Posted on May 29, 2025
The global maritime industry has achieved its lowest-ever total of vessel losses, with only 27 large ships lost worldwide in 2024, marking a 20% decrease from the previous year, according to Allianz Commercial’s annual Safety and Shipping Review.
This improvement stands in stark contrast to the 1990s when the industry was losing more than 200 vessels annually.
However, this achievement comes amid an increasingly complex operating environment characterized by geopolitical tensions, vessel detentions, sanctions, and damage to critical sub-sea cables.
Captain Rahul Khanna, Global Head of Marine Risk Consulting at Allianz Commercial, warns that while the industry shows improved resilience, multiple challenges persist: “Cyber-attacks and GPS interferences are increasing. Ceasefires have raised hopes, but the Red Sea security threat and supply chain disruption will likely remain.”
The US-China trade conflict has significantly impacted global maritime commerce, with approximately 18% of global maritime trade now subject to tariffs as of mid-April 2025, a sharp increase from 4% in early March. Adding to these concerns is the growing shadow fleet helping to dodge western sanctions, which now comprises about 17% of the world’s tanker fleet, with nearly 600 tankers involved in trading Russian oil alone.
“Many are likely to be older vessels that are poorly maintained and inadequately insured. An oil spill involving a shadow fleet tanker could result in cleanup costs of up to US$1.6bn, most likely to be paid by taxpayers,” said Justus Heinrich, Global Product Leader, Marine Hull at Allianz Commercial.
Fire incidents remain a significant concern, reaching a decade high in 2024 with 250 reported cases, marking a 20% year-on-year increase. Approximately 30% of these fires occurred on containerships, cargo vessels, or roll-on roll-off vessels. The industry has recorded more than 100 vessel losses due to fires in the past decade.
Regional analysis shows the British Isles experienced the highest number of shipping incidents (799), followed by the East Mediterranean and Black Sea (694). Machinery damage or failure was the primary cause, accounting for over half of all global shipping incidents (1,860).
Despite these challenges, the maritime sector continues to play a crucial role in global trade, with 90% of international commerce transported across oceans. The industry has demonstrated significant progress in safety measures, as evidenced by the 75% decline in total losses over the past decade.
Looking ahead, the sector faces the complex task of balancing traditional safety concerns with emerging challenges. As Captain Khanna notes, “The coming years will be decisive and will determine the path of the sector and global trade.”
