Facts + Statistics: Marine Accidents

On March 23, 2021 the Ever Given container ship, one of the world’s largest container ships, holding over 18,000 containers and operated by the Evergreen Marine Corporation, became stuck in the Suez Canal, causing a six-day blockage and delays to hundreds of vessels. The Suez Canal Authority impounded the ship after it was freed and sought about $600 million in damages, caused by blocking the canal. The ship left the canal following the completion of a compensation deal in July, 2021. While the final total of losses from the blockage have not yet been tallied, data from Lloyd’s list pegged the daily toll from the blockage at $9.6 billion a day.

There were 49 large ships totally lost in 2020, basically unchanged from 48 in 2019, according to latest data from Allianz. Safety & Shipping Review 2021 reports that annual shipping losses are now half of the total recorded ten years ago. However, 2020 was the first year in the last five that shipping losses have not fallen from year ago, possibly signaling that losses are stabilizing around this level. Allianz noted the economic effect of COVID-19 was less than first expected as global sea trade volume fell by only 3.6 percent. In 2021, the surges in demand for goods created pandemic-related delays at ports and shipping capacity problems have resulted in congestion and a shortage of containers. Other risk challenges noted by Allianz include increased use of large vessels such as the Ever Given, which require specialized port facilities and salvage equipment; delays due to disruptive weather, which also causes container losses; political risk such as trade disputes; security issues such as piracy; cyber risks; and environmental concerns surrounding the emissions limits beginning in 2020, for example, and the increase of shipping in Arctic waters.

The region encompassing South China, Indochina, Indonesia and the Philippines had the largest number of shipping losses in 2020 with a total of 16, or almost one-third of the 49 losses for 2020. The region has ranked first in shipping losses over the past decade. The East Mediterranean and Black Sea region ranked second for shipping losses in 2020 with seven losses accounting for 14 percent of the year’s losses. It also ranked second for losses over the past decade.