By Jeph Ajobaju, Chief Copy Editor
More than 95 per cent of global sea piracy in 2020 occurred on the Gulf of Guinea, says Allianz Global Corporate & Specialty SE’s (AGCS) in its Safety & Shipping Review 2021.
The report of the insurance giant shows that the span of the Atlantic Ocean from Sao Tome and Principe in West Africa to Brazil and the Guianas in South America had the highest crew numbers kidnapped last year.
The review, reported by The Nation, confirmed that 49 large ships got lost worldwide last year with total losses down 50 per cent over 10 years while the number of shipping incidents stood at 2,703, declining year-on-year.
The industry was resilient through the pandemic, but crew change crisis has long term consequences, according to Allianz Global.
It noted that COVID-19 delays and a surge in demand for shipping increased the cost of insurance claims and inadequate ship maintenance could bring future claims.
“Suez Canal incident shows ever-increasing vessel sizes continue to pose a disproportionately large risk with costly groundings and salvage operations. High number of fires and containers lost at sea.
“The world’s piracy hotspot, the Gulf of Guinea, accounted for over 95 per cent of crew numbers kidnapped worldwide in 2020,” the review said.
“The international shipping industry continued its long-term positive safety trend over the past year but has to master COVID-19 challenges, apply the learnings from the Ever-Given Suez Canal incident and prepare for cyber and climate change challenges ahead.
“The shipping sector total losses are at historic low levels for the third year running. However, it is not all smooth sailing.
“The ongoing crew crisis, the increasing number of issues posed by larger vessels, growing concerns around supply chain delays and disruptions, as well as complying with environmental targets, bring significant risk management challenges for ship owners and their crews.
Global ship loss hot spot
“South China, Indochina, Indonesia and Philippines maritime region remains the global loss hot spot, accounting for one in every three losses in 2020 (16) with incidents up year-on-year.
“Cargo ships (18) account for more than a third of vessels lost in the past year and 40 per cent of total losses over the past decade. Foundered (sunk/submerged) was the main cause of total losses over the past year, accounting for one in two vessels.
“Machinery damage/failure was the top cause of shipping incidents globally, accounting for 40 per cent.”
The report said the blocking of the Suez Canal by the Ever-Given container ship in March 2021 was the latest in a growing list of incidents involving large vessels or mega-ships.