Ocean Marine Shipping Shows Increased Capacity, Decreased Loss
Allianz Global Corporate & Specialty has released its 2018 Safety and Shipping Review, which looks at trends and developments in ocean marine cargo transportation. Over the last 50 years, shipping capacity has increased by almost 1,500% due to larger vessels. However, even with an increase in the cargo being transported, total shipping losses have decreased by 38% since 2008.
Among changing arctic conditions, Hurricanes Harvey, Irma, and Maria had a large impact in 2017. Many ports in the Houston and Miami areas were closed, in addition to increased sea levels and flooding at the coast, causing cargo shipments to be delayed.
The review also notes that new technologies, such as the use of drones to survey ship damage, have increased in the shipping sector. Additionally, shipping companies are increasing their cybersecurity operations after major attacks caused disruption and loss last year.
In the surplus lines industry, SLTX recorded $36.4 million in ocean marine coverages in 2017, with $25.8 million recorded in 2018 through August. These coverage types include transporting cargo, the physical ship, and liability. As the review states, capacity has increased significantly over the years and ocean marine shipping operators have continued to turn to the specialty market for coverage.