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This crazy shipping crisis explained1/15/2024 Fires in EVs with Li-ion batteries are difficult to extinguish and capable of spontaneously reigniting. The main causes of Li-ion fires are substandard manufacturing or damaged battery cells or devices, over-charging and short-circuiting. One of the main hazards of Li-ion batteries is ‘thermal runaway’, a rapid self-heating fire that can cause an explosion. This battery market is expected to grow by over 30% annually over the next decade. Potentially highly flammable lithium-ion (Li-ion) batteries pose a growing risk for container shipping and car carriers. Decarbonization is leading to new types of cargo being transported on vessels, such as electric vehicles (EVs) and battery-powered goods. Several factors are increasing the risk of fires at sea and on land. There were over 200 fires reported during 2022 (209) – the highest number for a decade, making this the third top cause of incidents globally, up 17% year-on-year. ![]() Machinery damage or failure accounted for close to half of all incidents globally (1,478). The British Isles saw the highest number (679). While total losses declined over the past year, the number of shipping casualties or incidents reported remained consistent (3,032 in 2022 compared to 3,000 in 2021). Fire/explosion ranked as the second top cause of loss (8). Foundered (sunk/submerged) was the main cause of total loss across all vessel types (20), accounting for over 50%. Around a quarter of vessels lost in 2022 were cargo (10). The Arabian Gulf, British Isles and West Mediterranean waters were the second top loss locations (3). It accounted for one-in-five losses in 2022 (10) driven by factors including high levels of trade, congested ports, older fleets and extreme weather. South China, Indochina, Indonesia, and the Philippines maritime region is the global loss hotspot, both over the past year and decade (204 total losses). Thirty years ago, the global fleet was losing 200+ vessels a year.Īccording to the report, there have been more than 800 total losses over the past decade (807). This represents a 65% decline in annual losses over 10 years (109 in 2013). During 2022, 38 total losses of vessels were reported globally, compared with 59 a year earlier. Economic pressures could put vital investments in companies’ strategies, as well as in other safety initiatives, in jeopardy.”Įvery year AGCS analyzes reported shipping losses and casualties (incidents) involving ships over 100 gross tons. Meanwhile, although the industry’s decarbonization efforts are progressing, this remains by far the sector’s biggest challenge. Inflation is pushing up the cost of hull, machinery and cargo claims. Fire safety and the problem of mis-declaration of hazardous cargo must be fixed if the industry is to benefit from the efficiency of ever- larger vessels. More than a year after Russia’s invasion of Ukraine, the growth of the shadow oil tanker fleet is the latest consequence to challenge shipowners, their crew and insurers. “While these results are gratifying, several clouds appear on the horizon. “Shipping losses have sunk to the lowest number we have seen in the 12-year history of our annual study reflecting the positive impact safety programs, trainings, changes in ship design and regulation have had over time,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS. However, a combination of factors impacting fire risk, ongoing and new threats posed by the ripple effects of the Ukraine conflict, decarbonization challenges, economic uncertainty, as well as the rising cost of marine claims, means the sector still has plenty of obstacles to navigate over the next 12 months and beyond, according to insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2023. Improvements have been significant over the past decade, culminating in the sector reporting a record low number of large ships lost over the past year. Shipping transports around 90% of world trade onboard different vessels so maritime safety is critical.
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