Maritime Lawyers New Orleans releases its annual safety and shipping review focusing on changing trends and current developments in shipping losses and safety.
With more than 50 years of collective experience handling difficult admiralty and maritime matters, Maritime Lawyers New Orleans has a team of experienced lawyers that represent vessel interests (blue and brown water), marine terminal operators, stevedores, marine construction firms, shipbuilding and repair companies, marinas, and other parties in maritime cases in state and federal courts in New Orleans.This review identifies loss trends and highlights on safety and technology-related advance ments for the maritime sector.
“For over 30 years, businesses and individuals throughout the maritime community have relied upon our firm to deliver the highest quality legal services,” says company CEO Clyde M.
Shipping losses has dropped by almost a quarter year-on-year from fifty- three back in 2018, even if late reported losses may raise the 2019 total further in future. Changes in climate and bad weather was seen as one of the factors in 1 in 5 losses, according to available data. Consistent with Allianz Global Corporate & Specialty SE’s (AGCS) safety and shipping review for 2019, the loss year for 2019 signifies a huge improvement on the rolling ten year average of 95 – down by more than 50%.
“Today’s record low of total loss activity is certainly influenced by fortunate circumstances in 2019, but it also underlines the culmination of the long-term improvement of safety within the global shipping industry,” Baptiste Ossena, Global Product Leader Hull & Marine Liabilities, AGCS said.
“Improved and repaired ship design, technology, tighter regulation and more robust and reliable safety management systems on vessels have also helped to stop breakdowns and accidents from turning into major losses. However, the shortage of an overall fall in shipping incidents, brings along with it a heightened political risks to vessel security, complying with 2020 emissions rules and therefore the growing number of fires on board bring challenges,” he added.
While this huge drop in total losses is reassuring, the number of reported shipping incidents on the whole (approximately 2,698 in 2019) demon stratess light decline – but one percent year-on-year. Currently, machinery damage is considered as the major cause, accounting for about a third of the more than 26,000 incidents over the past decade.
Considering this volume, this is about twice as many given that collision is the next highest cause. Various damages in machinery is one among the most expensive reasons for marine insurance claims and this accounts for US $1bn+ in 5 years.
Also worth noting that some of the worst accident locations and customary causes of loss included South China, Indochina, Indonesia and the Philippines. This maritime regions have remained as the highest loss location. Data records in 2018 showed that one in four incidents occurred here even though this is significantly down from 29 a year earlier.
Regardless of showing signs of improvement and progress, Asia will continue to be a hotspot for marine claims due to various factors that include busy shipping routes, older fleets, and high level of trade among others.On the other hand, recent development in infrastructure along with better port operations and more modern navigation tools will definitely help in dealing with these challenges.
Also, fires and other similar incidents still generate large losses on board with the amount of reported incidents (up to 174 reports) trending upwards. Misdeclaration of cargo, including improper labelling and packaging of hazardous goods is thought to be behind some of these fire incidents.