Geopolitical conflicts, the US-China tariff war and shadow fleets are among the key dangers facing the global maritime industry, according to an annual Allianz Commercial report. 

The annual safety and shipping review says geopolitical risks could negate the industry’s progress in reducing maritime losses.

Just 27 vessels were lost last year – a record for the industry. In 2023, the global fleet lost 35 ships of more than 100 gross tons.

The review says during the 1990s, the industry was losing 200-plus vessels a year.  

“Despite the ongoing trend for fewer large losses, challenges remain … geopolitical tensions now pose a substantial threat that could offset these gains.

“The industry faces a complex environment marked by attacks on shipping, vessel detentions, sanctions and damages to infrastructure such as critical subsea cables, while reports of vessels experiencing GPS interference and jamming are increasing.

“Insurers have seen a clear increase in large claims related to conflicts, notably from the war in Ukraine and Middle East tension.”

Allianz says it has seen a “clear increase in war risk claims in recent years and has settled several total losses for vessels under war risks cover related to Ukraine, mostly for vessels trapped in Ukrainian ports and waters”.

Protectionist measures such as US tariffs are adding to the pressure facing the maritime industry. 

“China has been by far the biggest target of the US administration under President Donald Trump ... While the future of US trade-focused policies remains uncertain, any further severe restrictions on trade could have several potential consequences including exerting stress on, and disrupting, supply chains, applying pressure to trade routes, as well as adding to accumulations on vessels or in ports.”

The report also notes shadow fleets – old, poorly maintained oil tankers – have “expanded rapidly, posing significant maritime safety and environmental risks, with a number of fire, engine failure, collision and grounding incidents”.

Click here for the report.