then, there have been several more incidents.
The experts at Allianz Commercial attribute the resurgence of piracy in the Horn of Africa to potential inspiration from Islamist Houthi militia attacks on merchant ships in the Red Sea, triggered by the Gaza and Ukraine conflicts. These conflicts have an indirect impact on maritime security.
For example, there's an "international shadow fleet" of around 600-1,400 oil tankers that export Russian oil. These ships have been involved in 50 incidents so far, including fires, collisions, and oil spills. The ships are often older, poorly maintained, and operate outside international regulations, which poses both environmental and safety risks. Justus Heinrich, the Head of Marine Insurance in Germany and Switzerland at Allianz Commercial, stated this matter. He's part of the subsidiary responsible for serving industrial and corporate customers. Allianz Commercial, a division of the DAX-listed group in Munich.
Read also:
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
- The chemical industry has little confidence
- Intersport boss hopes for sales boom through sporting events
- Despite the decrease in shipwrecks, the increase in piracy incidents denotes that wars and conflicts continue to pose significant risks to maritime shipping, as highlighted by Allianz in their latest report.
- The redirection of shipping routes due to conflicts in the Red Sea, such as the Gaza and Ukraine conflicts, has led to an increase in piracy activities in the Horn of Africa, according to Justus Heinrich, the Head of Marine Insurance at Allianz Commercial.
- Shipping companies should consider insuring their vessels against potential piracy attacks, shipwrecks, and other shipping-related risks, as these incidents can lead to significant financial losses, as Allianz, a leading industrial insurer, underlines in their shipping risks report.
Source: www.ntv.de
