Growing ship age and new risks worry marine insurers

Marine insurers are warning that an ageing global merchant fleet is increasing pressure on claims and underwriting. At a recent four-day annual conference of the International Union of Marine Insurance (IUMI) in Rotterdam, delegates heard that lower demolition levels are pushing up the average age of ships sold for recycling. The average age on vessels’ final voyages is now 22.4 years. Ilias P. Tsakiris of IUMI said the world fleet is also likely to have increased capacity by about 3% this year, compounding risk exposure. Older ships generally need more maintenance, while spare-part shortages can worsen claims. Additional concern includes more port state control, route changes due to navigation risk, ship-to-ship transfers in unpredictable weather, sanctions on the shadow fleet, and rising fires on car carriers and container ships.