Monday, June 5, 2023
HomeHeadlinesShip insurance claims to rise as Black Sea remains high risk area...

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Ship insurance claims to rise as Black Sea remains high risk area – Allianz

Global insurers are expected to receive multiple marine insurance claims from ships damaged or lost as the conflict in Ukraine spills over into sea lanes, insurer Allianz (ETR:ALVG) Global Corporate & Specialty (AGCS) said in a report on Tuesday.

Two seafarers have been killed and six merchant vessels hit by projectiles – sinking two of them – around Ukraine’s coast since the start of Russia’s invasion of its neighbour on Feb. 24.

London marine insurers have deemed the Black Sea and Sea of Azov high risk areas, pushing the cost of insuring ships in the region to record levels with an additional premium added to annual war cover for every voyage.

In its annual Safety & Shipping Review, Allianz group’s leading subsidiary AGCS said insurers could also face claims arising from vessels and cargo blocked or trapped in Ukrainian ports and coastal waters as Russia’s navy controls access points.

“The insurance industry is likely to see a number of claims under specialist war policies from vessels damaged or lost to sea mines, rocket attacks and bombings in conflict zones,” said Justus Heinrich with AGCS.

Moscow has called its action in Ukraine a “special operation” and its efforts to create a maritime corridor have been rebuffed with calls for a U.N.-led channel to allow dozens of ships and hundreds of seafarers to leave the area without risk of being hit.

In a separate report last month, risk modelling company PCS said industry-wide insured marine losses from the conflict could range from $3-6 billion, with $5 billion a working estimate.

An expanded ban on Russian oil under sanctions imposed on Moscow could raise the cost and availability of bunker fuel, AGCS said.

“Longer term, we may see a shortage of bunker fuel with more and more vessels having to turn to non-compliant or substandard fuels, which could result in machinery breakdown claims in the future,” AGCS’ Heinrich said.

The study, which analysed reported shipping losses and casualties for vessels over 100 gross tons, said 54 ships were lost globally in 2021, compared with 65 a year earlier and represented a 57% decline over the past 10 years.

“Such progress reflects the increased focus on safety measures over time through training and safety programs, improved ship design, technology and regulation,” AGCS said.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

CMA CGM Profit Eases as Container Transport Demand Wanes

CMA CGM expects its profit to ease further for the rest of the year after a first-quarter decline, as an uncertain economy and influx...

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Baltic index hits over 3-month low amid lower coal imports

The Baltic exchange’s main sea freight index extended losses for the 15th session straight...

Baltic index falls for the month as vessel demand wanes

The Baltic exchange’s main sea freight index recorded its first monthly decline in four...

North Korea missile tests endanger shipping, UN maritime agency told

North Korean missile tests are endangering the safety of commercial shipping in busy sea...

Singapore Clamps Down on Tankers as Dark Fleet Grows

Singapore’s detentions of oil and chemicals tankers have surged since early last year, highlighting...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...