Page 14: of Maritime Reporter Magazine (June 2022)

Insurance Update

Cargo Fires:

A Burning Issue for Shipping ommercial insurer Allianz Global Corporate & ysis shows there have been over 70 reported ? res on board

Specialty just released its latest Safety & Shipping container ships alone in the past ? ve years, including inci-

Review, an annual analysis of shipping losses and dents such as the Yantian Express (2019), and the Maersk Ho-

Caccidents worldwide. The 2022 report reveals that nam (2018), which made headlines around the world. More the maritime sector continues its long-term positive safety recently, a ? re broke out on board the large container ship trend over the past year with 54 total losses of vessels reported Zim Kingston in October 2021 after a container of dangerous globally, compared with 65 a year earlier. This represents a goods was damaged in a storm.

57% decline over 10 years (127 in 2012); while during the There have also been many near misses. In 2021, a contain- early 1990s the global ? eet was losing 200+ vessels a year. er of ? ammable products caused a large ? re and explosion at

The 2021 loss total is made more impressive by the fact Dubai’s Jebel Ali port. Protection and indemnity insurer Gard that there are an estimated 130,000 ships in the global ? eet estimates that there was at least one ? re involving container- today, compared with some 80,000 30 years ago. Such prog- ized cargo every two weeks in 2020.

ress re? ects the increased focus on safety measures over time Fires can take hold quickly and spread rapidly, yet container through training and safety programs, improved ship design, ship crews are relatively small in number, while detecting, lo- technology and regulation. cating and accessing a ? re within a stack of containers is time-

However, the industry is not without its challenges. Rus- consuming. Fire-? ghting equipment currently required under sia’s invasion of Ukraine, costly issues involving larger ves- the International Convention for the Safety of Life at Sea sels, crew and port congestion and managing decarbonization (SOLAS) means crew face considerable risks when tackling a targets, means there is no room for complacency. container ? re, and are often unable to do so successfully.

Another growing challenge facing the shipping industry Reducing the risk of ? re on board large container ships will is ? re on large vessels, which remains a key cause of major require a combination of regulatory action and industry initia- losses, requiring urgent action to improve vessel safety. A ? re tives, and there are encouraging signs that these are underway. on board car carrier Felicity Age, beginning in February 2022, Following proposals by insurers, ship owners’ associations led to the vessel sinking in the Atlantic Ocean, along with its and the ? ag states of Germany and Bahamas, the International cargo of 4,000 vehicles. The incident occurred less than one Maritime Organization’s (IMO’s) Maritime Safety Committee year after a ? re led to the sinking of the large container ship agreed last year to amend SOLAS with the aim of enhancing

X-Press Pearl in May 2021 off Sri Lanka. ? re detection and ? ghting capabilities on new container ships.

Catastrophic ? res on large vessels typically begin with Although the review was held up by Covid-19, the amend- combustible cargo, which then spreads rapidly and outpaces ments are expected to enter into force on January 1, 2028.

the ? re? ghting capabilities of the crew. The size and design However, with the regulatory changes some years away, the of large vessels makes ? re detection and ? ghting more chal- emphasis will be on the shipping industry to tackle the issue in lenging than traditional shipping, and once crew are forced the short term. We now have ships that are almost too large for to abandon ship, emergency response and salvage operations the crew to ? ght ? res effectively. There needs to be an urgent become more complex and expensive, and the risk of a major review of ? re detection and ? ghting protections and equip- or total loss increases. ment on board large container ships.

No let-up in container ship ? re frequency Cargo mis-declaration at heart of problem

Fires on board large container ships are a top concern for Addressing a root cause for ? res on board container ships is marine insurers as a growing number of incidents continue key to solving the problem.

to generate large losses. The Safety & Shipping Review anal- A number of blazes at sea in recent years have been traced 14 Maritime Reporter & Engineering News • June 2022

MR #6 (1-17).indd 14 6/6/2022 8:48:34 AM