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Maritime Risk & Shipping Finance

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where quality standards can be an issue. Meanwhile, the total loss of two bulk carriers in 2013 – Harita Bauxite and Trans

Summer – highlights the importance of proper cargo handling and stowage.

Size Matters: An increasingly diffi cult operating climate for ship operators has resulted in larger ship sizes to capitalize on economies of scale and the use of alternative fuels. Last year marked the arrival of the largest container vessel ever, over 400 meters long with capacity in excess of 18,000 teu.

Such scenarios present new risks and challenges, particularly around crew safety and training. As much as 80% of marine casualties are due to human error and lack of skilled work- force is still an issue. The claims arising out of maritime emer- gencies of “mega ships” can be huge, especially if an accident was to block entrance to a port.

Arctic waters: and data shows the average number of ship- ping casualties has increased to 45 per year between 2009 and 2013 from only seven during 2002-2007. Damage to machin- ery caused a third of these incidents, refl ecting the harsher operating environment. A tenfold increase in the number of vessels using the Northern Sea route during recent years has been recorded.

Piracy: Piracy attacks declined by over 10% during 2013, but some hotspots saw their share increase. Indonesia has seen a 700 percent increase in attacks since 2009 and differences in piracy models continue to create challenges.

Domestic Pollution: With the 25th anniversary of the Exxon

Valdez oil spill come and gone, oil pollution prevention is still a signifi cant concern in the U.S. New regulations requiring own- ers of vessels over 400 gross tons to submit an oil spill response plan to the U.S. Coast Guard have been passed. Use of liquefi ed natural gas to power ships is expected to dramatically increase by 2020. There are safety concerns as ports that have never pre- viously handled LNG providing bunkering will start to do so.

The full Safety and Shipping Review 2014 can be seen at: http://www.agcs.allianz.com/assets/PDFs/Reports/

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Maritime Logistics Professional magazine is published six times annually.