The Asian maritime region is facing a unique challenge: despite a general decline in maritime losses, the waters surrounding it are witnessing a concerning surge in casualties. According to the Allianz Global Corporate & Specialty's (AGCS) 'Safety & Shipping Review 2020', Asian waters saw a dramatic increase in maritime casualties in 2019, with 14 large ships lost, accounting for over 33% of global losses. This is a stark contrast to the overall decline in losses, which dropped by more than 20% year-on-year and almost 70% over the past decade. The region's robust regulatory frameworks, enhanced training, and technological innovations are credited with this positive trend.
However, the report identifies specific areas of concern. South China, Indochina, Indonesia, and the Philippines are highlighted as primary loss hotspots, with 12 vessels lost in 2019 and a total of 228 vessels lost over the past decade. Japan, South Korea, and North China also experienced significant losses, with two vessels lost in 2019 and 104 vessels lost since 2010. Cargo ships, accounting for more than a third of the total losses, were predominantly found in Southeast Asian waters.
The report further emphasizes the critical issue of foundered ships, which accounted for three-quarters of total losses. Adverse weather conditions triggered about 20% of these incidents. A concerning trend is the rise in safety issues related to ro-ro vessels, with a 20% increase in total losses and smaller incidents. Capt. Rahul Khanna, AGCS's global head of marine risk consulting, stressed the importance of pre-sail checks and accurate cargo information to prevent accidents.
Despite the overall decrease in total losses, the number of shipping incidents rose to 2,815, with machinery damage accounting for over a third of these incidents. Baptiste Ossena, a global product leader in hull insurance at AGCS, warned that while losses have diminished, the rising incident rate indicates underlying risks that could lead to severe future casualties. The report also highlights the urgent need to address mis-declarations, especially as vessels grow in size and the variety of transported goods expands.
Looking ahead, the COVID-19 pandemic poses significant threats to the maritime industry, jeopardizing long-term safety improvements. Economic downturns, pressure on maintenance budgets, and operational uncertainties related to the pandemic could compromise vessel safety measures. As shipowners grapple with rising costs, there is a growing concern over the potential degradation of safety practices. Moreover, cybersecurity concerns are escalating, with a 400% increase in GPS spoofing attacks and reported attempts to infiltrate the maritime sector since the pandemic's onset. These factors emphasize the need for urgent attention to safety protocols and risk management in an evolving maritime landscape.
