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.
Global Shipping Losses By Number Of Vessels, 2011-2020 (1)
| Year | Losses |
|---|---|
| 2011 | 98 |
| 2012 | 128 |
| 2013 | 111 |
| 2014 | 90 |
| 2015 | 105 |
| 2016 | 99 |
| 2017 | 95 |
| 2018 | 53 |
| 2019 | 48 |
| 2020 | 49 |
(1) Total losses, vessels over 100 gross tons.
Source: Lloyd’s List Intelligence Casualty Statistics; Safety and Shipping Review 2021, Allianz Global Corporate & Specialty. Copyright © 2021.
Global Shipping Losses By Number Of Vessels By Region, 2011-2020 (1)
| Region | 2011-2020 | 2020 |
|---|---|---|
| S. China, Indochina, Indonesia and Philippines | 224 | 16 |
| East Mediterranean and Black Sea | 126 | 7 |
| Japan, Korea and N. China | 87 | 2 |
| British Isles, N. Sea, Eng. Channel and Bay ofBiscay | 62 | 3 |
| Arabian Gulf and approaches | 42 | 4 |
| West African Coast | 37 | 3 |
| West Mediterranean | 34 | NA |
| East African Coast | 27 | 1 |
| Bay of Bengal | 24 | NA |
| Russian Arctic and Bering Sea | 23 | 3 |
| All other regions | 190 | 10 |
| Total world | 876 | 49 |
(1) Total losses, vessels over 100 gross tons.
Source: Lloyd’s List Intelligence Casualty Statistics; Safety and Shipping Review 2021, Allianz Global Corporate & Specialty. Copyright © 2021.
As a seasoned maritime expert with a deep understanding of the global shipping industry, I've closely followed events like the Ever Given incident in the Suez Canal and have an extensive knowledge base that allows me to provide valuable insights into the complexities of maritime operations and risks.
The Ever Given incident on March 23, 2021, was a watershed moment in maritime history, involving one of the largest container ships globally, operated by the Evergreen Marine Corporation. With a capacity exceeding 18,000 containers, the vessel's six-day blockage in the Suez Canal resulted in significant disruptions and financial losses. The Suez Canal Authority, recognizing the impact, impounded the ship and sought approximately $600 million in damages. The situation was resolved in July 2021 following a compensation deal.
The aftermath of this incident is emblematic of the broader challenges faced by the shipping industry. Lloyd's list estimated a daily toll of $9.6 billion during the blockage, emphasizing the economic ramifications. Notably, the Allianz Safety & Shipping Review 2021 revealed that while annual shipping losses have decreased over the past decade, 2020 marked the first year without a decrease, possibly indicating a stabilization of losses at current levels.
Several factors contribute to these challenges, as highlighted by Allianz. The increased use of large vessels, exemplified by the Ever Given, necessitates specialized port facilities and salvage equipment. Disruptive weather conditions lead to delays and container losses, while political risks, security issues such as piracy, cyber risks, and environmental concerns further compound the industry's complexities.
The report also sheds light on regional variations in shipping losses. The South China, Indochina, Indonesia, and Philippines region accounted for the highest number of losses in 2020, maintaining a decade-long trend. The East Mediterranean and Black Sea region ranked second, illustrating the geographical concentration of risks.
In conclusion, the global shipping industry faces multifaceted challenges, from operational complexities to geopolitical and environmental risks. The Ever Given incident serves as a stark reminder of the industry's vulnerability, prompting a reevaluation of safety measures and risk mitigation strategies. As we move forward, continuous monitoring and proactive measures will be crucial for ensuring the resilience and sustainability of maritime operations.
