US EditionGeopolitical Tensions Lead to Increasing Risks for Shipping Sector Globally
- Allianz Commercial reported on May 27, 2025, that the shipping industry lost only 27 large vessels worldwide in 2024, its lowest-ever total and down over 20% from 2023.
- This improved safety follows long-term reductions from 200+ vessel losses in the 1990s but faces rising challenges from geopolitical tensions, a growing shadow fleet, and US-China trade conflicts.
- The primary causes of vessel losses continue to be traditional incidents like onboard fires, impacts between ships, and vessels running aground, while emerging challenges such as cyber threats, GPS disruptions, expensive detours around the Cape of Good Hope, and risks linked to aging ships contribute additional complexity.
- Captain Rahul Khanna noted that while the industry has improved its management of conventional risks, attention is increasingly shifting toward geopolitical challenges. Additionally, Justus Heinrich highlighted that an oil spill from a shadow fleet tanker could result in cleanup expenses reaching up to US$1.6 billion.
- Although progress has been made in managing traditional risks and enhancing resilience, ongoing uncertainties and various emerging threats suggest that the near future will play a critical role in shaping the safety of global trade and shipping.
20 Articles
20 Articles
Dry bulk: The drifters
As the world waits for a US-China trade deal, it would appear that dry bulk trade is largely flatlining. The Baltic Dry Index looks like repeating last year’s performance of being the least volatile year since 1999. FFA traders have been complaining of a lack of volatility in the forward curve. They report a fear of enough oversupply to cap earnings but not enough to force earnings down to a level where owners begin to consider accelerating demo…
Fewer large losses reported in safety and shipping review
David Sexton A trend towards fewer shipping losses continued during 2024, the latest Safety and Shipping Review has revealed. Prepared by insurers Allianz Commercial, the review noted that losses of 27 vessels during 2024 was a stark contrast with the 1990s when the figure was closer to 200. The latest figure is in comparison with 35 in 2023 (of vessels with more than 100 gross tonnage), down by around 20%, with a 75% decline in total losses dur…
Allianz Commercial: Tariffs add to shipping risk uncertainties
The fast-changing geopolitical landscape is creating new risks and challenges for a shipping industry already juggling the energy transition and the legacy of the Covid-19 pandemic, according to insurer Allianz Commercial’s latest Safety and Shipping Review. The industry faces an increasingly volatile and complex operating environment, marked by attacks against shipping, vessel detentions, sanctions, as well as the fall-out from incidents involv…
US-China Trade Tensions and Shadow Fleet Pose Growing Risks to Maritime Industry, Allianz Reports
Despite reaching record-low vessel losses in 2024, the maritime industry faces mounting challenges from geopolitical tensions and an expanding shadow fleet, according to Allianz Commercial’s latest Safety and Shipping Review....
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